Amazon and JPMorgan lead coworking comeback as companies seek flexibility

Larger firms turn to shared office spaces to meet evolving workforce needs without long-term commitments

Jan. 27, 2026 at 4:39pm

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Coworking spaces and shared offices are making a comeback as companies, including Amazon, JPMorgan, Lyft, and Pfizer, are increasingly turning to flexible office solutions to meet their in-person work needs without the commitment of long-term leases. This trend is driven by uncertainty around the future of workforces, the chaotic rollout of return-to-office mandates, and a record-high office real estate vacancy rate.

Why it matters

The shift to coworking reflects a broader change in how companies are approaching their office space needs in the post-pandemic era. As businesses grapple with the evolving preferences of their workforce, coworking provides a way to test new markets, experiment with hybrid work models, and offer high-quality office experiences without the burden of long-term leases.

The details

Amazon has signed leases with WeWork, adding over 960,000 square feet of coworking space in Manhattan to supplement its existing office footprint. Other major companies like JPMorgan, Lyft, and Pfizer are also utilizing coworking spaces. The coworking industry has grown by 51.7% in recent years, now accounting for over 2% of office space in the U.S. Coworking offers companies flexibility, cost savings, and the ability to quickly scale their office needs up or down as required.

  • In early 2025, Amazon mandated its nearly 350,000 corporate employees to fully return to the office, leading to a chaotic rollout.
  • In August 2025, Amazon signed a lease with WeWork for 259,000 square feet at 1440 Broadway in Manhattan.
  • In 2024, Allstate moved a quarter of its 54,000 corporate employees to coworking spaces, cutting its annual office spending from $382 million in 2020 to $138 million.

The players

Amazon

An American multinational technology company that provides a wide range of products and services, including e-commerce, cloud computing, digital streaming, and artificial intelligence.

JPMorgan

A multinational investment bank and financial services company headquartered in New York City.

WeWork

A provider of flexible shared workspaces for startups, freelancers, small businesses, and large enterprises.

John Santora

The CEO of WeWork, who took over the company in June 2024 after 47 years at Cushman Wakefield where he was COO.

Jamie Hodari

The CEO of coworking company Industrious and a senior executive at CBRE.

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What they’re saying

“Why make that long-term commitment, especially today, when you're not sure of how many people are coming back, right? We'll get you in 30, 60, 90 days, and you have the ability to walk away at certain points. So, you may do a one-year deal or a three-year deal with options to leave. You're not locked in for 10 years.”

— John Santora, CEO of WeWork

“Lots of business leaders that are more obsessed with saying I need my employees to come in at least a few days a week than even before COVID. Therefore they are focused on saying, I need great offices in all 20 cities I operate in the US, not just the top two.”

— Jamie Hodari, CEO of Industrious and senior executive at CBRE

What’s next

Industrious plans to open 60 new coworking units in 2026 as the demand for flexible office space continues to grow.

The takeaway

The shift to coworking reflects a broader trend of companies seeking more flexibility in their office space needs, driven by uncertainty around the future of work, the challenges of return-to-office mandates, and a desire to provide high-quality office experiences for employees across multiple locations.