The Coworking Industry in 2025: Global Upheaval and Montreal’s Resilience

Introduction

The coworking industry has entered 2025 in a state of rapid evolution, emerging from a period of dramatic upheaval. In recent years, two of the biggest names in shared office space – WeWork and Regus – experienced high-profile bankruptcies that shook confidence in the sector. WeWork, once practically synonymous with coworking, saw its $47 billion valuation evaporate as it filed for Chapter 11 in late 2023 bbc.com. Regus (under parent IWG), a pioneer of flexible offices since the 1990s, similarly had to restructure by placing many of its subsidiaries into bankruptcy protection during the COVID-19 pandemic allwork.space. These collapses prompted a reckoning: Could coworking survive without its giants, and what would the next generation of shared workspaces look like?

Far from spelling the end of coworking, the fall of WeWork and Regus has become a turning point. Across the globe and in cities like Montreal, new life is being breathed into the concept of shared workspace – albeit with more sustainable models. Demand for flexible, communal work environments continues to grow quietly but steadily, fueled by the rise of remote and hybrid work bbc.com. Local operators in Montreal have shown remarkable resilience and adaptability, finding opportunity in the void left by the global players’ retreat. This report provides a detailed look at the state of the coworking industry in 2025 post-WeWork and Regus, with a special focus on Montreal. We will examine the historical significance of these companies’ rise and fall, emerging trends and business models, the response of Montreal’s coworking scene, real estate market influences, investor sentiment, government support, and the future outlook for coworking both locally and worldwide.

WeWork and Regus: A Historical Rise and Fall

WeWork’s Meteoric Rise and Collapse: Founded in 2010, WeWork grew at breakneck speed, at one point operating 777 locations in 39 countries cbre.ca. Its stylish spaces and bold vision of “workspace as a service” helped mainstream the idea of coworking for startups, freelancers, and even large enterprises. By the late 2010s, WeWork became nearly synonymous with coworking itself – much like “Google” is to search – and its brand was shorthand for hip, collaborative office culture bbc.com. However, WeWork’s growth was fueled by an unsustainable model. The company amassed nearly $19 billion in debt to sign long-term leases on office buildings, seeking to profit by subleasing to members bbc.com. This strategy – taking on extensive 10- to 15-year leases while renting desks on flexible terms – maximized upside during boom times but created enormous risk. When WeWork’s much-anticipated IPO imploded in 2019 amid concerns over its finances and governance, the company’s fortunes began to wane. The final blow came with the COVID-19 pandemic: membership revenues plummeted as offices emptied out, leaving WeWork unable to cover its massive rent obligations bbc.com. In November 2023, WeWork filed for bankruptcy protection, its valuation cratering from $47 billion to under $50 million bbc.com. The collapse was spectacular, chronicled in books, movies and a TV miniseries (“WeCrashed”) – a cautionary tale of startup hype outrunning business reality techcrunch.com.

Regus (IWG) – The Seasoned Veteran’s Challenges: Regus, by contrast, was a seasoned player founded in 1989, operating conventional serviced offices and business centers long before “coworking” was a buzzword. By the 2010s, Regus (under parent company IWG – International Workplace Group) had built a global network of flexible office brands including Regus, Spaces, HQ and others. It weathered past crises (even a U.S. Chapter 11 bankruptcy in the early 2000s) and was profitable in many markets. Yet, the pandemic proved extraordinarily difficult even for this established firm. In 2020, IWG was forced to file Chapter 11 for 97 of its U.S. subsidiaries – many tied to Regus and its sister brand Spaces – as a “breathing spell” to renegotiate expensive leases when clients canceled rentals en masse allwork.space allwork.space. Dozens of Regus locations (including six in New York City) were placed into bankruptcy to restructure, highlighting that even the most proven flexible office operator wasn’t immune to systemic shocks. Mark Dixon, IWG’s CEO, noted that while offices would still be needed post-COVID, there would be a greater requirement for flexible space and a distributed workforce – essentially affirming the long-term coworking thesis even as his company retrenched allwork.space.

Impact on the Industry’s Psyche: The twin stumbles of WeWork and Regus around the turn of the decade had a profound psychological and financial impact on the coworking industry. WeWork’s high-profile fall, in particular, led many to question whether the coworking concept itself was fundamentally flawed. After all, if the largest and trendiest provider couldn’t make it work, would the whole idea of shared workspaces collapse? Investor enthusiasm for coworking startups cooled significantly in the wake of WeWork’s fiasco. Landlords, too, grew wary; many had been burned by generous lease deals with WeWork that suddenly became distressed assets. In Montreal, as elsewhere, the news of WeWork’s bankruptcy in late 2023 caused some to wonder if the coworking bubble had burst and if the concept could survive cbre.ca. However, as we’ll explore, the demise of these giants did not equate to the death of the industry – rather, it underscored the need for new, smarter approaches.

Post-Bankruptcy Industry Landscape: Ripples and Opportunities

Despite the turmoil, coworking in 2025 is far from dead – in fact, by many measures it’s thriving, albeit under different guises. Experts emphasize that WeWork’s downfall was due to its business model, not a lack of demand for coworking bbc.com. The appetite for flexible, collaborative workspace remains strong, especially as companies and workers adjust to new hybrid work norms. Thus, the collapse of WeWork and the restructuring of Regus sent ripples through the industry, but also created opportunities for other players to step in and innovate bbc.com. Several key effects and opportunities have emerged:

• Decentralization and Diverse Players: With WeWork’s retreat (it began closing many locations worldwide in 2024 bbc.com) and Regus scaling back in some markets, a vacuum appeared that smaller operators and new entrants are eagerly filling. No single company now dominates the public imagination in the way WeWork once did. Instead, thousands of independent coworking spaces, local chains, and niche providers are collectively carrying the torch. In North America alone, the number of coworking spaces continues to climb – the U.S. reached roughly 7,700 coworking locations by the end of 2024, a modest increase even as the big chains pulled back archieapp.co. This suggests a resilient baseline demand that smaller players are capitalizing on.

• Revamped Business Models: The failures of the old guard have accelerated a shift towards more sustainable business models for coworking. WeWork’s practice of signing long-term leases with high liabilities is increasingly seen as a cautionary tale. Many successful operators now prefer management agreements or partnerships with landlords, where they operate a space on behalf of a building owner for a profit-sharing arrangement or service fee bbc.com. This asset-light model limits risk: the operator doesn’t bear the full brunt of rent during downturns, and the landlord benefits from the operator’s expertise in attracting tenants. Industrious, a U.S.-based coworking firm, was an early adopter of this partnership approach – eschewing the capital-intensive leasing spree that sunk WeWork techcrunch.com. The viability of this model was vindicated when global real estate firm CBRE acquired Industrious in 2025 for an $800 million valuation, signaling confidence that coworking can be a good business if done differently techcrunch.com. As one TechCrunch analysis noted, “the concept of co-working isn’t a bad idea for a business, even if the biggest player’s spectacular nose-dive was the subject of a TV series” techcrunch.com.

• Focus on Profitability over Growth: In the wake of these bankruptcies, coworking companies have shifted from a pure growth mindset to a balanced focus on profitability. WeWork itself, under new leadership post-bankruptcy, drastically cut costs, renegotiated leases worldwide, and even exited unprofitable locations (surrendering 60,000 sq. ft. of space in Montreal alone) to stabilize its finances cbre.ca. IWG/Regus, rather than opening new centers on its own balance sheet, announced a franchise-like model inviting investors to fund new locations while IWG runs the operations as a service provider cbre.ca. This mirrors how hotels often operate and reduces financial exposure. The emphasis now is on steady revenue and occupancy rates, not blitzscaling at any cost. Consequently, the industry is seeing slower but steadier expansion, with an eye to avoiding the mistakes of the past.

• Industry Collaboration: Interestingly, the post-WeWork era has fostered more collaboration among coworking providers, whereas before there was a race to dominate markets. Freed from WeWork’s shadow, many independent spaces are forming alliances to expand their reach. For example, WeWork itself launched a “Coworking Partner Network” in 2024, partnering with regional operators like Vast Coworking Group to let members access each other’s locations commercialsearch.com. This is akin to an airline alliance for coworking – a user might have a home space but gains reciprocal privileges across a network of partnered spaces. Smaller Canadian operators have done the same: ClickSpace (Montreal), Lauft, Werklab and Cowork Halifax recently linked up to form a network of 11 flexible workspaces across Montreal, Toronto, Vancouver, and Halifax cbre.ca. By leveraging each other’s strengths and geographic coverage, coworking firms are able to offer greater choice to members without massive capital outlays, reflecting a new spirit of cooperation in the sector commercialsearch.com. This collaborative approach is a direct response to the realization that no single company needs to (or should) own every workspace – instead, interoperability and alliances can create a rich ecosystem of shared offices.

In short, the industry that emerges in 2025 is older and wiser. The coworking model has not been abandoned – rather, it’s being retooled. The needs that gave rise to coworking (flexibility, community, short-term space for teams) have only grown post-pandemic. As one BBC analysis put it, “as WeWork fades, the need and desire for coworking will remain – and other players stand poised to seize the opportunity.” bbc.com. Nowhere is this dynamic more evident than in local markets like Montreal, where the global headlines meet on-the-ground realities.

Montreal’s Coworking Evolution and Resilience

Montreal offers a compelling case study of how a local coworking scene can weather global storms. Even as headlines elsewhere proclaimed the “death of the office,” Montreal’s flexible workspace sector continued to evolve and, in fact, shows a bright future cbre.ca. The city’s unique blend of a vibrant tech startup community, relatively affordable real estate (compared to Toronto or Vancouver), and supportive culture for entrepreneurship has enabled coworking to take root in a sustainable way. Here’s how Montreal’s operators and market have adapted:

1. Limited Exposure to WeWork’s Fallout: WeWork did have a presence in Montreal – notably a large multi-floor space at 1010 Sainte-Catherine Ouest and another at Place Ville Marie. However, Montreal was never as over-saturated with WeWork locations as some larger cities. When WeWork filed bankruptcy and subsequently shrank its Montreal footprint (giving up two of its floors, ~60,000 sq ft) in late 2023 cbre.ca, it certainly made waves in the local market, but it did not leave dozens of empty sites in its wake as happened in New York or London. In fact, WeWork continued operating (under restructuring) its remaining Montreal space and even closed new deals in 2024 – such as providing offices for a recruitment agency and a global investment firm employing over 100 people cbre.ca. This indicates that the WeWork brand, albeit humbled, retained enough appeal to attract major clients in Montreal, and that demand was present if pricing and terms were right. WeWork’s rival IWG/Regus also maintained a presence in Montreal through its Regus and Spaces centers. Rather than shutting down, IWG actually expanded in late 2024 by opening a new Spaces location (~65,000 sq ft) on Rue du Square Victoria via a partnership model cbre.ca. In Montreal’s case, the retrenchment of the giants was managed in a way that did not devastate local supply – instead, it created a more level playing field for other operators.

2. Rise of Local and Niche Operators: Montreal’s coworking ecosystem has always included strong local players and niche spaces that focus on community. These operators proved their resilience through the pandemic and the WeWork turmoil. For example, iQ Offices, a Canadian boutique coworking firm, runs a high-end space in Montreal and successfully attracted corporate users (Plusgrade, a tech company, took temporary space at iQ Offices while awaiting its new HQ cbre.ca). Boutique spaces like Crew Collective & Café – a stunning coworking café set in a historic bank building – and Halte 24-7 in the Plateau continued to serve freelancers and remote workers when global chains paused. Montreal is also home to cooperative and community-driven coworking projects; Temps Libre Mile-End, for instance, is a co-op workspace that provides an accessible, non-corporate atmosphere for creators and activists. Such grassroots spaces foster loyalty and have lower operating costs, helping them survive tough times. Additionally, Montreal saw the emergence of niche workspaces tailored to particular industries or needs – for example, game developer co-working labs for the city’s sizable video game sector, and hybrid art studio/co-working combinations for creatives. This diversification meant that Montreal’s coworking supply wasn’t monolithic or overly dependent on a single company. When the tides turned, many of these local players actually absorbed some of the demand from displaced WeWork or Regus clients. As Nari Aznavour, a Montreal office leasing specialist, observed: “the sector’s whole modus operandi has always been change, flexibility and adaptability” cbre.ca – a description that Montreal’s coworking operators certainly lived up to.

3. Adaptation to New Work Patterns: Montreal businesses and workers have embraced hybrid work, and local coworking providers repositioned themselves to cater to this trend. Even as some traditional offices downsized, coworking spaces found opportunities. For instance, companies downsizing their permanent real estate began using coworking for satellite teams or as interim project space bbc.com. Montreal’s coworking centers reported an uptick in memberships from mid-sized firms who gave up a fixed office lease but still needed a physical base a few days a week. Coworking also became a solution for the city’s many remote workers who craved occasional in-person collaboration. Several Montreal coworking hubs started offering more flexible membership packages – such as part-time plans or 10-day passes – to accommodate workers who might only come in twice a week. This aligns with global patterns: in a WeWork survey, 59% of companies said they plan to expand using flexible offices rather than traditional leases commercialsearch.com, and Montreal’s experience reflects that statistic. Additionally, Montreal operators leaned into the hospitality and community aspects of coworking, recognizing that to lure people from their home offices, a workspace must offer more than a desk – it must offer a sense of community, networking events, and amenities. Many spaces in Montreal host weekly breakfasts, tech meetups, or wellness activities (yoga classes, etc.) to create a social fabric that differentiates them from a generic office. This community-centric approach has proven effective in retaining members and attracting new ones who seek more than just a desk and Wi-Fi.

4. Landlord Partnerships and Pop-ups: An interesting development in Montreal post-2020 has been the willingness of landlords to partner with coworking operators or create their own flex-space offerings. With downtown office vacancy hovering around 15–20% in 2024 (Greater Montreal’s overall office vacancy was ~19.1% by Q4 2024 cresa.com), building owners had motivation to get creative. Some Class B office landlords with high vacancies have invited coworking firms to take part of their space on very favorable terms, seeing flexible space as an amenity to attract other tenants. Others launched “spec suites” – pre-built small offices with flexible lease terms – essentially mimicking coworking within their properties. The effect is a more fluid office market: traditional leases are shorter and more negotiable, and coworking is part of the mainstream leasing conversation. In Montreal, tenants shopping for space now often consider both a direct sublease and a coworking option side-by-side cbre.ca. This has kept coworking providers on their toes; they must offer superior service and convenience to justify their premium cost relative to a sublease. Montreal coworking operators met this challenge by highlighting turnkey convenience (furnished, IT setup, reception, etc.) and the “elastic” nature of coworking – the ability for a company to scale up or down on short notice cbre.ca. In one case, a Montreal tech consulting firm compared a short-term sublet to Regus versus a coworking agreement and chose the Regus solution for the flexibility and built-in services, despite a higher price cbre.ca cbre.ca. This indicates that coworking can compete well when customers value agility and service, which many Montreal firms do in these uncertain times.

5. Optimism and Growth on the Horizon: By late 2024, insiders were notably optimistic about Montreal’s coworking trajectory. CBRE’s Montreal office team noted that “the sector has evolved and has a particularly bright future” in the city cbre.ca. Deals were being done across Montreal for new coworking locations and expansions. Notably, smaller Quebec regions near Montreal have also shown interest – tertiary markets like suburban towns are an untapped opportunity, as employees seek work options closer to home cbre.ca. Some Montreal-based entrepreneurs are looking to open coworking hubs on the South Shore, North Shore, and other suburbs, realizing that remote workers in those areas would welcome a local alternative to commuting downtown or working from a kitchen table. Montreal’s blend of urban and suburban populations could see a network of connected coworking sites in the metro area, echoing the “hub-and-spoke” pattern of work. Moreover, the city’s bilingual, cosmopolitan culture makes it a magnet for digital nomads and traveling professionals, which is another demand segment coworking spaces here are catering to. By providing day passes and accepting global coworking memberships (through alliances like Coworker.com or WeWork’s network), Montreal’s spaces are plugging into international flows of remote workers. All these factors contribute to a sense that Montreal has survived the worst of the storm and is now positioned to innovate and grow its coworking landscape responsibly.

Emerging Coworking Trends and Models in 2025

The year 2025 finds the global coworking industry reinventing itself with new trends and operating models. In the aftermath of WeWork and Regus’ difficulties, both entrepreneurs and customers have a clearer idea of what works and what doesn’t in coworking. Several key trends define the coworking landscape in 2025, many of which are evident in Montreal as well:

Niche and Community-Driven Spaces

One prominent trend is the rise of niche coworking spaces that cater to specific industries, professions, or interest groups. Rather than a one-size-fits-all WeWork-style approach, many new spaces are deliberately specialized. For example, there are coworking hubs focused on med-tech startups, fashion designers, writers, or climate tech companies, providing a tailored environment that fosters networking within a field allwork.space. By gathering like-minded professionals, these niche spaces create tight-knit communities and targeted resources (e.g. prototyping labs for hardware start-ups, or editing suites for multimedia creators). Montreal, with its diverse creative and tech scene, has seen this trend firsthand – consider game developer co-working labs supported by the city’s gaming industry, or artist collective workspaces in areas like Mile End. These specialized environments offer something a generic coworking office cannot: sector-specific camaraderie and collaboration opportunities that can spark innovation.

Hand-in-hand with specialization is a renewed emphasis on community and hospitality in coworking. If the 2010s coworking boom was about funky décor and ping-pong tables, the 2025 boom is about genuine human-centric experiences. Operators now recognize that the member experience defines success allwork.space. This means going beyond providing a desk – top coworking spaces curate social events, educational workshops, and wellness offerings. Many have community managers focused on connecting members to each other, echoing a hospitality model more akin to hotels or clubs. As industry expert Liz Elam notes, “hospitality is no longer a buzzword — it’s the backbone of coworking” allwork.space. Some spaces even draw inspiration from boutique hotels, with concierge-level services, premium coffee and snack bars, and thoughtfully designed lounges. The goal is to make members feel a sense of belonging and pride, something a home office or sterile corporate floor can’t match. In Montreal, several coworking venues double as cultural spaces – for instance, hosting art exhibits or local meetups – embedding themselves in the community. This community-driven philosophy has also led to alternative business structures, like cooperatives (e.g., Montreal’s Temps Libre) where members have a say in how the space is run, or nonprofit tech hubs supported by government and universities (such as Notman House in Montreal, historically funded through public-private partnerships). These models prioritize mission and community impact alongside profit.

Hybrid Work and Corporate Adoption

Another major trend in 2025 is the deep integration of coworking into the hybrid work strategies of companies. Prior to the pandemic, coworking was used mainly by freelancers, startups, or occasionally as satellite offices for big firms. Now, it has gone mainstream among larger organizations. Companies of all sizes have embraced hybrid and remote work, but they still need physical spaces occasionally – whether for team collaboration, client meetings, or providing employees with an alternative to home. Instead of maintaining large permanent offices, many are opting to “right-size” their real estate footprint and use flexible spaces as needed commercialsearch.com. A recent survey by WeWork found 59% of companies plan to use flexible office solutions to expand their workspace in the next two years, rather than committing to new long-term leases commercialsearch.com. Even more striking, 95% of fully remote companies that intend to add some office space prefer flexible options commercialsearch.com. These statistics illustrate a sea change: flexible workspaces are no longer a fringe idea but rather a core part of corporate real estate planning.

The effect of this trend is visible in coworking spaces worldwide. Demand from enterprise clients is booming, pushing operators to accommodate larger teams and more rigorous requirements. It’s not uncommon now for a coworking center to host a team of 50–100 employees from a single corporation – something that used to be rare. In Montreal, as noted earlier, there have been deals for coworking suites to house 100+ employees for tech and finance firms cbre.ca. To serve these clients, coworking providers are expanding their mix of spaces. There’s a greater emphasis on private offices and team suites alongside open hotdesk areas, essentially blending serviced offices with traditional coworking. The “space mix debate” – whether open plan desks or enclosed offices are better – has resolved in favor of offering both; the right mix “depends on the city and client base” and flexibility is key allwork.space. For instance, a Montreal coworking hub might dedicate one floor to open coworking and another floor to private offices for rent, ensuring they can meet a variety of needs.

Another adaptation to hybrid work is a push for advanced amenities that support collaboration. With many companies bringing employees together a few days a week, those days in the office need to count. Thus, conference rooms equipped with high-end video conferencing, brainstorming lounges, event spaces, and even small soundproof phone booths for private calls are in high demand commercialsearch.com commercialsearch.com. Coworking operators are reconfiguring layouts to add these features. They are essentially answering the question: if people can work anywhere, how do we entice them to work here? The answer is by offering an environment optimized for what remote work can lack – face-to-face interaction, team-building, and spontaneous collaboration. WeWork’s Vice President Luke Robinson noted that with companies increasing in-office days, providers must offer “an ample variety of workspaces that can accommodate employees up to five days a week,” with an emphasis on collaborative areas and robust technology commercialsearch.com. In practice, this might mean a coworking center hosts weekly “all-hands” meetings for a distributed company in a large event room, while also giving their individual employees quiet desks on other days. Coworking is morphing into the physical backbone of hybrid work arrangements.

Partnerships, Alliances, and New Business Models

The business side of coworking has evolved significantly by 2025. We’ve touched on the shift to partnership models (management agreements and franchises) replacing the pure lease model. This trend is encapsulated by IWG’s strategy: instead of leasing every new location itself, IWG now often partners with investors who fund the space build-out, while IWG operates it for a fee or profit-share cbre.ca. This was the case in Montreal’s new Spaces location, and it’s happening globally as well. The result is a more asset-light expansion – IWG added nearly 900 new locations globally in 2024 under its various brands (Regus, Spaces, HQ, etc.), largely through such partnerships, focusing especially on suburban markets commercialsearch.com commercialsearch.com. The franchise-style approach spreads risk and capital requirements, allowing faster growth even in a tight capital environment.

At the same time, alliances and networks are blurring the lines between providers. As mentioned, WeWork’s Partner Network and regional alliances are creating interoperable systems. A member of one coworking brand might gain access to another brand’s locations through these partnerships. This is advantageous for members (broader choice of work locations) and for operators (their offering becomes more attractive without owning more real estate). Jason Anderson, president of Vast Coworking Group (which partnered with WeWork), likened it to the Oneworld Alliance in airlines – multiple companies coordinating to serve customers seamlessly across geographies commercialsearch.com. In Canada, the alliance of ClickSpace, Lauft, Werklab, and Cowork Halifax is a similar concept, allowing a traveler to use one pass in several cities cbre.ca. We can expect these networks to expand, possibly leading to a scenario where coworking memberships become almost like gym memberships – usable in many locations operated by different brands. This collaborative mindset is a notable shift from the competitive land-grab mentality of the WeWork era.

Another new model is the hub-and-spoke or distributed coworking model, where a single operator offers multiple small locations rather than one big flagship. Instead of a giant downtown facility, an operator might run a network of boutique spaces across a region, catering to the work-near-home trend. For instance, a Montreal operator might have one space downtown, another in Laval, and another on the South Shore, providing members the choice to work at the location nearest them on a given day. This approach aligns with the idea that workspaces should be convenient and embedded in communities, reducing commute times and supporting work-life balance.

Technological integration is also a part of new business models. The use of apps for booking desks or meeting rooms, AI for managing space utilization, and data-driven insights to tailor services is becoming standard. Operators analyze usage patterns to adjust staffing and amenities – for example, if Tuesday is the peak day in a hybrid world, extra community events might be scheduled that day to maximize engagement. Some spaces are even experimenting with 24/7 access models and unstaffed operations using digital locks and remote support, effectively combining coworking with the on-demand flexibility of a “cloud office.”

Overall, the coworking business in 2025 is defined by flexibility, scalability, and customer-centric solutions commercialsearch.com. Providers are more open than ever to reinventing their models – whether through collaboration, franchising, or tech enablement – to meet the evolving market. The common thread is an emphasis on being agile and responsive, having learned that rigidity can be fatal in a fast-changing world.

To summarize the evolution, below is a comparison of the “old” coworking model exemplified by pre-2020 WeWork/Regus and the “new” model emerging post-2023:

Old vs New Coworking Business Models

Aspect

Old Model (WeWork/Regus Era)

New Model (Post-2023)

Growth Focus

“Blitzscale” rapid expansion, prioritize market share over profit techcrunch.com.

Measured growth, focus on sustainable profits and occupancy techcrunch.com.

Real Estate Strategy

Long-term leases on premium locations (high capital risk) bbc.com.

Partnership agreements with landlords or franchises (asset-light) bbc.com cbre.ca.

Capital & Investment

Venture capital-fueled; spend heavily on build-outs & incentives.

Diverse funding: real estate investors, franchises, or corporate backing (e.g. CBRE’s acquisition) techcrunch.com. Emphasis on cost control.

Target Market

Startups, freelancers; later attempted to onboard enterprises, but model was not tailored for them initially.

Broad client mix: freelancers and large enterprises using flex space for hybrid teams bbc.com. Products tailored from single desks to 100-person team suites.

Community & Services

Promoted community, but scale often made experience impersonal; amenities were generic (beer on tap, ping-pong).

Community-centric and hospitality-driven allwork.space. Curated events, wellness programs, personalized service. Amenities aligned to member well-being and networking.

Business Resilience

Highly sensitive to economic cycles; fixed costs made downturns devastating (e.g., WeWork’s rent obligations) bbc.com.

More resilient: variable cost structures, ability to scale down during downturns, diversified revenue streams (virtual offices, event hosting, etc.) commercialsearch.com.

Network Approach

Proprietary network – only own locations, little cooperation with competitors.

Collaborative networks and alliances (multi-brand access) commercialsearch.com. Integration with other platforms to increase reach.

Table: Comparison of traditional coworking business models versus new-era models focused on flexibility and sustainability.

Real Estate Market Influences in Montreal

The health of coworking in any city is closely tied to the broader real estate market. In Montreal’s case, several local market factors in 2025 are shaping the coworking sector’s trajectory:

• High Office Vacancy and Tenant’s Market: Montreal, like many cities, experienced a spike in office vacancy rates due to the pandemic-driven shift to remote work. By late 2024, the overall office vacancy in Greater Montreal hovered around 19% (with Class B offices over 22% vacant) cresa.com. Downtown Class A towers fared better (single-digit vacancy cresa.com), but the glut of space elsewhere created a tenant’s market. This high availability has a dual impact on coworking. On one hand, it provides coworking operators an opportunity to secure leases or expansion space on favorable terms – landlords are more willing to negotiate short leases or offer significant inducements (free rent periods, fit-out contributions) cresa.com. WeWork’s ability to negotiate rent reductions or exit costly leases in Montreal during its bankruptcy indicates how leverage shifted toward tenants; indeed, landlords are now often willing to offer shorter lease terms or termination options to fill buildings cbre.ca. This environment can lower operating costs for coworking spaces and enable new entrants to launch with less capital. On the other hand, abundant vacant space also means coworking faces competition from traditional leases. Some companies that might have used coworking when space was tight can now directly sublease an office at a bargain price. As noted, many Montreal firms are considering furnished subleases as an alternative to coworking if they can get a good deal cbre.ca. To compete, coworking spaces must highlight the flexibility and services they offer beyond just square footage.

• Flight to Quality and Office Conversions: Montreal is witnessing a “flight to quality” where tenants consolidate into the most modern, amenity-rich buildings and abandon older ones cresa.com. Class AAA downtown offices even saw rents rise, while older stock languishes cresa.com. This trend benefits coworking in two ways. First, coworking centers located in top-grade buildings (like WeWork’s Place Ville Marie location or Spaces in a modern downtown tower) become even more attractive – they allow smaller tenants to enjoy a prestigious address and amenities without a long-term commitment. It’s a selling point for coworking: access to a premium workspace on flexible terms. Second, the underused Class B/C buildings present opportunities for conversion into something new, and flexible workspace is one option being explored. While large-scale office-to-residential conversions are complex and not widespread yet allwork.space, landlords are considering partial conversions of excess office space into coworking or incubator spaces to rejuvenate their properties. In Montreal, some older buildings have carved out one or two floors as coworking hubs or innovation centers (mini “innovation districts”) to draw foot traffic and add mixed-use vibrancy allwork.space. For example, a vintage office building in Old Montreal might dedicate the ground floor to a coworking café open to the public and upper floors to flexible offices, thereby repurposing space that might otherwise sit empty. Such initiatives can receive support from the city if they contribute to downtown revitalization.

• Real Estate Partnerships and Management Deals: As alluded to earlier, landlords in Montreal are increasingly open to partnering with coworking operators. This is partly influenced by the experiences with WeWork: rather than risk a tenant bankruptcy, a landlord might prefer a management contract with a proven operator. In practice, this means Montreal could see more landlord-owned coworking spaces operated by third parties. For instance, a large real estate developer in Montreal might allocate a few floors in a new development to a flex-space offering and hire a coworking brand to run it, sharing the revenue. This model aligns incentives (both parties want the space full) and can be more stable. It effectively integrates coworking as an amenity in new projects, much like a fitness center or food court. Over time, this could blur the line between “coworking space” and “office building” – we might simply see most office buildings include a flex floor as standard. Montreal’s commercial real estate community, including brokers at firms like CBRE, have been actively discussing such partnership models cbre.ca, indicating that the concept is taking hold locally.

• Impact of Remote Work Policies: Government and corporate policies on remote work also influence coworking demand in Montreal. The federal government, a major employer in the city, has been experimenting with GCcoworking pilot programs to allow public servants to work from shared hubs rather than traditional offices policyoptions.irpp.org policyoptions.irpp.org. If such initiatives expand, they could bring a wave of government employees into coworking facilities (or government-run coworking centers in downtown Montreal). Meanwhile, private sector return-to-office mandates are a wild card. As of early 2025, only ~17% of organizations that have return-to-office policies strictly enforce them commercialsearch.com, but this could change. If more companies mandate in-person attendance, some might revert to leasing their own space – slightly dampening coworking demand. Conversely, if they mandate office time but remain flexible, they might use coworking passes for employees. Montreal’s relatively high transit usage and sometimes harsh winter commuting conditions mean many employees prefer a hybrid model; companies that accommodate that via coworking stipends or hubs closer to residential areas could actually boost flex space usage. Essentially, coworking in Montreal will thrive if it continues to position itself as the convenient middle ground between working from headquarters and working from home.

In summary, Montreal’s real estate market in 2025 presents both challenges and tailwinds for coworking. High vacancies force operators to stay competitive and agile, but also provide opportunities to grow at lower cost and become part of the solution for landlords seeking to reinvent space. The city’s trajectory – aiming to keep downtown vibrant while adapting to new work patterns – likely means flexible workspaces will remain a key piece of the puzzle.

Investor and Entrepreneurial Sentiment Post-Bankruptcy

The dramatic flame-outs of WeWork and the restructuring of Regus inevitably made investors more cautious about the coworking sector in the early 2020s. The phrase “growth at all costs” became taboo, and many venture capitalists shifted their attention to other industries, leaving coworking startups to find alternative funding or slower growth strategies. However, by 2025, sentiment has been gradually improving, buoyed by evidence that demand for flexible workspaces is robust and new business models can succeed. Here’s a breakdown of the current outlook among investors and entrepreneurs regarding coworking:

Cautious Optimism Among Investors: Immediately after WeWork’s near-collapse in 2019, institutional investors were understandably skittish. The idea of investing in a coworking company conjured images of cash burning and unstable valuations. But as the dust settled, a more nuanced view emerged. Investors recognized that WeWork’s core concept wasn’t flawed – indeed, its buildings were full of customers – it was the execution and capital structure that failed. The successful turnaround of some coworking businesses and new partnerships gave investors renewed confidence. A telling sign of this cautious optimism was CBRE’s acquisition of Industrious in 2025 for $400 million (valuing it at $800 million) techcrunch.com techcrunch.com. CBRE, the world’s largest commercial real estate services firm, essentially bet big on flexible offices being integral to the future. This deal demonstrated that strategic investors (those who understand real estate cycles) see long-term value in coworking when run prudently. It also reassured the market that there is a viable path to exits and returns in this space (something VCs look for), even if the era of sky-high “unicorn” valuations is over. Other examples include venture funds and private equity showing interest in profitable regional coworking chains, and real estate investment trusts (REITs) considering allocations to flexible office ventures as part of diversified portfolios.

Shift to Sustainable Financing Models: Entrepreneurs launching coworking ventures in the mid-2020s have adjusted their approach to funding. Instead of chasing huge VC rounds based on rapid expansion plans, many are opting for incremental growth funded by revenues, strategic partnerships, or local investors. In Montreal, for instance, a new coworking project might be financed by a group of local angel investors or as a side venture by a property owner, rather than a Silicon Valley VC fund expecting exponential growth. The expectations on returns are more realistic – steady cash flow and moderate growth, akin to a hospitality business. There’s also an uptick in cooperative ownership or crowdfunding for community-oriented spaces, where the very users of the space invest small amounts to get it off the ground, aligning incentives for long-term success. This kind of grassroots financing aligns with the community-driven trend and can insulate a space from the pressures of high debt or ROI expectations that doomed others.

Entrepreneurial Opportunities: With WeWork and some Regus locations contracting, entrepreneurs see opportunity in the gaps left behind. For example, if WeWork closed a location in a certain Montreal neighborhood, a nimble local operator might step in to open a smaller coworking center there, capturing clients left adrift. The barriers to entry for small-scale coworking are actually lower when big players retreat – furniture can be bought second-hand from liquidations, landlords are willing to negotiate, and customers are already educated about the benefits of coworking. Entrepreneurs are capitalizing on niche markets, as mentioned earlier, which often don’t require massive funding but rather domain knowledge and community trust. A group of architects in Montreal might start a co-working studio for design professionals; a nonprofit might open a co-working hub for social enterprises with government grant support. These targeted ventures don’t aim to be global giants; they aim to serve a specific membership sustainably.

Residual Skepticism and Risk Factors: It’s worth noting that not everyone is bullish. Some investors remain wary, pointing out that the underlying economics of coworking can be challenging – it’s essentially an arbitrage between long-term lease liabilities and short-term rental income, which can be vulnerable in recessions. High interest rates (as seen in 2023–2024) also make financing expansion more expensive and push up required returns for investors. Indeed, industry analysts predict major consolidation will likely occur only when the investment climate improves (e.g. lower interest rates and greater economic certainty) allwork.space. Until then, we might not see many new IPOs or blockbuster funding rounds in coworking. The focus is on incremental growth and proving out profitability. For entrepreneurs, securing funding often means demonstrating near-breakeven operations early, not just selling a grand vision. WeWork’s saga serves as a permanent cautionary tale: those who pitch coworking startups must clearly differentiate themselves from that model and show what they learned from its failure.

In Montreal’s context, local investors and development agencies (like Investissement Québec or the City’s economic development arm) have shown interest in coworking as part of the innovation ecosystem. They view supporting coworking spaces as a way to nurture startups and independent workers who will contribute to the economy. This quasi-public support can come as grants, loans, or partnerships (for example, the city helping to market new co-working hubs or including them in revitalization plans). The entrepreneurial sentiment here is that coworking is no longer a reckless venture but a service business that, if managed well, can yield stable returns and significant social benefits. Thus, while due diligence is tougher and hype has subsided, both investors and entrepreneurs are finding a middle ground where flexible workspaces can grow organically as sustainable businesses post-WeWork.

Government and Municipal Support for Shared Workspaces

Governments and municipalities have a stake in the future of work, and by extension, in the availability of shared workspaces. In 2025, there is growing recognition among public officials that coworking spaces contribute positively to local economic development, innovation, and even environmental goals (by enabling distributed work and reducing long commutes). Montreal and other governments have taken or are considering various steps to support the coworking sector:

• Startup Ecosystem Support: Coworking spaces are often intertwined with the startup ecosystem, providing affordable offices for new companies and hubs for innovation. Governments, at both the municipal and provincial levels, have supported incubators and accelerators which usually operate on a coworking model. In Montreal, for example, the city and Quebec government have historically provided funding or loans to tech hubs like Notman House and La Gare (a Mile-End co-working space for startups) en.wikipedia.org. These initiatives are seen as investments in economic growth – every startup that survives and thrives in a coworking hub potentially creates jobs. The Osmo Foundation, which ran Notman House, benefited from government support to keep the heritage building as a startup campus en.wikipedia.org. Although Notman House faced financial trouble in recent years, public entities like BDC and Investissement Québec were involved as creditors, underscoring government interest in maintaining such community workspaces betakit.com. Moving forward, we may see more public-private partnerships where governments offer grants or tax incentives to establish coworking centers, especially in areas targeted for economic revitalization (e.g., Montreal’s East End or smaller cities in Quebec looking to attract remote tech workers).

• Downtown Revitalization and Pop-up Coworking: In the wake of the pandemic, many downtown cores struggled with reduced foot traffic and vacant storefronts. To counter this, some municipalities have explored leveraging coworking to bring life back to city centers. The City of Montreal, for instance, implemented measures to support local businesses and encourage workers to return downtown montreal.citynews.ca. While not explicitly about coworking, these measures create a favorable environment for shared workspaces – e.g., improving transit, investing in amenities, and hosting events that draw people into the city. A creative approach seen in some cities is the concept of “pop-up coworking” in public spaces: libraries, community centers, or unused civic buildings are outfitted with Wi-Fi and desks to let citizens use them as informal coworking zones. Montreal’s extensive library network and community centers could be tapped for this purpose, effectively providing free or low-cost shared workspace as a public service. Such initiatives increase awareness of coworking’s benefits (collaboration, accessibility) and can transition some users into becoming customers of formal coworking operators for more services. Moreover, the federal government’s GCcoworking pilot (launched in Ottawa and a few other regions) signals that even government employees could work from coworking sites policyoptions.irpp.org policyoptions.irpp.org. If expanded to cities like Montreal, federal or provincial workers might be allowed to log in from a coworking space near their home, with the government potentially subsidizing those memberships. That would be a significant boost in demand and a form of public endorsement of coworking.

• Grants and Funding Programs: There are also financial programs that indirectly benefit coworking spaces. For example, Montreal’s municipal government has a “social economy” grant program montreal.ca which can provide funding to cooperatives and community enterprises. A co-op coworking space that positions itself as a community hub could qualify for such support. Additionally, Canada’s federal and provincial COVID-recovery grants for small businesses helped many coworking operators survive the lean times of 2020–2021 (covering rent or payroll through subsidies), effectively keeping the infrastructure intact for the recovery period. As we move forward, climate initiatives might also intersect – by promoting coworking in suburban areas, governments can reduce carbon-intensive commuting. A municipality might, for instance, offer an incentive for opening a coworking hub in a suburb to serve remote workers locally, thus taking cars off the road.

• Zoning and Policy Facilitation: Beyond money, one of the biggest supports government can provide is sensible zoning and regulations that allow flexible use of commercial spaces. Montreal’s urban planners have generally been open to mixed-use developments. Ensuring that commercial zones permit coworking and that building codes accommodate things like 24/7 access or mixed occupancy (retail plus office plus event space) helps the industry. The city can also streamline permits for renovations to create coworking spaces, as these often involve reconfiguring layouts and adding amenities. In some cases, governments have provided surplus public buildings for coworking use. If Montreal has underused municipal buildings, it could lease them at low cost to nonprofits or companies to run them as coworking centers, thus activating idle space and providing community benefits.

• Advocacy and Promotion: Lastly, simple promotion and endorsement can be powerful. When city leaders and economic development agencies champion coworking – mentioning it in strategic plans, showcasing spaces to foreign investors or delegations – it legitimizes the sector. Montreal’s reputation as a UNESCO City of Design and a hub for AI and gaming is bolstered by having vibrant coworking spaces where creatives and entrepreneurs gather. Government tourism and investment brochures now list prominent coworking hubs as part of the city’s modern infrastructure for business. This kind of support costs little but reinforces that coworking is part of the city’s fabric.

In conclusion, while coworking is primarily a private sector activity, government and municipal support in Montreal and beyond is increasingly evident. Shared workspaces align with public objectives: they support small businesses, enliven neighborhoods, and use space efficiently. We expect ongoing collaboration between coworking operators and the public sector – whether through formal programs or informal synergies – to ensure that the flexible workspace trend benefits the broader community.

Future Outlook for Coworking in Montreal and Globally

Looking ahead, the coworking industry in Montreal – and worldwide – appears poised for a “renaissance” in the second half of the 2020s allwork.space, albeit a more grounded one than the exuberant boom of the 2010s. Here are some projections and concluding thoughts on what the future may hold:

• Continued Growth, Different Shape: The need for flexible, scalable workspaces is now a permanent feature of the modern economy. As hybrid work becomes entrenched, companies will seek out ways to remain agile, and coworking provides that outlet. We can expect the overall footprint of coworking to grow globally in coming years, potentially occupying a larger percentage of office real estate. However, the shape of that growth will differ from the past – more distributed, more partnership-driven, and more diversified. In Montreal, new coworking locations may sprout in areas previously underserved (e.g., neighborhoods outside the downtown core), tapping into new customer bases. Globally, emerging markets in Latin America, Africa, and Asia-Pacific are likely to see a surge in coworking as their remote work adoption increases archieapp.co. Established markets will see steady expansion, with North America and Europe maintaining leadership. The industry may also broaden to include specialized formats: think coworking in retail malls (filling empty retail anchors), coworking in university campuses (for student entrepreneurs and faculty), or co-living + co-working hybrids where residential and work spaces intertwine for digital nomads.

• Consolidation and Maturity: As the industry matures, some consolidation is inevitable. While 2025 is still a time of rebuilding (with consolidation “not quite yet” due to tight capital allwork.space), the later 2020s could bring mergers and acquisitions as healthy operators look to scale and weaker ones seek exit options. WeWork’s future, for instance, remains uncertain – by 2025 it has a restructured smaller presence; it could stabilize and possibly even achieve profitability allwork.space, or it might still end up merging or being acquired if it cannot stand alone. The fact that WeWork opened its platform to partners hints it could transform into more of a network or franchisor than a leaseholder allwork.space. In Montreal, consolidation might mean a local player like iQ Offices or Crew Collective gets acquired by a larger chain seeking a Montreal foothold, or conversely, that IWG/Regus franchise some locations to local owners. Importantly, consolidation does not necessarily mean elimination of diversity – much like the hotel industry has Marriott and Hilton but also boutique hotels – coworking could end up with a few large networks coexisting with independent gems.

• Enhanced Value Proposition: The successful coworking spaces of the future will offer an enhanced value proposition – doubling down on what makes them special. This includes integrating technology (for seamless access and virtual collaboration tools), offering wellness and green features (such as biophilic design, air filtration – perhaps a selling point in a post-pandemic world), and maintaining a strong community ethos. Mental health and well-being have risen as priorities; coworking spaces are incorporating meditation rooms or quiet zones to address burnout allwork.space. Diversity and inclusion are also front and center; expect to see more coworking initiatives aimed at underrepresented groups in entrepreneurship, providing inclusive environments allwork.space. Sustainability is another focus – both in business model and ecological footprint. Coworking operators are adopting green leases, reducing waste (e.g., eliminating single-use plastics), and possibly participating in carbon offset programs as they position themselves as forward-thinking workplaces.

• Role of Government and Urban Planning: Coworking’s role in urban planning may grow. City planners might formally designate “flex work hubs” in new developments or require large office projects to have a coworking component. Montreal’s city plan could, for example, encourage the creation of multi-use innovation hubs in former industrial areas, blending coworking, maker spaces, and cultural venues to drive regeneration. At a national level, if remote work persists, governments may invest in regional coworking centers to support economic activity outside major cities (preventing brain drain). This decentralization could benefit places within a couple of hours of Montreal – e.g., Quebec City, Sherbrooke, or Trois-Rivières – turning them into viable work locations for people who previously felt compelled to move to Montreal for jobs. In that sense, coworking can be a tool for more balanced regional development.

• Resilience to Future Shocks: Perhaps one of the most important aspects of the future outlook is how the industry will handle the next major shock. Having survived COVID-19 and the WeWork saga, coworking operators are much more cognizant of risk. They are likely to maintain leaner operations that can adjust if, say, a recession hits and memberships dip. Many have built multiple revenue streams – not just desk rentals, but also virtual office services (mail handling, phone answering), event rentals, consulting services for companies setting up hybrid work policies, etc. This diversification means that even if one segment falters, others can keep the business afloat. In Montreal, for example, a coworking space might host evening events or be a weekend venue, adding income beyond the 9-to-5 workday. Flexibility is truly the mantra: the spaces themselves might be designed so they can be reconfigured quickly (modular furniture and walls) to adapt to changing demands.

! https://thespaces.com/montreals-spacial-is-a-coworking-space-with-an-iridescent-edge/ Coworking spaces in 2025 emphasize design, community, and flexibility. Pictured is the reception area of Spacial, a boutique coworking office in Montreal’s Verdun neighborhood. Striking features like iridescent zinc panels, modern furniture, and open lounge nooks reflect how newer coworking hubs blend aesthetics with functionality. Such spaces aim to provide a hospitality-driven experience – making members feel welcome and inspired – while offering all the practical amenities needed for productive work.

In Montreal specifically, the future looks promising. The city is projected to remain a vibrant tech and creative hub, which will fuel demand for coworking. The lessons learned from the WeWork/Regus era have not been lost on Montreal’s operators or its commercial real estate community. They are approaching growth judiciously. The likely scenario is a steadily increasing presence of coworking across the city’s landscape – not in a flashy, city-dominating way, but as an integral, normal part of working life. A freelancer in Rosemont, a startup team in the Plateau, a multinational’s remote staff in Laval, and a government teleworker in West Island could all be using coworking facilities tailored to their needs, day in and day out. Coworking could become as ordinary as coffee shops, just another third place where work happens – and that ubiquity, paradoxically, would mark the ultimate success of the concept.

Conclusion

The coworking industry of 2025 stands as a testament to adaptability. The high-profile bankruptcies of WeWork and Regus were not the end of the story, but rather the end of a chapter. What has followed is a period of introspection and reinvention for flexible workspaces. Globally, we see an industry that has learned from past excesses and is moving forward with smarter strategies: sustainable growth models, closer collaboration with landlords and each other, and a keen focus on the evolving needs of the workforce. In Montreal, these global shifts manifest in a dynamic local scene that has not only weathered the storm but is charting its own course. The city’s coworking operators – from global brands to homegrown co-ops – have shown resilience, supported by a real estate market that, while challenging, offers new openings and by a community that values innovation and connection.

Montreal’s experience underscores a broader point: coworking as a concept is bigger than any one company. The demise of an overextended giant does not erase the fundamental appeal of flexible, community-driven workplaces. If anything, it clears the way for more grounded, diverse approaches to flourish. As we move further into the 2020s, coworking is likely to become an even more integral part of working life, complementing the hybrid models that many companies and workers have adopted. With continued creativity from entrepreneurs, cautious backing from investors, and support (or at least understanding) from governments, coworking will continue to evolve and endure. The industry has hit reset and is now building momentum once again – a renaissance in the making, with cities like Montreal helping lead the charge by proving that shared workspaces can thrive in a post-WeWork world allwork.space.

Ultimately, the story of coworking in 2025 is one of resilience and adaptation. What began as a radical idea to share desks has become a mature sector poised for long-term growth, having survived trials that tested its very foundation. Montreal’s vibrant coworking community, standing strong after the headlines have faded, is living proof of this resilience. And as the world of work continues to transform, coworking spaces – versatile, innovative, and human-centric – will be there to provide the physical infrastructure for the future of work in Montreal and around the globe.

Sources:

1. Aznavour, Nari. CBRE Montreal – “The Rise, Fall and Renewed Potential for Coworking in Montreal.” (Nov 27, 2024) cbre.ca cbre.ca cbre.ca.

2. Elam, Liz. “The Top 10 2025 Coworking Megatrends: A Renaissance In The Making.” Allwork.Space (Dec 26, 2024) allwork.space allwork.space allwork.space.

3. BBC Worklife – Lindzon, Jared. “After WeWork’s bankruptcy, what is the future of coworking?” (Nov 16, 2023) bbc.com bbc.com bbc.com.

4. TechCrunch – Azevedo, Mary Ann. “CBRE buys remainder of co-working company Industrious at an $800M valuation.” (Jan 14, 2025) techcrunch.com techcrunch.com techcrunch.com.

5. CommercialSearch/CPExecutive – Bunescu, Olivia. “Where’s the Coworking Sector Headed?” (Feb 4, 2025) commercialsearch.com commercialsearch.com commercialsearch.com.

6. Allwork.Space – Ali, Aayat. “IWG’s Reasoning Behind Entities Filing For Bankruptcy.” (Sep 22, 2020) allwork.space allwork.space.

7. CBRE Research – Montreal Office Market Report Q4 2024 (via Cresa) cresa.com cresa.com.

8. Archie (Coworking Stats Blog). “Latest Coworking Statistics & Industry Trends [2025].” commercialsearch.com archieapp.co.

9. Business Journals – Fahey, Ashley. “WeWork emerges from bankruptcy, appoints new CEO.” (Jun 11, 2024) bizjournals.com bizjournals.com.

10. The Spaces – Tucker, Emma. “Montreal’s Spacial is a coworking space with an iridescent edge.” (May 2021) thespaces.com thespaces.com.

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