In coworking, 85% occupancy has become something of a holy grail. Hit that number and you’re stable. Miss it, and margins tighten quickly. For owners and operators, it’s the metric that determines whether a space thrives—or quietly struggles.
Yet despite strong demand for flexible work, many coworking spaces plateau well below that mark. The issue isn’t market appetite. It’s execution.
The “85% Myth” in Coworking
There’s a common assumption in the industry: build a beautiful space, price it competitively, list it on a few marketplaces, and occupancy will naturally climb. In reality, coworking doesn’t fill itself.
Unlike traditional office leasing, coworking operates on rolling memberships, shorter commitment cycles, and higher churn. That means maintaining 85% occupancy requires consistent lead flow, strong retention strategies, and disciplined pricing. Treating it like static real estate instead of a dynamic business model is often where things go sideways.
Where Operators Go Wrong
- Over-Discounting
When occupancy dips, the knee-jerk reaction is often to lower rates. While short-term promotions can help fill desks, chronic discounting erodes brand perception and compresses margins. Over time, it becomes difficult to raise rates without pushback.
Pricing discipline matters. A space positioned as premium can’t survive long-term bargain pricing without confusing its market.
- Poor Funnel Tracking
Many operators know how many members they have—but not how many inquiries convert, where leads originate, or how long prospects sit in the pipeline. Without tracking key metrics like lead-to-tour ratios or tour-to-close percentages, growth becomes guesswork.
Coworking is not just about community; it’s about conversion.
- No Outbound Sales Strategy
Too often, spaces rely solely on inbound traffic. Website inquiries and marketplace leads are helpful, but they’re only part of the picture. High-performing spaces proactively build relationships with brokers, local business groups, and corporate decision-makers.
Outbound sales isn’t aggressive—it’s strategic visibility.
- Treating Coworking Like Real Estate Instead of Hospitality
Coworking is a service business. Members stay not just because of square footage, but because of experience. Spaces that operate purely as landlords often struggle with retention. Spaces that operate like hospitality brands—focused on member engagement, programming, and proactive support—tend to see stronger loyalty and referrals.
As Workspace Strategies President Karen Condi often notes, “Coworking is less about desks and more about delivering an experience people don’t want to leave.”
What High-Performing Spaces Do Differently
Operators consistently hitting or exceeding 85% occupancy share a few common practices.
Community-Led Referrals
Thriving spaces intentionally cultivate member ambassadors. They create opportunities for organic introductions and incentivize referrals without cheapening the brand. When members feel connected, they bring others in.
Corporate Partnerships
Rather than relying solely on freelancers or startups, smart operators pursue partnerships with larger companies seeking flexible satellite space. Even a handful of corporate memberships can stabilize revenue and reduce churn volatility.
Event-Driven Lead Generation
Events aren’t just community perks—they’re marketing engines. Thoughtful programming attracts non-members into the space, creates visibility, and generates qualified leads. Done strategically, events become part of the sales funnel, not just calendar fillers.
Tiered Pricing Discipline
Successful spaces understand their value proposition and protect it. They offer structured membership tiers, clear upgrade paths, and defined add-ons—without constantly slashing rates. Consistency reinforces brand strength and supports long-term profitability.
Breaking Through the Ceiling
Reaching 85% occupancy isn’t luck. It’s a system. It requires disciplined pricing, measurable sales processes, intentional community building, and a hospitality mindset.
For operators feeling stuck below that threshold, the issue is rarely demand. More often, it’s misalignment between strategy and execution.
At Workspace Strategies, we work with coworking owners and operators to diagnose exactly where occupancy gaps originate—then implement practical, data-driven solutions to close them. From funnel analysis to pricing strategy to partnership development, the focus is simple: sustainable growth.
Learn more about how to strengthen your performance and move beyond the 85% ceiling at Workspace Strategies.
