9 Benefits Of Coworking Spaces And Why Starting One Is A Smart Move

Given that remote work has surged from 13% to 22% in just two years, coworking spaces are no longer just a trend—they are a core feature of the new world of work.

Remote workers, entrepreneurs, and businesses are flocking to these dynamic spaces, drawn by the promise of unmatched flexibility and productivity-enhancing features.

But what exactly makes coworking spaces so irresistible to clients?

In this article, we discuss the main benefits of coworking spaces, including flexibility, networking opportunities, access to amenities, and much more.

Quick Summary

• Coworking spaces provide multiple benefits to individuals and companies, including flexibility, networking opportunities, partnerships, and structured workdays.
• The majority of workers prefer coworking spaces over corporate offices.
• Five million people are expected to use coworking spaces in 2024, creating an excellent opportunity to start a coworking business.

What Are the Benefits of Coworking Spaces?

Coworking spaces allow members to work alone or with others, whether they’re self-employed or part of a bigger company. It gives them to access many amenities (that would be expensive to buy) and the flexibility to choose their own working hours.

Let’s dive deeper into the top 9 benefits for members and companies who use these spaces.

1. Offers Flexible Working Hours

Unlike traditional offices that close after business hours, many coworking spaces are open 24/7. This allows members to have more flexible working schedules, whether independently or as part of a larger company.

For example, members can take an extended lunch break to visit the gym or attend to personal matters, knowing they can catch up on their work later without the constraints of a typical 9-to-5 schedule.

This flexibility allows them to create a better work-life balance that suits their personal and professional needs.

The reality is that poor work-life balance is one of the main reasons why employees leave their jobs. Employers know this, so marketing your coworking space as a solution to this problem can motivate employers to suggest (or even offer as a benefit) coworking spaces to their remote employees.

2. Provides Remote Access

Coworking spaces are available around the globe (check the best ones in the USA), offering maximum flexibility for digital nomads and remote workers who need to work while on the move.

Thanks to consistent access to wifi, desks, meeting rooms, printing facilities, and other amenities, they can continue to work regardless of their location—allowing for minimum disruptions to their workflows.

As more companies are moving towards remote and hybrid work models, this alone will drive a lot of business for these spaces.

3. Offers Plenty of Amenities and Perks

Speaking of amenities, coworking spaces are fully equipped with all the necessary office furniture and amenities professionals could possibly need to get their work done:

• High-speed internet: Reliable connectivity to keep members online and productive.
• Meeting rooms: Professional spaces for client meetings and team discussions.
• Comfortable workstations: Ergonomic furniture and different seating options.
• Printing facilities: Access to printers and other office essentials.
• Kitchen and coffee areas: Refreshments and snacks to keep them hydrated and fueled throughout the day.
• Reliable security: Protected by surveillance cameras and access passes.
• High-quality air and lighting: Including natural and LED lights, as well as air conditioning.
• Recreation areas: Spaces to unwind and recharge (including indoor and outdoor).
• Quiet zones: Designated areas for focused work without interruptions.
• Phone booths: Private spaces for phone calls and meetings.

Many freelancers and small businesses may not have the funds to set up all this in a private office, so having everything available is a massive draw.

4. Reduces Member Loneliness

Many remote workers, freelancers, and entrepreneurs who work from home feel lonely and isolated. By joining a coworking space, they become part of a group and get to be around people who are also working to grow their businesses.

From the person greeting them when they arrive to the worker sitting at the desk next to them, these are the interactions that are missing when working alone. These moments of human connection are also what binds coworking communities together.

The relationships formed within these spaces can lead to:

• Collaborations
• Friendships
• Partnerships
• Mentorship opportunities

All of this improves the experience, creating brand loyalty and making members return time and again.

OfficeRnd Flex is a coworking space management software that helps improve member experience by engaging members, automating payments, and more.

5. Gives Members a Chance to Network and Build Friendships

Thirty-four percent of coworking users view the ability to network as one of the main perks of coworking spaces.

Members can meet people they wouldn’t otherwise, which is highly beneficial to small businesses and freelancers. This is especially true if the space hosts:

• Frequent networking events with expert speakers
• Educational workshops
• Meet and greets
• Monthly challenges where members can engage with each other and share ideas

Some coworking spaces also have online platforms or community apps where members can connect and share resources — creating even more networking opportunities.

This can lead to what is known as the network effect.

6. Increases Productivity

Coworking spaces are designed to minimize distractions. Their designs provide members with high-quality air, a lot of natural light, adequate space to work in, soft background music, and often plenty of greenery.

These spaces also have different workstations based on varying work styles and needs. This includes dedicated desks, meeting rooms, larger tables for collaboration, and more.

Additionally, if the space is open 24/7, members can work during their most productive working hours. For example, while some members may be more productive in the morning, from 7 am to 11 am, others may prefer working in the evening.

7. Cuts Expenses for Individuals and Companies

These spaces allow individuals and companies to save costs because they don’t have to spend money on expensive equipment and furniture for their offices.

This is especially beneficial for businesses with remote workers since these spaces allow them to:

• Reduce overhead costs associated with leasing a long-term traditional office space.
• Follow a pay-as-you-go model, allowing them to scale their workspace usage up or down as required.
• Make financial planning more straightforward and cost-effective.

8. Leads to Higher Employee Satisfaction

According to Harvard Business Review, 64% of employees find working from a coworking space more socially fulfilling than working from the office.

This is great news for companies using these spaces, as it means they’ll be able to retain their employees much more easily.

Also, remote working arrangements appeal to Millennials and Gen Z since younger generations prefer dynamic work environments.

In fact, according to research, 18-to 34-year-old workers are 59% more willing to quit (or not take the job in the first place) if the company doesn’t offer flexible work arrangements.

This means companies will be even more inclined to adopt remote and hybrid models and use coworking spaces in the future when these generations make up the bulk of the workforce.

9. Brings Structure to Working Days

Working from home can blur the lines between personal and professional life, making it challenging to maintain a structured workday. Coworking spaces offer a solution since they provide an environment that helps individuals and teams remain focused.

Here’s how coworking spaces can bring structure to the workday:

• Dedicated work environment: Having an environment that’s solely dedicated to work creates a clear distinction between home life and work.
• Scheduled events: Members can plan their days around coworking space events, workshops, and networking sessions—adding structure to their busy schedules.
• Accountability: Being part of a coworking community creates a sense of accountability—especially when members share their plans with each other.

Why Is Starting a Coworking Space a Smart Move?

Starting a coworking space is different than just starting a business. You’re stepping into a movement that more and more individuals and companies are becoming a part of.

In fact, more than three million people used coworking spaces in 2022, and the number is expected to reach five million by the end of 2024. The coworking space industry is expected to grow significantly in 2025 and beyond.

This means you need to jump on the train early, so you can reap the many benefits coworking spaces bring to owners.

1. Revenue Generation

Coworking spaces can be highly profitable. Sharpsheets.io says the average coworking space provider earns around $742,000 in annual gross revenue.

You can generate revenue through:

• Flexible membership plans that cater to different needs, such as day passes, part-time memberships, or full-time access.
• Additional services, including mail handling, refreshments, conference room rentals, and event hosting.

2. High Utilization Rates

These spaces share office amenities and rooms among multiple clients, ensuring high usage rates and maximizing your return on investment.

Depending on the floor plan, you can have multiple meeting rooms, desks, and private rooms for members to rent.

A tool such as OfficeRnd Flex allows you to gather and analyze space utilization metrics so you make more informed business decisions and save money. It lets you record desk and room bookings,

3. Scalable Business Model

The coworking business model is inherently scalable, allowing you to expand your business into new locations (urban and suburban ones) and markets.

You can start with one office and slowly move your business to new places, reaching new customers and groups.

Each new office can follow the same business plan, with only some changes based on what the local market needs.

Check Out Fex Academy for More Coworking Space Resources

Coworking spaces offer many benefits, including higher productivity, networking opportunities, reduced overhead costs, and more.

The sky’s the limit if you’re considering starting a coworking space. You can build a thriving community, offer a variety of workers the space they need to make their dreams come true and develop a highly profitable business for yourself.

If you want to learn more about starting a coworking space business, check out our free Flex Academy resource.

FAQ

What Are the Benefits of Coworking Spaces for Startups?

Coworking spaces offer startups a dedicated and fully equipped space to get their work done without having to buy their own furniture.

These spaces also allow them to network with other companies and professionals—opening doors for potential partnerships and business growth opportunities.

Why Do People Prefer Working in Coworking Spaces?

Many individuals decide to work in coworking spaces because of the flexibility, sense of community, networking opportunities, and access to various amenities these spaces offer.

Coworking spaces cater to the evolving needs of the modern workforce—providing members with more independence while also allowing them to collaborate.

These spaces provide businesses with the opportunity to walk away from long-term leases and the cost of buying expensive amenities and furniture.

How Much Does It Cost to Start a Coworking Space?

The cost of starting a coworking space ultimately depends on the location, property size, and market conditions. Generally, it costs around $150 000 to start a coworking space business. Interesting part is, you can always work with a coworking consultant if you’re an absolute beginner.

Why do people Thrive in Coworking Spaces?

People thrive in coworking spaces due to the collaborative and dynamic environment these spaces foster, which can enhance creativity and networking opportunities. Being around other motivated professionals from various industries often leads to increased productivity and inspiration. Coworking spaces provide flexibility and a range of amenities that can be more cost-effective than traditional office settings, catering to the needs of freelancers, startups, and remote workers seeking professional work environments without long-term commitments.