Find the Perfect Environment for Your Investment
The coworking space market has grown exponentially in recent years, becoming a profitable and flexible option for investors, real estate developers, and entrepreneurs looking to diversify their assets. However, the key to a successful coworking space lies not only in its design and services but also in its strategic location. Knowing where to open a coworking space is crucial, as choosing the right location can make the difference between a highly profitable business and a project that fails to take off. In this article, we analyze the best locations for success, evaluating coworking spaces profitability potential, the most suitable real estate asset type, and strategies to optimize financial performance. Additionally, we identify the user profile in each location, allowing for a tailored offering that meets real market needs and maximizes client acquisition.
1. City Center: High Demand and Business Expansion
Coworking spaces in city centers are typically located in office buildings or large commercial spaces, ranging from 500 to over 2,000 m². The design of these spaces prioritizes flexibility, with open areas, private offices, meeting rooms, and common areas. Large operators and international chains dominate these environments, creating a highly competitive landscape. However, demand is high, and profitability can be substantial when adopting a scalable model targeting growing companies and startups. To maximize profitability, expanding by opening new locations and offering premium services that differentiate the value proposition is recommended.
Example: Utopicus in Madrid or Barcelona, offering premium spaces, strategic locations, and exclusive services for businesses.
2. Near Airports: Opportunity for the Corporate Sector
Coworking spaces near airports are usually located in industrial zones or business parks, ranging from 300 to 800 m². These spaces are primarily designed for executives and business travelers, prioritizing private offices, meeting rooms, and relaxation areas. Profitability in these cases is often high since private offices are the main product. To improve occupancy, offering hourly or daily rentals, establishing partnerships with airlines and transportation companies, and boosting corporate agreements to attract repeat customers are recommended.
Example: Regus at Schiphol Airport, providing private offices and meeting rooms for business travelers.
3. Residential Areas: Work Near Home
Coworking spaces in residential areas typically range from 100 to 400 m² and are located in commercial premises or mixed-use buildings. Their users are people who live in the area and work in a hybrid format or small businesses. Their design is usually cozy, with shared desks, private booths, and cafés. Although demand may be lower than in urban centers, these coworking spaces can be profitable by securing collaborations with coworking platforms that have corporate partnerships promoting hybrid work among their employees or targeting companies looking to decentralize their operations.
Example: Cloudworks in residential neighborhoods of Barcelona, offering flexibility to local professionals.
4. Small Towns: Spaces for the Local Community
In small towns, coworking spaces are typically located in renovated buildings or commercial premises, ranging from 100 to 500 m². Their design is versatile, featuring spacious common areas and private offices. Profitability can be lower due to the reduced business density. An effective strategy is to complement coworking with training spaces, events, and networking, diversifying revenue streams. In many cases, these spaces become profitable when they are not the operator’s primary activity but rather a complementary service that generates synergies with other businesses.
Example: Espacio Arroelo in Pontevedra, a coworking space that has become a hub for the local business community.
5. Rural Areas: Integration with Tourism and Well-Being
Coworking spaces in rural areas are usually found within country houses, rural lodges, or hotels, ranging from 100 to 200 m². Their design incorporates natural materials, large open spaces, and outdoor relaxation areas. Profitability in these cases can be challenging due to the low density of professionals in the area, so the key is to combine coworking with coliving, well-being activities, and rural tourism. This model takes advantage of the seasonality of the tourism sector and diversifies revenue streams.
Example: Sende, a rural coworking space in Galicia that combines work, nature, and community.
6. Coastal Locations: Hybrid Model with Hospitality
Coworking spaces in coastal locations are often part of colivings or hotels, with variable dimensions depending on the asset in which they are located. Their design is open, featuring terraces, relaxation areas, and multipurpose event spaces. Profitability in these areas depends on tourism demand, so diversifying revenue with annual memberships, work-vacation packages, and additional services such as hospitality or local experiences is crucial. And also on establishing itself as a digital nomad destination to attract demand year-round.
Example: Kalima Beach Life in Caldes d’Estrac (Barcelona), a coliving and coworking space designed for digital nomads near the sea.
7. Shopping Centers: High Exposure and Customer Flow
Placing a coworking space within a shopping center can be a profitable strategy due to the constant flow of visitors. These spaces usually range from 500 to 2,000 m² and feature a modern design focused on flexibility and accessibility. Profitability can be high if a differentiated offering is provided, such as premium spaces, fully equipped meeting rooms, and corporate events. To maximize performance, establishing partnerships with nearby businesses and tailoring the offering to professionals seeking dynamic and well-connected work environments is key.
Example: Talent Garden in Milan, located within a shopping center and offering services tailored to entrepreneurs and tech companies.
Conclusion: Keys to a Successful Investment
Choosing the right location is a determining factor in the success of a coworking space. Before making a decision, it is essential to identify whether there is a business opportunity in the chosen location. Conducting an in-depth exploration and analysis of the surrounding environment—including the local economy, population type, available services, competitor analysis, potential demand assessment, and a clear positioning strategy—is crucial. At HWL, we offer specialized consultancy to help you find the best location and business model for your coworking space, ensuring a solid and sustainable investment. Contact us here for a consulation.
