How to Conduct Market Research for Your Coworking Business

So you’ve decided you want to open a coworking business – great! The industry is more than happy to have you in our incredible community.

There’s just one problem…you don’t know much about coworking in your area. You think it might be a good idea, but you really have no clue if there’s a market for it or any interest. That’s where market research comes in.

In this Coworking Quick Tip, we’ll share with you five steps that you can take today to begin a thorough audit of the coworking landscape to help you successfully research and launch your coworking business.

1. Analyze the demographic of your market

As they say in marketing, always start with your customer. Understanding the people in the area you’re looking to open in will help you determine if there is a market to sustain your coworking space. At this stage, you’ll want to:

• Gather data on the population including age, employment types, income levels, and education
• Identify key groups that would use your coworking space including freelancers, startups, remote workers, students, or small businesses
• Evaluate population trends including growth in remote work, entrepreneurship, or freelancing in your area

For example, Austin, Texas is quickly becoming a new hub for technology startups and innovators. It may be a good place to open a coworking space + incubator for tech entrepreneurs.

2. Research other coworking spaces in the area

Though coworking spaces don’t often think of themselves as competitors to one another (in British Columbia Canada for example, coworking owners and operators like to work together), understanding the other coworking spaces in your area will help you build a more compelling offering.

Identify direct competitors: visit existing coworking spaces nearby and list their pricing, target audience, and key features

Evaluate their strengths and weaknesses: use customer reviews, personal visits, and online research to identify gaps in their offerings (limited meeting rooms, outdated tech, etc.)

Benchmark their pricing: record competitors’ membership tiers and pricing models to help inform your own pricing strategy

3. Talk to potential customers to understand their needs

There is no better way to research the viability of your business than by talking directly to your customers. 

One of the easiest ways to do this is by posting a survey in a relevant local Facebook group asking local freelancers, remote workers, and small businesses what they look for in a coworking space. Questions could cover preferred location, amenities, budget, and additional services.

You may also want to visit meet-ups for entrepreneurs in the area to connect with the local community and find out if they’re interested in a shared workspace.

4. Assess location options

Do you have an idea of where you want your coworking space to be? If not, then this is a very important step. To determine the best location for your business, you’re going to want to:

• ​​Identify high demand areas: look near business hubs, universities, or transit-friendly locations
• Evaluate accessibility: assess parking, walkability, and proximity to amenities like cafes or restaurants
• Observe foot traffic: note peak activity times and the types of people passing by

We have an entire article mapping out how to choose the best location for your coworking space that we highly recommend checking out if you’re looking for a more detailed walkthrough of this process!

5. Evaluate overall market demand

Finally with all of the insights you’ve gathered, it’s time to evaluate the overall market demand for coworking.

• Estimate market size: use local demographic data to calculate the potential number of members who may be interested in coworking
• Track industry trends: research global and local coworking trends (ie. remote work growth, niche spaces) to estimate interest
• Gauge competition saturation: determine if the market can sustain another coworking space or if there’s a niche coworking opportunity

Congratulations! You’ve completed your coworking market research.

Start researching your coworking market today!

Market research is the backbone of any successful coworking business. By taking these five steps, you’ll have a clear picture of the coworking landscape in your area, from who your potential members are to what your competitors are doing well (or not so well). 

With the right research and a little creativity, you’ll be ready to create a space that people love – and that thrives in your market!