New data shows that IT companies are gravitating towards medium- and small-sized coworking spaces because of the added benefits of affordability and the sense of community they often provide for their teams.
The survey’s data, published by Tech Behemoths, shows how small tech companies — those with 2 to 9 employees — make up 46.1% of the total coworking space users in the tech sector. This reflects the rising appeal of flexible work environments for tech startups and smaller firms.
Medium-sized businesses, which are defined as having 10-50 employees, are also attracted to flex spaces with 20.4% of them engaging with coworking.
Meanwhile, large companies with over 50 employees tend to use coworking spaces only for specific projects or as satellite offices. However, this comes as no surprise as recent CBRE data reveals an increase in traditional office lease activity driven by large AI-related tech firms within major hubs across North America.
Around 31% of the companies analyzed reportedly use coworking spaces occasionally, and 17.8% say they have adopted them as their main headquarters. This also reflects work environment trends, where more companies are moving away from traditional office leases.
Many companies with hybrid or fully remote work environments have made coworking spaces a central part of team collaboration in sectors like IT.
The data shows that the key reasons for choosing coworking spaces include flexibility (27.6%), the ability to support remote work (26.7%), cost savings (23.1%), and opportunities for collaboration (22.6%). High-speed internet (96.7%) and meeting rooms (84.9%) are the most sought-after coworking amenities.
Despite the growing appeal of coworking spaces, privacy remains a major concern for businesses. It’s reported that nearly 45% of respondents share a preference for private spaces, reflecting ongoing concerns about security in shared environments. Other challenges include overhead costs (17.2%), noise and distractions (13.8%), and the availability of meeting rooms (11.5%).
When predicting what the future of work environments will look like, over half (65.1%) of the survey’s respondents said they expect coworking spaces to become more popular over the next two years. Respondents cite the rise of hybrid work, an increase in niche coworking spaces, and a heightened focus on sustainability as reasons for the expected increase.
