Philly-area coworking spaces are expanding as entrepreneurs and remote workers pay to be ‘part of something bigger’

Greg Goodwin, founder of branding and strategy agency the Positiv-Media Bureau, has been a WeWork member for eight years, dating back to the coworking company’s early days in Philadelphia.

“I definitely feel like I get my money’s worth, and the amenities are a plus,” said Goodwin, who pays for space at the Ludlow Street location. It’s “impressive to clients” and helps him maintain a professional image, he said.

Coworking, a flexible workspace model in which workers rent a share of an existing office space, is prevalent among freelancers, remote workers, start-up companies, and businesses that don’t want long-term leases.

As vacancy rates continue to rise in Philadelphia’s commercial office buildings, the coworking segment is still seeing demand, according to its business leaders. Large coworking companies are expanding in the region, while some locally grown workspaces like Kismet CoWork in Chestnut Hill and iThrive Coworking in Ambler, Malvern, and Wyncote have found a market in Philadelphia’s outlying neighborhoods and suburbs.

At iThrive, each location is designed to be a modern, collaborative environment for small businesses, remote professionals, and entrepreneurs, said cofounder Karen Mellor.

“Across our locations, we offer a mix of private offices, team suites, dedicated desks, open coworking areas, and flexible event and meeting space rentals,” Mellor said. “Our goal is to keep expanding throughout suburban bedroom communities in Philadelphia.”

The coworking industry is led by Regus, the largest coworking operator with more than 1,000 locations in the U.S., and WeWork, which has 150 locations, according to the Coworking Cafe National Report for 2024.

Two of those WeWork locations are in Center City Philadelphia: one at 1900 Market St. and another at 1100 Ludlow St.

The former, in the heart of Philadelphia’s central business district, was recently renovated and offers over 56,000 square feet of workspace on the building’s entire top floor, according to Nick DeMarinis, a vice president with WeWork. The latter, on Ludlow, is close to City Hall and Jefferson Station, DeMarinis noted, and has 76,000 square feet of space, also recently updated.

“The flexible workspace sector in Philadelphia remains incredibly strong,” DeMarinis said. He points in part to rising challenges businesses face in forecasting future expenses — such as economic uncertainty and fluctuating head counts.

“To make their real estate portfolio more adaptable, companies have decided to make flexible workspaces a large part of their portfolio,” he added.

A recent WeWork survey found that 59% of companies that plan to increase their workspace in the next two years are choosing flexible spaces over traditional offices, including nearly three-quarters of remote companies. The data show continued demand for flexible workspaces in Philadelphia, DeMarinis said, with occupancy of 72% at WeWork locations in the market.

International Workplace Group, which includes the brands Spaces, Regus, and HQ, has more than two dozen flexible workspace locations in the Philadelphia area among more than 60 across Pennsylvania. The company is in the midst of an expansion that includes 13 new locations in Pennsylvania this year.

With the long-term shift to more flexible ways of working, the company has seen rising demand for flexible workspaces across Pennsylvania, founder and CEO Mark Dixon said. Users can adjust based on their needs, making use of coworking areas, private offices, and meeting rooms, he said.

“We are deepening our presence right across Philadelphia as well as the whole of the U.S.,” Dixon said. “The benefits of flexible workspaces in the heart of local communities are countless and include reduced commutes enabling employees to work in local hubs close to home.”

This, Dixon contends, can help organizations increase employee satisfaction, productivity, and retention.

Independent coworking space operators are also enjoying growth.

Kismet Cowork, located in Chestnut Hill, offers membership options to cater to different needs, including a community plan, floating desk membership, and dedicated desk membership. It also has conference rooms for teams.

“We strive to create a welcoming community and provide resources to support our members’ growth,” said Kismet general manager Aubrey Badia Howard.

iThrive Coworking operates three community-driven coworking spaces in the Philadelphia suburbs. CEO Mellor said her option provides a flexible middle ground, a professional environment without the overhead of a traditional lease, fully equipped with high-speed internet, meeting rooms, coffee and snacks, printing services, and around-the-clock access.

Mellor suggests coworkers consider choosing a locally owned and operated center.

“The Philly coworking scene is strong — and getting stronger,” Mellor said. “As more people choose to live and work in the suburbs, we’re meeting them where they are, creating workspaces that support their lifestyle and ambitions.”

“We’re not a corporate chain,” Mellor said. “That allows us to be hyper-focused on member experience, intentional about cultivating community, and responsive to the unique needs of each of our locations.”

In that environment, she added, “members build real relationships.”

Goodwin, the branding agency founder, uses WeWork spaces throughout the country when he travels for work. He said he feels the same sense of “community and culture” at the other locations as he does in his Philly home base.

“It feels good to be a part of something bigger,” he said.