When Is It Time to Leave a Coworking Space?

Webster Realty Advisors
Sep 10
3 min read

Updated: Oct 6

As coworking spaces have exploded in popularity across Greater Boston and beyond, they’ve become a go-to solution for early-stage companies, freelancers, and remote teams seeking flexibility and convenience. However, what starts as a practical, affordable workspace can quickly become a costly constraint as your business grows.

At Webster Realty Advisors, we represent tenants exclusively—and we hear a version of the same question often:

“Is now the right time to leave our coworking space?”

Based on industry insights, client experience, and data-driven analysis, here’s when—and why—it may be time to transition to dedicated leased space.

5 Signs It’s Time to Leave Coworking

1. Your Team Is Outgrowing Space

Coworking works well for solo users and small teams. However, as headcount approaches 8–10 employees, the seams begin to show. You may experience:

Difficulty finding grouped desks or private meeting rooms.
Scattered team members across shared floors.
No control over workflow layout (departments, IT zones, or client space).

If you're hiring regularly, you're better served by a layout that scales with you—not around you.

2. Privacy Is Becoming a Real Problem

Coworking offers open access—but that comes with noisy neighbors. As companies mature, they need:

Private areas for HR conversations, executive strategy, and client meetings.
Secure IT and compliance-ready infrastructure (especially in life sciences, legal, or finance).
Access control—not just key cards shared with dozens of other companies.

3. Your Monthly Costs Are Quietly Rising

Coworking may appear affordable, but it often exceeds the cost of traditional office space when measured per person. Consider these factors:

Private offices are priced at a premium.
Add-on fees for meeting rooms, printing, or storage.
No equity in tenant improvements or concessions.

In many cases, companies could save 30–50% per head by moving into a direct lease—with the added benefit of controlling the space.

4. You’re Losing Your Brand Identity

Your brand matters—to clients, recruits, and employees. However, coworking spaces are inherently shared, which limits:

Reception control.
Signage opportunities.
Office design that reflects your culture and mission.

A dedicated space supports everything from branded walls to curated onboarding experiences, which help build culture and client trust.

5. You Need More Predictability & Professionalism

From booking conference rooms to managing vendor deliveries, coworking often lacks the reliability that growing businesses require. If you're preparing for:

Investor meetings.
Client site visits.
Department coordination.

It’s time to consider a space that reflects the professionalism of your business, not just the flexibility of your startup phase.

The Coworking Cost Myth: Flexibility Isn’t Always Financially Efficient

Coworking is marketed as a money-saver. But once you hit a certain scale, the numbers tell a different story:

Scenario	Coworking	Leased Office Space
5-person team	$4,000–$6,000/month	$3,000–$4,000/month (gross)
Custom layout & branding	Not allowed	Fully customizable
IT / security infrastructure	Shared, limited control	Fully tenant-controlled
Long-term value	No capital investment	TI allowance, amortized cost
Flexibility	Month-to-month	Structured, with renewal/exit rights

For companies with predictable operations, investing in leased space is not just a strategic move—it’s often the most economical.

What Should You Do Next?

If your business is at a tipping point, consider these next steps:

Evaluate your growth trajectory: Will your team size double in the next 12–24 months?
Assess your current cost per seat: Include all coworking add-ons (meeting rooms, mail, printing, etc.).
Identify operational friction: How often are you waiting for a conference room or making do without privacy?
Think about perception: Does your current space reflect the company you are—or the company you’re becoming?

Conclusion

Coworking is an excellent launchpad—but for many businesses, it’s not a destination. The move to dedicated leased space can unlock operational efficiency, long-term cost savings, brand control, and cultural alignment.

At Webster Realty Advisors, we help tenants like you find the right space—at the right time—with no landlord conflict and full market coverage.

Let’s talk when you’re ready to graduate from flexibility to focus.