Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
The U.S. coworking sector is still expanding—but not in every direction at once. New Q4 2025 data shows an industry moving away from rapid footprint growth toward a more disciplined strategy centered on scale, efficiency, and markets with sustained demand from hybrid and enterprise users.
Rather than racing to open locations everywhere, operators are concentrating investment where flexible workspace has proven durable: large metros, dense business districts, and buildings that can support larger, more versatile layouts, according to a new Coworking Cafe report.
National Footprint Continues to Expand—With Room to Grow
By the end of Q4 2025, the U.S. coworking market reached 8,854 active locations, up 5% quarter over quarter. Total inventory climbed to roughly 159 million square feet, adding more than 7 million square feet in just three months.
Even with that growth, coworking still represents only about 2.2% of the nation’s total office inventory. The data suggests operators are not rushing to fill that gap, instead waiting for the right buildings, submarkets, and tenant mixes before committing capital.
This more measured approach reflects a future-of-work reality: demand for flexibility is real, but uneven, and increasingly tied to where teams are actually returning to offices.
Expansion Narrows to Proven Office Markets
Q4 growth was concentrated in a smaller group of large, established metros. Los Angeles remained the largest coworking market by location count, finishing the year with 338 spaces. Chicago followed closely with 328 locations, while Dallas–Fort Worth surpassed 320, reinforcing its position as a major flex-work hub.
Washington, D.C., and Manhattan also posted steady gains, reaching 310 and 299 locations, respectively. These markets align closely with corporate adoption of flexible workspace as part of broader hybrid strategies.
By contrast, several mid-sized metros—including Raleigh–Durham, Nashville, and Columbus—saw little to no net location growth during the quarter. That pause points to a strategic shift: operators appear focused on improving performance at existing sites rather than expanding prematurely.
Bigger Spaces Drive Square-Footage Growth
Square footage trends mirror the selective expansion pattern. Growth in Q4 was driven less by new territories and more by larger formats within existing markets.
Manhattan continued to lead the country in total coworking footprint, exceeding 12.4 million square feet. Chicago approached 9 million square feet, while Los Angeles surpassed 7.4 million.
Dallas–Fort Worth stood out for the pace of its expansion, growing coworking inventory by about 15% quarter over quarter to reach roughly 6.7 million square feet. Much of that growth came from larger, centralized locations rather than smaller satellite offices.
Nationally, the average coworking site size held steady at just over 18,000 square feet. But that average masks a widening divide: major urban markets often exceed 25,000 square feet per location, while many secondary markets remain closer to—or below—the national norm.
Pricing Levels Off as the Market Matures
After several years of adjustment, coworking pricing showed little movement in Q4. National median monthly rates for open and dedicated desks dipped slightly to about $220, while day passes held near $30 and meeting rooms around $45 per hour.
Even in high-cost markets, prices appear to have stabilized. Manhattan remained the most expensive major market, with memberships around $339 per month, but rates largely stopped climbing. Other premium metros—such as San Francisco, Los Angeles, and Orange County—clustered tightly in the low-to-mid $230 range.
Across the South and Midwest, large markets including Dallas–Fort Worth, Atlanta, Houston, and Miami tracked close to the national median. Pricing stability in these regions appears linked to scale, with newer, larger locations absorbing demand without pushing rates higher.
Overall, the lack of quarter-over-quarter price movement suggests a sector prioritizing utilization and predictability over aggressive rate growth—an important signal for employers budgeting long-term flexible workspace use.
Consolidation at the Top, Focus at the Local Level
Operator data shows continued consolidation among national players. Regus remains the dominant force, operating nearly 1,200 U.S. locations, with a heavy concentration in the country’s largest markets. Other major brands—including HQ, Industrious, and Spaces—maintain sizable national footprints and account for a significant share of total coworking square footage.
At the same time, smaller and regional operators appear less focused on rapid expansion and more intent on refining their portfolios, choosing fewer locations that can deliver consistent occupancy and experience.
Coworking Enters a More Disciplined Phase
Compared with Q4 2024, the coworking sector grew meaningfully but with clearer direction. Location counts rose about 15% year over year, while total square footage expanded nearly 17%, signaling a preference for larger, more capable spaces rather than dense networks of small offices.
As the industry moves into 2026, coworking is no longer behaving like a reactive alternative to traditional offices. Instead, it’s settling into its role as a scaled, permanent part of the office ecosystem—serving companies that want flexibility, but only where it reliably works.
