Coworking: The Next Big Shift in Workspace Evolution

Coworking spaces are no longer a trend, they are now mainstream. It is estimated that nearly 5 million people will be working from these spaces by 2024, 158% higher compared to 2020. As more and more companies turn to remote working, the boom of coworking spaces is a natural consequence. 

America leads the global coworking market in terms of real estate with over 80 million square feet of flexible workspace. The country is home to about 18% of the total number of coworking spaces in the world. 

Coworking Spaces in the US

The coworking space market is majorly determined by the increase in the number of startups globally. At a CAGR (Compound Annual Growth Rate) of 12%, this market is estimated to reach $13.03 billion in 2025. In terms of the number of startups, the United States leads the way (700.4K). 

Undoubtedly, it translates to an increased demand for coworking spaces in the country. Forecasts show 1.08 million people to be working from such spaces by 2022 in the US alone. In 2021, the number rose by 32.5% from 2015. 

10 Largest Coworking Spaces in the US

Based on the number of locations, here are the top 10 brands offering coworking spaces in the US: 

• Regus
• Breather
• Proximity 
• WeWork
• Spaces
• Industrious
• Office Evolution 
• VentureX
• Serendipity Labs
• Carr Workplaces

We analyzed coworking spaces in the US and observed that WeWork and Regus rank at the top. Read on to know more.

WeWork vs. Regus: A Comparative Analysis

Post-pandemic: A Paradigm Shift in Working Culture

The abrupt closure of many offices and workplaces has ushered in a new era of remote work for millions of employed Americans. A recent Pew Research Center survey shows that most of these employees would want to telework, given a choice. 

The lucrative possibility of expenditure cuts has also reinforced many companies into turning remote. Notably, it has positively impacted the stock prices of WeWork and Regus that hit an all-time high in 2021. 

Annual Revenue

As of October 2021, WeWork’s net valuation stood at $9 billion. Despite launching way earlier than WeWork and having the highest number of locations in the US, Regus stands second after WeWork. 

WeWork saw the highest increase in revenue (121.62%) in 2018. Their annual income kept increasing until the pandemic hit. In 2020, the company saw a decrease of 1.24% owing to the shutdown of many companies. 

In comparison, Regus witnessed the highest decrease in revenue so far (6.37%) in the pandemic. 

Locations

Regus has more coworking locations than WeWork in the US. Location-wise, it is more popular than WeWork in most states of the US. 

We plotted the number of Regus’ coworking spaces against the population of each state and observed a linear relationship between them. Look at the graph below:

Similarly, we observed a positive correlation between WeWork locations and the population per state. Observe closely, and you will find that Florida has only 7 locations compared to New York with 77. New York has one of the best startup ecosystems in the US. Consequently, having the highest number of WeWork coworking locations in New York is no surprise. 

Social Branding

WeWork is more prevalent among its audience than its competitors, despite fewer locations. Of all the platforms, WeWork has more followers on Facebook. The company actively uses social media marketing strategies to engage with its target consumer base. 

That said, Regus and WeWork have successfully utilized social media branding to drive traffic to their websites. Amongst the social media channels, LinkedIn drives the majority (53.3%) of WeWork’s website traffic. Whereas, Facebook accounts for most visitors (71.6%) on Regus’ official website. 

WeWork looks at coworking spaces differently. Compared to the utilitarian approach of Regus’ coworking spaces, WeWork aimed to build a community-based ecosystem that functioned as a collective. 

WeWork’s coworking spaces are not restricted to just including the tools of the trade. The company also aims to create experiences that bring its tenants together. WeWork offers collaborative programs like lunch-and-learns and community-building perks like yoga, coffee bars, etc. These efforts have significantly contributed to the spike in the company’s user base. 

From its humble beginnings in 2010, WeWork rose to become one of the biggest coworking companies today. It caters to over half a million members, a huge contrast to the numbers of 2010. The company crossed the half-million mark in 2019 before the pandemic hit. 

Coworking: The New Normal 

The dramatic rise of WeWork and coworking spaces, more broadly, can be attributed to the confluence of two trends in the workplace: remote work possibilities and a rise in self-employment (freelancers). A study conducted by Upwork and Freelancers Union estimates that 56.7 million Americans freelance, an increase of 3.7 million in the last five years.

In the chart above, it is evident that the number of coworking spaces in 2021 increased to double that of 2015 in the US. Besides, they also mean great business. The global coworking survey shows that nearly 50% of coworking spaces are profitable. As the world adapts to the new work standards, the numbers are set to rise in the years to come.

Are you also looking to set foot in the coworking industry? Download strategic location datasets of coworking spaces in the US to get started with your location strategy.

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