How to Scale a Coworking Brand: Systems for Growth [2025]

TL;DR

• Scaling a coworking brand means growing locations and revenue with repeatable processes while protecting long term viability.
• Success hinges on timing, model fit, strong SOPs, the right locations, and tracking occupancy, retention, signups, and LTV.
• Automation standardizes experiences, boosts efficiency, and enables multi-site consistency without adding headcount.

There is no greater feeling than watching coworking spaces grow.

We’ve seen our clients like KoWorks go from one to three locations, Workspace go from four to five locations, and Groundswell grow their member base 10x *cue the tears*.

With these great success stories, we’ve noticed distinct patterns that make some coworking spaces scale with ease and others struggle to gain their footing. In this article, we’re going deep into all things scaling a coworking brand from when to do it, why it matters, to how to get it done without falling flat on your face.

Take these insights from our experienced team and capable clients to help you build your own scaling strategy in 2025 and beyond.

What does it mean to scale a coworking brand sustainably?

Scaling your coworking brand sustainably means growing in a way that does not threaten the viability of your business now or in the future.

Let’s say that Steve recently opened one coworking space in Minneapolis and he wants to scale to four more locations in the next three years. Scaling sustainably would mean doing the following before opening a second location:

• Developing, testing, and finalizing systems and processes
• Putting the time in to build a brand that people love and trust
• Experimenting with different pricing models to find the one that converts best
• Reaching or showing a path to profitability

This process is almost exactly what Adam Hyman, Founder at KoWorks, did (and is currently doing) to help him grow from one to three to now five coworking space locations in Sydney, Australia.

Why is scalability important for the long-term success of coworking spaces?

Scalability contributes to the long-term success of your coworking space because it forces you to consider not just what works right now, but what will work in the long-term. Even if you have no interest in growing to 10+ locations, scalability serves as the foundation for smart decision making.

Tashi Dorjee, Head of Flex Space at JLL, explains in his Flex for Thought video series that success in your coworking space lies in understanding your numbers and how economies of scale contributes to the long-term viability of your flexible workspace.

This is true whether you want to operate a single location coworking business or develop a thriving franchise.

When is the right time to start scaling a coworking business?

Most independently owned coworking spaces start to think about opening their second location after they have:

• Generated demand in the market, as shown by occupancy rates and member growth
• Achieved or shown a path to profitability
• Developed repeatable operational processes

While there is no data around the time it takes to open a second location, we do know that 53% of coworking operators operate a single location, while 47% operate multi-location businesses according to the 2025 Coworking Trends Survey by DeskMag. 

Therefore, the right time to start scaling your coworking business is after you have generated demand in the market, achieved or shown a path to profitability, and developed repeatable operational processes. Most operators like to see an occupancy rate above 95% to consider opening another location.

How can systems and processes make coworking growth more sustainable?

Repeatable systems are the foundation for growth, both in coworking and in business. Businesses that focus on improving processes can see up to a 30% increase in efficiency, which translates to more growth potential.

Systems and processes make coworking growth more sustainable by:

• Eliminating human bottlenecks: coworking community managers have notoriously high turnover. Detailed processes make knowledge transfer quick and easy
• Delivering consistent experiences: consistency across locations is huge in maintaining a brand – it’s one thing all of the largest coworking companies in the US have in common
• Reducing risk: there is a lot of risk in undefined processes, as steps can easily be missed in the process. Defined processes reduce this risk across all locations

Justin Moran, Owner at Workspace, implemented Optix Automations to help him map out and define his processes across his four coworking locations. It was what ultimately helped him open up his fifth location while maintaining the quintessential WorkSpace experience.

What are the different ways you can scale your coworking business?

There are four primary ways of scaling your coworking space business: multi-brand alliance, franchise model, network model, merger and acquisition.

1. Multi-brand alliance

A multi-brand alliance is the combination and collaboration of two or more brands. It is most often seen in the hotel and hospitality industry, as with Marriott International Inc. For a coworking space, a multi-brand alliance may involve you “teaming-up” with another coworking space and operating independent brands under a single umbrella parent company.

Pros:

• Easier to manage the expansion with a pre-existing brand
• Less financial risk involved
• Opportunity to leverage an existing audience

Cons:

• Less control over branding and growth
• Can be difficult to find brands to partner with

2. Franchise model

According to Investopedia, a franchise is “a business model where the owner licenses operations, products, branding, and knowledge for a fee.” You as an owner (franchisor) would license your brand and knowledge to an individual (franchisee) who would operate a location of your brand. They would operate the business and get a share of the revenue in return.

Flexwerk is “the first coworking space for fitness professionals” located in Indianapolis, Indiana. Steve Pirt, Founder at Flexwerk, plans on expanding his micro-gym business using a franchise model because it is one of the most reliable ways to scale without lots of upfront financial investment.

Pros:

• Can expand operations at a faster rate
• Less upfront capital investment
• Reduced risk

Cons:

• Less control over business operations
• Developing the model can be expensive and challenging

3. Network model

The network model (also known as a chain) involves opening multiple coworking locations under the same owner and same brand. This is the most common method for scaling coworking spaces as it allows for you as the owner to maintain full control over the operations and the brand.

Pros:

• Provides the most control over your brand and business
• Has the greatest financial opportunity

Cons:

• Requires the most upfront capital investment

4. Merger & acquisition

The merger and acquisition model involves merging or being acquired by another, usually bigger brand. Most operators go into business knowing that this is the outcome they want, although some are surprised by an opportunity.

Mergers and acquisitions are becoming more common in coworking as the industry matures. Recently we’ve seen Industrious merge with Breather and DeskPass, CBRE acquire Industrious, and WeWork acquire CommonDesk.

Pros:

• Increased market share at a lower cost
• Reduced competition 
• Potential for faster growth

Cons:

• High financial costs and risk
• Challenges in integrating different businesses

What common mistakes do coworking operators make when trying to scale?

When it comes to scaling your coworking space brand, there are a few common mistakes to be mindful of.

1. Scaling too quickly

By far, the number one mistake we see ambitious coworking operators make is trying to scale their business too quickly. Usually, this happens if you plan to open your second location soon after opening your first before you’ve tested pricing, proved the model, etc.

We see this most often when operators try to open multiple coworking space locations at the same time. Scaling too quickly was one of the biggest mistakes made by the notorious coworking brand, WeWork.

How to avoid it:

• Be thoughtful when scaling. Scale to multiple locations slowly and only after the business model has been proven.

2. Expecting every location to be the same

One thing that Justin from Workspace found very quickly is that things don’t always translate from one location to another. That’s because your demographic can shift depending on where you’re located, and different customer profiles (ICPs) require a different approach.

He recommends staying true to the community and being open to their needs and what they tell you rather than assuming you know best.

How to avoid it: take your learnings from your first location to your second, but pivot accordingly. Survey members and adjust your strategy according to feedback.

3. Not thinking about scalability from the beginning

A lot of first-time coworking space operators piece together their first location with manual processes and work that heavily relies on human intervention. This will not scale.

Consider how you will define your standard operating procedures and automate key operational processes from the beginning, either by using coworking software like Optix and/or a collection of coworking technology pieces. This ensures that operations will translate easily from one location to the next, and you’re not vulnerable to humans coming and leaving.

How to avoid it: as you develop your processes, consider how you can automate the work you’re doing. Document processes as you go along to increase your bus factor, or the number of people who could get hit by a bus before your business couldn’t operate.

4. Choosing the wrong scaling strategy

There are many strategies you can take when it comes to scaling your coworking business, as described above. Choose the right strategy, and you’re off to the races. Choose the wrong strategy however and it could mean the end of your business altogether.

 

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Choosing the right scaling strategy depends on how much upfront capital you have to invest, how many locations you want to have, and how quickly you have to get there. 

How to avoid it: figure out your five and 10 year plan. Determine what scaling strategy will help you get there, based on the resources you currently have available to you.

5. Choosing the wrong location

Location is huge when it comes to coworking, no matter what stage you’re at. If you’ve struck gold with your first coworking space, you may not know whether it was because of the brand, the location, or some other factor. You’ll want to think about whether you’re expanding in the same neighborhood, same city, same state, or none of the above.

Maggie, Founder of Elevate Coworking, specifically chose her coworking space location because of the location. It was in a great neighborhood and had plenty of parking available outside for busy women who needed it.

How to avoid it: conduct a thorough audit of potential locations for your next coworking space. Do you due diligence before committing to a location to ensure there is the demographic to match.

How can I balance growth and community in a scaling coworking business?

The best way to balance growth and community when scaling your coworking space is to establish a strong brand and community values that extend beyond a single location.

Mitchell Purdy is the Founder and CEO of Suite Genius, a three-location coworking space located in Vancouver, British Columbia. Here’s how he’s been able to scale while maintaining a cozy, community vibe.

• Design each location to cultivate community: Mitchell focuses on big, open kitchens that create natural opportunities for connection
• Establish shared community values: although every location is different, they can still share the same values and have those values be communicated early and often
• Listen to your members: create a personal relationship with your members and truly listen to what their needs are to ensure you’re serving them as best you can

Community is crucial to maintain across a scaling coworking organization. But another key aspect that cannot be forgotten when scaling? Consistency.

How do I maintain consistency and quality across multiple coworking spaces?

One of the easiest ways to maintain consistency and quality across multiple coworking locations is with defined Standard Operating Procedures (SOPs) and automation.

Define your Standard Operating Procedures

SOPs are a set of documents that outline how to handle certain situations or complete specific tasks in your coworking space. This could be anything from:

• How to make a cup of coffee
• How to handle refunds
• What to do if a member has been in the phone booth for too long

Take some time defining your SOPs and documenting them for internal access. Then, take a look at what you can automate – and automate as much as you can.

Automate as much as you can

When a process is automated, it happens in exactly the same way, every single time. That means a lead is always followed up with, an overdue invoice is always charged, and a member always receives the welcome email at 9:00 am on their first day.

This is how Justin from Workspace is able to create a consistent experience for his members across all five of his coworking space locations. He uses Optix Automations to make sure every member is receiving the same email, in the same voice, at the same time. 

He doesn’t have to worry about his community manager doing something in their own way (or worse, not doing it at all).

He can rely on technology to take care of it for him.

How does technology help your coworking space scale?

Technology and automation can help you improve efficiency, engage your community, and increase profitability across multiple coworking locations. Here’s why that matters for your success.

1. Improves efficiency and standardizes operations

Automation can improve the efficiency by up to 54% according to research done by the Optix team in 2024. Scaling coworking brands can use technology ecosystems to improve efficiency and run their operations with less effort. Most scaling operators will use:

• Coworking space software (Optix): automates day-to-day repetitive tasks from bookings and invoicing to lead follow-ups and tour reminders
• Payment gateway (Stripe): enables you to collect various payment methods automatically
• Access control system (Kisi): allows for quick and easy access to your building without needing someone on-site
• CRM (HubSpot): manages customer data and allows for quick and easy lead targeting – PS. much of this can now be done in Optix!
• WiFi management (IronWiFI): keeps your WiFi secure and reduces the risk of unwanted WiFi use
• Accounting software (Quickbooks): allows you to manage your finances quickly and easily

Integrating these systems together and ensuring easy multi-location management will help your operations run efficiently so you can scale quickly.

2. Engages your community across all locations

Technology has the ability to connect your community anywhere in the world, whether in different cities, states, or countries. Coworking operators number one goal is to build community according to the DeskMag Coworking Trends 2025 survey, so this is something all operators need to consider.

Think about where you will build and host your digital community be it on Slack, Facebook, Whatsapp, or your coworking software like Optix. Using technology helps develop a central place for people to connect.

3. Increase profitability

Profitability is a big component of being able to scale a coworking space successfully, and automation is one of the best ways to get there.

Automation helps to increase profitability in your coworking space by:

• Saving time (and creating more time for higher impact activities)
• Reducing headcount (and allowing for more intentional roles)

It’s no surprise then that over 90% of operators see automation as being important to their business. It’s one of the underlying reasons why spaces are able to scale their business over time.

What KPIs should I track to measure coworking business growth and scalability?

Key performance indicators (KPIs) can help you understand how your coworking business is performing over time. When scaling a coworking business, pay attention to KPIs like:

• New member sign-ups: how many members are looking to join each month
• Occupancy rate: how many members are using the resources in your space on a daily, weekly, or monthly basis
• Member retention rate: how well your space is able to keep members
• Member lifetime value (LTV): how much money each member generates for the entirety of their tenure

A sign that you are ready to open up more locations of your coworking space could be if you have high new member sign-ups (lots of people are interested in your community), high occupancy rate (your space is occupied most of the time), low member retention rate (members are staying for a long time), and high member LTV (members are spending money in a way that indicates profitability.

Scale your coworking space with Optix

Scaling a coworking space isn’t always easy, but Optix can help make it a lot easier. Optix coworking software offers multi-location management to easily automate coworking spaces across multiple locations.

Don’t take our word for it. Just look at Justin running five coworking locations at Workspace, Adam running three coworking locations at KoWorks, and Harry running nearly 10 locations at The Wheelhouse.

Want to see how Optix helps scale coworking spaces?