5 Common Challenges For Coworking Spaces in 2025

It’s day one of your coworking journey, and you’re ready to throw open your doors and welcome the world!

Within a week, you’re struggling with process inefficiencies, little to no sense of community, and you’re having to explain what coworking is to someone for the seventh time this week.

Nobody ever said coworking was easy, but you didn’t expect it to be this hard. 

So what do you do?

In this article, we’ll walk you through five common challenges that coworking owners and operators are facing in 2025 including how to overcome each one.

1. You don’t have enough members

One of the hottest topics for operators old and new is growth. With occupancy metric a key performance indicator for many operators, healthy membership growth is critical.

When first opening a coworking space, it’s not uncommon to struggle with attracting members to your space. While there are many different marketing ideas and strategies you can use to get membership up, we believe in starting with the fundamentals.

• What do you offer that is unique? (point of differentiation)
• Who is it for? (ideal customer profile)

When operators are struggling with getting members, there’s usually an issue with their offering. If and when you figure that out, then you can pivot to deploying different marketing strategies like direct mail, local SEO, and Google ads to drive member acquisition. 

How to overcome it

• Complete market research before you open to ensure you are targeting the right demographic with a compelling offer that they care about
• Experiment with your marketing strategy and tactics to figure out what works and iterate quickly
• Set up a referral program to take advantage of the members you do have and encourage the most valuable marketing of all – word of mouth

2. You’re struggling to build community

As Mitchell Purdy, Founder at Suite Genius said, “Community is a bit of a buzzword in coworking”. That may be true, but it’s also an important component of the coworking experience that many members seek out.

Many operators struggle with what it takes (and what it means) to build community. Do you hold more events? If so, what events do you hold? How do you know what’s working and what’s not?

It’s difficult to turn community on. But once it’s there, you can watch it foster and grow on its own.

How to overcome it

• Create opportunities for members to naturally connect with one another, whether that’s a weekly happy hour, Waffle Wednesdays, or designing large kitchens optimized for casual water cooler chats throughout the day
• Play matchmaker and go out of your way to connect members with others with similar interests or occupations
• Set up a digital directory where members can add information about themselves and use it to direct message other members

3. People don’t “get” coworking

On a recent Coworking Resources webinar, one panelist said that one of their greatest challenges was educating people on what coworking is. This can be difficult to understand as someone deeply steeped in the flex space industry. But it’s a reality that many operators face, especially those operating in rural communities.

Megan Cyphers, Founder at Locally Known Cowork, asks members if they know what coworking is as soon as they enter. Most of the time, they do not. 

Even if they do, they may still struggle to understand why they should pay to work somewhere when they can work from home for free. As the old adage goes, your competition as a coworking space is people’s kitchen table.

How to overcome it

• Education, education, education. Spend some time creating educational resources that explain what coworking is and how it can benefit people outside of just providing a place to work
• Attend local community events and meet-ups so people know who you are and the value you bring for people

4. Your processes are inefficient

We can’t count the number of people we’ve worked with who have lost hundreds of thousands of dollars a year due to inefficiencies in their processes. 

Inefficiencies often come from having the wrong technology in place (or none at all) or over relying on manual work to get things done.

The earlier you can identify these inefficiencies, the better. Processes are often easier to change when you’re first starting out.

How to overcome it

• Select the right coworking software from the beginning. Do this now to avoid a hefty migration process down the line
• Create an integrated ecosystem of technology tools instead of relying too heavily on one – or worst, fragmented tools
• Leverage automation from the beginning to save time, improve operational efficiency, and create a better experience for your members

5. You have the wrong product mix

I asked coworking owners and operators what they wish they knew before they opened their doors. Surprisingly, two owners said they wish they knew what the demand for private offices would be before they opened so they could plan for it accordingly.

The coworking product mix has evolved a lot since COVID, and private offices are in high-demand. Too many, and you’ve turned into executive offices with no open seating area. Too little, and you’re struggling to meet demand.

Getting your product mix right is challenging, but it’s crucial for unlocking profitability.

How to overcome it

• Design your space in a way that is flexible and modular – ideally you can adjust your product mix with some fluidity without needing a whole new buildout
• Incorporate a few highly profitable products into your space, like a large scale event space or classrooms for training
• Aim for an 80/20 mix of private offices and meeting rooms to open seating areas for optimum profitability

All challenges can be overcome

Tackling the challenges of running a coworking space can feel overwhelming, especially when roadblocks creep up. But don’t be discouraged—these obstacles are part of the journey, and they can be overcome. 

Focus on refining your unique value proposition, experimenting with marketing strategies, and investing in effective tools and processes. Educate your community about the benefits of coworking and adapt your product mix to meet evolving demands. 

By staying flexible and committed to creating real value for your members, any challenge can be overcome. Embrace the learning curve, keep pushing forward, and watch your coworking space transform into the community space of your dreams.

Learn how Optix can help you overcome even the most persistent coworking challenges.