In the second quarter of 2024, the coworking scene in the U.S. surged with a notable 7% increase, now totaling 7,041 spaces nationwide. According to CoworkingCafe’s latest report, this growth builds upon a 6% rise in the first quarter, reflecting a robust and steady demand for flexible workspaces. Highlighting the dynamism in key cities, Dallas-Fort Worth surpassed Manhattan for the first time with 271 spaces, while cities like Indianapolis and Nashville saw the most substantial growth at 9% and 8%, respectively. Despite this positive trend, some areas like San Francisco and Brooklyn experienced slight declines. The national coworking footprint also grew by 2%, with nearly 2.9 million additional square feet. Remarkably, while virtual office and open workspace pricing remained stable, dedicated desk rates saw a noticeable drop, pointing to evolving market dynamics. Leading operators such as Regus and HQ continued their dominance, with HQ notably expanding by 13%. Have you ever wondered how much coworking spaces have expanded recently in the U.S.?
U.S. Coworking Supply Grows by 7% in Q2
In the second quarter of 2024, the coworking scene in the U.S. saw a significant uptick. The total number of coworking spaces jumped to an impressive 7,041. Can you believe it? That’s an increase of 444 spaces compared to the first quarter, marking a 7% growth. This is on top of the 6% growth recorded in Q1. Clearly, there’s a steady and promising trend here.
According to CoworkingCafe’s recently released Q2 report, which you can check out here, this growth isn’t just about numbers. The report delves into coworking inventory, square footage, prices, and even the top operators across the U.S.
Dallas-Fort Worth Has Second Highest Number of Coworking Spaces, Surpassing Manhattan
Los Angeles has maintained its top spot with 279 coworking spaces. However, here’s an interesting twist: Dallas-Fort Worth has surpassed Manhattan for the first time. Dallas-Fort Worth’s inventory increased by 5%, hitting 271 spaces. In contrast, Manhattan saw growth too, reaching 264 spaces. Washington, D.C., Chicago, and Denver also saw increases, ensuring they kept their positions from the previous quarter.
Top Cities by Coworking Spaces:
| City | Number of Spaces | Growth Rate |
|---|---|---|
| Los Angeles | 279 | – |
| Dallas-Fort Worth | 271 | 5% |
| Manhattan | 264 | 1% |
| Washington, D.C. | – | – |
| Chicago | – | – |
| Denver | – | – |
Indianapolis and Nashville really stood out with significant growth rates in coworking space supply, posting increases of 9% and 8% respectively. Following closely were Philadelphia and Salt Lake City with 6% growth each. On the flip side, Boston saw no change, maintaining its 202 coworking spaces.
Stirring the Pot: Cities with Unique Trends
The overall trend was positive, but not every city followed suit. San Francisco and Brooklyn, among the top 25 markets, experienced a slight decrease in coworking spaces. San Francisco lost one space, and Brooklyn saw a reduction by two. Despite this, they still boast healthy numbers, with 120 and 80 flex workspaces respectively.
A Closer Look at National Coworking Square Footage
Nationally, coworking spaces added nearly 2.9 million square feet in Q2. This 2% increase brings the total to a whopping 127,671,340 square feet, accounting for 1.8% of the total U.S. office space. How fascinating is that?
Here are some key highlights:
- Indianapolis led with a 9% spike in coworking space.
- Brooklyn was next with an 8% rise.
- Dallas-Fort Worth and Salt Lake City both saw an increase of 5%.
However, there were some downturns too. Seven markets experienced declines, with the Bay Area seeing the most significant drop of 11%. Manhattan, though, held its ground as the leader in total coworking square footage with 11.89 million square feet. That’s nearly double the amount in Los Angeles, even after losing 5% of its coworking surface.
Square Footage Growth by City:
| City | Square Footage Increase | Percentage Increase |
|---|---|---|
| Indianapolis | – | 9% |
| Brooklyn | – | 8% |
| Dallas-Fort Worth | – | 5% |
| Salt Lake City | – | 5% |
| Bay Area | – | -11% |
| Manhattan | 11.89 million | -5% |
Pricing Trends in Coworking Spaces
What about coworking prices? Glad you asked! Coworking prices held relatively stable in Q2. Virtual office rates stayed consistent at $119 per month. Open workspaces saw a minor decrease of $1, bringing the median to $149. However, dedicated desk prices dropped more noticeably, falling by $9 to a median of $300 per month.
Virtual Office Rates by City:
| City | Rate (per Month) |
|---|---|
| Washington, D.C. | $80 |
| Manhattan |
