So imagine all of the things you have to do for a new lease. Multiply that by the numbers in a shared office space. People like doing the least amount possible. CBRE managed buildings prefer to have long term leases, so they only have to do this at the beginning of a lease, not constantly.
The only way I see this becoming an issue is if WeWork was being shifty about taking responsibility for damage and risk caused by their clients and if they were it wasn't so much "market disruption" as "we don't want to play by the rules but still want cake"
The $1M is escrow is standard and par for the course and a guarantee against credit risk. Many landlords actually require a letter of credit from banks so that if your company were to go bankrupt the money wouldn’t be subject to seizure by bankruptcy courts.
Source: Work at similar landlord.
edit: spelling