Coworking continues to expand in the U.S., but much of the growth is now occurring in mid-tier markets around the country, not just the major gateway metros. It represents what a new report from CoworkingCafé calls "a meaningful shift."
Coworking's share of the office market is still small, growing to 2.8% from 2.2% in the first quarter of 2026. The number of active coworking locations grew 3.2% from 8,854 to 9,136.
At the same time, the sector added almost 4.5 million square feet, a 2.9% increase from 159.4 million to 163.9 million. The data also shows that coworking spaces are becoming smaller, with the average amount of space in each site dipping from 18,000 to 17,945 square feet on a national basis.
But the report also recognized that coworking spaces are now diverging from a single format. For example, in Manhattan – by far the leader in the sector -- the average size was 41,440 square feet. In runner-up Chicago, it was 27,185 square feet. Following up were San Francisco, Orange County, CA and Washington, D.C., all between 25,500 and 24,000 square feet.
"These are the markets where enterprise-grade, multi-floor footprints remain the dominant format," the report noted of the largest markets.
"Secondary and tertiary markets are increasingly defined by a mix of mid-sized hubs and compact, community-focused spaces. The national average is settling into a range, but the makeup behind that average is becoming more diverse quarter by quarter."
For example, in the mid-range, the average size in Atlanta was 19,250 square feet and in Nashville, 18,240. At the lower end, in Tampa, it was 14,970 square feet and in the Inland Empire, 11,260.
Manhattan topped the list of markets by total coworking square footage, occupying 12.76 million square feet – 40% more than in second place, Chicago, at 9.13 million. Los Angeles, Washington, DC, Dallas-Fort Worth, Boston, Atlanta and Houston each had more than five million total square feet of coworking space.
By region, the largest cluster of coworking spaces was in the South, followed by the West, the Northeast and the Midwest.
By metro, Los Angeles led the nation with 351 active coworking spaces, adding 13 in the first quarter. During the quarter, some metros saw significant increases in the number of coworking spaces. For example, in Philadelphia, 22 were added — up 12%, in Tampa 13% and in the Inland Empire, 12%.
"Interestingly, these markets share a common profile — secondary or tertiary status; favorable real estate economics; and a growing hybrid workforce that had previously been underserved by national operators," the report commented.
"The most compelling movement is happening below the top tier." Leading examples were Cleveland-Akron, Baltimore, Philadelphia, New Jersey and Milwaukee.
The number of coworking spaces in some markets slipped in the quarter, including in Kansas City, MO, Fort Lauderdale, Nashville and Houston.
Markets also varied in the fees they charged. Nationally, the median membership rate for an open workspace and dedicated desk remained unchanged at $220 per person per month. Meeting rooms cost $45 per hour. However, day pass prices rose from $30 to $33 and charges for virtual offices – work environments that enable individuals to work alongside each other online from different locations- climbed $10 to $169 per month.
The quarter saw several markets reprice sharply up or down, the report said.
"A defined premium band has formed across geographically diverse markets where service quality and space design, rather than pure scale, drive rates."
There was little change in Manhattan, but in the South and Midwest, the middle of the pricing distribution remained active. In some lower-cost markets, prices fell.
Nationally, the report identified the best-known coworking brands as Regus, HQ, Industrious, Spaces and WeWork. However, together they only controlled 2,113 locations, or 23% of the 9,135 in the U.S. Among the 120 markets tracked, 4,431 unique operators managed 7,032 locations, representing thousands of independent, regional and boutique operators.
"None of this looks like a sector in flux. It looks like one that's matured enough to grow in several different directions at once," the report commented.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.