The suburban coworking inventory in the Phoenix market has surged in the last two years, according to a recent Yardi Matrix report.
Between 2023 and early 2025, the Valley’s suburban coworking footprint leapt from 1.5 million to 4.5 million square feet — a 185 percent increase — propelling Phoenix to sixth place nationally for suburban coworking square footage, according Phoenix Business Journal. Urban coworking also grew, albeit more modestly, rising from about 900,000 square feet in 2023 to 1 million in 2025.
The shift has reshaped the local market: suburban locations accounted for roughly 60 percent of Phoenix’s coworking inventory in 2023, and now represent 82 percent.
The figures mirror a broader national trend. Suburban coworking stock across the U.S. jumped from approximately 55.5 million square feet in 2023 to over 87.6 million at the start of this year. Analysts attribute this to evolving workplace preferences — spurred by hybrid schedules for office types — along with cost pressures and the convenience of suburban settings.
Yardi Matrix distinguishes urban versus suburban coworking by evaluating building density, distance from central business districts, transport accessibility, and relative rental rates, using proprietary leasing data.
Among the most active operators in Greater Phoenix is Switzerland’s International Workplace Group (IWG), which opened 15 locations across Arizona in the past year.
IWG’s spaces include a 25,176 square‑foot facility at the GEN1 at GSQ development in Goodyear, plus new sites at Brown Plaza in Mesa and within the Promenade at Casa Grande mall in Casa Grande. Last year IWG announced six additional planned openings — two near Tucson and four more in the Valley — with new centers slated for Sun City and Chandler later this year.
Industry players are further adapting their business models. Instead of committing to traditional fixed‑rent leases with predetermined tenant improvements, most coworking operators now favor revenue‑sharing arrangements with landlords. In a post‑pandemic market where many office buildings face persistent vacancies, property owners have become more willing to share risk and partner on flexible occupancy‑based agreements rather than stick with conventional leasing deals.
— Joel Russell
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