Interest in coworking spaces is steadily on the rise in the U.S., and this is reflected in the number of spaces sprouting up in key markets across the country. An in-depth report published by Coworking Cafe reveals just how much demand has grown.
According to the report, as of the end of 2023, the national coworking inventory reached 6,251 spaces — marking a 1.28% increase from the previous quarter. This growth — albeit modest — reflects the steady demand for flexible workspace in the U.S., and it is a trend closely tied to the steady rise in hybrid work models.
The data also reveals that New Jersey experienced the most significant growth. The state saw a 9% increase in coworking spaces with 13 new locations added in just one quarter. This kind of growth pattern is echoed in other areas. Brooklyn, N.Y., and Austin, Texas, are reported to have experienced a 7% and 6% surge, respectively.
In terms of total coworking spaces in the market, the report reveals that Los Angeles has surpassed Manhattan, now standing as the number one market in terms of inventory boasting 268 spaces.
The top 25 markets with the highest number of coworking spaces (listed with their totals as of the end of Q4 2023):
- Los Angeles – 268
- Manhattan – 267
- Dallas/Fort Worth, Texas – 249
- Washington, D.C. – 247
- Chicago – 229
- Houston, Texas – 215
- Atlanta – 210
- Denver – 203
- Boston – 191
- New Jersey – 150
- Miami – 143
- Bay Area, California – 133
- Philadelphia – 130
- Seattle – 123
- Phoenix – 118
- San Francisco – 115
- Orange County, California – 110
- San Diego – 108
- Raleigh/Durham, N.C. – 90
- Minneapolis/St.Paul – 85
- Brooklyn, N.Y. – 81
- Austin, Texas – 75
- Nashville, Tenn. – 75
- Fort Lauderdale, Fla. – 70
- Salt Lake City – 62
Coworking Cafe also reports that the national median rate for virtual offices decreased slightly from $125 to $119. During the same time period, the rate for open workspaces remained stable at $149 per month. Dedicated desks also saw a decrease in price, slightly dipping from a national median of $329 in Q3 to $322 at the end of Q4, according to the data. These pricing trends hint at a market that is responding to the new demands of the remote and hybrid workforce.
The report also dives into square footage data, comparing the top regional markets. It’s reported that the national square footage allocated to flexible workspaces increased by 3% in Q4 2023, rising to 120.8 million square feet. Philadelphia and New Jersey led this growth, each registering an 11% increase in total square footage of coworking spaces.
The Coworking Cafe report also explored the growth rates of leading coworking space providers. Notably, HQ, is reported to have doubled its national coworking supply within three months, now owning 167 spaces across the U.S.
The leading coworking operators in terms of distribution in the top 25 markets were (listed with their totals as of the end of Q4 2023):
- Regus – 547
- WeWork – 175
- Industrious – 122
- Spaces – 109
- HQ – 78
The increase in coworking inventory, the stability in pricing for services, and the geographical diversification of coworking spaces across major U.S. markets, all point to a positive trend for coworking that is likely to continue shaping the future of work for years to come. As the workforce increasingly favors greater flexibility, coworking operators will move to meet these changing needs and this all points to more growth in the future.
