- Coworking space now accounts for 2.1% of national office inventory, with major growth in cities like Chicago, Atlanta, and San Diego.
- The number of coworking locations has grown nearly 12% year-over-year, while average coworking space size also increased to 18,080 SF.
- Leading operators like Regus and WeWork expanded their market share, while small players are merging or affiliating to stay competitive.
Hybrid Work Fuels Coworking Growth
As hybrid work expands nationwide, coworking is rising as a flexible, affordable alternative to traditional office leases, reports Yardi Matrix. According to their report, the share of coworking space in the US office market grew by 20 basis points year-over-year. As of September 2025, coworking now accounts for 2.1% of total office inventory.
Markets Seeing The Biggest Jump
Chicago led the top 25 markets with a 60 basis point increase to 2.6%. Other notable gains include Atlanta (+40 bps to 2.5%), San Diego (+40 bps to 2.4%), and Miami, which now has the highest share at 4.1%.
Bigger Spaces, More Locations
There are now 8,420 coworking locations nationwide—up 11.7% over the past year. Total coworking SF expanded by 14%, reaching 152.2M SF. This has resulted in a 2.1% year-over-year increase in average space size per location.
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Top Players Solidify Dominance
The top coworking brands—Regus, HQ, Vast Coworking, Industrious, Spaces, and WeWork—now control over a quarter of all coworking locations. Together, they also account for more than a third of total flex space SF. Regus alone added more new spaces than all other top operators combined.
Smaller Operators Scale Through Collaboration
Independent brands are seeking strength through partnerships. In Denver, Creative Density and Thrive Workplace merged while maintaining separate branding, leveraging shared resources to scale. Meanwhile, WeWork added over 1K partner locations via a new affiliate network.
Why It Matters
The expanding footprint of coworking signals a shift in how tenants value flexibility amid economic uncertainty and evolving workplace needs. Mergers and network expansions are likely to continue as operators adapt to rising demand for flex space.
What’s Next
Expect coworking’s role in the office ecosystem to deepen. With high vacancy rates in many markets and a slowdown in new office supply, coworking offers landlords and tenants a middle-ground solution as the industry recalibrates.
