An unfamiliar concept 10 years ago and poorly understood even now, coworking is one of the fastest-growing sectors of the commercial real estate market. In the few years since the concept began to take hold, the industry has grown to include more than 11,000 shared workspaces around the globe. While major U.S. and U.K. coworking markets are beginning to show signs of maturity, the demand in second-tier cities and emerging markets is fueling double- and even triple-digit growth for coworking centers.1

Though its growth has been profound, the shared workspace market—including serviced offices, coworking spaces, incubators, accelerators and more—represents less than 1% of the world’s office space.2  Nevertheless, coworking and the broader category of flexible workplaces are important trends worthy of owner, investor and occupier attention.