The vision of coworking spaces transformed by Internet of Things (IoT) — smart desks that book themselves, occupancy sensors optimizing energy use, HVAC systems that respond automatically to usage — remains tantalizingly out of reach for most.
While a growing number of coworking operators tout “smart building” features, many deployments fall short of delivering consistent value. In shared‑office environments, IoT remains patchy, often expensive, and plagued by reliability and usability challenges.
1. Sensor Reliability: The Achilles’ Heel
At the heart of many “smart” coworking spaces are occupancy sensors, environmental monitors, connected lighting systems, and other IoT devices. But the reality often falls short of the promise.
Sensor networks in uncontrolled indoor environments are prone to errors, calibration drifts, and device failure. Research has shown that sensors can “fail-dirty” — continuing to send misleading data after malfunction.
In coworking settings where usage patterns vary, furniture moves, and users flow through open spaces, ensuring accurate occupancy or environmental readings is far from trivial. According to IoT For All, even when IoT systems are installed for space utilization, many fail to deliver real-time accuracy or actionable insights.
This means a coworking operator may invest in 100+ sensors claiming to monitor desk use, yet still struggle to get reliable data on when “unused” areas are genuinely empty — undermining the business case.
2. Cost and Scaling: The Business Case Doesn’t Always Add Up
Beyond reliability, a major barrier to IoT delivering on its promise in coworking lies in cost and scaling. Deploying sensors, gateways, network infrastructure, cloud/analytics platforms, and then maintaining them over time drives expenses.
Coworking spaces often operate on tighter margins than large commercial office portfolios. The ROI for sensor‑driven optimization (for example, reducing HVAC usage by 10–20%) can be modest — and if sensor reliability is weak, the savings evaporate.
This makes many operators reluctant to invest aggressively beyond pilot projects.
3. Usability and Integration: From Data to Decision
The promise of IoT is using data to improve experience, maximize occupancy, and run more efficiently. But in many coworking settings, operators hit roadblocks around usability and integration.
A survey of smart building and smart space studies pointed to interoperability issues, fragmented platforms, and unclear user interfaces as key obstacles.
Imagine a coworking space with a slick occupancy dashboard that reveals under‑utilized zones. Great — but if the operator doesn’t have the staff time or workflow to act on it (relocate furniture, reconfigure pricing, adjust HVAC zones), the value falls flat.
In fact, some platforms remain too complex to be used daily by real estate operations staff, limiting adoption.
4. The Coworking Context: Unique Challenges
Coworking spaces add extra layers of complexity compared with single‑tenant offices. Membership is fluid, users vary daily, open layouts dominate, and spaces often operate 24/7. All of this amplifies IoT challenges:
- Layout changes: move a couch, add a phone booth, shift a hot‑desk area → sensors need re‑calibration.
- Shared infrastructure: WiFi, power, cabling may be multiple tenants deep, complicating network stability.
- Privacy and member perception: Members may worry about sensors tracking them, which can dampen buy‑in. (Security and data privacy issues in coworking are well‑documented.)
- Operational workflows: Coworking operators wear many hats (community, events, facilities) and may lack dedicated tech teams to manage complex IoT deployments.
These factors mean that even when technology works in tech‑savvy corporate offices, scaling it into the more dynamic coworking world is significantly harder.
5. Where IoT in Coworking Can Still Deliver Value
That said, IoT in coworking isn’t a lost cause. Some operators are finding bite‑sized wins:
- Energy optimization in meeting rooms: occupancy sensors trigger lights/HVAC only when rooms are in use.
- Desk‑booking integrations: sensors visible in member apps to indicate free vs. occupied desks, reducing friction.
- Environmental comfort: monitoring CO₂, temperature, and humidity to adjust ventilation and improve member satisfaction. Some platforms promote this as a premium differentiator.
But these wins tend to live in “one feature at a time” rather than fully‑autonomous spaces where everything is optimized end‑to‑end.
6. What Needs to Change for IoT to Deliver on the Promise
To move beyond pilot stage and deliver real, scalable value in coworking, several things must improve:
- Higher sensor reliability: Devices must self‑calibrate, provide alerts when failing dirty, and operate in dynamic interiors without frequent manual intervention.
- Lower cost of ownership: Leveraging cheaper hardware, using standardized protocols, and reducing platform lock‑in can make IoT financially viable for flexible workspace operators.
- Better integration with operations: Data must connect to workflows — e.g. automated actions, pricing triggers, community dashboards — so insights translate to action.
- Member‑centred design: Sensors and systems must respect privacy, be transparent, and deliver clear benefits to members so they accept them.
- Vendor ecosystem and standards: The IoT space still suffers from fragmentation — devices, platforms, protocols vary. Operators benefit when vendors adopt open standards and interoperate.
The promise of IoT transforming coworking spaces — making them smarter, greener, more efficient and responsive — remains compelling. But as reality reveals, the challenges are real: sensor reliability, operating cost, integration complexity and the unique nature of shared, flexible spaces all stand in the way.
For now, IoT in coworking is less about the fully autonomous “smart building” and more about pragmatic pilots that deliver measurable wins. The big leap — where everything becomes seamless — remains just over the horizon.
Operators who approach IoT with a clear use‑case, scalable architecture, and an eye on operational practicality will likely lead the way in the future of work. Others may continue to see the promise outpace the results.

Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert














