Coworking Spaces Market Analysis Report | 2023-2029 (2023)

FAQs

What is the coworking trend in 2023? ›

One of the key coworking trends for 2023 is an increased focus on security and privacy. As more and more employees work remotely, there is a greater need for secure, private workspaces where people can come together to collaborate on projects.

The global Coworking Space market size was valued at USD 14394.53 million in 2022 and is expected to expand at a CAGR of 17.24% during the forecast period, reaching USD 37374.84 million by 2028.

The size of North America Coworking Spaces Market is USD 4.6 billion in the current year and is anticipated to register a CAGR of over 11% during the forecast period.

According to Virwani, by March 2023, WeWork India would add some 1.5 million sq. ft of commercial leasing space to its portfolio. From some 55,000 desks at the end of 2019, WeWork has so far added 13,000 to its portfolio, which Virwani says would go over 80,000 by end-FY23.

Trends such as knee-high splits, geometric cut-outs and sheer fabrics all lends themselves perfectly to a sultry skin moment, whereas for the inevitable open-air soirée, amping up the drama is easy with a 1970s It-girl-inspired hooded gown.

Coworking spaces are helping to support the future of work. First, they provide the perfect solution for hybrid work. Second, they're already seeing much growth, and the trend is expected to continue. Finally, they offer employees perks and benefits that are increasingly important in today's job market.

Based on our own analysis, coworking spaces can reach profit margin (EBITDA margin) of around 10-20% once they manage to reach full capacity, typically 12-16 months after opening. The expenses, expressed as a % of revenue, can be divided between: Rent (30-40%) depending on the location and surface.

The global coworking space market size is expected to grow to $34.99 billion in 2027 at a CAGR of 16.4%. The coworking spaces market is majorly determined by the increase in the number of start-ups globally.

Shared offices tend to be less successful if they are in rural areas. Many of your potential customers won't choose the venue if it takes a lot of time to reach. A vibrant city district, as opposed to a faraway place, that attracts young people of different professions will be a hit with freelancers and startups.

Who uses coworking spaces the most? ›

Freelancers are common inhabitants of coworking spaces since having a home office isn't a guarantee, and even if you do have space for one, the number of distractions can be endless when you are at home.

One of the most important things people look for in a coworking space is privacy. They want to know that their work will be respected and that they won't be disturbed. Your business will need private meeting rooms, plenty of nooks and crannies to hide away in, and good soundproofing.

There are more than 6,200 coworking spaces in the U.S. as of 2022. There are approximately 1.08 million people in the U.S. who use coworking spaces. In North America, the average size of a coworking space is about 9,799 square feet, with an average of about 100.14 people using that space.

Coworking companies estimate the total addressable market size at $1.6 trillion. This includes the value of commercial leases.

Coworking spaces provide a variety of perks and services, making them a desirable option for modern professionals. The concept of coworking has revolutionised the traditional workspace model by offering a shared workspace where individuals and businesses work in a collaborative environment.

Introducing Digital Lavender as our Colour of the Year for 2023.

The Pantone Color Institute named Viva Magenta as its official color of the year for 2023 for its joyous yet powerful nature. A red with subtle notes of purple, magenta flawlessly complements many different color palettes from those on the richer, jewel-tone side of the spectrum to even a lighter, earthy palette.

What aesthetic will be popular in 2023? ›

Indie sleaze—the Tumblr-inspired aesthetic that fueled last year's rise of miniskirts, ballet flats and tank tops—matures into Elevated Indie in 2023. Led by designers like Khaite and Saint Laurent, the downtown-cool aesthetic appeals to a broader demographic that appreciates timeless denim and leather pieces.

Coworking Spaces Are More Cost-Effective Than Traditional Office Environments. Another reason big corporations are moving into coworking spaces is that they alleviate the financial burden of investing in real estate for permanent office space or entering a lease in a traditional office environment.

A coworking space helps employees replicate that sense of community they may be missing in the virtual workplace. A coworking space allows workers to interact with like-minded individuals and those with different perspectives for a well-rounded experience. The primary benefit of a coworking space is flexibility.

According to AndCards, only 43% of coworking spaces are currently profitable. While that number may seem low, it is due in part to the fact that the industry is so new and is expanding at a rapid rate. With new coworking spaces opening up nearly every day, it might take them a few months to start to make a profit.

The possibility of a WeWork bankruptcy seems more and more likely after another year of struggles for the company. CEO Sandeep Mathrani had said at the end of 2021 that he was confident WeWork would turn a profit by the end of 2022, but that prediction has been pushed to late 2023.

Coworking spaces are designed to replicate a professional working environment. Not only will this make you more focused, but it provides the perfect setup for meeting with clients in person and conducting video or onsite meetings – first impressions always count and coworking spaces do a better job than a home.

Which city is best for coworking? ›

The New York City metro area tops the list, with 594 coworking spaces, according to a report by CoworkingCafe, and in 2021, there were more than 890,000 remote workers in New York City alone.

Apart from the regular freelancers who run their private enterprise, WeWork is targeting such big clients as IBM, Salesforce and Microsoft offering them corporate coworking facilities that rival the larger office space chains.

There are approximately 18,700 coworking spaces around the globe. According to projections, there will be some 41,975 coworking spaces worldwide by the end of 2024. 42% of coworking space members around the world are freelancers. Coworking office spaces are expected to grow at 13% per year.

Flexible space has grown at an average annual rate of 23% since 2010. Coworking spaces account for ~30% of new total U.S. office tenants since 2017. The total number of global coworking spaces is expected to reach ~50,000 by 2020. By 2022, more than 1.08 million people will use coworking spaces regularly.

In 2023, career growth for remote workers is much better perceived than in 2022. Significantly more respondents selected that career growth was easier for remote workers in 2023 (36 percent) than in 2022 at just 14 percent. Though, overall the topic of career growth is still somewhat split.

Augmented reality and virtual reality will come into their own. Augmented reality (AR) and virtual reality (VR) have been in the zeitgeist for some time now, but they might see more widespread adoption by businesses in 2023. Best of all, small businesses could take the lead on the trend.

The U.S. number of fully and remote and hybrid knowledge workers will account for 71% of the U.S. workforce in 2023. In the U.K., fully remote and hybrid knowledge workers will represent 67% of its workforce in 2023.

Remote jobs are here to stay.

Nearly 9 in 10 workers considering a job change (87%) are interested in hybrid or fully remote positions. And they have options: 28% of all new job postings in January 2023 were advertised as remote, on par with 29% a year ago.

This comes at a time when millions of people are seeking out remote freelance work for the first time. Google search growth for "freelancing" over the last half-decade. It's up 280%. The number of Americans who freelance has increased from 59 million in 2021 to over 73 million in 2023.

What products will boom in 2023? ›

More effective sales and marketing, better customer service, more efficient supply chains, products and services that are more aligned with customer needs, and streamlined manufacturing processes are all on the table, and in 2023, the barriers to accessing them will be lower than ever.

In 2023, there's going to be a shift in mindset from technical-based marketing to anticipation marketing. This will enable marketers to anticipate what customers want and then feed it into automation processes. This new mindset will now only make things more efficient but will enable personalization.