London is World’s Fastest Growing City for Coworking Spaces
CoworkingResources , a publication dedicated to shared workspaces, have released a study revealing the cities with the highest growth rate of shared offices. The results reveal London, U.K., as the city with the fastest rising number of coworking operations, with a new venture opening every five days. New York, U.S., came in a close second, with a new flexible workspace opening every 7.5 days.
When analysing the data by country population, Luxembourg took the top spot with the highest density of workspaces per capita, at 8.5 new spaces opening each year for every 1,000,000 inhabitants. This was followed by Singapore and then Ireland with the United Kingdom placing 5th.
The results also reveal that new businesses make up 65.3% of the new openings globally. Chains and second or more locations constitute the remaining 34.7%, indicating that while existing companies are thriving, the majority of the industry’s growth still comes from firms, independent business owners and entrepreneurs entering the market for the first time.
Although these figures display a significant rise in the number of shared office spaces, the research reveals the global growth rate of new openings is likely to be lower in 2019 than it was in 2018, presenting a 9.5% annual increase compared to 15.2%, respectively. Despite this, the number of coworking spaces is expected to steadily increase from 18,287 in 2019 reaching almost 26,000 offices worldwide by 2022.
Ashley Davis, the Managing Editor at CoworkingResources comments, “This upward trend in individually-owned spaces shows that the larger chains may not have a monopoly on the industry as previously thought.” Davis adds, “Based on our findings, we see that there is more than enough room for small, independent spaces to grow wherever there is a community and that they, in fact, may fare better in less-populated, unlikely places.”
How the study was conducted:
To conduct the study, CoworkingRescources tracked all coworking office openings for a 10-month period, from June 2018 to April 2019. The information was collected via industry news, web and social media announcements and alerts. Outreach was then conducted to check the status of these projects, with the feedback logged and compiled to create quantifiable data.
Please find the complete methodology and full data set on the results page: