In recent years, coworking has become an increasingly relevant solution for many companies, both globally and in Norway. This article explores whether the coworking market in Oslo can achieve the same market share as in other major cities. Is this realistic given the current trends?

Status of the Coworking Market in Oslo (2024)

As of 2024, the coworking market makes up approximately 1.5% of the office market in the Oslo region. However, this figure may be somewhat misleading, as some operators operate under the radar, such as large tenants subleasing floors as shared office spaces. According to the Coworking Survey by Union (Winter 2023/2024), there are 42 official operators, with a total of around 12,900 workspaces. For the first time, the capacity for flexible office workspaces has declined, with a 13 percent drop from 2023 to 2024, equating to 1,900 fewer workspaces. This breaks with previous trends, where the supply increased by about 1,500 workspaces annually since 2016.

The decline is mainly due to major operators like Evolve and WeWork closing their centers. At the same time, Canica and Eiendomsspar have continued WeWork’s former center at Tjuvholmen under the name Tjuvholmen Work. Despite 690 confirmed new workspaces in 2024/2025, the survey shows that the number of flexible office spaces will still be 8 percent lower than the peak in 2023 unless more spaces are established in the short term.

Development Trends in the Coworking Market

The coworking sector in Oslo, as in many other cities, has been marked by experimentation and adaptation in recent years. Several players have explored different business models, with some proving more sustainable than others. This is a natural progression where the sector undergoes an evolutionary process—models that work survive, while others fade away. This applies to both small, niche coworking offerings and larger, more commercially-oriented operators.

Key Findings from the Union Coworking Survey (Winter 2023/2024)

Profitability in the Coworking Market

One of the positive developments highlighted in the Union Coworking Survey (Winter 2023/2024) is that 70% of coworking centers now report being in profitable territory, meaning their occupancy rates are above the break-even point. This is a significant improvement from August 2023, when only 52% of centers reported profitability. The increase in profitable centers indicates that many operators have managed to adapt to the economic challenges in the market, despite rising costs and competition. This could be a positive signal that certain models are working and that the market for flexible offices has potential, even though total capacity has declined.

Over-Establishment and Competition

Despite the loss of 1,900 workspaces over the past year, over-establishment remains a concern among several operators. This may be due to some providers lowering membership prices, which puts pressure on the overall pricing in the market. Additionally, competition from traditional office spaces has increased, as more leases now offer greater flexibility. This development means that coworking operators are not only competing with each other but also with traditional office rental agreements, which can make it more challenging for all players in this market to achieve profitability.

International Development in Major Cities

The coworking market in major cities like London, Paris, and Berlin has grown significantly over the past decade, establishing itself as an important complement to traditional office solutions. According to data from JLL, flexible office spaces in these cities account for between 2% and 8% of the office markets, but there was explosive growth of around 25% annually between 2014 and 2019. In 2019, flexible office spaces represented a staggering 20% of leasing activity in cities like New York and London, underscoring the significant role coworking plays in international office markets.

Furthermore, data from Statista shows that the proportion of flexible office spaces occupied in the first half of 2020 was remarkably high in European major cities, with London at 28.4%, Paris at 22.1%, and Berlin at 16.9%. This trend reflects strong demand for flexible solutions driven by the need for adaptable work styles and short-term lease agreements.

Reflection: Is There a “Lag” in the Oslo Market?

When we consider these international trends in light of Oslo’s development, it becomes clear that the city still has a way to go before the coworking market can reach comparable levels. While the largest European cities have experienced strong growth in flexible office solutions, Oslo remains at around 1.5% of the office market in 2024. This indicates significant growth potential in Oslo but also suggests that structural and cultural factors may be slowing development. What is the reason that coworking still constitutes only a small part of the market? One possible explanation could be that Norwegians generally prefer more traditional office solutions. It could also be a matter of market maturity—perhaps Norwegian companies simply have not adapted to the flexibility that coworking offers?

Conclusion

At Scout Eiendom, we currently do not see the coworking market in Oslo achieving similar market shares as in other major cities in the short term. However, it is clear that the market is changing, and there is considerable potential for growth. With only 1.5% of the office market in 2024, there is room for significant development. We need to become better at utilizing and making existing spaces available, especially considering sustainable solutions, as much office space remains unused today. It is positive that 70% of coworking centers report profitability, indicating that operators are adapting to the market.