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Coworking Space Q3: Continued Demand, Consistent Supply
The nationwide coworking space inventory stabilized in Q3 2023, following an impressive 10% growth between this year’s first and second quarters. According to a report from the CoworkingCafe, total location county across 25 of the largest U.S. markets reached 6,172 spaces, representing a 0.15% increase from Q2.
About half of the top markets (13) registered decreased coworking spaces. While Manhattan’s coworking numbers fell by 10%, this was offset by the increases in Raleigh-Durham and Phoenix, which were 13% and 11%, respectively.
The report noted that the slight decline in some cases was due to WeWork’s reduction in the top 25 markets. “The WeWork reorg is causing some short-term contraction in the overall shared space square footage number, but demand is strong enough that the total number of national locations is up. We expect some volatility in total square footage to continue as those locations find their next use,” said Peter Kolaczynski, Director CommercialEdge, in the report.
Pricing
The national median rates were as follows:
- $125 for virtual offices, down by 12.5% quarter over quarter
- $149 for open workspaces, the same as Q2
- $329 for dedicated desks, also the same as in Q2
Manhattan Leads by Number of Spaces
Though Manhattan experienced a decrease in coworking spaces, it still led the country at 270. Following closely behind was Los Angeles, at 267 spaces. Washington, DC came in third, at 251 total coworking spaces. Dallas-Fort Worth (242), Chicago (230) and Houston (211) rounded out the top 5.
Manhattan Also Leads by Square Footage
Nationally, the coworking inventory by square feet fell 2% quarter over quarter to 117 million. Manhattan took the top space in the area of coworking inventory, offering 12.8 million square feet. This represented a decline of 11% from the previous quarter. Los Angeles (6.5 million square feet), Washington DC (6.2 million square feet), Chicago (6.0 million square feet) and Dallas-Fort Worth (4.6 million square feet) came in among the top five.
The Three Top Operators
Regus, WeWork and Industrious were the top operators, having the highest number of coworking spaces nationally. The report said all five logged more than 70% of their portfolios in the top 25 markets.
