The co-working business model — which propelled co-working giant WeWork to a $16.9 billion valuation last month — may be changing tack.
WeWork has carved out a niche for itself by signing long term-term leases for office space that it then refurbishes, divides and rents out at higher rates. Now investment dollars are flowing to a different kind of co-working business model, according to the Wall Street Journal. Increasingly, WeWork rivals are operating like hotel chains, where landlords pay them a fee and keep most of profits.