Wework: The ‘Hypothetical’ Company at the Heart of the Property Market

WeWork founder Adam Neumann’s business approach and model for the multi-billion dollar co-working company has transformed the real estate sector.  While some regard the operation of combining long-term leases on office buildings with shorter-term client contracts as risky, Dr. Andrea Chegut addresses its powerful, long-term potential and the role that technology plays in it: “Real estate always had a subscription model: it was a rent contract. WeWork just changed the time period of the subscription and gave you a really easy way to access this.  They allowed you to click to buy.”  To justify its valuation WeWork will need to show profitability, which – despite racking up a significant deficit up to this point – has an opportunity for growth on an Amazonian scale.