Small City Co-Working Space

Part
01
of one
Part
01

Small City Co-Working Space

The average price of co-working space in the US is between $185 and $387 per month, depending on the subscription package. In small cities, co-working space subscription is generally between $47 and $150 per month. Co-working trends include an increasing focus on wellness and health, a smarter designed working space, and an expected increase in demand, and a more stable occupancy rate.

Average Co-Working Space Price in The USA

  • The average price of a co-working space with a permanent desk with 24/7 access in the US is $387 a month.
  • The average price of a co-working space with a flexible desk during business hours, which requires co-workers to pack up their things at the end of each day is $185.
  • The average price of co-working space in some select cities are shown in the picture below:

Co-Working Space Price in Small Cities


Economics of Coworking Space

  • Globally, about 43% of co-working spaces generate profit directly from their operation, 33% break even, and 25% operate at a loss.
  • In the US, 52% of co-working spaces generate a profit directly, while 13% operate at a loss.
  • About "72% of all co-working spaces become profitable after more than two years in operation."
  • "The average size of a co-working space in North America is 9,799 sq./ft., with an average capacity of 100 people. This equates to roughly 100 sq./ft. per person."
  • Researchers found that "90% of co-working spaces generate a profit if they meet at least four conditions: they have more than 200 members, are older than one year, are profit-oriented and do not subsidize their operation through other businesses."
  • About 60% of co-working spaces surveyed said that attracting new members is their biggest challenge.


Trends in Co-Working Space

Focus on Health and Wellness

  • Co-working space operators are increasingly prioritizing wellness and health offerings to attract and retain co-workers.
  • This is because health and hygiene have become key issues for professionals in the wake of the COVID-19 pandemic.
  • In addition, co-working space brands are finding that marketing themselves as a brand that cares about work-life balance and wellness enables them to differentiate themselves from the competition.
  • Companies keying into this trend include The Soma Vida, WeWork, New Love City, and Flow Yoga Center.

Smarter Designed Spaces

  • Smarter designs that will prioritize touch-free features, physical distancing, and more workspaces will include open-air areas in their facilities. "More premises will be focused on what people are looking to accomplish, like telecon rooms, project rooms, and team collaboration rooms."
  • Demand for private office offerings is also growing exponentially compared to shared co-working space and open-style office layouts that are becoming increasingly outmoded.
  • The spaces will also look to improve air systems and monitor temperature and air quality.
  • This also includes providing the latest technologies, IoT, automation, artificial intelligence, new wireless devices, effective software combos, virtual meeting amenities, and a fully tech-enabled workspace.
  • Smartly designed space will also be about what the co-workers prefer, not what the co-working brand offers. "Co-working spaces will need to be flexible in terms of both space and timings; occupants will have the upper hand to demand for a safe and tech-enabled workspace while paying only for the number of hours they use the space."
  • Geekdom, Impact Guild, and Key CoWorking are examples of a co-working space brand keying into the trend.

Increased and More Stable Occupancy

  • Following the disruptions last year and a decline in the use of co-working spaces due to the COVID-19 pandemic, analysts expect occupancy rates to increase and stabilize in 2021.
  • This is because demand from remote teams is expected to gradually increase.
  • Big businesses and corporations are also expected to increasingly key into the use of co-working spaces. Businesses such as Salesforce, Starbucks, Ernest & Young, HSBC, Microsoft, Facebook, and Bank of America have co-working space subscriptions.
  • In fact, 25% of WeWork's revenue is from companies with over 1,000 staff in 2018. In 2020, they accounted for 65% of WeWork's revenue, and the trend is expected to continue as more companies increasingly offer flexible work arrangements for their staff.

Dive deeper

Only the project owner can select the next research question.
Need related research? Let's launch your next project!
Sources
Sources