WeWork has been at the center of the flexible workspace revolution. Once seen as a unicorn promising to redefine the way people work, its rise and fall offer key lessons for startups, investors, and professionals looking to understand modern office culture. In this article, we’ll explore WeWork’s journey, what went wrong, and what might be next for this iconic brand.
Founded in 2010, WeWork quickly grew from a single coworking hub in New York to a global network of shared offices. Entrepreneurs, freelancers, and even large corporations were drawn to its spaces. WeWork capitalized on the growing demand for flexible work environments, offering beautifully designed offices, amenities, and a strong community focus. At its peak, the brand was valued at nearly $47 billion, attracting attention from venture capitalists and real estate experts alike.
Despite rapid growth, WeWork’s business model had serious flaws. The company signed long-term leases but offered short-term rentals, creating risks when market conditions shifted. Leadership decisions and controversial spending also contributed to mounting losses. The failed 2019 IPO, combined with internal issues and investor concerns about profitability, resulted in a leadership shake-up. Adam Neumann, the visionary co-founder, stepped down amid growing pressure.
After his tumultuous exit from WeWork, Adam Neumann launched a new real estate project called Flow. According to Curbed’s deep dive on Flow, Neumann uses many lessons from his WeWork experience. Flow focuses on owning—and managing—rental properties, instead of just subleasing office space. The business claims to offer flexible leases, furnished units, and a renewed sense of community for residents. While Flow has raised significant capital and gets attention for its ambitious branding, it faces scrutiny over its actual innovations and long-term prospects. If you’re curious about how Neumann is flipping the script post-WeWork, read more about Flow’s strategy and valuation.
WeWork’s story is full of insights for anyone in business or real estate. Firstly, rapid scaling without solid financial fundamentals can expose a startup to major risks. Secondly, visionary leadership can be a double-edged sword: it brings energy and investment, but unchecked ambition can lead to drastic mistakes. Finally, the demand for flexible, community-focused workspaces remains strong, even if WeWork itself stumbled.
Even after filing for bankruptcy protection, WeWork's brand and core business model still hold value. Companies and individuals continue to seek out flexible working solutions. With hybrid and remote work becoming the norm, the market for coworking spaces is likely to rebound and evolve. While WeWork may no longer dominate the headlines as it once did, its influence on office culture and commercial real estate will linger for years to come.
WeWork’s journey is a reminder of high ambitions, rapid growth, and the importance of business fundamentals. Entrepreneurs should learn from both the successes and setbacks of its story. As the flexible workspace industry adapts, many eyes will follow what comes next—for both WeWork and visionaries like Adam Neumann. To dive even deeper into how Neumann is leveraging his experiences, check out Curbed’s in-depth coverage of Flow and its unique approach.