Profitability in Coworking: Why Consistency Matters More Than Scale
In a recent conversation, Jean-Yves Huwart, founder of Coworking Europe, explored this topic with Raúl del Pozo, founder of Cink Coworking and one of the pioneers of the coworking industry in Madrid. After more than 15 years in the sector and 11 locations with Cink, Raúl has developed a clear perspective on what truly makes a coworking operator sustainable.
🎥 Watch the full conversation
The Myth of Scale
As Raúl sees it, for years, the coworking industry was dominated by one idea: growth at all costs. Bigger portfolios, larger spaces, and rapid expansion were often presented as the path to success. But according to Raúl, that logic does not hold if the operational model itself is not profitable.
As he explained during the discussion, operators sometimes assume that reaching a larger scale will eventually solve their financial challenges. In reality, if a business model does not work at 10,000 square meters, scaling it to one million square meters will not suddenly make it profitable.
The key is consistency: consistency in positioning, consistency in product, and consistency in target audience.
A Deliberate Market Position
At Cink Coworking, the strategy has remained remarkably focused over the years. The company operates exclusively in Madrid, mainly in Class B or secondary office buildings located in well-connected urban areas. Their spaces typically range from 1,000 to 2,500 square meters — a size they consider optimal for operational efficiency
The target market is equally clear:
freelancers,
startups,
and small to medium-sized companies.
Rather than competing in the ultra-premium corporate segment, the company focuses on delivering strong quality while maintaining pricing that allows occupancy rates between 90% and 95%.
This clarity of positioning is what creates profitability.
The Shrinking Office Market Creates Opportunity
Another major topic discussed was the transformation of the European office market. Across cities such as Madrid, Barcelona, London, Amsterdam and Berlin, many secondary office buildings are being sold and converted into residential properties. Rising construction costs and energy-efficiency challenges are accelerating this trend.
The consequence is significant:
and prime office buildings remain both scarce and expensive.
For many businesses, flexible office solutions are becoming the most realistic alternative.
As Raúl pointed out, many tenants leaving obsolete buildings cannot afford prime office space or simply cannot find availability. Increasingly, they turn toward flex offices and coworking operators instead.
Flexibility Has Become Mainstream
Perhaps the most important shift is cultural. A few years ago, many companies still viewed flexible offices as temporary solutions. Today, hybrid work has fundamentally changed that perception, says Raúl.
Organizations increasingly see flex offices as an opportunity to:
improve workplace quality,
access better locations,
and optimize costs while maintaining agility.
Raúl experiences a shift: most companies now understand the value of hybrid work models and are much more open to flexible office solutions as a long-term strategy.
Final Thought
The coworking industry is entering a more mature phase. The next winners may not necessarily be the operators with the largest portfolios, but those with the clearest identity, the strongest operational discipline, and the most coherent market positioning.
In a market increasingly shaped by flexibility, consistency may ultimately become the industry’s most valuable asset.
