40% of Coworking Businesses Do Business Together, New Research Shows
New research shows that coworking businesses do business together at a remarkable rate, with more than 40 percent of members in shared workspaces generating revenue from organisations operating in the same location.
Australian businesses are increasingly moving away from traditional marketing channels and discovering a new growth strategy inside coworking spaces: co-networking.
What was once simply a place to work is rapidly becoming a powerful business development ecosystem. Businesses are generating revenue from organisations working just metres away.
According to @WORKSPACES CEO Brett McAllen, the trend is accelerating as organisations look for more efficient and cost-effective ways to win new business.
@WORKSPACES is an Australian-owned flexible workspace provider delivering enterprise-grade office solutions across Melbourne, Brisbane and the Gold Coast. The company offers serviced offices, coworking environments, virtual office solutions, and meeting facilities designed to support modern businesses.
“We are seeing a fundamental change in how businesses generate leads and build relationships,” McAllen said.
“Instead of spending heavily on digital ads with uncertain returns, businesses are finding that some of their best clients are sitting in the same building.”
The Rise of Co-Networking
McAllen said coworking environments are evolving into active commercial ecosystems where collaboration is producing measurable business outcomes.
“Coworking has moved far beyond hot desks and shared offices,” he said.
“It has become a live marketplace of skills, services and opportunities where businesses can connect, collaborate and transact in real time.”
Internal research from @WORKSPACES found that more than 40 percent of coworking members have conducted business with another organisation within the same workspace.
“That is an extraordinary figure when you consider the cost of acquiring a new client through traditional channels,” McAllen said.
“In many cases, businesses are replacing or significantly reducing their advertising spend because they are generating work more effectively through direct, in-person connections.”
From Advertising to Proximity
The trend reflects growing frustration with the rising cost and declining reliability of digital marketing.
“Google Ads, social media campaigns and online funnels are becoming more expensive and less predictable,” McAllen said.
“Businesses are asking a simple question: why spend thousands chasing leads online when you can build relationships with people you see every day?”
He said proximity is proving to be one of the strongest drivers of trust and conversion.
“When you share a space with someone, you naturally build rapport. You see how they operate, you understand their business and that creates a level of trust that advertising simply cannot replicate,” he said.
A Built-In Client Base
McAllen said coworking spaces are becoming self-contained business communities with built-in demand.
“You might have a marketing agency, a lawyer, an accountant, a technology startup and a consultant all working within the same environment,” he said.
“The opportunities for collaboration and referral are constant. In addition to this, you build trusted relationships because you know where and how these businesses operate.”
He said this model is particularly valuable for small and medium-sized businesses looking to grow without large marketing budgets.
“For many businesses, coworking is no longer just about saving on rent. It is about gaining access to a network that can directly contribute to revenue,” McAllen said.
A Smarter Way to Grow
The rise of co-networking is also being driven by a broader shift towards efficiency.
“In the current economic climate, businesses are under pressure to do more with less,” McAllen said.
“They are looking for smarter and more immediate ways to generate income, and coworking is delivering that. It is also providing a sense of community, which is important for wellbeing.”
He said the model aligns with how modern businesses want to operate.
“It is flexible, dynamic and built around real human interaction,” he said.
“This is business development happening in real time, not through a screen. People meet and talk with each other, and this is how the best relationships are formed and maintained.”
The Future of Work Is Commercial Community
McAllen believes the trend will continue to accelerate as more businesses recognise the commercial value of coworking environments.
“The office is no longer just a place to work. It is a place to connect, collaborate, and grow your business,” he said.
“Those who understand how to leverage co-networking will have a significant advantage.”
He said the implications are significant for how businesses think about growth.
“We are moving away from transactional, digital-first marketing towards relationship-driven, community-based growth,” McAllen said.
“That is a major shift, and it is happening right now. Coworking is leading the way and providing business people with the ability to build solid long-term relationships in person and on a consistent basis.”
“In a way, we are returning to traditional business values where people meet in person, get to know each other and then decide to work together.”
About @WORKSPACES
@WORKSPACES is a premium Australian-owned flexible workspace provider delivering enterprise-grade, on-demand office solutions across Australia. With locations in Melbourne, Brisbane and the Gold Coast, the company offers serviced offices, coworking environments, virtual office solutions and meeting facilities designed to support modern businesses.
Led by CEO Brett McAllen, @WORKSPACES focuses on delivering high-quality, flexible and scalable workspace solutions that enable organisations to operate efficiently and competitively in a rapidly evolving business landscape.
For more information, visit www.atworkspaces.com.au.
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