The first coworking space opened back in 2005 in San Francisco. Since then, the number of these spaces has skyrocketed to 20,000 globally, revolutionizing the way we think about offices and office rentals. With the growing popularity of flexible work arrangements, coworking has become a widely recognized and integral part of modern work life.
This article draws on insights from leading international coworking experts and lessons from the 14th annual Coworking Europe Conference held over two days in 2024. The event shed light on key developments in coworking, community building, and the impact of technological innovation.
Beszámoló a Coworking Europe 2024 konferencia második napjáról.
So, what exactly is coworking?
A FreelancerBlog "a coworking space is a workplace (meaning a space designed for work) where freelancers, entrepreneurs, remote employees, travelers, and digital nomads can work independently.In other words, anyone – including you – can walk into one of these spaces to get work done. All you need is your laptop, a desk you like, and access to high-speed Wi-Fi (an absolute must in coworking), and you’re good to go.”
This is where the whole movement started 20 years ago. But today, the concept has taken on a more nuanced (or, depending on your perspective, more confusing) interpretation. To the untrained eye, it might seem like we’re calling anything coworking as long as it has internet and welcomes laptop-toting workers.
From an economic perspective, coworking is increasingly emerging as the flagship of the future office market.Alongside traditional office spaces, coworking offices – which operate on a flexible, shared-space model – are becoming a far more appealing alternative for corporate tenants. For investors, they also present a diversified, lower-risk business model.
At its core, the coworking model is a real estate utilization strategy built on three revenue streams, primarily targeting business users. These three pillars are:
- CoworkingA Flexible Office Solution for Everyone Coworking spaces offer accessible, flexible office services to individuals and businesses alike. They typically feature shared amenities such as kitchens, meeting rooms, reception areas, restrooms, and a strong focus on community building —actively connecting members through various initiatives.
- Hourly rental spaces: These include meeting rooms and event spaces available on a pay-as-you-go basis, such as therapy or workshop rooms, podcast studios, and more.
- Private offices: These are corporate offices available for lease, typically under 1–3-year contracts. Tenants also gain access to the full coworking space (subject to specific terms, such as additional fees in some cases).
In the coworking model, shared spaces allow companies to use the same or even larger square footage at a lower rental cost compared to traditional offices with private kitchens and meeting rooms. It’s not hard to see the appeal: sharing meeting rooms, for example, is a small compromise when the overall rental costs are lower, and tenants benefit from added services like coworking access and community-building initiatives.
For example, a 10-person company that only rents a 5-person office because the rest of the team works remotely could benefit greatly from coworking resources. When they want to hold a team day once a month, the additional capacity is there. Plus, meeting new people and participating in professional and community events can have a positive impact on a company’s ability to innovate.
Rising demand for flexible office rentals
Flexibility has not only become the cornerstone of coworking but is also one of the most important expectations from tenants. In a world of freelancers, digital nomads, forward-thinking employers, and hybrid or remote workers, the demand for flexible office rental options is continuing to grow. Whether it’s daily, weekly, or hourly rentals, coworking spaces must adapt to meet these evolving needs.
According toJLL's Global Occupancy Planning Benchmarking Report 2024,office users are increasingly shifting away from annual contracts toward usage-based payment models. While projections vary on the exact future breakdown, the growing trend is undeniable. By 2025, demand for flexible office spaces is expected to reach yet another record high.
An article by Optix highlights that this rising demand isn’t limited to shared workstations; there’s also a growing interest in private offices.More users are seeking personalized, quieter work environments, further driving this shift in preferences.
Technological innovations within reach
Technology plays a fundamental role in advancing coworking spaces. Smart offices, powered by IoT (Internet of Things) devices and artificial intelligence, are no longer a promise of the future—they’re part of today’s reality. These tools not only make office operations more efficient but also significantly enhance the coworking experience.
For example, IoT-enabled touchscreen panels on office and meeting room doors display real-time booking statuses and availability, allowing users to quickly check when a space will be free.
Other helpful innovations include sensors that monitor foot traffic in different zones of the office, enabling better optimization of space usage.
In some international coworking spaces, smart coffee machines are becoming increasingly common. These machines recognize users’ preferences and automatically prepare their desired drink. Beyond convenience, they also foster a sense of community by creating shared moments and strengthening the connections between coworking members.
The integration of technology allows coworking spaces to be more flexible, comfortable, and sustainable while meeting the needs of modern work. Energy-efficient systems, such as smart thermostats and automated lighting, not only reduce operational costs but also support eco-friendly practices and lower carbon footprints.
Sustainability and green solutions
Sustainability will remain a key focus in 2025. Energy-efficient buildings, the use of renewable energy, and recycled furniture are all factors that enhance the appeal of coworking spaces. Building closer ties with local communities—whether by supporting local businesses or participating in community projects—further strengthens the credibility of these spaces. (This trend is also reflected in our article featuring unique coworking offices.).)
The Role of marketing in the coworking sector
European coworking providers, much like businesses in other industries, allocate an average of 5–10% of their revenue to marketing. A significant portion of this budget is invested in Google Ads and social media campaigns, which primarily target business clients (B2B).
Strong marketing strategies and brand building remain crucial for maintaining competitiveness. Smaller providers, in particular, should prioritize visibility on these platforms and adopt creative, community-focused solutions to strengthen their market presence.
Ebben Coworking Hungary is one organization setting an example in this regard by bringing together local coworking spaces and launching joint initiatives.One notable project was the coordination of trial days for the 2024 Coworking World Day, offering people across the country the chance to try coworking services for the first time. Such initiatives not only amplify marketing efforts but also contribute to the growth and cohesion of the coworking community, fostering a sense of connection and collaboration within the industry.
Specialized coworking spaces for niche communities
An increasing number of coworking spaces are becoming industry-specific to better meet the needs of different sectors. Whether it’s creatives, tech startups, or freelancers, specialized services—such as mentorship, workshops, and industry networking events—play a crucial role in successful operations.
For example, more coworking spaces are opening up for doctors, dentists, architects, and even e-commerce entrepreneurs.These spaces are designed with the specific needs of these industries in mind, offering tailored office services. Ehaus, operating in four locations, is an example that caters to e-commerce businesses by offering comprehensive office solutions, including shared storage and packaging spaces, along with professional events and workshops.
Cost-effective solutions for rural coworking spaces
The development of rural coworking spaces is greatly supported by local communities and municipalities. According to Juan Barbed,co-founder of Rooral, a lack of clear interest and commitment to community coworking spaces can make it much harder to get started. In rural areas, community support is key to ensuring the sustainability of a coworking space. Barbed, who has worked remotely in over 40 countries, witnessed firsthand the rise of flexible work and realized that remote work could help revitalize rural towns. A Rooral.co is a social enterprise working with Spanish villages facing population decline, using coworking and coliving models to launch restorative programs aimed at bringing new life to these communities.
Equally important is that smaller coworking spaces operate cost-effectively. Vanessa Sans from Kalima - Coliving | Social Hub suggests that if there’s not enough budget to hire a community manager, it’s a good idea to involve community members in various tasks in exchange for discounts or free memberships. This approach not only helps reduce costs but also strengthens community cohesion and member commitment, which is especially crucial in rural areas where the community is essential for successful operation.
Inspiration as a coworking service
Joachim Gripp, CEO of Design Offices, believes that inspiration is a value in itself for companies.Therefore, coworking spaces should offer not just workspaces but also an inspirational experience. This means that the design, programs, and services of coworking offices should intentionally incorporate elements that encourage idea exchange, creativity, and collaboration. These are the factors that make coworking spaces truly attractive and valuable to their members.
Community building in coworking spaces
Coworking is not just about work; it’s about human connections, community building, and the well-being of the members. This is why more and more coworking spaces abroad are offering solutions like relaxation zones, lifestyle programs (such as yoga classes), and regular community events. These elements all contribute to making coworking spaces not only practical but also inspiring environments.
Perhaps one of the most important lessons for the coworking sector is that inspiration, community-building, and catering to the needs of coworkers are crucial for successful operations. It’s expected that future coworking offices will increasingly focus on mixed-use spaces, where alongside coworking areas, gyms, childcare services, restaurants, cafes, and even wellness offerings could be incorporated.
However, before getting too far ahead, it’s worth dedicating time to simple yet highly effective community-building initiatives, such as creatively displaying photos of the people working in the space on a prominent wall. This small touch can go a long way in fostering a sense of belonging and connection within the community.
The importance of selecting the right team members
Yuta Aoki, founder of the Japan Coworking Space & Community Manager Organization (JCCO),has visited over 300 international and Japanese coworking spaces. Based on his experience, the foundation of successful coworking communities lies in dedicated and strategic community management. For example, some coworking spaces in Japan employ a dedicated community strategist, internal and external managers, and community assistants to fully meet the needs of their members.
Choosing the right community manager is also considered a crucial factor by other experts. The key is to find a person with a friendly, approachable personality, as this role represents the heart and soul of the community. It’s also an advantage if the community manager has experience in the field from which the coworking members are being drawn.
Ben Nachoom, CEO of OneCoWork, states,“At a new location, everything depends on the first representative of the brand,”as they are the ones shaping the first impression and determining the success of the space.
Interested in more trends and news in the coworking space?
The Coworking Hungary Association’s mission is to support the sector’s continuous growth, inspire local players, and lay the foundations for collaboration. If you’re thinking about opening a coworking space, join us as a member and become a driving force behind the coworking revolution!
