When Did Coworking Become Popular, and Is Coworking Dead?

As the operator of iThrive Coworking, I often hear questions about the rise of coworking and whether it’s still a relevant option for today’s professionals. While the coworking industry has faced shifts and challenges, particularly during the pandemic, the answer is clear: coworking is far from dead. In fact, it’s thriving in new and exciting ways.

Let’s take a look at when coworking became popular and why coworking spaces are very much alive—and perhaps more important than ever.

The Rise of Coworking: A Brief History

Coworking as we know it began to take shape in the early 2000s, with Brad Neuberg often credited as the founder of the modern coworking movement. In 2005, Neuberg opened the first official coworking space in San Francisco, offering freelancers and remote workers a shared environment where they could work independently but not in isolation.

The idea of coworking gained traction quickly as more professionals sought flexible workspaces that provided the benefits of an office—community, structure, and resources—without the rigidity of traditional office leases.

By the early 2010s, coworking spaces began popping up in cities all over the world. Companies like WeWork helped popularize the concept on a global scale, and coworking spaces evolved to cater to a wide variety of professionals: freelancers, entrepreneurs, startups, small businesses, and even corporate teams.

Why Did Coworking Become So Popular?

Coworking became popular for several key reasons:

1. Flexibility: Traditional offices require long-term leases, but coworking spaces offer flexible membership plans. Whether you need a desk for a day, a month, or a year, coworking spaces adapt to your schedule and business needs.
   
   
2. Cost-Efficiency: Especially for startups and freelancers, coworking provides a cost-effective solution. Instead of paying for rent, utilities, and office infrastructure, coworking members share these expenses, making it far more affordable than leasing an office.
   
   
3. Community: Isolation is a challenge for remote workers and freelancers. Coworking spaces create a sense of community by bringing together professionals from different industries, offering opportunities for networking, collaboration, and support.
   
   
4. Professional Environment: Coworking spaces offer access to high-speed internet, meeting rooms, and office amenities that provide a professional environment without the hassle of managing a private office.
   
   
5. Work-Life Balance: Coworking provides an alternative to working from home or from a noisy coffee shop, allowing professionals to separate work from personal life and create a dedicated space for productivity.

Is Coworking Dead?

With the rise of remote work, especially during the COVID-19 pandemic, some people have questioned whether coworking is still relevant. After all, many businesses shifted to fully remote models, and professionals became accustomed to working from home. But the truth is that coworking is not dead—it’s simply evolving.
Here’s why coworking is alive and well, and why it remains a valuable solution in the changing world of work:

1. Hybrid Work Models Have Increased Demand
   Post-pandemic, many companies have adopted hybrid work models, allowing employees to split their time between working from home and an office environment. Coworking spaces perfectly accommodate this shift by offering flexible, part-time access to professional workspaces.
   
   For workers who don’t need a permanent office but still want an escape from the home office or an occasional space for collaboration, coworking is the ideal solution. At iThrive Coworking, we’ve seen an increase in interest from professionals who want a “third space”—somewhere between home and a full-time office—where they can be productive.
   
   
2. Community and Collaboration Are Still in Demand
   While remote work offers flexibility, it can also lead to isolation. Many professionals miss the sense of community that comes from being around others in a shared workspace. Coworking spaces provide opportunities for organic networking, collaboration, and connection with other like-minded professionals.
   
   At iThrive, we’ve seen how important community is to our members. From informal chats in the lounge to organized networking events, coworking creates the social and professional interactions that many remote workers crave.
   
   
3. Startups and Entrepreneurs Need Flexible, Affordable Spaces
   Startups, small businesses, and entrepreneurs continue to rely on coworking spaces as affordable, professional environments. Traditional office leases are expensive and inflexible, especially for new businesses that need to grow quickly or pivot. Coworking spaces allow businesses to scale their office needs as they grow, without being tied down by long-term commitments.
   
   We’ve also seen that coworking spaces offer valuable resources to entrepreneurs, from mentorship opportunities to access to talent and new business connections. This network effect is a key part of what makes coworking so powerful for startups.
   
   
4. Corporate Teams Are Using Coworking for Flexibility
   Even large corporations have embraced coworking spaces for satellite offices or project-based teams. Many companies are moving away from maintaining large central offices and instead are using coworking spaces to give employees flexible options for where they work.
   Coworking spaces also provide companies with access to temporary offices when they need to set up teams in different cities or for short-term projects, without the costs and logistical challenges of opening a new office.
   
   
5. Work-Life Balance and Mental Health Matter More Than Ever
   The pandemic highlighted the importance of work-life balance and mental health. While working from home is convenient, it can blur the lines between personal and professional life. Coworking spaces offer a way to re-establish boundaries, giving professionals a dedicated space for work and a clearer separation from home life.
   Many coworking spaces, including iThrive, are designed to foster well-being—from ergonomic furniture to spaces that encourage social interaction and creativity. For individuals who want to avoid the burnout that can come from working in isolation, coworking spaces provide a much-needed change of environment.

Coworking’s Future: Evolving, Not Dying

The future of coworking isn’t about reverting to pre-pandemic norms—it’s about adapting to the new ways people work. As remote work and hybrid models continue to grow, coworking spaces are uniquely positioned to offer flexible, community-driven environments that meet the needs of today’s professionals.

At iThrive Coworking, we’re seeing how coworking is evolving to meet the needs of a diverse range of professionals—from freelancers and entrepreneurs to corporate teams and remote workers. The demand for coworking isn’t going away; it’s simply changing to reflect how work itself is changing.

Conclusion: Is Coworking Worth It?

Coworking became popular because it offered a flexible, affordable, and community-driven alternative to traditional offices, and that appeal hasn’t gone away. If anything, the rise of remote and hybrid work has made coworking more relevant, as professionals seek flexibility, connection, and work-life balance.

Coworking is not dead—it’s thriving in new and exciting ways. Whether you’re a freelancer, remote worker, entrepreneur, or part of a corporate team, coworking spaces like iThrive Coworking continue to provide the space, community, and resources to help you thrive in the modern work world.

If you’re curious about how coworking can support your work life, stop by one of our locations for a tour and see firsthand how we’re evolving to meet the future of work.