The concept of flexible workspace has revolutionized the way we work, particularly during the pandemic – a trend that is far-outlasting the necessity of lockdown conditions. Flexible working models provide businesses with the ability to respond quickly to operational needs and employee assistance, and it has become an increasingly popular option for companies of all sizes. Texas, in particular, has emerged as a hotbed for flexible office space and coworking, with the Dallas-Fort Worth (DFW) area, Austin, and Houston leading the way.
Dallas Fort Worth: The top spot for coworking growth
Dallas Fort Worth (DFW) has emerged as one of the top spots for coworking growth in the United States. The area boasts a population of well over 7 million people, and with the proximity of the Dallas/Fort Worth International Airport, it has established itself as a major financial and industrial hub, as well as an important inland port. Subsequently, over five million square feet of flexible office space, including shared offices, short-term rentals and other coworking spaces, is available on the North Texan market.
According to CBRE research, DFW ranks second amongst all U.S. markets for short-term or flexible offices, therefore ranking ahead of most other major markets, including Los Angeles. The coworking industry in the DFW area even saw expansion throughout the pandemic, with firms like Common Desk and WorkSuites renting extra space for new sites.
The coworking market was already in significant growth mode before Covid-19 hit, with a survey by commercial real estate firm Colliers International reporting that DFW ranked first among 19 major U.S. areas for coworking growth in 2019. Additionally, from the fourth quarter of 2016 to mid-2018, the number of coworking spaces in downtown marketplaces and key DFW submarkets soared by 250%, climbing to over 370,000 square feet.
Austin: Booming flexible office growth
Also known as “Silicon Hills,” Austin is another Texas city that has seen a surge in flexible office space and coworking. The city has been ranked as the best place to live by U.S. News and welcomes around 50 new residents a day. With current stats putting the city’s population at 1,013,293, Austin is growing at a rate of 1.7%, and its population has jumped 5.35% since the last census. This rapid population growth has increased the need for more flexible office space; the number of flexible office locations bookable via LiquidSpace, for example, is two and a half times greater than a year ago, with over 180 bookable spaces available.
Austin is the state’s capital, and hence the local and state governments account for a large proportion of the employment in the region. Its thriving education sector, encompassing the Austin Independent School District and Texas State University of Austin, offers numerous employment opportunities and a well-educated workforce. Alongside education, Austin’s real estate, medical, and pharmaceutical industries are flourishing, contributing to its growth and making it an appealing market.
Unlike many other areas, Austin weathered the financial crisis with little adverse impact, further solidifying its status as a prosperous and promising city. The city also benefits from giants in the technology sector, with tech companies such as Dell, Apple, IBM, and AMD growing their presence in the region.
Houston: Top locations for coworking space
Houston has established itself as a significant player in the coworking space market. The Coworking Cafes’ list of the best places for coworking in the country recognizes both the city and the state’s efforts in this industry.
Texas ranks second in the U.S. for coworking spots with 652, just behind California’s 1,188 spots and ahead of Florida’s 629 and New York’s 589 offices. Houston ranks eighth in the country with 208 coworking facilities, while the Dallas-Fort Worth area comes in at No. 5 with 261 coworking spots. Additionally, Austin is ranked among the top two with 97 coworking spots, earning the No. 19 spot on the list. Despite the fierce competition, Houston’s coworking industry continues to thrive, attracting a diverse range of entrepreneurs and professionals.
Houston has 208 identified coworking properties, with 154 located within the city limits and the remaining spread throughout the greater Houston area, including Katy, Spring, and The Woodlands. While Houston has observed an overall trend of increased remote work, the study suggests that it hasn’t experienced the same level of shift as other cities and states. Despite this, the number of people working in coworking spaces has increased three-fold since 2015, and Houston’s remote workforce has grown from 4% in 2019 to 16% in 2021.
Texas’ surging flexible office and coworking demand
North Texas, in particular, is sizzling with an abundance of technology-related employment, with almost 791,000 individuals employed in the tech industry across the state, according to the tech industry trade group CompTIA. This is largely due to the concentration of significant enterprises in the region, attracting other businesses seeking to be in close proximity. With numerous schools and institutions, there is a vast pool of well-educated and qualified candidates, making North Texas a particularly appealing location for technology firms. Beyond the tech industry itself, other sectors such as real estate, automotive, and retail also benefit from the presence of these enterprises. Ultimately, North Texas is a thriving hub of technological innovation that supports and elevates many different industries in the region.
Furthermore, Texas boasts a top-tier transportation infrastructure, comprising numerous major airports and an extensive highway network, allowing businesses to transport goods and people effortlessly in and out of the state. This exceptional transportation system is a significant advantage for firms looking to establish a presence in Texas. Moreover, the state’s substantial reservoir of highly educated and skilled employees is a crucial factor for businesses considering expanding or relocating to the region. The presence of this talented workforce provides companies with the necessary resources to grow and flourish in a competitive marketplace.
Final thoughts
Texas’ growing population, strong industrial and financial sector, and large concentration of technology employment are driving the demand for flexible office space and coworking. As remote work becomes increasingly popular, the market for flexible workspace in Texas is only expected to grow.
