New Coworking Brands Challenge the Market Dominance of WeWork and IWG in the UK, Says CoStar Report

Fresh new local coworking brands are shaking up the market positions of industry giants WeWork and IWG in the UK, according to a report published by real estate services company CoStar.

As the London flexible office market becomes increasingly saturated, the growth of coworking spaces has shifted to regional cities. Over the past few years, new local brands have emerged in the six largest regional cities, challenging the dominance of early movers who initially concentrated their development efforts in the London metropolitan area.

“Over the past two years, while leasing activity from larger, more established providers has slowed, newer market entrants have steadily increased their market share,” writes CoStar. From 2018 to 2022, IWG (Regus, Spaces) and WeWork led the way in expanding their offerings across the UK. However, between 2023 and 2024, these incumbents have been overtaken by regional players, according to data collected by CoStar from the UK’s six major regional cities.

Cubo Work, the Derby based coworking operator, has emerged as a notable challenger. Launched in 2020, Cubo Work has expanded significantly, opening approximately eight new locations across the UK since 2022. The company has grown from five to 13 sites, with a presence in cities including Birmingham, Derby, Edinburgh, Glasgow, Leeds, Manchester, Newcastle, Nottingham, and Sheffield. Cubo is backed by investment firm Literacy Capital, who took a significant minority stake in the business in 2023.

This shift underscores the growing influence of regional coworking brands and their ability to challenge the previously unshaken dominance of national and global players in the flexible workspace market.

The other rising players in the UK, according to the report, are Wizu Workspace, 2-Work, Runway East, Orega or Gilbanks.

Derby firm Cubo overtakes national rivals to become UK’s fastest growing flex office provider