Orange, California, a charming city in the heart of Orange County (OC), embodies a unique blend of historic appeal and modern economic vitality. Known for its Old Towne district, proximity to Chapman University, and role as a suburban hub within one of Southern California’s most dynamic regions, Orange has become an increasingly attractive location for flexible workspaces. Co-working spaces—shared environments offering desks, private offices, meeting rooms, and community amenities on flexible terms—have surged in popularity here. This growth reflects broader market trends in remote and hybrid work, economic shifts, real estate dynamics, and evolving workforce preferences.
As of early 2026, the U.S. co-working sector has expanded significantly, with national locations rising and total flexible office space reaching approximately 161 million square feet, a 16% year-over-year increase. Orange County itself saw its co-working inventory grow modestly from about 121 spaces totaling 2.4 million square feet in 2024 to 124 spaces and 2.9 million square feet in 2025, with operators emphasizing purposeful, demand-driven expansion rather than unchecked proliferation. In Orange proper, recent openings like TailoredSpace’s new 11,830-square-foot location in Old Towne Orange highlight this localized momentum, capitalizing on walkable amenities, historic charm, and reduced commutes.
This blog post explores how key market trends—hybrid work adoption, office real estate adjustments, economic and sectoral growth in OC, suburban shifts, and competitive dynamics—are shaping co-working spaces specifically in Orange and the wider county. These influences drive both opportunities and challenges, positioning co-working as a resilient, adaptive solution in a post-pandemic landscape.
The Rise of Hybrid and Remote Work: Fueling Demand for Flexible Spaces
The COVID-19 pandemic accelerated a fundamental shift in how people work, with hybrid and remote models becoming entrenched, particularly in California. Around 21% of professionals in the state utilize remote or hybrid arrangements, higher than the national average. In Orange County, surveys indicate that 52% of workers desire a hybrid schedule most or all of the time, while 74% report overall job satisfaction. However, challenges persist: isolation, collaboration gaps, and the desire for professional environments without full-time office commitments.
Co-working spaces address these pain points effectively. They provide on-demand access to collaboration hubs, meeting rooms, and networking opportunities without the rigidity of traditional leases. For hybrid teams, this means booking space as needed for in-person sessions, fostering innovation while controlling costs. In Orange, where many residents value proximity to home—”the future of work isn’t in the home—it’s close to the home”—suburban co-working reduces long commutes to urban centers like Los Angeles or Irvine while combating isolation.
Market data underscores this impact. National co-working grew by 15% in a single year, with penetration in total office inventory rising from 2% in 2025 to 2.2% in early 2026. Orange County mirrored broader suburban trends, where shared workspace square footage expanded rapidly (from 55.5 million to over 87.6 million square feet nationally between 2023 and early 2025, a 58% surge in suburbs). Operators report strong demand in areas like Orange, driven by freelancers, small businesses, startups, and even corporate teams seeking satellite options.
This trend has profound implications for Orange. With its mix of tech-adjacent professionals, creatives, and service workers near major employment nodes (healthcare, tourism, aerospace), co-working fills a gap for those avoiding full remote setups or expensive dedicated offices. It supports retention: 41% of OC workers in person or hybrid roles say they would leave the county for a fully remote opportunity with good pay, suggesting flexible local options could help anchor talent.
Office Market Resilience and Conversion Trends in Orange County
Orange County’s traditional office market has shown resilience amid national headwinds. In Q4 2025, the county recorded its strongest quarterly absorption in over a decade, with about 1 million square feet of positive net absorption, driving vacancy rates to a two-year low. Vacancy hovered around 15.79% in mid-2025, with asking lease rates stable at approximately $2.77 per square foot. Class A spaces command premiums due to amenities, while broader availability reflects ongoing adjustments from pandemic-era downsizing.
Many tenants with leases expiring between 2025 and 2029 are expected to reduce footprints, increasing sublease and vacancy supply in the short term. This creates opportunities for adaptive reuse: converting underutilized traditional offices into mixed-use developments or flexible co-working formats. In OC, trends favor smaller, versatile spaces that support hybrid setups, collaboration, and modern amenities over large, fixed campuses.
For co-working in Orange, this dynamic is transformative. Larger-format spaces are expanding—average location size in OC surged 18.5% to nearly 24,000 square feet, positioning it as an aggressive large-format market. New or repurposed sites, like those in Old Towne Orange or near Spectrum Center in nearby Irvine, integrate retail, dining, and community features, enhancing appeal. Co-working operators benefit from lower entry barriers compared to full leases, with memberships often 50% or more cost-effective than traditional office space in many scenarios.
Economic factors, including stabilizing interest rates and inflation moderation, support this. While high borrowing costs previously curbed new construction, the lack of significant new office deliveries (only modest projects like The Weave @ OCVIBE) tightens supply, favoring flexible models that can scale with demand. In Orange, this means co-working can absorb displaced corporate demand or serve as “satellite” locations for firms based elsewhere in OC or LA.
Economic and Sectoral Drivers in Orange County
Orange County’s economy provides a robust backdrop for co-working growth. Projected job additions through 2035 include 49,771 in healthcare (the leader), 29,736 in tourism and outdoor recreation, and around 8,000 combined in aerospace/defense, clean economy, life sciences, and high-tech. These sectors—many knowledge- or service-oriented—align perfectly with co-working users: professionals needing flexibility, collaboration, and access to talent pipelines.
The county’s diverse economy, bolstered by strong educational institutions like UCI and Chapman University, fosters innovation clusters. Tech talent in the broader LA/OC region grew 13% from 2018-2023, with OC contributing to AI, life sciences, and digital media demand. Co-working spaces in Orange cater to this by offering environments for freelancers, startups, and hybrid corporate teams in these fields, often with niche amenities like high-speed internet, wellness features, or event programming.
Broader real estate trends amplify this. Remote work initially boosted residential demand and home prices, but as hybrid normalizes, it redirects some pressure toward flexible commercial options. Co-working helps mitigate “office doom loops” by revitalizing spaces and supporting local spending—workers in co-working frequent nearby restaurants, shops, and services in walkable areas like Old Towne Orange.
Workforce demographics matter too. OC has a highly educated population, with rising bachelor’s and graduate degree attainment, alongside an aging demographic that may increase demand for part-time or flexible professional roles. Co-working provides inclusive access for diverse users, including underrepresented groups in tech or creative fields, through affordable entry points and community-building.
Suburban Shift, Competition, and Pricing Dynamics
A defining trend is the suburbanization of co-working. National data shows suburbs outpacing urban cores, with operators flocking to areas offering lower costs, shorter commutes, and quality-of-life benefits. Orange exemplifies this: its historic charm, proximity to freeways, and suburban feel attract users avoiding LA or even central OC congestion.
Competition is intensifying yet stabilizing. National leaders like Regus (IWG), WeWork, Industrious, and HQ dominate, but local and regional players like TailoredSpace, Premier Workspaces, and independents thrive in OC with tailored offerings. In Orange County, pricing clusters in a premium tier ($230–$235/month for open desks in some reports), though suburban spots like Orange may offer more competitive rates compared to LA or San Francisco. Recent data shows mixed pricing movements, with some softening in OC amid supply adjustments, benefiting users but pressuring operators to differentiate via amenities, sustainability, or niche focus (e.g., tech incubators or creative hubs).
Hyper-local and niche spaces are rising: wellness-integrated, AI-enabled, or community-focused venues. In Anaheim and Orange, renovations emphasize adaptability, technology, and human-centered design. Larger operators pursue scale and efficiency, while boutiques emphasize personalization—polarization that favors clear value propositions.
Global and national co-working market forecasts are bullish: valued at around $27-28 billion in 2025-2026, with projections toward $36-72 billion by 2030-2033 at double-digit CAGRs, driven by North America’s leadership (41%+ share). Orange benefits from this tailwind as part of a mature SoCal ecosystem.
Challenges and Risks
Despite positives, challenges exist. Office vacancy pressures and potential economic slowdowns (inflation, policy uncertainty) could temper corporate uptake. High housing costs in OC, exacerbated historically by remote work migration, strain affordability for younger workers who form a core co-working demographic. AI adoption raises questions about job displacement, with over half of OC residents believing it could reduce opportunities, potentially shifting skill demands toward collaboration and creativity—areas where co-working excels.
Oversupply risks in flexible space or failure to adapt (e.g., ignoring sustainability or tech integration) could hurt underperforming operators. Pricing competition and the need for high occupancy (many report 90%+ in strong locations) demand constant innovation.
Future Outlook for Co-Working in Orange, Orange County
Looking ahead to 2026 and beyond, co-working in Orange appears poised for sustained, intentional growth. Trends point toward hyper-local expansion, larger formats in suburbs, and integration with mixed-use developments. As hybrid work matures, demand for “third places” near home will likely increase, especially with OC’s job growth in high-skill sectors requiring collaboration.
Operators succeeding will focus on ROI through trends like flexible adoption, stabilizing markets, and community emphasis. Conversions of legacy office stock, tech-enabled amenities, and partnerships with local institutions (e.g., universities) could accelerate this. National forecasts suggest flexible space could comprise 30% of offices by 2030 in some projections, with suburbs leading.
For Orange specifically, its unique position—historic vibrancy, educational anchors, and suburban accessibility—positions it as a micro-hub within OC’s broader ecosystem. Businesses and freelancers will increasingly view co-working not as a temporary fix but as a strategic advantage for productivity, networking, and work-life balance.
Conclusion
Market trends in hybrid work, office real estate resilience, sectoral expansion, suburban preferences, and competitive evolution have profoundly impacted co-working spaces in Orange, Orange County. What began as a pandemic response has evolved into a structural feature of the modern workplace, offering flexibility, cost savings, and community in a region where these qualities are highly valued.
As OC’s economy projects robust growth in healthcare, tourism, tech, and beyond, co-working will play a pivotal role in attracting and retaining talent, revitalizing commercial spaces, and supporting local vitality. Stakeholders—operators, landlords, policymakers, and users—should embrace adaptation: investing in quality amenities, sustainability, and inclusivity while monitoring economic signals.
In Orange, the blend of old-world charm and forward-looking flexibility makes co-working more than just desks and Wi-Fi; it’s a catalyst for connection, innovation, and economic resilience. As the future of work continues to unfold, spaces in this vibrant city are well-positioned to thrive, shaping not only how people work but how communities grow.
