- Co-working space in the US has grown from 115.6M to 158.3M SF in the past three years.
- Major corporations such as Pfizer and Amazon are adopting co-working, not just small firms.
- Single-site and independent operators now dominate co-working growth.
- Flexible workspace market is projected to potentially reach up to 10% of total US office stock.
Flexible Workspace Remakes the Market
US co-working space is experiencing a resurgence, with total inventory jumping to 158.3M SF across nearly 8,800 locations. The new wave of co-working is driven both by remote work trends and companies seeking flexibility, including major corporations like Pfizer and Amazon, reports The WSJ. The recent shift marks a sharp recovery from pandemic lows, when the sector struggled with bankruptcies and reduced demand.
Demand Now Led by Larger Firms
Big companies now drive most demand for co-working space. Firms like JPMorgan Chase, Lyft, and Anthropic choose flexible shared offices to avoid long-term leases. They also use co-working spaces to open satellite offices closer to employees. Yardi reports co-working now makes up 2.2% of US office stock, up from 1.7% three years ago. Company surveys show more corporate real estate portfolios will shift toward flexible leasing models.
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Independent Operators Drive Expansion
Independent, single-site operators now lead growth in co-working. This marks a shift from earlier years when WeWork and other giants dominated the space. Operators like Hansa in Buffalo and Industrious, backed by CBRE, are seeing strong demand. Tenants want smaller spaces with amenities, especially those with hybrid teams or downsizing needs. Single-site co-working locations have jumped 66% in three years, twice the growth rate of the top 20 operators. The shift follows CBRE’s full acquisition of Industrious, valuing the operator at $800M.
Landlord Partnerships, Smarter Growth
WeWork and other providers are pivoting toward smaller, shared-risk deals with landlords after a period of overexpansion and bankruptcy. While some property owners remain cautious, many continue to participate, viewing flexible co-working space as a hedge against volatility in traditional office leasing. The discipline now seen in co-working space leases suggests a more sustainable path forward for the sector.
