Charles Esther
WeWork CEO John Santora shared insights on how economic uncertainty, particularly around tariffs, has actually benefitted the company.
While many businesses are preparing for the negative impacts of tariffs, WeWork has found that the uncertainty around them has attracted more business.
Santora mentioned that this uncertainty makes long-term lease commitments less appealing for companies, thereby creating an opportunity for WeWork’s flexible workspace solutions.
The Challenge of Committing to Long-Term Leases During Economic Uncertainty
Santora pointed out that with all the uncertainty surrounding tariffs, it is difficult for companies to commit to long-term leases.
He questioned, “Who’s prepared to commit to a 10- or 15-year lease with $50 or $100 million spend?”
With tariffs creating unpredictability, businesses are hesitant to make significant long-term investments.
In this context, many companies are looking for alternatives that provide flexibility, something WeWork can offer.
How WeWork Is Helping Businesses Navigate Economic Uncertainty
Santora explained that the uncertainty surrounding tariffs has led many companies to seek flexible office spaces.
He revealed that businesses are increasingly extending their contracts with WeWork or reaching out for the first time, asking for short-term solutions.
“We’re seeing companies that are in our spaces today extend, and companies that haven’t been in our spaces before talking to us about ‘Can you fill the short-term gap for us?'” Santora shared.
WeWork has successfully positioned itself as a solution for businesses looking for flexibility in a time of uncertainty.
The Role of WeWork in the Return-to-Office Mandate
In addition to tariff uncertainty, WeWork’s flexibility could also benefit from the ongoing return-to-office mandates.
Santora mentioned that the future of office attendance is still uncertain, with companies unsure about how often employees will return to the office.
“We don’t know whether it’s going to be three days a week, four days a week, or five days a week,” Santora said.
With such uncertainty, businesses are more inclined to look for short-term office solutions, something WeWork can offer to meet their needs.
A History of Challenges for WeWork
WeWork has had a challenging history, particularly after the departure of founder and former CEO Adam Neumann in 2019.
Neumann’s exit followed a failed IPO, which raised concerns about WeWork’s business model, valuation, and governance.
In 2021, WeWork went public through a SPAC and filed for Chapter 11 bankruptcy in 2023.
Despite these setbacks, Santora remains confident that WeWork is positioned to take advantage of the current economic environment.
Looking Ahead: WeWork’s Path Forward
Santora concluded that despite the challenges, the uncertainty around tariffs presents an opportunity for WeWork.
As businesses pause long-term investments, WeWork’s flexible space offerings have become even more attractive.
WeWork is poised to continue serving businesses seeking short-term solutions and flexibility in a turbulent economic climate.
