The U.S. coworking sector kept expanding in early 2026, but the growth story is changing. Instead of major gateway cities driving momentum, mid-tier markets are posting the fastest gains as operators move to meet long-building demand, according to a new report by Coworking Cafe.
Steady National Growth, Smaller Formats Emerging
By the end of Q1 2026, the U.S. had 9,136 coworking locations, up 3.2% from the previous quarter. Total space reached 163.9 million square feet, a 2.9% increase.
Location growth slightly outpaced square footage, signaling a rise in smaller-format spaces. Average site size dipped just under 18,000 square feet, pointing to a wider mix of workspace types entering the market.
Even with this growth, coworking still makes up just 2.28% of total U.S. office inventory, leaving significant room for expansion.
Secondary Cities Post the Biggest Gains
Major markets like Los Angeles, Dallas-Fort Worth, and Chicago continued to grow steadily, but the largest jumps came from smaller metros.
Philadelphia added 22 locations in a single quarter, while Tampa grew 13%. Cleveland-Akron led in square footage growth at 11%, with several other mid-sized markets close behind.
These cities share similar traits: lower real estate costs, growing hybrid workforces, and less saturation from national operators. Many are now catching up after years of unmet demand.
Market Leaders Hold Ground, but Growth Is Spreading
Top markets still dominate in scale. Manhattan leads in total coworking space with nearly 12.8 million square feet, far ahead of Chicago and Los Angeles.
But growth is no longer concentrated at the top. Expansion is spreading across a wider range of cities, signaling a more balanced national footprint.
Pricing Stays Flat, Local Shifts Tell the Story
National pricing held steady. Memberships averaged $220 per month, while meeting rooms and day passes saw minimal movement.
Under the surface, local pricing varied widely. Some fast-growing markets saw increases as supply tightened, while others dropped as new operators entered with lower-cost options.
Big Brands Grow, Independents Still Dominate
The largest coworking brands—including Regus, HQ, Industrious, Spaces, and WeWork—expanded at a pace similar to the overall market.
Still, they control only about 23% of all locations. The majority of the market remains in the hands of independent and regional operators, keeping the sector highly fragmented.
A Market Expanding Beyond Its Core
The coworking sector is no longer centered on a handful of major cities. Growth is now spreading across mid-sized markets, with a wider mix of space types, pricing models, and operators.
That points to a maturing industry—one that is no longer defined by where coworking started, but by how broadly it’s now being implemented.
