The Pros and Cons of Coworking

What is coworking?

Coworking brings together professionals from different companies to share the same workspace, whether they’re working independently or collaborating in small groups. Unlike a traditional office, where everyone reports to the same employer, coworking spaces create a neutral, community-driven environment that fosters flexibility and connection.

Freelancers, startups, small businesses and nonprofits often turn to coworking spaces to avoid costly, long-term leases while still enjoying a professional setting and a sense of belonging.

These spaces can vary widely. Some provide only the essentials, like desks, conference rooms and business Wi-Fi. Others go further, offering private offices, creative studios and high-tech amenities such as 3D printers.

Types of coworking

There are four main types of coworking setups, each offering a distinct atmosphere and sense of community.

• Open workspaces: The most common coworking model, open workspaces feature shared seating in communal areas where professionals from different industries work side by side. They’re great for sparking spontaneous conversations and collaboration among entrepreneurs, small startup teams and employees on remote work plans looking for connection. The trade-off? Limited privacy for quiet or confidential work.
• Private workspaces: Private workspaces give larger teams, typically eight people or more, their own enclosed offices within a coworking facility. They’re ideal for established companies handling sensitive projects or proprietary tech. These spaces often include private meeting rooms, kitchens and secure storage, offering privacy without losing the community feel.
• Industry-specific workspaces: Some coworking spaces are built for niche industries and equipped with tools for those fields. For example, a creative coworking space might offer photo studios and design tools, while a tech hub could provide server access and testing labs. These setups let professionals work efficiently alongside peers who understand their world.
• Venture hubs and incubators: Venture hubs, incubators and accelerators pair shared office space with resources that help early-stage startups grow. Incubators focus on mentorship and steady support, while accelerators provide fast-paced, investor-backed programs to help companies scale quickly. Both emphasize community, team collaboration and access to funding networks.

What are the pros of coworking?

Here are some of the benefits of coworking.

Sense of community

Coworking spaces help counter the isolation that many entrepreneurs and remote workers face by creating energetic, connected communities. Coworking members often find people who really get what it’s like to build a business or work on your own. Those relationships can turn into collaborations, mentorships or just genuine friendships that make work more enjoyable. Being around other focused professionals keeps the energy up and helps you stay motivated day to day.

Increased productivity

Working in a home office, surrounded by household distractions and blurred work-life boundaries, can be challenging. However, coworking spaces can help bridge the gap between home and office life and actually boost productivity.

Data from the Bureau of Labor Statistics shows that industries embracing remote and flexible work models have seen higher productivity gains than those that haven’t. Similarly, ActivTrak’s 2025 State of the Workplace report found that remote employees logged the most productive time each day, averaging nearly half an hour more than on-site workers.

Coworking spaces offer a professional atmosphere with fewer domestic distractions, helping people stay focused. As a bonus, because you’re working alongside other motivated professionals, there’s a subtle sense of accountability that can naturally boost productivity.

Networking and collaboration

Professionals from all kinds of backgrounds and industries work in coworking spaces, creating the kind of organic networking that’s hard to find in a traditional office. Members naturally trade ideas, share expertise and spot collaboration opportunities they might have missed on their own.

Many coworking providers build on that energy with structured events, skill-sharing workshops and online member directories that make it easy to connect. These interactions often turn into new clients, strategic partnerships or creative projects that grow out of cross-industry collaboration.

Inspiration and creativity

Coworking spaces naturally spark creativity. Being around people from different industries and backgrounds exposes you to new ideas and ways of thinking. The change of scenery, with new desk neighbors, fresh layouts and a steady buzz of activity, helps break up routines that can stifle motivation. Members often find themselves swapping insights, brainstorming on the fly and feeling inspired by the energy of others chasing their goals.

Greater flexibility

Coworking spaces give professionals the freedom to work on their own terms, offering flexible working hours that fit around each person’s schedule. Most provide 24/7 access, multiple membership tiers and month-to-month agreements that adjust as business needs change. Members can choose the setup that fits their day: quiet areas for deep focus, collaborative zones for teamwork or phone booths for private calls. And unlike traditional office leases that lock companies into multi-year commitments, coworking memberships can expand or scale back as teams evolve.

Cost-effective workspace

Coworking spaces remove the hefty upfront costs that come with traditional office leases, as there are no security deposits, furniture purchases or utility setup fees. Members get access to premium amenities like high-speed business broadband, printing, meeting rooms and kitchen facilities for a fraction of the price of maintaining a private office.

According to a 2024 analysis by Coworking Cafe, coworking memberships are more affordable than office leases in 97 percent of U.S. cities, with savings reaching as high as 70 percent in some markets. This cost efficiency lets startups and small businesses put their capital toward growth instead of overhead.

What are the cons of coworking?

While coworking spaces offer plenty of perks, they’re not without drawbacks. Consider these potential downsides before deciding if it’s the right setup for your business.

Too much noise for calls

Open coworking environments can be unpredictable when it comes to sound. Conversations, typing and background chatter can make phone and video conference calls challenging and sometimes even unprofessional. Many spaces include phone booths or quiet zones, but these often need to be booked ahead, especially during peak hours. Some professionals even find themselves scheduling calls around room availability instead of client convenience, which can strain relationships over time.

Distractions

The social energy that makes coworking appealing can also derail focus. Spontaneous chats, introductions and general buzz can fragment your attention throughout the day.

According to a widely cited University of California, Irvine study, it takes workers about 23 minutes to fully refocus after an interruption, which makes frequent social encounters surprisingly costly for productivity. For professionals who need long stretches of uninterrupted concentration, that trade-off can be significant.

Lack of privacy

Privacy concerns go beyond just phone calls. In open spaces, screens, notes and confidential client details are often visible to passersby. And even though there may be private rooms, they usually require extra fees and advance reservations, which aren’t ideal for impromptu discussions. Businesses handling regulated data or sensitive business information may find these privacy limitations risky or even non-compliant.

Limited capacity

Popular coworking hubs fill up fast, especially between 10 a.m. and 3 p.m. Prime desks, meeting rooms and quiet areas can be hard to come by, leaving teams scattered or waiting for space. This unpredictability can make scheduling meetings and collaborating in person a challenge, particularly as your business grows.

IT issues

While most coworking spaces promise fast, reliable Wi-Fi, performance and internet speeds often fluctuate with the number of users online. Video calls can lag, uploads may crawl and printer issues can drag on without on-site IT support. If your business relies on specialized software, secure networks or consistent uptime, the standard tech infrastructure in shared spaces may not cut it.

How popular is coworking?

The rise of flexible work has completely transformed how businesses think about office space. Employees increasingly value flexibility and work-life balance, and coworking spaces have become the go-to solution for companies trying to meet those expectations.

Here’s what you need to know about the growing popularity of coworking:

• Coworking fits into the flexible work trend: According to FlexJobs’ 2025 State of the Workplace Report, 37 percent of employees say the ability to work remotely is their top priority when evaluating a new job, outranking even salary and employee benefits. Additionally, a USA Today/OnePoll study found that 42 percent of office workers would even take a 10 percent pay cut for a job that includes remote flexibility. Together, these findings underscore why so many businesses are shifting toward coworking and hybrid office arrangements.
• Coworking has steady momentum: The U.S. coworking market continues to show strong momentum. According to an industry report from Coworking Cafe, as of Q2 2025, there were over 7,700 locations nationwide, covering 141.29 million square feet of workspace — an average of 18,236 square feet per site. Major metro hubs like Los Angeles, Chicago and Washington, D.C. still dominate, each hosting roughly 300 locations. Yet growth is spreading to smaller markets, too: San Francisco saw a 6 percent increase in coworking sites this year, while Birmingham jumped 10 percent.
• The industry is experiencing consolidation: At the same time, the industry is evolving. Cities such as Manhattan are leading a wave of consolidation, reducing their total coworking sites by about 5 percent but expanding average location size by 1 percent. Rather than signaling a slowdown, this shift points to a more mature market, one focused on fewer, higher-quality spaces offering richer amenities and stronger community programming.

What is the future of coworking?

When considering what’s next for coworking, the main takeaway is that the market is shifting from rapid expansion to refinement. According to the Coworking Cafe report cited above, the total amount of coworking space continues to grow, even as operators consolidate locations and expand average square footage. The goal isn’t more space — it’s better space: high-end hubs designed for collaboration, wellness and productivity.

Here are a few other trends shaping the future of coworking:

• Flexible work drives long-term demand: A 2024 WeWork study found that 59 percent of companies planning workspace expansions will do so through coworking or flexible office arrangements. These businesses aren’t just cutting real-estate costs: They’re redesigning their workplace strategies around hybrid teams, agile operations and employee satisfaction.
• Technology takes center stage: Next-generation coworking spaces are integrating AI-powered booking tools, IoT sensors and smart access systems to create seamless, data-driven environments. Cushman & Wakefield’s 2025 Global Flexible Office Trends report notes that 55 percent of global occupiers already use flexible offices, with another 17 percent planning to increase usage, with much of this trend driven by demand for smarter, more connected workspaces.
• A focus on wellness and sustainability: Expect to see coworking operators double down on health and environmental features. For example, as lighting affects mood and productivity, natural lighting will be a focus. Additionally, more ergonomic workstations, air-quality monitoring and carbon-neutral operations are expected. These additions are becoming table stakes for attracting talent and aligning with corporate ESG (environmental, social and governance) goals.