9 Essential KPIs for Running a Profitable Coworking Space
February 28, 2025 • 3 min read
Blog
A key performance indicator (KPI) is a measurable value that indicates how effectively you’re achieving your business objectives. Tracking KPIs is essential for understanding your coworking space’s health and profitability. The better you are at tracking and understanding your KPIs, the better you’ll be able at improving them.
In this Coworking Quick Tip, we’re sharing nine crucial KPIs to monitor, why they matter, and how to improve them.
Prefer to read this information in a PDF guide? Download our Coworking KPI Cheat Sheet at any time!
1. Number of Leads
What it is: The total number of potential members who have shown interest in your space. Typically a lead has submitted their email address on your website, attended an event, or requested more information from your team.
Why it’s important: A steady flow of leads is essential for sustaining and growing your business. It ensures you have people to market your coworking space to and nurture through the marketing funnel.
How to improve it: Boost marketing efforts through SEO, social media, and referral programs to improve the number of leads who are interested in your space.
2. Tours Booked
What it is: The number of prospective members who schedule a tour of your space. You may want to track Tours Booked along with Tours Completed to understand if people are dropping off.
Why it’s important: Tours are a key step in converting leads into paying members. They’re your number one sales tool when it comes to transforming interest into payments.
How to improve it: Make it easy to book tours online using a tour booking Web Widget and follow up immediately with a personalized email nurture sequence.
3. Lead Conversion Rate
What it is: The percentage of leads that become paying members.
In our lead management Masterclass, we discussed the importance of tracking the conversion rate from one point of the lead journey to the next to understand if you have any “leaks” in your funnel. We highly recommend watching this Masterclass if you’re interested in learning how to convert and nurture leads!
Why it’s important: A high conversion rate means your sales process is working effectively and your marketing tactics are attracting the right kinds of people.
How to improve it: Offer incentives, streamline onboarding, and use CRM tools to nurture leads. You can use coworking software like Optix to automate much of this process.
4. Member Retention
What it is: The percentage of members who stay with your space over time, typically tracked on a monthly basis. A retention rate above 90% is considered good in the industry.
Why it’s important: Retaining members is more cost-effective than acquiring new ones. A strong retention rate also shows that you’re meeting the needs of your members effectively.
How to improve it: Build a strong community, provide top-notch amenities, and gather feedback regularly via surveys to understand how your members are feeling towards your space.
5. Member Churn Rate
What it is: The percentage of members who leave your space in a given period. This number is the inverse of your member retention rate.
Why it’s important: A high churn rate signals dissatisfaction and revenue loss. It could also be a sign that your coworking space is not meeting the expectations of your marketing.
How to improve it: Address pain points, offer flexible membership plans, and make it easy for members to renew to avoid unnecessary churn.
6. Number of Bookings MoM (Month-over-Month)
What it is: The total number of bookings for all resources in your space including desks, meeting rooms, and alternative use rooms like podcast studios. You’ll want to separate this by resource to best understand space utilization.
Why it’s important: It reflects how well your space is being utilized and will help you understand top performing resources so you can adjust your product offering accordingly.
How to improve it: Promote your amenities, offer discounts for frequent bookings, and simplify the booking process with a mobile-first approach to make it easy for members to book a space.
7. Member Lifetime Value (LTV)
What it is: The total revenue generated by a member over their entire relationship with your space. Some say this is the most important KPI for you to track.
Why it’s important: A high LTV means your business is maximizing the value of each member. It could also signify a low churn rate and strong retention.
How to improve it: Upsell additional services, increase engagement, and reduce churn to increase member lifetime value.
8. Resource Utilization
What it is: The percentage of available resources (desks, meeting rooms) that are being used. Most coworking space operators are looking for a utilization rate above 80%.
Why it’s important: Maximizing resource use increases profitability and shows you that you’re offering your members the right products to fit their needs.
How to improve it: Use booking analytics to adjust pricing and availability and promote underutilized spaces. Regularly audit what you offer to ensure you’re utilizing your space efficiently.
9. New Member Sign-Ups
What it is: The number of new members joining your coworking space on a weekly, monthly, and annual basis. This is a number you’ll want to track over time to understand overall trends.
Why it’s important: Growth in new sign-ups is essential for long-term success and overall revenue growth.
How to improve it: Improve your onboarding experience, run targeted marketing campaigns, and offer referral incentives to increase new member sign-ups.
By monitoring these KPIs and making data-driven decisions, you can optimize operations, boost revenue, and create a thriving coworking community. Want to learn how Optix can help you improve some of the KPIs listed above? Connect with a member of our team to learn more!
