Coworking Shows Healthy Growth Amid Permanent Hybrid Work Trend
Los Angeles now has the highest number of coworking spaces in the US.
As remote and hybrid work models continue to remain a fixture in corporate America, it is giving a boost to the coworking industry across the country, according to a report from Coworking Café.
It found that Los Angeles took the lead with the highest number of coworking spaces in the fourth quarter of 2023, surpassing Manhattan for the first time in months. However, LA’s surge to the first spot is by only one space, a very narrow lead. Los Angeles gained one more coworking space in the fourth quarter of the year, bringing it to 268 spaces. At the same time, Manhattan dropped from 270 flex workspaces to 267.
In addition, Coworking Café reported New Jersey, Brooklyn, and Austin all saw increases of 9%, 7%, and 6%, respectively, in their number of coworking spaces. These numbers reflect the highest increases among the top 25 markets in this sector. New Jersey placed in the 10th spot on a national level, with inventory that went up from 137 spaces in the third quarter to 150 at the end of the fourth quarter.
In other areas, Washington, D.C. previously held the third spot for coworking supply. However, it was surpassed by Dallas-Fort Worth in the fourth quarter, which grew its inventory by 3%, bringing it to 249 coworking spaces. Washington, D.C. now stands at 247 spaces.
Seattle and Minneapolis-St. Paul experienced a slight decrease of 2% in inventory in the last quarter. At the same time, a drop of just one space was registered in Chicago.
Overall, 20 of the top 25 U.S. markets experienced increases in their number of coworking spaces. This reflects a healthy growth in the coworking space across the country.