In the third quarter of 2023, the national inventory for coworking spaces saw a stable growth after an impressive 10% increase in the first and second quarters. According to a report from CoworkingCafe, there were a total of 6,172 locations across 25 major U.S. markets, representing a slight increase of 0.15% from Q2.
Out of these top markets, half (13) experienced a decrease in coworking spaces. While Manhattan’s numbers dropped by 10%, this was offset by increases in Raleigh-Durham (13%) and Phoenix (11%).
The report attributed this decline to WeWork’s reorganization which caused some short-term contraction but noted that demand remains strong enough for an overall increase in national locations. The Director CommercialEdge stated that there may be some volatility as these locations find new uses.
Pricing:
– Virtual offices: $125 (12.% decrease from previous quarter)
– Open workspaces: $149
– Dedicated desks: $329
Manhattan remained at the forefront with the highest number of coworking spaces at 270 despite experiencing a decline. Los Angeles followed closely behind with267 spaces while Washington DC came in third with251 total coworking spaces.Dallas-Fort Worth(242), Chicago(230),and Houston(211) rounded outthe top five.
In terms off square footage nationally,thecoworkingspaceinventoryfellby2%fromthepreviousquarter,reaching117million.Manhattantookthetopspotwith12 .8 millionsquarefeetdespitean11%dip.LosAngelesfollowedcloselybehindwith6 .5 million square feet.WashingtonDC(6 .2 million square feet),Chicago(6million square feet ),andDallas-FortWorth4 .6millionsquarefeetalso ranked amongthe topfiveinthiscategory .
The three leading operators were Regus, WeWork,and Industrious,with the highest number of coworking spaces nationally. The report noted that all five operators had more than 70% of their portfolios in the top 25 markets.
The article “Coworking Space Q3: Continued Demand, Consistent Supply” was originally published on Connect CRE.
