At its peak, WeWork was valued near $50 billion, leasing over 50 million square feet worldwide. The plan was simple: sign long-term leases on prime office space, then rent it out flexibly to startups and big companies alike.

But the pandemic hit hard. By 2023, WeWork was buried under $13 billion in lease obligations as Manhattan’s office vacancy soared past 21%. Bankruptcy followed, and the company slashed its footprint by more than a third.

Fast forward to 2025: WeWork is smaller but sharper—focused on Class A buildings where the lionshare of new leases are being signed. The hybrid work model endures, and tenants are trading downsize for quality.

The question now: can WeWork survive and thrive in this new era? Their next moves will reveal a lot about the future of office space.

Read on, you’ll learn:

• How WeWork’s aggressive growth led to a $13 billion lease burden and bankruptcy
• Why over 60% of Manhattan’s Q1 2025 office leases are in top-tier Class A buildings
• How the hybrid work model is reshaping tenant priorities toward quality over quantity
• What tenants can learn from WeWork’s shift to survive and thrive in today’s market

From Unicorn to Unraveling: A Business Model Built for Another Era

WeWork’s business model was always aggressive: sign long-term leases on premium office space, redesign them as hip shared office spaces, and sublease to freelancers, entrepreneurs, and later, large corporations seeking agility. In theory, it was a savvy arbitrage play. In practice, it was a cash burn—especially when interest rates rose and the market turned.

Under Adam Neumann’s leadership, WeWork chased global scale with breakneck speed, becoming the largest private occupier of office space in New York and San Francisco, even taking a swing at a planned IPO as the We Company. But massive overhead, lavish spending, and a lack of operational discipline— free beer, overbuilt conference rooms, and chaotic community culture—led to an epic fall.

By the time WeWork stock collapsed and private equity firms started circling, the company had become synonymous with an office sector in crisis.

As vacancy rates soared and landlords scrambled for solutions, WeWork stood exposed: locked into inflexible long-term lease liabilities while trying to serve a customer base that suddenly wanted the opposite—short-term commitments, optionality, and zero friction.

The irony? The flexible future WeWork had been selling finally arrived. But the company wasn’t in shape to meet it.

By late 2023, WeWork was suffocating under the weight of its own lease obligations—over $13 billion in long-term liabilities across global markets that no longer supported 2019-level optimism.

WeWork filed for Chapter 11 bankruptcy. It was a full-blown restructuring of one of the most visible players in the modern office revolution.

The company abruptly vacated scores of WeWork locations, blindsiding landlords who had once seen them as high-occupancy anchors. And Wework became the poster child a post-pandemic office environment where tenants were exiting leases.

The pain was especially acute in secondary and tertiary markets, where demand was already thinning. Suddenly, buildings that were 90% leased saw their occupancy drop overnight. Entire floors were left empty. In some cases, landlords were left holding the bag for tenant improvement allowances, common area upgrades, and capital improvements made to accommodate a tenant that no longer existed.

Creditors scrambled. CMBS portfolios with heavy WeWork exposure saw their ratings downgraded. The chain reaction was clear: one tenant’s collapse had become a systemic shock. This perpetuated the wave of landlords defaulting on their loans.

The Hybrid Pivot: How the Market Shift Brought WeWork Back

In the midst of all this financial crisis, the post-pandemic landscape hasn’t yet killed flexible office space—it continues to validate it.

The hybrid work model continues to be the default strategy for many enterprise-level firms. Large corporations don’t just want office suites anymore—they want workspace that mirrors their dynamic, distributed teams.

They want speed to market, flexibility, and lower capital commitment. And that’s where WeWork can still fit.

After exiting bankruptcy protection in June, WeWork Inc is now EBITDA profitable for two consecutive quarters—something it’s never done before.

With its portfolio reduced by a third after cutting over 170 underperforming locations, WeWork has focused on top-tier buildings and smarter deals. CEO John Santora, a commercial real estate veteran, is prioritizing Class A space and trophy real estate that offers light, air, and location—not legacy overhead.

In New York, the company is eyeing a flagship space south of Grand Central, steering clear of the area’s $200-per-foot price tags. In San Francisco, WeWork remains in Salesforce Tower. Globally, it’s still in elite assets like 10 York Road in London and 21 Collyer Quay in Singapore.

But the question now is—can a restructured WeWork really escape the shadow of its past?

Operational improvements and leadership changes don’t erase the fact that the company defaulted on leases, rattled creditors, and burned through billions in equity.

The fundamentals may align this time, but the company still has to prove it can execute without overextending.

Time will tell whether this version of WeWork can scale profitably

Flight to Quality in New York

We mentioned that in this evolved landscape, WeWork still could have a role to play. And if we look at what they’re doing to survive, it points to other strongholds in the office market landscape .

The first, most obvious point is that the hybrid work model isn’t going anywhere.

Second: when office space is leased, it’s not just any office. It’s top-tier or nothing.

The flight to quality has driven any demand for office space almost solely to Class A buildings. Because as companies downsize footprints, they’re also upgrading expectations. Offices must deliver on more than square footage—they need to offer light, location, connectivity, and an experience that justifies the commute. And tenants are no longer settling.

This shift is visible on the streets of New York, where WeWork is strategically repositioning itself—not in Class B legacy towers, but in Class A buildings. That’s where WeWork (and other clever tenants) are planting their flag.

“There’s an evolution of our products and an evolution of spaces,” he said. “We want to be in the right location and doing the right product.It’s just something that’s a Class A product with great light and air … and works for us.”

-WeWork CEO, John Santura

The numbers back it up:

In Q1 2025, a staggering 61.6% of all Manhattan office leasing occurred in trophy properties—the highest proportion in decades. Even with overall market uncertainty, this segment is heating up.

WeWork Can Exist in A Market That Still Wants Flexibility

One truth remains: demand for flexible workspace hasn’t vanished—it’s evolved. Enterprise tenants still crave optionality. They want speed, reduced capex, and the ability to scale without long-term commitments. That demand hasn’t just survived the office apocalypse—it’s become a key part of the new normal.

That’s why WeWork is still doing deals—with giants like Amazon, no less. These companies aren’t chasing extraneous amenities like ping pong tables or kombucha bars. They’re leveraging WeWork for what it now offers: operating leases, turnkey buildouts, and accelerated occupancy without locking up capital in a traditional long-term lease.

“Amazon doesn’t want to engage with landlords. They want us to do it … If we provide capital and the buildout, it’s so much faster (for them).”

WeWork CEO, Santura

In that sense, WeWork is finally delivering on the value proposition it always promised—but only after shedding its old skin.

The model isn’t without risks. Flexible space only works if operators have financial discipline and a clear path to sustainable margins. WeWork became the poster child for how not to scale in commercial real estate. Now it must prove it can survive—and thrive—without once again overreaching.

The opportunity is real. But in this market, credibility is earned, not assumed. Flexibility is in demand. Now WeWork has to show it can deliver it—without blowing up in the process.

Takeaways for Tenants

WeWork’s repositioning isn’t just a survival play—it’s a reflection of what’s working in today’s market. Flexibility is still in demand, but not at the cost of quality. The firms making strategic moves now aren’t chasing the cheapest options—they’re consolidating into high-performing buildings with better infrastructure, better locations, and stronger long-term value.

Tenants paying attention are following suit. They’re trimming excess, but trading up—into Class A properties that can actually support productivity, attract talent, and justify the office at all. In a market still shaking off excess supply, the strongest signal is where demand concentrates. And right now, it’s concentrated in quality.

Other tenants take note: The path forward isn’t about cutting costs at every turn but about making thoughtful choices that balance flexibility with quality. Those who adapt by prioritizing spaces that enhance work experience and long-term value will be better positioned to navigate ongoing market uncertainties.

This whole environment is symptomatic of a post- apocalyptic office environment. And the rise of flex work is only one piece of the fallout. So arm yourself with the full story that corporate tenants can’t afford to miss. Download your free copy of Surviving the Office Apocalypse today.