According to new data by Yardi Kube, the U.S. coworking sector posted another year of strong expansion, reinforcing its transition from a niche workplace alternative into a core component of the modern office market.<\/p>\n
Between January 2025 and January 2026, the national coworking footprint grew to 8,973 locations, up from 7,776 a year earlier — a 15% increase. Total flexible office inventory also climbed 16% to more than 161 million square feet, adding roughly 22.5 million square feet to the market.<\/p>\n
While headline growth remains robust, industry analysts say the underlying data points to a deeper structural shift. What began as a workspace solution primarily for startups and freelancers has increasingly become embedded in enterprise real estate strategies, as corporations, remote teams and fast-growing companies seek greater flexibility in managing office portfolios.<\/p>\n
“The conversation has shifted from ‘Should we use coworking?’ to ‘How much flexible space do we need?'” Yardi Kube researchers noted, reflecting a broader evolution in workplace strategy.<\/p>\n
Operator Growth Signals Continued Market Entry<\/strong><\/p>\n The number of coworking operators expanded sharply over the past year, with the national operator base rising from 3,729 to 4,338 unique operators, a net gain of 609 new entrants, says Yardi Kube.<\/p>\n The influx underscores continued investor and entrepreneurial interest in the flexible workspace model, even as larger incumbents refine their portfolios. The industry’s largest operator increased its network to 1,210 locations, adding 164 new sites, while several established brands maintained or slightly reduced their footprints as part of broader optimization efforts.<\/p>\n Taken together, the data suggests a market experiencing both expansion and maturation, with large global brands scaling operations while smaller operators continue entering local and regional markets.<\/p>\n Major Metro Areas Lead Expansion<\/strong><\/p>\n Yardi Kube reports growth across major U.S. metros remained broad-based, spanning traditional gateway cities and high-growth Sun Belt markets.<\/p>\n Los Angeles added 50 new coworking locations, bringing the total to 343 sites, a 17% year-over-year increase.<\/p>\n Chicago recorded the largest location gain among major markets, adding 64 locations, a 24% jump, alongside nearly 2 million square feet of additional space.<\/p>\n Dallas-Fort Worth continued its expansion with 45 new locations and 1.53 million square feet added, while Washington, D.C. grew by 28 locations and nearly 904,000 square feet.<\/p>\n Manhattan remained the largest coworking market in the country by square footage, with more than 12.4 million square feet of flexible office space following the addition of 31 locations.<\/p>\n Other notable expansions included Atlanta, which added 47 locations and more than 1 million square feet, and Boston, where 52 new locations pushed total inventory up 25% year over year.<\/p>\n Secondary Markets Post the Fastest Growth<\/strong><\/p>\n While major cities continued to expand, several smaller metros recorded the most rapid gains.<\/p>\n Richmond-Tidewater led the nation with a 34% increase in coworking locations, adding 20 new sites and more than 300,000 square feet of flexible workspace.<\/p>\n Jacksonville posted the largest square-footage growth nationally, expanding its coworking footprint by over 241,000 square feet, a 43% increase.<\/p>\n Elsewhere, California’s Central Valley recorded a 29% rise in coworking locations, while the Southwest Florida Coast region saw a 26% increase alongside more than 167,000 square feet of new space. St. Louis rounded out the fastest-growing markets with an annual increase of 25% in location count.<\/p>\n The surge in secondary markets highlights how flexible office demand is spreading beyond traditional coastal hubs into mid-size regional economies.<\/p>\n Coworking Penetration Continues to Rise<\/strong><\/p>\n Coworking’s share of the broader U.S. office market also edged higher, says Yardi Kube.<\/p>\n Flexible workspace accounted for 2.2% of total U.S. office inventory at the start of 2026, up from 2.0% a year earlier — meaning roughly one out of every 45 square feet of office space nationwide is now coworking.<\/p>\n At the metro level, penetration rates varied significantly.<\/p>\n The Southwest Florida Coast recorded the largest increase, climbing from 2.6% to 3.3% of office inventory. Las Vegas posted the highest overall penetration among major markets at 3.5%, while Chicago, St. Louis, Dallas-Fort Worth, and Tampa-St. Petersburg-Clearwater each saw gains of roughly half a percentage point over the year.<\/p>\n Florida markets continued to stand out as particularly strong adopters, with West Palm Beach-Boca Raton rising to 2.9% penetration and Tampa-St. Petersburg-Clearwater reaching 2.5%.<\/p>\n Market Maturity Emerges in Location Size Trends<\/strong><\/p>\n Average coworking location sizes also revealed shifts in market dynamics.<\/p>\n Manhattan maintained the largest average coworking location size in the U.S. at roughly 40,972 square feet, despite a slight year-over-year decline.<\/p>\n Meanwhile, Orange County, California, saw one of the most dramatic increases, with average location size rising 18.5% to nearly 24,000 square feet, suggesting the emergence of larger, enterprise-focused coworking hubs.<\/p>\n In contrast, the San Francisco Bay Area experienced a 3.5% decline in average site size, potentially reflecting a shift toward smaller boutique operations or consolidation of larger locations.<\/p>\n Other mature markets, including Boston and St. Louis, showed minimal changes in average location size, indicating relatively stable operating models.<\/p>\n Flexible Workspace Goes Mainstream<\/strong><\/p>\n Industry observers increasingly view the coworking sector as an established component of the commercial real estate landscape rather than a cyclical trend.<\/p>\n “2025 represents progress for the industry,” said Peter Kolaczynski, Director of Yardi Research. “Progress with thoughtful, consistent growth and progress in educating occupiers about the benefits that coworking and serviced office space provide.”<\/p>\n With enterprises adopting hybrid work strategies and businesses prioritizing flexibility in uncertain economic conditions, the expansion of coworking space appears likely to continue.<\/p>\n Yardi Kube’s latest data suggests the sector’s evolution is entering a new phase — one where flexible workspace is no longer an alternative to traditional offices, but an integrated layer of workplace infrastructure within the broader office market.<\/p>\n\n