Phoenix's coworking market grew by 8% in the last quarter of 2024, adding 2.87 million square feet of space. The city now has 155 coworking locations, up from 149, making it the 11th largest market in the U.S. The average space size increased by 3%, reaching 18,533 square feet, according to the Phoenix Business Journal, accoridng to Phoenix Business Journal.
Coworking spaces have experienced a 31% year-over-year growth, with new locations such as four from International Workplace Group and an additional Regus location in Fountain Hills. The average price for virtual office space has increased from $64 to $164. This change impacts users who need services like mail processing and meeting spaces without a full-time office lease. Meanwhile, the costs for open workspaces and dedicated desks remain stable at $119 and $289, respectively, below the national median, as reported by ABC15.
Coworking spaces in the U.S. increased by 2%, with 7,695 locations covering over 3 million square feet. Phoenix experienced significant growth, while markets like Los Angeles, Manhattan, Orange County, and Minneapolis saw a decline. This indicates that "although the overall quarter-over-quarter (Q-o-Q) growth rate is relatively modest, it signals a continuing upward trend in the coworking sector, driven by increasing demand for flexible workspace solutions," as more professionals embrace flexible workspaces. Phoenix’s growth may reflect broader coworking trends across the country, a stated by Phoenix Business Journal.
