CEO of WeWork rival defends the office-sharing business model's ability to withstand a recession

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'I feel really confident that defense-minded CEOs, when they are on defense, they're going to come to' flexible offices and away from traditional leases, Knotel CEO Amol Sarva says.

"I feel really confident that defense-minded CEOs, when they are on defense, they're going to come to flex and away from leases," Sarva said on "Founded in 2015, New York-based Knotel is one of many players in the increasingly popular business of providing office space to other businesses.

But the underlying premise of that model has lately come under scrutiny, as perhaps the most well-known provider, WeWork, considers an initial public offering. WeWork's parent company delayed its IPO on Monday amid criticism its CEO has too much power and a shrinking valuation, but itCritics worry that an economic downturn could be problematic for shared-office providers because businesses typically trim their workforce and reduce office space costs during recessions.

 

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