This article was written by our expert who is surveying the industry and constantly updating the business plan for a coworking space.
Member retention rate tells you the exact percentage of members who stayed with your coworking space over a given period (usually 12 months).
It is calculated as: Retention = (Members at period end − New members during the period) ÷ Members at period start. You should measure it monthly and year-over-year for a complete view of stability and growth. Typical healthy year-over-year retention for coworking spaces in 2024–2025 ranges from 65% to 85%, with service-rich private office mixes achieving the upper end.
If you want to dig deeper and learn more, you can download our business plan for a coworking space. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our coworking space financial forecast.
On average, a coworking space hosts around 185 active members, retains 65%–85% year-over-year, and sees typical tenure between 9 and 18 months depending on plan mix. Private offices drive the strongest renewal rates; short-term hot desks churn faster, so plan design and contract length materially influence retention.
Use the table below to benchmark your space today and to set realistic, data-driven targets for the next 12 months. These metrics align with 2024–2025 industry sources and reflect what operators with stable occupancy achieve when they prioritize service, community, and longer commitments.
| Metric | What it means & how to calculate | Typical 2024–2025 range / benchmark |
|---|---|---|
| Active Members (today) | Count of paying members with an active contract this month | ~185 per space on average |
| 12-Month New Members | Total new signups in the last 12 months | Common: 40%–60% of current base are “new last year” |
| 12-Month Leavers | Total members who cancelled in the last 12 months | Matches growth and churn dynamics; aim for churn ≤ 25%–35% |
| Average Tenure | Average months between join and cancellation | Hot desk: 6–9m; Dedicated desk: 12–15m; Private office: 15–18.7m |
| First-Term Renewal Rate | Renewals ÷ contracts expiring first time | 60%–70% typical; 80%–90% in top performers |
| Multi-Term Renewal Rate | Share renewing after 2+ terms | Often <10%; service-rich offices can reach ~50% |
| Returners within 12 Months | Ex-members who rejoin within a year ÷ total leavers | ~10%–15% |
What is the current number of active members?
Count every paying person or team with an active contract today; this is your active member base.
Include hot desks, dedicated desks, private offices, and virtual office subscribers if they pay monthly and are in good standing. Exclude free trials, day passes, and paused contracts so the figure reflects predictable revenue.
As a benchmark, the average coworking space operates with roughly ~185 active members, but your capacity, location, and plan mix will shift this number. Track it on the first business day each month and keep a rolling 12-month chart to spot structural growth.
This single metric is the denominator for many KPIs (renewals, churn, ARPM); treat it as your master number and audit it monthly.
You’ll find detailed market insights in our coworking space business plan, updated every quarter.
How many new members joined in the last 12 months?
Tally all signups with start dates in the last 12 months; that shows acquisition velocity.
Healthy coworking spaces often report that 40%–60% of current members are “new in the last year,” reflecting ongoing churn in flexible models. Top markets occasionally show faster growth spurts during expansion cycles.
Segment new members by plan (hot desk vs dedicated vs private office) because acquisition mix predicts future retention and cash flow stability. Track monthly to see the impact of pricing changes, events, and referral pushes.
Make this a dashboard metric right next to active members to keep marketing programs accountable.
How many members left in the last 12 months?
Count all cancellations in the last 12 months to measure churn volume.
In flexible space, cancellations are normal; aim to keep annual churn ≤ 25%–35% of your starting base. Rising churn signals issues in pricing, service reliability, or member-fit targeting.
Compare monthly leavers against monthly joiners to monitor net growth; use a 3-month moving average to eliminate noise from large client moves. Track “avoidable” vs “unavoidable” churn to focus your retention budget where it matters.
Use exit surveys for every departure to capture reason codes you can act on quickly.
What is the average membership length before a member leaves?
Average tenure shows how long members stay before cancelling; it is a powerful stability signal.
Typical tenure ranges 9–18 months across plans, with private offices at the high end (~15–18.7 months) and hot desks at the low end (~6–9 months). Dedicated desks typically sit in the middle at 12–15 months.
Improve tenure by tightening onboarding (IT, access, community intro), guaranteeing internet uptime, and reserving quiet zones for focus. Tenure improvements compound because they raise renewal probability and reduce acquisition pressure.
Audit tenure quarterly by plan and by acquisition channel (e.g., referrals vs ads) to find the highest-lifetime-value sources.
What percentage renew after the first term?
First-term renewal rate is renewals divided by contracts expiring for the first time in the period.
Spaces commonly report 60%–70% first-term renewals; top performers with strong community and service reliability hit 80%–90%. Your initial contract length also matters—annual first terms tend to renew more than monthly terms.
Raise first-term renewals by pre-renewal check-ins at day 60–90, proactive seat planning for growing teams, and loyalty pricing that rewards longer terms.
Track this monthly with a cohort table so you can see exactly which signup months produce the best renewals.
What percentage renew after multiple terms?
Multi-term renewal rate measures stickiness beyond the first extension.
In many coworking spaces this figure is below 10% because flexible users eventually upgrade, move, or outgrow; however, service-rich private office clients can achieve ~50% multi-year retention.
To lift multi-term renewals, bundle services (mail, meeting credits, printing, IT support), upgrade members to larger suites without friction, and formalize account management for teams over 5 seats.
Set tiered loyalty milestones (e.g., 12, 24, 36 months) with tangible benefits to anchor long-term relationships.
Why do members leave most often?
- Relocation or a new job location that makes your site less convenient.
- Business growth that outgrows current suite size or needs a private HQ.
- Insufficient quiet zones, privacy, or meeting room availability for their work style.
- Internet reliability, acoustics, or overall focus environment not meeting expectations.
- Community fit or perceived value misaligned with their price point and usage.
- Seasonal travel or project-based work ending, especially among freelancers.
- Change in budget due to market conditions or client pipeline shifts.
This is one of the strategies explained in our coworking space business plan.
How does retention vary by membership plan or tier?
Plan selection heavily determines retention outcomes in a coworking space.
Hot desks churn fastest; dedicated desks are steadier; private offices retain the longest due to privacy and predictable use. Use pricing and inventory to nudge users toward stickier plans without killing entry-level demand.
The table below summarizes typical 2024–2025 patterns so you can benchmark your mix and set plan-specific targets.
Adjust your product ladder so upgrades feel natural (e.g., guarantee meeting credits and phone-booth priority with dedicated desks).
| Plan type | Average tenure before churn | Typical renewal levels & notes |
|---|---|---|
| Hot desk | ~6–9 months | First-term renewals ~50–60%; highest churn; ideal as entry plan and feeder to higher tiers. |
| Dedicated desk | ~12–15 months | First-term renewals ~65–75%; multi-term ~15–25%; steadier weekday usage and ARPM. |
| Private office | ~15–18.7 months | First-term renewals ~70–90%; multi-term up to ~50% with strong service bundle; best retention profile. |
| Virtual office | ~9–12 months | Renewals vary widely (price/value sensitive); use add-ons to increase stickiness (mail, credits). |
| Meeting room bundles | Project-based | Low renewal unless paired with desks; upsell to dedicated or private tiers to stabilize. |
| Team suites (5–20 seats) | ~14–18 months | Higher stickiness if you offer seamless expansion, IT, and storage. |
| Enterprise managed office | 18m+ | Contractual retention high; service-level agreements and fit-outs are key to renewals. |
How does retention differ between short-term and long-term contracts?
Contract length is one of the strongest levers of retention in a coworking space.
Monthly terms maximize flexibility but increase churn; annual and multi-year commitments materially raise renewal odds. Incentivize longer terms with rate protection, upgrades, and migration rights to bigger suites.
Use the table below to set clear commercial rules and avoid one-off deals that undermine your pricing logic.
Always publish the benefits of longer terms so members opt in before renewal talks even begin.
| Contract type | Expected retention profile | Commercial tactics to improve |
|---|---|---|
| Monthly rolling | First-term ~50–60%; high churn within 6–9 months | Introduce “convert to annual” incentives at month 2–3; add loyalty credits. |
| Quarterly | First-term ~60–70%; better than monthly | Bundle meeting credits and printing; add early-renewal window. |
| 6-month fixed | First-term ~65–75%; churn moderates | Offer seat expansion rights and mailbox service. |
| 12-month fixed | First-term ~80–90%; strong retention | Rate lock, upgrade priority, storage, and signage. |
| 24-month fixed | Multi-term up to ~50% (private offices) | Capex co-investment, custom fit-out, SLA guarantees. |
| Project passes | Low inherent retention | Convert to dedicated desk with “project-to-plan” offers. |
| Enterprise managed | High contractual retention | Executive sponsor cadence and quarterly business reviews. |
What seasonal or monthly trends affect departures or renewals?
Seasonality shapes both signups and churn in coworking spaces.
Spring and autumn typically deliver peaks in new memberships and renewals tied to business cycles, while summer brings more month-to-month passes and travel-related pauses. Winter can slow new signups but sees strong engagement if you program events.
Pre-empt seasonality by timing acquisition campaigns before peak months, pre-selling renewals 60–90 days out, and running community anchors during quieter periods.
Measure a 24-month seasonality index so you can forecast staffing, events, and marketing spend precisely.
What percentage of members who leave return within a year?
Returner rate shows how many ex-members come back within 12 months.
A typical figure is 10%–15% when you maintain relationships, send targeted offers, and keep your location relevant to their commute. Returners lower acquisition costs and tend to upgrade faster on their second stint.
Tag ex-members in your CRM, keep them on your event invites, and offer “returner bundles” with waived setup fees or upgrade credits.
Review returner performance each quarter to optimize your win-back playbook.
We cover this exact topic in the coworking space business plan.
How does our retention compare with industry benchmarks?
Benchmark your current retention against recent coworking norms.
Most operators report year-over-year retention between 65% and 85%, while the best service-rich, office-heavy mixes surpass 90% first-term renewals and approach 50% multi-term renewals among private offices. If your numbers sit below 65%, audit onboarding, uptime, and plan mix first.
Use cohort analysis: track each signup month’s renewal behavior by plan and contract length so you see where underperformance begins. Targeted fixes by cohort are faster and cheaper than across-the-board discounts.
Set a 12-month target (e.g., +8 pts first-term renewal) and assign owners for each driver (internet SLA, meeting room access, expansion rights).
Quick reference: the three acquisition/retention drivers you must track
Every coworking space should track three drivers that materially move retention.
They are: service reliability (especially internet uptime and booking systems), community/engagement (event cadence and participation), and plan design (inventory and benefits that encourage upgrades over exits).
Report them monthly with clear owners and thresholds (e.g., internet uptime ≥ 99.95%, average meeting-room lead time ≤ 72 hours, NPS ≥ 45). Tie frontline bonuses to these leading indicators to institutionalize retention.
It’s a key part of what we outline in the coworking space business plan.
Worked example: calculating year-over-year retention
Use this example to compute your retention rate accurately.
Suppose you started last October with 150 members, ended this October with 190, and signed 80 new members during the year. Retention = (190 − 80) ÷ 150 = 110 ÷ 150 = 73.3%.
Now break that 73.3% into plan-level cohorts—if private offices retained at 86% and hot desks at 58%, you know exactly where to act. Combine this with first-term renewal tracking to get a holistic view.
Recalculate monthly for rolling 12-month windows to eliminate seasonal distortions.
Plan-level benchmarks at a glance
Use this table to recap plan-level retention numbers and notes for your coworking space.
| Plan | First-term renewal | Key retention tactics |
|---|---|---|
| Hot desk | ~50–60% | Upgrade path to dedicated; enforce quiet zones; flexible add-ons instead of discounts. |
| Dedicated desk | ~65–75% | Guaranteed meeting credits, locker/storage, phone-booth priority. |
| Private office | ~70–90% | Rate locks, expansion rights, branded signage, on-call IT. |
| Team suite | ~70–85% | QBRs, headcount forecasting, modular furniture for quick growth. |
| Virtual office | Varies | Mail + credits bundle, upsell to part-time desks during peak projects. |
| Enterprise managed | High | SLA adherence, executive sponsor, capex co-funding for fit-outs. |
| Project passes | Low | Convert-to-plan offers at project close; keep alumni in events loop. |
Exit reasons that are “actionable” vs “unavoidable”
Classify leaver reasons so your coworking team focuses on solvable problems.
“Unavoidable” includes relocation and company pivots; “actionable” covers environment quality, booking friction, or value perception. Prioritize fixes that lift first-term renewals fastest.
Maintain an exit survey with mandatory reason codes and a free-text field; review monthly and circulate a “Top 3 corrective actions” memo.
Close the loop with members who complained and stayed—those are your best early-warning signals.
Get expert guidance and actionable steps inside our coworking space business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to go further? Explore our latest guides on opening and scaling a profitable coworking space, from layout mix to subscriber targets.
These resources cover startup budgets, monthly operating models, and profitability levers so you can plan with confidence.
Sources
- Coworking Resources – Why customers leave coworking spaces
- Nexudus – Coworking KPIs & metrics
- OfficeRnD – Member retention in coworking
- Optix – Coworking trends
- Spacebring – Tips to boost retention
- Coworking Insights – Why members quit
- Deskmag – Profile of ex-coworkers
- CoworkingCafe – National coworking report
- Statista – Members per coworking space
- Yardi Kube – Best coworking KPIs
-How to open a coworking space
-Coworking space startup costs
-Desks vs private rooms: the right mix
-Optimal area per person in a coworking
-Monthly budget for a coworking space
-Coworking space profitability
-Ideal subscriber count
-Renovation budget tips
-Coworking space budget guide
-Coworking business model
-Profit margins in coworking
-Flexible office space trends
-Is a coworking space profitable?
-Is coworking worth investing in?