Updated: January 28, 2025
The last few years have accelerated the growth of the flexible office industry. It’s a surge that’s been supercharged by the rise of remote work and the changing demands and preferences of employees. And it doesn’t show any signs of going back to the way things were.
As a result, coworking will continue to grow, and demand will increase, creating a significant business opportunity for those who see its potential.
There’s nothing simple about starting a coworking space. There will be obstacles to face and challenges to overcome. But, with a strategic and tactful approach, opening a coworking space can reap huge benefits for building owners and landlords.
In this article, we explore ten steps to address challenges, overcome hurdles, and successfully open a profitable coworking space.
The Future of Coworking
The pandemic forever changed how we work, and employees increasingly need flexible office space. And for commercial landlords and building owners, starting a coworking space can be a great way to help future-proof your building.
With new workplace demands and a changing future, it’s an incredible way to boost revenue, monetize vacant spaces, and reduce the risks associated with losing large-scale tenants.
Here’s what you need to know about how to start a coworking space and take advantage of the changing face of commercial real estate.
10 Steps to Starting a Coworking Space
1. Understand Your Target Market
Instead of trying to cater to everyone, narrow down your audience and make sure you understand your target market.
Depending on the type of space you’re aiming to open, this could include:
- Solopreneurs or remote workers who want flexible coworking space.
- Small businesses and teams that need access to meeting rooms.
- Professionals with clients who can benefit from a dedicated, private office.
Other things to think about with a target market and how to start a coworking space include:
- Age and demographic—i.e., young solopreneurs or established small businesses.
- Location—urban or suburban areas.
- Industry and experience level.
2. Have a Clear Intention
Why are you interested in starting a coworking space? Understanding your intent will help focus and motivate you as you take on this big project.
Profit is likely one reason—but beyond financial gain, coworking spaces can serve a greater purpose:
- Filling a need in your local market.
- Connecting like-minded professionals.
- Giving back to the community.
- To prepare for the changing future of commercial real estate
Beyond intent, you need a clear value proposition—what makes your space different and why people should join. Define your target audience, the problem you’re solving, and how your space stands out.
From there, establish your business model by considering:
- Who your members are and what they need.
- How your space will generate revenue.
- What costs you’ll need to cover.
- How you’ll leverage your strengths to keep the space running smoothly.
Your business model will shape everything from pricing and membership options to location and amenities. Without a clear strategy, it’s easy to waste time and money on a space that doesn’t meet demand.
3. Decide on Your Business Model
Coworking spaces can look different, depending on the needs of members. It’s important to decide on your framework, so you know what you’re offering. Here are some options:
Offer A Coworking Space With Private Offices
Professionals who need a dedicated, quiet space to meet with clients will need private offices. Consider offering these alongside flexible, open workspaces.
Set Up A Coworking Space Within Your Business
If your office or workplace has unused areas, setting up a coworking office within your business might be a good idea. You can offset some of the overhead costs and welcome a wide variety of professionals into the space, which boosts networking opportunities.
Include A Coworking Space Within Private Spaces
Other businesses, such as restaurants or cafes, may want to partner with you on how to start a coworking space, as it can help boost their revenue potential. Launch Workplaces has used this framework through our managed model solution for landlords and is always looking to help building owners open a coworking space.
Transform Public Spaces Into Coworking Space
City-owned real estate might be another option on how to start a coworking space. Consider speaking with city officials to see if there are any available spaces that can be transformed into a coworking office.
Add Events to Your Coworking Space
Networking events, seminars, or social activities benefit members of the coworking office and the community. If you build a coworking office to also host events, you can boost your revenue and provide value to members.
4. Prepare Your Budget and Investment Plan
You may wonder, how much does it cost to start a coworking space? It’s different for every operator, and the only way to know is to make a budget. Consider your costs carefully:
- HR costs: staff salaries, training, benefits.
- Overhead costs: rent, utilities, internet, etc.
- Technology and amenities: IT, kitchen appliances, office supplies, etc.
After preparing your budget, consider making an investment plan. Investment can come from different sources, including personal connections or VCs.
5. Create a Revenue Plan
After deciding your target market, framework, and budget, you can come up with a price structure. How much will you charge clients to use the coworking office? Pricing can be based on:
- Annual contracts for private offices or team suites.
- Coworking day pass or membership rates.
- Virtual office services.
6. Find the Right Location
Location is so important—it can be make-or-break for members considering where to go.
Consider:
- Is it close to public transit?
- Is there parking?
- What else is in the neighborhood?
- Is there enough demand in the area for a coworking office?
7. Build Out Your Space
This is where you start to see it come together! When building out your coworking office, keep these four areas in mind:
Furniture and Fixtures
You’re going to need desks and chairs, but there’s so much more than that. Think about the aesthetic you’re going for—will it be professional and simple or fun and trendy? From there, think about purchasing couches, tables, kitchen supplies, light fixtures, decor, artwork… the sky’s the limit!
Amenities
Most people need a coffee break to get through the day! Make sure you build in amenities and perks that benefit members. This can include kitchen access, complimentary coffee, networking events, wellness initiatives, or discounted services.
Amenities also include the essentials of any workspace: printers, all office supplies (paper, pens, hole punch, etc.), cleaning supplies, and kitchen essentials.
Utilities
High-speed internet is a must. Invest in something that will be lightning-fast and reliable!
Facilities
Your facilities should be clean, usable, comfortable, and intentional. Really focus on what will bring value to the space.
8. Foster a Sense of Community
One reason people are drawn to coworking spaces is because of the sense of community. You want to foster it even before you launch! Do this by:
- Creating valuable and engaging communication through social media..
- Starting a newsletter to keep potential members up to date with each other’s stories, happenings, and more.
- Hosting events, whether it is a meet and greet or a yoga class, for people to tour the space or get to know each other.
You also want to focus on how to get people together in a coworking space. Options like holiday celebrations, art shows, and charity projects are a great way to bring people together and foster a sense of community.
9. Publicize and Sell
If no one knows about your coworking space, it doesn’t matter how great it is. You need to get in front of the right people and give them a reason to walk through the door.
Start by building awareness. Put your name where potential members will see it—both online and in the real world. Then, make it easy for them to try your space and stay engaged.
Optimize for Local Search
Most people looking for a coworking space start with a quick online search. If your website isn’t optimized for local SEO, you’re invisible to potential members. Use location-specific keywords, keep your Google Business Profile updated, and encourage members to leave reviews. The more visible you are in search results, the more likely people are to check out your space.
Offer Free Coworking Days
There’s no better way to sell your space than by letting people experience it for themselves. Host free coworking days where visitors can drop in, work for a few hours, and get a feel for the community. If they like it, they’ll stick around.
Incentivize Word-of-Mouth
People trust recommendations from their network more than any advertisement. Referral programs turn your current members into advocates. Offer a discount, free day pass, or other perks when they bring in a new member. When word-of-mouth becomes part of your marketing, growth starts to snowball.
Show, Don’t Just Tell
A well-written description of your space is great. A compelling testimonial from a happy member is even better. Showcase reviews, success stories, and before-and-after experiences. If someone was struggling with productivity before joining and now they’re thriving, tell that story. It makes an impact.
Build a Social Media Presence
Your social media shouldn’t just be an afterthought. Consistently post engaging content—behind-the-scenes looks at your space, member highlights, upcoming events. Make it feel like an active, thriving place. If your online presence is vibrant, people will assume your community is too.
Bring the Community to You
Coworking is more than a place to work—it’s a hub for collaboration. Host events, workshops, and networking meetups that attract potential members. You’re not just offering desks and Wi-Fi. You’re giving people a reason to show up and stay.
Partner with Local Businesses
People already working in coffee shops, libraries, and other shared spaces might not realize a better alternative exists. Team up with local businesses—offer discounts, sponsor events, or cross-promote to reach the right audience.
Marketing your coworking space isn’t about shouting into the void. It’s about making it easy for people to find you, giving them a reason to walk in, and creating an experience that makes them want to stay.
10. Launch Your Coworking Space
It’s time to welcome coworkers into your new space! Make sure you keep up the positive atmosphere with events and activities for members to get involved. Stay on top of social media and digital marketing to create buzz and interest.
Finding a Partner to Open a Coworking Space
For commercial landlords and building owners, opening a flexible office space is an optimal way to boost revenues by filling vacant spaces. In fact, it’s a way to reduce some of the risks associated with traditional office leases.
Here’s the thing—starting a coworking space is not easy.
In general, if you have multiple buildings with coworking operations, then this investment of effort, time, and, and money might make sense.
If you only have one building, it may not be worth the time, effort, and money to educate yourself on how to start and operate this properly.
It’s an incredibly challenging process, and many operators fail. They often make costly mistakes that you can only learn from an experience.
So, in many cases, it’s much wiser to find a partner to manage your flex office space. At Launch Workplaces, we’ve successfully launched and filled many spaces, and we’ve got it down to a science.
If you’re interested in learning about why a managed model might be the best option for you when you’re considering opening a coworking space, you’ll find a ton of resources in our Commercial Landlord’s Guide to Flexible Office Space.
