United States Co-Working Office Space Market Size (2024 - 2029)

The United States coworking office space market is poised for significant growth, driven by a shift in corporate strategies and the evolving nature of work. Despite a temporary setback due to the COVID-19 pandemic, which initially hindered market expansion, the sector is expected to rebound as businesses increasingly recognize the benefits of flexible workspaces. The adoption of hybrid working models and the hub-and-spoke approach are becoming more prevalent, as companies seek to reduce costs and enhance productivity. The integration of flexibility and modern technology within coworking spaces is anticipated to contribute to a robust recovery and expansion of the market size in the coming years.

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Market Size of United States Co-Working Office Space Industry

United States Coworking Office Space Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 11.00 %
Market Concentration Low

Major Players

United States Coworking Office Space Market Major Players

*Disclaimer: Major Players sorted in no particular order

United States Coworking Office Space Market Analysis

The US coworking office space market is expected to record a CAGR of over 11% during the forecast period, 2022-2027.

Due to the COVID-19-related lockdown, the increasing number of people working from home or remotely limited the market's growth. As a result, revenues generated by the coworking space market declined in 2020. The disruption caused by COVID-19 is expected to be temporary, as the coworking industry anticipates a comeback after the easing of lockdown and social restrictions.

While working from home is possible, the advantages of working in a physical office space, in terms of cohesion and productivity, remain important. As corporate occupiers want to reduce expenses, even the most conventional occupiers are beginning to see the value in coworking.

To avoid long-term capital expenditure, large corporations in the United States are looking into leasing desks in flexible workspaces. The hub-and-spoke model may be implemented, in which a large corporate office will have a "central office" and a network of smaller "satellite offices" throughout the city. More companies may adopt a hybrid working model compared to traditional office spaces.

Coworking may change to fit into the 'new normal.' However, flexibility and modern technology may lead to a strong revival in the sector in the future. Coworking spaces have an exciting future.

United States Coworking Office Space Industry Segmentation

A coworking office space is an arrangement in which workers of different companies share an office space, allowing cost savings and convenience through the use of common infrastructures, such as equipment, utilities, reception and custodial services, and refreshments and parcel acceptance services. The US coworking office space market is segmented by end user, type, and application. The report offers market size and forecast in value (USD billion) for all the above segments.

By End User
Personal User
Small-scale Company
Large-scale Company
Other End Users
By Type
Flexible Managed Office
Serviced Office
By Application
Information Technology (IT and ITES)
Legal Services
BFSI (Banking, Financial Services, and Insurance)
Consulting
Other Services
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United States Co-Working Office Space Market Size Summary

The United States coworking office space market is poised for significant growth, driven by the evolving work culture and the increasing adoption of flexible work arrangements. The market experienced a temporary setback due to the COVID-19 pandemic, which prompted a shift towards remote work, but is expected to rebound as businesses recognize the benefits of physical office spaces for cohesion and productivity. Corporations are increasingly exploring flexible leasing options to reduce long-term capital expenditures, with models like hub-and-spoke gaining traction. This shift is further supported by the rise of hybrid working models, which blend remote and in-office work, offering companies the flexibility to adapt to the 'new normal' while leveraging modern technology to enhance workspace efficiency.

The expansion of coworking spaces is also fueled by the burgeoning startup culture and entrepreneurial spirit in the United States, which has led to a heightened demand for professional and affordable office spaces. The market is characterized by fragmentation, with numerous local players such as Regus, WeWork, Spaces, and Industrious Office competing for market share. This fragmentation is expected to increase as new companies and startups enter the market, seeking to capitalize on economies of scale. The trend towards suburban living, accelerated by the pandemic, has prompted coworking providers to expand their presence in suburban areas, offering more convenient and cost-effective alternatives to traditional urban headquarters. Strategic partnerships and investments in suburban communities are anticipated to further redefine the coworking landscape, catering to the evolving needs of modern professionals.

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United States Co-Working Office Space Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Value Chain/Supply Chain Analysis

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

    5. 1.5 Current Economic and Co-working Office Space Market Scenario

    6. 1.6 Technological Innovations in the Co-working Office Space Market

    7. 1.7 Government Regulations and Initiatives

    8. 1.8 Impact of Remote Working on Space Demand

    9. 1.9 Insights into Co-working Office Space Construction Costs

    10. 1.10 Insights into Key Co-working Office Space Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))

    11. 1.11 Insights into Rents, Leasing, and Rental Yields in the Co-working Office Space Segment

    12. 1.12 Insights into Key Trends on Rental and Leasing

    13. 1.13 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION (Market Size by Value)

    1. 2.1 By End User

      1. 2.1.1 Personal User

      2. 2.1.2 Small-scale Company

      3. 2.1.3 Large-scale Company

      4. 2.1.4 Other End Users

    2. 2.2 By Type

      1. 2.2.1 Flexible Managed Office

      2. 2.2.2 Serviced Office

    3. 2.3 By Application

      1. 2.3.1 Information Technology (IT and ITES)

      2. 2.3.2 Legal Services

      3. 2.3.3 BFSI (Banking, Financial Services, and Insurance)

      4. 2.3.4 Consulting

      5. 2.3.5 Other Services

United States Co-Working Office Space Market Size FAQs

The United States Co-Working Office Space Market is projected to register a CAGR of greater than 11% during the forecast period (2024-2029)

Regus, WeWork, Spaces, Industrious Office and Office Evolution are the major companies operating in the United States Co-Working Office Space Market.

US Coworking Office Space Market Report Snapshots

United States Coworking Office Space Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)