Coworking spaces are generally viewed as a more affordable choice for small teams compared to traditional office leases, and a new Coworking Cafe study strongly backs this up.
The study examined both coworking subscriptions and traditional office leases in 102 U.S. cities for a team of around 10 employees and found significant cost savings offered by coworking memberships across 97% of those cities.
Some of the cities offer substantial savings. For instance, in the top ranked Sunnyvale, Calif., coworking memberships are 70% more affordable than leasing a traditional office — amounting to an estimated $103,000 in annual savings.
The West Coast, particularly within California’s Silicon Valley and Los Angeles areas, ranked high on the list of cities analyzed. These metro areas reportedly offer the most cost benefits when comparing coworking costs to office leases. Coworking Cafe found there are substantial savings in California cities including Palo Alto, Menlo Park, and Santa Monica.
The study excluded additional costs like furniture and cleaning fees — which are typically covered under coworking memberships. This exclusion highlights the inherent value of coworking spaces. Traditional offices often include expenses exceeding $18,000 annually for cleaning and furniture.
Coworking spaces consistently proved to be more economical across regions. Boston was identified as a standout on the East Coast with a 64% difference favoring coworking membership fees over office leases. The difference amounts to nearly $95,000 in annual savings. New York City is another eastern city that benefits from significant cost savings — reaching almost $62,900 annually.
Analysis of the Southern region of the U.S. also reveal promising cost-savings. Miami, which ranked fifth on the list overall, is leading the way with a 61% savings potential. The cost savings are equivalent to more than $70,000 annually for a small team. Other Southern cities including Dallas-Fort Worth, and Durham and Cary, N.C. also offer saving opportunities.
While most U.S. cities show a cost advantage for a small team adopting a coworking space over a traditional office lease, there are exceptions. The city of Oakland, Calif., goes against the trends within its state. In Oakland, traditional office leases appear to be 33% cheaper than coworking memberships, and offer potential savings of around $30,000 annually. Memphis, Tenn., and Cincinnati also tip in favor of traditional leases.
As companies increasingly adopt hybrid and remote work models, the financial benefits of coworking spaces — especially in cities with high traditional office costs — are becoming more attractive. The study reinforces that the future of work will be shaped by flexible workspaces and solutions. The advantages of organizations adopting coworking spaces often align with the changing priorities of the modern workforce — where there is a high demand for flexibility, community, and greater work-life balance.
