The U.S. coworking industry continued its upward trajectory in the first quarter of 2024, adding 346 new spaces for a total of 6,597 nationwide.
According to Coworking Cafe’s “Coworking Industry Report Q1 2024” this growth represents a 6% increase over the previous quarter. It also reflects the evolving nature of work and the increasing demand for flexible, collaborative workspaces for professionals.
Among the top 25 growth markets, Salt Lake City led the expansion with a significant 15% increase in coworking spaces. It’s reported that Minneapolis-St. Paul experienced 13% growth, from 85 coworking spaces to 96, and San Diego experienced a 12% growth rate — from 108 coworking spaces in Q4 of 2023 to 121 so far in 2024. Coworking Cafe also reports that the cities of Phoenix and Nashville grew coworking inventories by 11% each and Seattle recorded a 10% increase.
Prices for virtual offices and open workspaces remained relatively stable in Q1 2024, with virtual offices maintaining a median rate of $119 per month and open workspaces increasing slightly to $150 per month. However, the data reveals that the dedicated desk prices dropped — with the national median rate falling from $322 in Q4 2023 to $309 in Q1 2024.
In terms of coworking operators, HQ, a relatively new entrant to the top operators list, outpaced established companies and brands like Regus, WeWork, Industrious, and Spaces in terms of overall expansion. According to Coworking Cafe’s data, HQ expanded its portfolio by an impressive 17% in major markets and 14% nationwide — further solidifying the brand’s position in the coworking industry.
As the coworking industry continues to expand and adapt to trends in the workforce, it’s clear that flexible workspaces will play an increasingly important role in shaping the future of work this year. The growth seen in Q1 2024 is a testament to the resilience and adaptability of the coworking sector, and it is likely that this trend will continue in the coming years.
