Knotel CEO Amol Sarva is defending the presumption that flexible office spaces cannot sustain throughout an economic downturn.
“I feel really confident that defense-minded CEOs, when they are on defense, they’re going to come to flex and away from leases,” said Sarva.
The business model of flexible offices has recently come under great scrutiny, particularly due to news of The We Company’s delayed IPO that revealed questionable practices from its CEO Adam Neumann and its lack of profitability.
Many critics believe that shared office providers could suffer during a recession due to businesses cutting down on their workforce, but Sarva said that Knotel differentiates itself from the competition by providing its services for medium to large organizations.
Generally, coworking spaces tend to cater to smaller startups and freelancers, but Sarva said that their clientele aren’t the type to move very often.