Coworking Is Back and Changing the Office Market

Forget the doom-and-gloom headlines about empty office towers. The coworking market is quietly staging one of the most interesting comebacks in commercial real estate. After pandemic-era turbulence, shared offices and flexible workspaces are expanding again, and this time the growth feels sustainable and strategic. Here’s what’s happening and why it matters in 2026.

‍

Coworking Is Growing Again, But Smarter

Coworking is not just bouncing back, it is evolving into something more complex and meaningful than the boom-and-bust story many remember. According to The Wall Street Journal, a “new breed” of shared offices is bringing the market back to life, with nearly 158.3 million square feet of coworking space in the U.S. and 8,800 locations currently open. Big companies like Pfizer, Amazon, and JPMorgan are now using flexible space as part of their real estate portfolios, not just small startups.

‍

Flexible Office Space Is Becoming Mainstream

Why is coworking gaining attention from big corporations and traditional landlords? The broad answer is flexibility for both employers and employees. The deeper story is the hybrid work model and changing real estate economics.
‍

‍‍Hybrid work has reshaped demand for office space. Many companies no longer need large, long-term leases. They want space that can scale with their workforce and sit closer to where employees live. Shared offices fit that need because leases are shorter and commitments lighter. This appeals to large enterprises looking to control costs and keep workers engaged in person.‍

‍In a recent Cushman & Wakefield survey, 55% of global occupiers now use flexible office solutions. A significant portion plans to increase their use over time. This is a big change from early coworking days when demand came mostly from freelancers and small businesses.

‍

Coworking Is Expanding Beyond Major Downtowns

The latest industry data shows that flexible workspace is expanding across a wide range of markets, including strong growth in cities that aren’t traditional office hubs. As of the third quarter of 2025, the U.S. coworking market reached 152 million square feet across 8,420 locations nationwide, and growth is strongest in cities outside the biggest downtown cores. Here's how that expansion breaks down:

• Dallas–Fort Worth ranks near the top for coworking locations, second only to Los Angeles in the number of spaces.
• Texas overall has become a major hub, with cities like Houston, Austin, and San Antonio collectively offering more than 600 coworking sites.
• Phoenix, Nashville, and Raleigh–Durham have matured beyond “emerging markets,” each with well over 180 coworking sites.
• Other cities such as Denver and Salt Lake City are also seeing rising demand, including in suburban and lifestyle‑oriented coworking environments.

‍

Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.