With the rise in work-from-home arrangements and entrepreneurs venturing out on their own, coworking is getting noticed as a popular option. That’s right – it’s only taken about 30 years for the rest of the world to catch up to what we in the industry have always known about our product and how it benefits the operation of a small business.
At our Office Evolution franchise locations in Denver, about 75% of our spaces are occupied by small businesses, and we find that it’s a win-win for us and our members. For a small business, coworking offers affordability, flexibility and networking opportunities. Their need for cost-effective, adaptable office solutions fuels demand, allowing them to grow without being tied down by expensive, long-term leases. Startups and freelancers also benefit from the collaborative and networking-friendly environments these spaces foster.
For coworking providers, small businesses bring a steady membership base and a vibrant community atmosphere that keeps spaces lively and engaged. Here’s how to attract more of them to bolster your bottom line.
Why Small Businesses and Coworking Spaces are a Perfect Match
Coworking spaces offer small businesses several key advantages:
- Flexible Scaling: Unlike a traditional design with permanent configurations, companies can adjust their office space as needed without committing to expensive, long-term leases.
- Cost Control: Overhead costs become predictable, reducing the financial uncertainty that traditional office leases can create.
- Networking and Collaboration: Professionals from different industries share space, fostering valuable connections. This is especially beneficial for service-oriented businesses like accountants, attorneys, therapists and mortgage brokers, who often generate referrals within the coworking community.
- Enhanced Productivity: The structured environment helps eliminate home-office distractions, allowing small business owners to focus on growth.
From the provider’s perspective, small businesses offer reliable membership levels, contributing to steady revenue streams and a strong community dynamic. However, turnover is still a reality, making proactive engagement and customer service essential.
Trends to Watch in Coworking Spaces
As coworking continues to evolve, operators must stay ahead of trends that impact small businesses; it’s no longer good enough to provide basic office furnishings and services (if it ever was). Here’s what’s coming:
- Rising Demand for Sit-Stand Desks: As workers become more aware of the health risks of sitting in front of a computer all day, businesses are prioritizing ergonomic workspaces for employee well-being and productivity.
- Virtual Mail Services: More small businesses are looking for professional mailing addresses without needing a full-time office.
- Conference Room Packages: Entrepreneurs and consultants seek flexible booking options for client meetings and team collaborations.
- Growing Need for Employee Assistance: We find that spaces with more members who are therapists, accountants, lawyers and mortgage brokers need more employee assistance than tech companies. Be prepared to provide a high level of hospitality and customer service.
The trend that may require most of your attention is the increased competition from the expanding coworking market. The major players are leveraging revenue-sharing models to offer lower rates, for instance. Independent operators must differentiate themselves by providing superior service, amenities, and customer appreciation.
Strategies for Attracting and Retaining Small Businesses in 2025
For coworking providers, maintaining high occupancy rates requires ongoing effort and adaptation. Here are proven tactics to attract and retain small business members:
- Industry-Specific Marketing: Promote your space regularly to target industries and create brand awareness within key business communities.
- Sponsorship of Industry Events: Partner with relevant organizations to host meetups, workshops, or networking events.
- Free Trials and Introductory Discounts: Offer potential members a one-day to one-week test drive or discounted rates for the first few months to encourage commitment.
- Encourage Google Reviews: Positive online reviews improve credibility and visibility, attracting more potential tenants.
- Exceptional Service: Ensure members receive top-tier support throughout their time in the space, especially leading up to renewal periods.
- Adequate Staffing: Generally, one person should be able to cover 50 to 60 offices, three conference rooms and, if you have a mailroom, 50 to 75 active mailboxes. Once you get above that, you will need to hire some assistance, at least part-time.
Never Stop Marketing
The flexibility that attracts small businesses to coworking also makes it necessary to never let up on your marketing efforts. Members can leave at their own choosing, and they will – unless you make the space so attractive that they won’t want to.
If I’ve learned anything in a decade of operating coworking spaces, it’s that there is no perfect marketing plan to keep your space at 100% occupancy. You have to continually stay on top of your game, update your space, add new services and amenities as they become financially affordable and be open to offering unique solutions to someone who needs them.
