8 Effective Strategies to Increase Occupancy Rates in a Struggling Coworking Space

The coworking space industry has seen substantial growth over the past decade, but like any fast-evolving sector, it’s not without its challenges – especially as we move into 2025.

Today’s workspace operators grapple with rising operational costs, increased competition, and shifting workforce expectations.

In such a dynamic environment, maintaining a high occupancy rate is crucial for sustainability and profitability.

Quick Summary of Top Strategies

• Conduct thorough market research to identify local demand.
• Offer flexible pricing and membership models.
• Foster a vibrant community and networking culture.
• Strengthen your marketing efforts and online presence.
• Continuously upgrade facilities and amenities.
• Prioritize customer service and retention.
• Explore strategic partnerships and collaborations.
• Regularly measure performance and adapt strategies accordingly.

Understand Your Market and Target Audience

Conduct Market Research

Before you start making tweaks to your coworking space, make sure you know the market you’re serving. Conduct thorough surveys with local startups, freelancers, and small businesses to gauge their specific needs – such as preferred workspace arrangements, budget limitations, and desired amenities.

Explore local demographic data from municipal or regional economic development offices to see if remote workers or gig workers are more prevalent.

Analyze social media groups, LinkedIn forums, and local business directories to understand gaps in current coworking offerings. Consult industry-specific publications and real estate agencies to track emerging trends and fluctuations in workspace demand.

You might discover that your region is dominated by tech startups or, conversely, that you have a strong community of creatives who crave flexible solutions tailored to their unique needs.

For more insights, you can refer to resources like JLL’s Global Coworking Trends and the Global Coworking Unconference Conference (GCUC), which provide up-to-date industry data.

Want to go the extra mile?

Attend local Chamber of Commerce events or business meetups to network and gain firsthand knowledge of what local professionals are looking for in a coworking environment.

Define Your Ideal Customer Profile

Whether your space appeals to remote teams, digital nomads, early-stage startups, or creative agencies, be specific about who you want to serve.

Here’s a list of the most common industries that use coworking spaces. Tailor your workspace design, membership perks, and marketing language to resonate with that audience.

Analyze Competitors and Identify Market Gaps

Study your competitors’ offerings. Do they cater primarily to tech startups? Are they hosting frequent networking events that attract a particular demographic?

Pinpoint what they’re doing well and where they might be lacking. Position your space to fill those gaps.

This could mean offering specialized amenities for podcasters or focusing on a wellness-centric workspace.

Optimize Pricing and Membership Models

Flexible Pricing Strategies

Gone are the days when coworking spaces had a single, rigid membership. Depending on your target market, you could offer day passes, part-time memberships, and full-time memberships.

You might also introduce different membership tiers to cater to different budgets and usage patterns. Forbes also highlights how flexibility is becoming increasingly vital in the modern workspace.

Discounts for Long-Term Commitments

Encourage loyalty by offering discounted rates for members who commit to three, six, or twelve months at a time. This strategy not only helps secure long-term revenue but also fosters a sense of community.

Bundling Services

Combine your basic desk or office access with additional benefits like meeting room credits, printing packages, or even event tickets. By creating these “value bundles,” you can attract customers who appreciate getting more for their money.

Enhance Community and Networking Opportunities

Hosting Events and Workshops

One of the unique selling points of coworking spaces is the ability to bring people together.

Host events, workshops, or seminars on topics relevant to your members, such as digital marketing, productivity hacks, or emerging technologies. Look to organizations like Startup Grind for inspiration.

Member-Exclusive Networking Opportunities

While public events can draw new prospects, exclusive gatherings for members help deepen the sense of belonging within your space. This could be something as simple as a weekly breakfast or a monthly “Members’ Night Out.”

Building a Sense of Community

Consider implementing activities that help create shared experiences. This could include book clubs, group fitness sessions, or even volunteer programs where members collaborate on community projects.

Fostering real, meaningful connections will set your coworking space apart in 2025 and beyond.

Improve Marketing and Online Presence

Leverage Social Media and Content Marketing

A strong digital marketing strategy can significantly boost your occupancy rates. Share success stories of your members, highlight upcoming events, and create engaging social media content.

You can also maintain a blog to address popular industry trends or provide workspace tips. Here are 17 proven marketing strategies that help increase your reach.

Optimize for SEO and Local Search

When people search for “coworking space near me,” you want to rank at the top of the results. Optimize your website for local keywords, claim your Google My Business profile, and encourage members to leave reviews.

Here’s a complete SEO guide for coworking spaces.

Referral Programs and Partnerships

Offer incentives to current members or local business allies for bringing in new clients.

This could be a discount on membership or a monetary reward. Collaborations with local coffee shops, restaurants, or tech stores can also help cross-promote each other’s offerings.

Upgrade Facilities and Amenities

Modernize Design and Workspace Functionality

Outdated décor and cramped layouts won’t make a good impression on potential clients. Consider renovating to create open, well-lit spaces with private nooks for phone calls or focused work.

Here’s a complete guide to coworking space layout.

Amenities That Matter

High-speed internet is a must, but you can go further by providing ergonomic furniture, fitness areas, a stocked pantry, or wellness rooms where members can meditate or take breaks.

A good example to follow is WeWork’s approach to regularly updating its spaces for both productivity and comfort.

Cleanliness and Maintenance

No matter how impressive your amenities are, they won’t mean much if your space isn’t clean and well-maintained. Invest in regular deep cleaning, ensure bathrooms are always stocked, and fix equipment issues promptly.

Focus on Customer Service and Retention

Exceptional Onboarding

From the moment a new member walks in, they should feel welcomed and supported. Offer a guided tour, introduce them to community managers, and maybe provide an onboarding packet detailing all the perks they have.

Gather and Act on Feedback

Use quick surveys or suggestion boxes to gather feedback. If members notice that the phone booths are always booked, consider adding more.

If they want more networking events, start planning some. Demonstrating that you value and act on feedback fosters loyalty.

Loyalty Programs and Personalized Services

Offer freebies or discounts based on usage history. You could provide a free meeting room hour for every three months of continuous membership.

Personalized services, like custom mail handling or dedicated account managers for larger teams, can also go a long way.

Leverage Strategic Partnerships and Collaborations

Partner with Local Businesses and Influencers

Reach out to local businesses or community influencers who align with your brand.

This partnership could involve co-hosted events, discounted memberships for their staff, or cross-promotion on social media.

Collaborate with Professional Groups

Organizations like local Chambers of Commerce or industry-specific networks can bring a steady flow of potential members. Offer them special meeting rates or membership deals in exchange for introductions.

Establish Cross-Promotional Opportunities

If there’s a nearby coffee shop frequented by professionals, propose offering their customers a day pass at your coworking space. In return, you can feature their coffee or snacks at your events.

Measure Performance and Adapt

Track Key Performance Metrics

Monitor your occupancy rate, churn rate, and overall member satisfaction (often measured through NPS scores). By focusing on data, you can identify what’s working and what needs to be improved.

Leverage Data Insights

If you notice a spike in churn at the same time each year, dig deeper. Are you failing to re-engage members, or are you missing seasonal trends? Adjust your offerings accordingly.

Continuously Test and Optimize

Running a coworking space successfully is an ongoing process. Try different marketing campaigns, tweak your membership offers, and test new events. Measure the impact and keep refining.

In Conclusion

In today’s crowded and competitive coworking landscape, struggling with occupancy rates is not uncommon.

Yet, with the right mix of market research, flexible membership models, community-building initiatives, and effective marketing, you can boost your occupancy rates and set yourself apart.

Don’t be afraid to innovate; the coworking industry is constantly changing, and staying ahead requires creativity and adaptability. Whether you’re revamping your current model or starting from scratch, consider implementing these strategies to foster sustainable growth.

Ultimately, a successful coworking space hinges on meeting and exceeding the evolving needs of modern professionals. Stay proactive, remain open to feedback, and keep a pulse on industry trends. Your efforts will pay off in the form of increased membership and a thriving, dynamic community.