Coworking in the USA: A Modern Landscape #
The coworking industry in the USA has seen a remarkable evolution over the years, adapting to the changing dynamics of the modern workforce. With the rise of remote and hybrid work models, coworking spaces have become more than just shared workspaces; they are hubs for innovation, collaboration, and community-building.
Current State of the Coworking Industry #
Coworking has consistently been on the rise in the USA, significantly fueled by the increase in remote and hybrid work. With more flexible workspaces opening their doors every day and new operators entering the market, the changes in this industry are notable, even over a short span of time. As of June 2023, the national coworking space stock reached a total location count of 6,163, marking a 10% increase in just a quarter. Source
Leading Markets by Number of Coworking Spaces #
Manhattan, Los Angeles, and Washington, D.C. remain the top three markets in terms of the number of coworking spaces. Manhattan, in particular, surpassed the 300-space threshold, reaching a total of 305 flex workspaces in June 2023. Other significant markets include Chicago, Dallas-Fort Worth, Houston, and Boston.
Coworking Spaces by Square Footage #
The U.S. coworking office space stock totals 120,617,339 square feet, accounting for 1.74% of the total office space nationwide. This number has grown since March, when coworking represented 1.67% of the total office space. Manhattan leads in terms of square footage, boasting more than double the total square footage attributed to shared flex spaces compared to other markets.
Top Coworking Operators #
The top operators with the highest numbers of coworking spaces at the national level remain industry giants such as Regus, WeWork, Industrious, Spaces, and Premier Workspace. However, there have been shifts in their portfolios. Regus and WeWork, for instance, saw a 3% decrease in their number of spaces in the second quarter of 2023. On the other hand, Spaces gained significant ground, with a surge of 7% in the top markets.
Expert Insights #
Doug Ressler, Business Intelligence Manager at Yardi Matrix, highlights the changing dynamics in the commercial real estate industry. With uncertainties around the number of employees who will be in physical office spaces, companies are exploring more flexible options. Coworking spaces now offer strategic options for tenants with less predictable outlooks, especially in spaces that are being utilized more than the organizations’ core headquarters. Landlords in smaller or suburban properties see real opportunity in this niche segment and are beginning to fulfill the growing demand for more flexible and agile uses of space.
