At the end of 2024, Allstate announced
that 25% of its 54,000 employees would
begin using coworking spaces to meet in
person. After reducing their portfolio
footprint by two-thirds, the company
realized remote employees still wanted
space to work with colleagues in person.
But in cities where Allstate had between
100 and 1,000 employees, it didn't make
sense to buy or lease dedicated offices. So,
like many other remote and hybrid
companies, Allstate decided to let
employees in these locations use
coworking spaces as needed.
Between 2024 and 2030, coworking
spaces are projected to grow with a
compound annual growth rate (CAGR) of
15.7 percent. For some companies, these
flexible office spaces and their short-term
leases (including day passes) have become
a critical component of facilitating hybrid
work. Throughout 2025, we can probably
expect to see more companies incorporate
coworking spaces into their models.
But coworking spaces don't just help
enterprises downsize. SMBs rely on them,
too.
"Small companies and startups will keep
using coworking spaces to get the
benefits of an office without the
commitment," Cattin says. "And as these
spaces compete to create better
experiences, they help smaller companies
access types of space and equipment they
couldn't afford to build in their own office."
While many industries can leverage
coworking spaces to help right-size their
portfolios, there are some types of work
that these shared offices simply aren't
suited for—and until there are better,
trusted solutions to address security
concerns, these roles and sectors won't
adopt the trend.
"I'm a big fan of co-working spaces for ad
hoc work and collaboration," Ross
Leibowitz shares. "But if you're a healthcare
company and processing sensitive data,
you're not going to go into a coworking
space. The security risks and your
organizational needs just aren't a good fit."
In general, though, coworking spaces will
continue growing in popularity and
adoption.
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2025 Workplace Predictions: Prediction #5
"Large companies with hybrid strategies
will add coworking spaces for multiple
reasons," Stève Cattin says. "They give
employees a dedicated workspace closer
to home. They can make collaboration
more accessible. And when the office
gets crowded, they can serve as overflow
spaces."
-Stève Cattin
