How Surging RTO Trends Have More Employers Choosing Co-Working Office Spaces
Reports say the U.S. shared workplace market grew 17 percent in 2025, as companies look for space.
Businesses pushing for more in-office time face two persistent hurdles: employee resistance to giving up remote work flexibility, and a shortage of physical space to accommodate returning staff. After downsizing office footprints during the pandemic to cut costs, many companies now find themselves scrambling to house teams whose remote-work habits have become entrenched.
An increasing number of employers are solving both problems with a single strategy: leasing space in shared co-working environments. Once the domain of startups, these flexible workspaces are now being adopted by major corporations as they tighten return-to-office (RTO) policies—while simultaneously offering employees settings that feel less burdensome than traditional corporate offices.
A key advantage is location. Many companies are selecting co-working spaces in suburban or neighborhood hubs near where employees live, significantly reducing commute times. These satellite offices provide the collaboration, mentorship, and amenities of in-person work without the strain of daily trips to distant headquarters.
The trend is accelerating. According to Coworking Café, a shared workspace industry tracker, the U.S. co-working market expanded 5% in Q4 2025—growing from 8,420 to 8,854 locations and increasing total square footage from 152 million to 159 million. For the full year, the sector grew 17%.
This shift reflects a broader evolution in how companies conceptualize the workplace. As *The Wall Street Journal* noted, "Companies say short-term, flexible co-working helps them create satellite offices closer to where employees live," enabling teams to collaborate in person without the time and cost of long commutes.
Major corporations—including Pfizer, Amazon, JPMorgan Chase, Lyft, and Anthropic—are now embracing what was once a startup-centric model. Some firms even prioritize cities with vibrant co-working ecosystems when planning expansions or relocating teams displaced by shrinking headquarters.
The co-working landscape itself has also transformed since its pre-pandemic peak. WeWork no longer dominates the sector. Instead, a wave of smaller operators—many managing just one or a few buildings—has surged, growing over 65% since 2023. These providers are shifting away from speculative expansion in urban cores toward strategic investments in high-demand markets, focusing on larger, more versatile spaces that align with corporate needs.
"It's increasingly focused on scale, efficiency, and proven markets," the Coworking Café report observed. "Rather than chasing footprint alone, operators are refining their portfolios… The result is a co-working market that's moving forward with intention and purpose."
Employer expectations are driving this momentum. A recent CBRE survey found that 90% of businesses now enforce specific office-attendance policies, with 77% requiring staff to work on-site three or more days per week.
Yet companies are rethinking not just *how much* time employees spend in the office—but *where* that office should be. "The theme coming out of Covid was operators bringing the office to the employee, with expansions in secondary and suburban markets to meet domestic migration trends," said Peter Kolaczynski of Yardi Research. "Looking forward, the focus is on where operators can meet the needs of corporate occupiers committed to growing coworking and flexible footprints."
Co-working still represents a modest slice of the overall office market—just 2.2% of U.S. office space, up from 1.7% in 2023. But Yardi projects that share could reach 10% in coming years as demand grows.
Cost efficiency also plays a role. The average co-working location spans 18,000 square feet nationally, with larger footprints (25,000–40,000 sq ft) in major metros like Manhattan, Chicago, San Francisco, and Los Angeles. Pricing has stabilized: median desk memberships hover around $220 per month, day passes cost $30, meeting rooms average $45 per hour, and virtual offices run about $159 monthly—marking what Coworking Café calls "a clear transition from adjustment to balance."
As RTO mandates intensify, co-working spaces are emerging as a pragmatic compromise: giving employers the in-person presence they want, while offering employees shorter commutes, modern amenities, and a more humane alternative to the rigid corporate office of the past.