As companies try to mandate or negotiate return-to-office policies, new research suggests a full return to pre-pandemic days is unlikely as coworking takes off.
“From large corporate hubs to local community spaces, coworking has become a standard feature of how and where work happens in the United States,” a new report from CoworkingCafe states.
Coworking now occurs in 8,420 locations nationwide, occupying more than 150 million square feet, even though it still represents just 2.1% of office space, the report noted. That leaves many growth opportunities. The trend extends beyond the largest metros to midsized cities.
The average size of a coworking site is 18,000 square feet. But in large metros, size may range from 25,000 to 40,000 square feet per location as operators favor multifunctional layouts and enterprise suites. In some mid-sized cities, sites of less than 20,000 square feet are more tightly integrated with university campuses, startup corridors and suburban business districts.
The highest coworking density is found in the Northeast. Here, demand exceeds supply, due to cities like Manhattan, with 287 coworking spaces occupying 12 million square feet. Other regional markets like Boston (249 spaces) and northern New Jersey (206 spaces) are also major players.
However, the greatest number of coworking locations is found in Los Angeles, with 322 coworking spaces totaling some 7.2 million square feet. Other important markets in the West include San Francisco (145 spaces) and Orange County (122), along with rising hubs like Denver (249), Phoenix (169) and Salt Lake City, which attract professionals seeking affordability and quality of life.
“With well over 280 coworking locations each, Dallas-Fort Worth and Atlanta are key pillars of the Sun Belt’s flexible work network, showing just how deeply coworking is embedded in the region’s business infrastructure,” the report noted. Other key cities in the region include Houston, Miami, Raleigh-Durham, Nashville and Phoenix.
The Mid-Atlantic corridor is anchored by Washington, DC, New Jersey and Philadelphia. The Midwest is represented by cities including Chicago, Minneapolis and Columbus.
Regional coworking corridors are also beginning to develop with nearby cities expanding in tandem, rather than in isolation, the report noted. It cited the example of Texas, where the ecosystem of Dallas, Houston, Austin and San Antonio collectively hosts over 600 flexible workspaces.
“Coworking is fast becoming an industry of everywhere. The most significant growth today is not confined to downtown towers; rather, it’s filling gaps in mixed-use neighborhoods and commuter corridors and breathing life into retail revitalization,” the report stated.
Pricing tends to vary by region. On a national basis, the open and dedicated desk median membership is $225 per month, day passes average $30, meeting rooms $45 an hour and virtual offices $159 a month. In Manhattan, however, membership costs an average $339 a month. On the West Coast, the range is $230-$235 a month, focusing on aesthetics and service rather than scale.
Industry anchors, including Regus (950 locations), HQ (274), Industrious and Spaces (150 each), own a significant share of the country’s 152-million square foot coworking inventory, especially in major markets. VAST Coworking offers a multi-brand framework.
While national brands offer more amenity-rich layouts, small operators have found success through community-driven concepts like coworking cafes, maker-oriented studios and multi-use facilities that also serve as event spaces.
“The data points to a sector that’s both confident and careful, growing in measured increments, expanding footprints only where hybrid demand is proven, and maintaining pricing discipline even as competition deepens,” the report summed up.
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