Mention the term co-working, and the first thought that might come to mind is WeWork. However, dig beneath the news about the co-working behemoth, and you’ll find a sector that is becoming increasingly crowded and highly competitive. Research from Transwestern pointed out that, as a result, co-working companies are scrambling to change their identities and build a competitive advantage.
For example, The Wing and The Assembly are women-only co-working spaces, which offers happy hours, networking and wellness opportunities. Eastern Foundry caters to government contractors by offering secure connections to industry workers, and TradeCraft Industries directs its services to the construction industry.
Transwestern said that, by 2020, more than 40% of the U.S. workforce is likely to consist of freelancers and solopreneurs. This means that “it’s more important than ever for co-working providers to differentiate themselves,” Transwestern said.
Now, here are the statistics:
- Co-working providers occupied an estimated 51.2 million square feet as of year-end 2017. This breaks down to 0.6% of the entire U.S. office market.
- By 2022, the number of co-working locations in the United States is forecast to grow to 6,219, from the 4,043 it is today.
- There are more than 200 co-working providers with at least one location. Regus is the largest provider, representing 35% of total co-working space leased in the U.S. WeWork is in second place, at 24% of the space.
- Meanwhile, relative newcomer Knotel, currently taking 3% of the market share, is angling to be larger than WeWork.
- Manhattan tops other markets when it comes to total amount of space leased by co-working providers. Rounding out the top three are Washington D.C. and Chicago. Meanwhile, Miami takes top spot as the highest share of co-working space leased, relative to percent of the total office market.
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