In the third quarter of 2023, the nationwide inventory of coworking spaces showed stabilization after a remarkable 10% growth in the first and second quarters. According to a report from CoworkingCafe, there were a total of 6,172 coworking spaces across 25 major US markets, representing an increase of 0.15% from Q2.
Approximately half (13) of these top markets experienced a decrease in coworking spaces. While Manhattan saw a decline by 10%, this was offset by increases in Raleigh-Durham and Phoenix at rates of 13% and11%, respectively.
The report attributed this slight decline to WeWork’s reorganization which affected their presence in the top markets. Peter Kolaczynski, Director CommercialEdge stated that although there may be some volatility due to these changes, demand for shared space remains strong.
Pricing:
The national median rates for various types were as follows:
– Virtual offices: $125 (12.5% decrease from previous quarter)
– Open workspaces: $149 (no change from Q2)
– Dedicated desks: $329 (no change from Q2)
Manhattan Leads with Most Spaces:
Despite experiencing decreased numbers overall, Manhattan still holds first place with its count at270 coworking spaces followed closely by Los Angeles at267 . Washington DC came third with251 total locations while Dallas-Fort Worth(242), Chicago(230),and Houston(211) rounded out the top five spots.
Manhattan Also Leads With Square Footage:
Nationally,the square footage dedicated to co-working fellby2 %inthe lastquarter,reaching117 million square feet.Manhattantookthetop spotwithitscoworkingspaceinventoryof12 .8million squarefeet.Thisrepresentedan11%dipfromthepreviousquarter.LosAngelesfollowedcloselybehindat6 .5millionsquarefeet,withWashingtonDC(6.2millionsquarefeet),Chicago(6.0millionsquarefeet)andDallas-FortWorth(4 .6million square feet) rounding out the top five.
The Top Three Operators:
Regus, WeWork and Industrious were identified as the leading operators with the highest number of coworking spaces across the country. The report also noted that all three had more than 70% of their portfolios in the top 25 markets.
This article was originally published on Connect CRE and highlights continued demand for coworking spaces in Q3 despite some fluctuations in supply due to WeWork’s reorganization.
