Lessons from Coworking and Corporate Real Estate Leadership Failure
In this edition, we explore coworking and corporate real estate leadership lessons through the experience of Karen Scarpetta, a leader of WeWork Latam who navigated crisis, change, and the hard truths of decision-making at scale.
This story was first seen in our The Failure Institute Newsletter, where each month we share one of the best failure stories from our global community. Get these stories in your inbox before anyone else—subscribe to our newsletter here.
About Karen Scarpetta
Is a creative, curious, and passionate business leader. She loves creating impact through the sustainable growth of the organizations and teams she leads, aiming to make a difference in the lives of those around her. She was formerly the CEO of WeWork Latam and is currently a board member at Dunna and an advisor and speaker.
Redefining Failure: A Strategic Starting Point
The Failure Institute: What’s your personal definition of failure?
Karen: It’s a starting point. A redirection that brings experience, insight, and often better results. While we try to avoid it, failure builds courage. It enables leaders to jump into the unknown and grow.
Coworking and Corporate Real Estate Leadership in Crisis
In 2020, Karen was navigating one of her most complex professional chapters. After completing a major restructuring in Colombia, she led coworking and corporate real estate operations through uncertainty and was determined to make the business sustainable.
In the second half of 2021, she took over the Spanish-speaking Southern LATAM region. The focus shifted—drastically—to reducing operating expenses.
The Risk of Over-Cutting in Strategy
Leadership faced decisions not just to optimize, but to cut deeply. Even essential services were questioned. The strategy began affecting brand value and customer satisfaction.
When Cost-Cutting Harms Brand Value
In efforts to survive, they sacrificed what mattered: quality. Reducing costs helped in the short term, but churn rose. Customers felt the difference. Frontline teams voiced frustration. The business’s value proposition weakened.
Turning Around: Strategic Leadership Lessons
The turning point came when renewal rates declined. The team initially tried to fix the problem by adjusting prices—but that missed the real issue. Value and price aren’t the same.
Shifting from Cost-Cutting to Value-Centric Investments
Karen led the shift. They revisited every decision: every provider, every service. The new strategy centered around investing in value—an essential component of coworking and corporate real estate leadership lessons. Quality returned to the forefront.
Empowering Teams Through Collaborative Response
Karen created open spaces for conversation. With sessions like “Talks with Ka,” teams were invited to collaborate and help restructure goals based on real data. This transparency built trust.
Leadership Reflections: From Crisis to Human-Centered Recovery
Karen reflects: mistakes teach. They help us evolve. The worst thing is inaction. By acting—even imperfectly—we gain information to recalibrate.
She emphasizes a “human-centric” approach. It’s not just about clients; it’s about people—employees, partners, and providers—all aligned under a purpose.
“Asking, ‘What’s the best that could happen?’ is far more powerful than fearing the worst.”
Would she change anything? No. She’d do it again, but correct more quickly. Because ultimately, the lesson is clear: extremes rarely work. Leadership is about nuance, courage, and course correction.
In Conclusion…
Karen’s story shows that great leadership is not about avoiding failure, but about how we respond to it. Her experience in coworking and corporate real estate taught her that:
Never stay still. It’s always better to act and make mistakes than to do nothing.
Direct and assertive communication with your team matters. Involving everyone creates ownership and shared purpose.
Avoid extremes. Leadership isn’t about cutting costs at any price—it’s about smart investment that protects your brand’s value.
Be human-centric. It’s not just about customers. True leadership balances people, processes, and purpose.
Failure can fuel transformation when leaders stay open, humble, and connected. These coworking and corporate real estate leadership lessons are a powerful reminder that resilience and adaptability define long-term success.
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