Coworking is a form of workspace organization where people, often representing different companies or independent specialists, rent a room to work. The concept of coworking involves sharing a workspace and exchanging ideas and experiences.

Coworkers pay a monthly fee or a one-time fee to use the workspace, common areas, and services provided by the coworking center. The basic idea of coworking is to create a flexible and dynamic work environment that fosters collaboration, the exchange of ideas, and increased productivity. 

Contents:

  1. Origin, Advantages, and Disadvantages
  2. Types of Coworking Centers
  3. Membership and Fees at Coworking Centers
  4. Statistics and Development Trends

Origin, Advantages, and Disadvantages

The concept of coworking originated in the early 2000s, when programmer Brad Newberg from San Francisco decided to unite freelancers, remote workers and independent professionals in one workspace. In 2005, he opened the first coworking center called Hat Factory. The idea quickly spread around the world, and by 2010, coworking centers appeared in many major cities such as New York, London, Berlin, Tokyo, and others.

Coworking offers a number of benefits for both self-employed professionals and small companies:

Advantages

  • Flexibility. Coworking centers can rent workspace for any length of time, from one day to several months or years.
  • Networking. Co-working centers bring together people from different fields, which facilitates the exchange of ideas, experiences and potential collaborations. 
  • Cost reduction. Co-working helps save money on office rent, equipment, and maintenance. Increased productivity. The co-working environment of a co-working space can help increase motivation and concentration.

Disadvantages

  • Potential privacy issues. Because co-workers work in a shared space, there is a risk of confidential information leaking out or trade secrets being breached. To address this problem, co-working centers often offer private meeting rooms and separate office blocks. 
  • Difficulties with concentration. Despite having quiet areas, coworking spaces can still be quite noisy due to the large number of people. Some co-workers complain of concentration problems, especially during peak activity in the center. 
  • Limited resources and facilities. Unlike a full-fledged office, coworking centers may not have enough space for large meetings or conferences, or for storage of materials and equipment.

Types of Coworking Centers

Coworking centers in office buildings

Many co-working centers are located in office buildings or business centers. They offer fully equipped workspaces, meeting rooms, cafés or kitchens, and additional services such as mailing, copying and printing services.

Specialized coworking spaces

Some coworking spaces specialize in certain areas or target audiences. For example, there are co-working spaces for startups, creative industries, technology companies, or social entrepreneurs. These specialized centers often offer additional services such as mentoring, consulting and networking events.

Coworking in cafés and public spaces

In addition to traditional co-working centers, many alternative co-working options have emerged in recent years in cafés, libraries, hotels and other public spaces. These spaces offer a more informal and flexible work environment, as well as the opportunity to team up with other remote workers or freelancers.

Membership and Fees at Coworking Centers

Single visit

Many coworking centers offer a one-time visit option for a fee, allowing you to choose a suitable workspace before purchasing a long-term membership. Typically, a one-time visit costs between $10 and $30 per day.

Long-term membership

Most coworkers prefer to sign up for a long-term membership, which can range from a month to a year. Monthly fees for full access to a co-working space typically range from $200 to $500, depending on the location and services offered.

Corporate rates

For smaller companies and startups, many coworking centers offer corporate rates, which can include dedicated office space, meeting rooms, and additional discounts on services.

According to the research company Statista, in 2022 there were about 35 thousand co-working centers in the world, and the number of co-workers exceeded 3 million people. Co-working is most widespread in North America and Europe, where about 60% of all co-working spaces are located.

The global co-working market is dominated by several large operators such as WeWork, Regus, Spaces and The Office Group. These companies operate networks of co-working centers in major cities around the world, offering standardized workspaces and services.

The rise in popularity of co-working centers is driven by several key factors:

  • Increase in the number of freelancers and remote workers who require flexible workspaces.
  • The desire of companies to reduce the cost of renting large offices.
  • Changing work values where employees prefer more flexible and free working conditions.
  • The development of sharing economy and the trend towards resource sharing.

The co-working industry is expected to continue growing in the coming years: according to Mordor Intelligence, the market size in 2024 is USD 41.39 billion, and by 2029 this figure will reach USD 62.75 billion. At the same time, competition between co-working operators will intensify. Successful companies will be those that are able to offer quality and innovative workspaces focused on the needs of their customers.