In Q2 2025, the U.S. coworking market shifted into a recalibration phase. After strong growth earlier in the year, expansion slowed, with national flexible workspace inventory rising by just 0.4% compared to a 3% jump in the first quarter. The number of coworking locations also fell by 1%, the first post-pandemic decline, as operators consolidated and closed underperforming sites. Major urban centers like Manhattan saw both footprint and location counts shrink, but the remaining spaces grew slightly larger, signaling a move toward fewer, more premium hubs designed for hybrid work. At the same time, suburban and secondary markets such as Long Island, Birmingham, and West Palm Beach recorded notable growth, showing how coworking is increasingly spreading beyond city cores to meet demand for flexible, commuter-friendly options. – Source: Yardi Coworking Cafe