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U.S. Coworking Inventory Increases 6% in Q1 of 2024, with Los Angeles in the Lead

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The coworking industry in the United States is experiencing continuous growth and adaptation to evolving work trends. In their latest quarterly report, CoworkingCafe analyzed the developments in the industry, focusing on the flex workspace inventory, the current pricing, and the key operators across the top 25 markets in the country.

National Coworking Supply and Growth

At the end of 2023, the national coworking inventory stood at 6,251 spaces. In the first quarter of 2024, this number saw a remarkable 6% increase, adding 346 new coworking spaces and bringing the total to 6,597. This growth demonstrates a positive trajectory for the industry, with 20 out of the top 25 markets experiencing an increase in coworking spaces. Notably, Salt Lake City saw the highest growth, a significant 15% growth, adding 10 more spaces to its inventory in the span of three months.

A view of a graphic for a study about the US flex market.

Pricing Trends

In terms of pricing, virtual office rates remained stable at a median of $119 per month nationally, with Washington, D.C. continuing to log the lowest rate, of only $79 per month. However, dedicated desk rates saw a notable decrease, with the median rate dropping from $322 in Q4 of 2023 to $309 in Q1 of 2024. Open workspace rates increased by just $1 to $150 per month nationally, but some markets like Manhattan and Brooklyn saw substantial surges, with rates almost double the national median.

Leading Markets

Los Angeles and Manhattan continue to lead with the highest numbers of coworking spaces, with Los Angeles widening the gap between the two markets by adding 1% more spaces in Q1 of 2024. At the same time, Manhattan decreased by 1% in the same period of time, now standing at 263 coworking spaces, while LA logged 270.

A view of a graphic for a study about the US flex market.

Other markets, including Salt Lake City, Minneapolis-St. Paul, and San Diego, also experienced significant growth in their coworking inventory – in Salt Lake City, the market saw an impressive surge in inventory of 15%.

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Square Footage and Operator Analysis

In terms of total square footage attributed to coworking spaces, the industry saw a 3% increase from the previous quarter, now totaling 124,792,346 square feet nationally. Indianapolis led in the expansion of coworking square footage, with a notable 13% rise Q-o-Q. However, the average square footage per space decreased by 2%, indicating a trend towards smaller coworking spaces.

Among the top operators, HQ experienced the fastest growth, expanding its portfolio by 17% in the top 25 markets and 14% nationwide. Regus and Industrious also added more coworking spaces to their inventory, while WeWork continued to register significant declines.

Conclusion

Overall, the U.S. coworking industry continues to evolve, providing flexible solutions to meet the changing needs of individuals and businesses. The growth in inventory, stable pricing, and expansion of key operators highlight the industry’s resilience and adaptability.

For more insights and recent findings about the state of the coworking industry at the end of Q1 of 2024, make sure to check out CoworkingCafe’s extended report.

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Coworking Insights is the go-to source for trends, data, advice and insights for coworking industry professionals.

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