Coworking spaces and local governments often want the same things. More local jobs, stronger communities, and lively town centers.
Across cities and smaller towns, coworking spaces already support freelancers, startups, and remote workers who want to stay local. Because of this, many local governments are starting to see coworking spaces as partners in economic and community development rather than just another type of office space.
This article looks at how coworking spaces can collaborate with local governments, why these partnerships matter, and what collaboration can look like in real life.
Why Local Governments Are Paying Attention to Coworking
Local governments focus on economic growth, social well-being, and long-term resilience. Coworking spaces often contribute to all three.
Coworking spaces help:
- local founders start businesses without high upfront costs
- remote workers stay in the region instead of moving away
- nearby cafes and shops benefit from daily foot traffic
- vacant buildings get reused instead of sitting empty
As Allwork.Space explains in their article on how coworking helps revitalize rural areas, local governments increasingly see coworking as a practical way to support regions struggling with empty buildings or declining town centers.
Deskmag has explored this idea for years, especially in their article "Should the public sector fund coworking spaces?", which looks at how cities like Chandler treated coworking as part of their economic infrastructure rather than just a private business.
Common Ways Coworking Spaces Collaborate with Local Governments
There is no single model for collaboration. Some partnerships are informal, while others involve funding or long-term programs.
In many cases, these collaborations are easier to start when coworking spaces already have experience partnering with others. Local partnerships with nonprofits, universities, cultural institutions, or other coworking spaces can build the trust and visibility that later helps when approaching municipalities.
1. Economic Development Partnerships
Many coworking spaces work with local economic development teams.
This often includes:
- hosting startup or freelancer programs
- offering discounted desks for local founders
- providing space for workshops or business training
Coworker Magazine highlights several examples in The rise of rural coworking spaces, showing how local authorities support coworking hubs to keep entrepreneurs and remote workers in the region.
2. Grants and Public Funding
In some regions, coworking spaces receive public funding to open or grow.
This can include:
- city grants to renovate unused buildings
- regional programs to support rural coworking
- funding tied to remote work or digital infrastructure
A clear example is Ireland’s Connected Hubs initiative, which the Cobot blog covers in The case for rural coworking. The program helped local authorities turn vacant buildings into coworking hubs that support remote workers and small businesses.
3. Revitalizing Town Centers and Neighborhoods
Coworking spaces are often part of wider regeneration strategies.
Local governments may support coworking by:
- offering reduced rent in public buildings
- encouraging coworking in underused districts
- including coworking in city renewal plans
As Deskmag explains in its coverage of publicly supported coworking spaces, coworking can bring daily activity back into neighborhoods and support local businesses beyond standard office hours.
4. Social and Community Programs
Some collaborations focus less on business and more on people.
Examples include:
- coworking access for job seekers or freelancers
- programs supporting parents returning to work
- community events hosted in coworking spaces
The Coworking Values Blog often frames coworking as social infrastructure. In TownSq Islington: What are they up to?, Bernie Mitchell shows how coworking operators worked with local authorities to create accessible spaces that support both economic and social goals.
Cat Johnson also explores this role in We’re so lonely that the UK has a Minister of Loneliness, where she connects coworking spaces to broader conversations about well-being and community connection.
5. Government Using Coworking Spaces
In some cases, governments do not just support coworking spaces. They use them.
This can include:
- public employees working from coworking spaces
- city teams hosting office hours inside coworking spaces
- public consultations held in coworking environments
How Coworking Spaces Can Start These Collaborations
Working with local governments usually takes time. Many coworking operators recommend starting small.
Focus on Shared Goals
Instead of pitching coworking as a business, frame it as a solution.
Alex Hillman explains this clearly in his Dangerously Awesome article on collaborating with local governments, where he encourages coworking spaces to focus on outcomes that matter to public officials, such as local jobs and community impact.
Find the Right Contacts
Economic development teams, innovation offices, and urban planning departments are often the best place to start.
Spaces that succeed usually find one motivated person inside the administration who understands coworking and can move things forward internally.
Some operators also rely on coworking organizations and industry networks when navigating these conversations for the first time. These groups often share policy knowledge, advocacy experience, and peer insights that can help spaces approach local governments with more confidence, as we explain in our guide on why joining coworking organizations and industry networks can support operators.
Start With Small Projects
Rather than asking for large funding upfront, start with simple ideas:
- host one public event
- run a short pilot program
- partner on a local initiative
As Hillman also notes, small wins build trust faster than big promises.
Stay Independent
Several coworking publications, including Deskmag, warn against relying too heavily on public funding. Sustainable coworking spaces balance public support with independent business models.
Industry events can be a good place to start. At coworking conferences and future of work events, operators often meet peers, policymakers, and partners who already collaborate across sectors. It’s a practical way to get a feel for what’s possible before taking the next step.
Why These Collaborations Matter
Coworking spaces are no longer niche. They are now part of the economic and social infrastructure that keeps cities and towns functioning, especially as remote work becomes permanent rather than temporary.
For coworking operators, collaboration with local governments is not just about funding. It is about stability and long-term relevance. Government partnerships can anchor a coworking space in the local ecosystem through multi-year programs, public referrals, and inclusion in economic development strategies.
For local governments, coworking offers a flexible way to support entrepreneurship, employment, and community life without the cost and risk of building and managing new public facilities. Instead of investing in large, single-purpose infrastructure, municipalities can leverage existing coworking spaces that already know how to build communities, support small businesses, and adapt quickly to changing work patterns.
Final Thoughts
Coworking spaces and local governments work best together when they focus on people, not just policies.
The strongest collaborations grow slowly, stay practical, and respect the independence of coworking communities while supporting shared local goals.
FAQ
What role do coworking spaces play in local economic development?
Coworking spaces support local economies by making it easier to start and grow a business. They create jobs, attract remote workers, and increase local spending by keeping professionals working and spending money close to home.
Why are local governments interested in coworking spaces?
Local governments view coworking as a tool for job creation, downtown revitalization, and talent retention. Coworking also supports broader goals such as sustainability, reduced commuting, and stronger local communities.
How can coworking spaces receive support from local governments?
Support can include grants, subsidized rent, public-private partnerships, or inclusion in economic development programs. Some governments also purchase coworking memberships for employees or local entrepreneurs.
Do coworking spaces need to be nonprofit to work with governments?
No. Both for-profit and nonprofit coworking spaces work with local governments. What matters most is demonstrating clear public value, such as supporting entrepreneurs, revitalizing downtown areas, or retaining local talent.
What are common examples of coworking and government partnerships?
Common models include city-funded coworking hubs, national or regional funding programs, rural revitalization initiatives, and partnerships where governments fund spaces operated by experienced coworking operators.
How should coworking operators approach local governments?
The most effective approach is to educate officials, invite them to visit the space, and connect coworking outcomes to existing government goals. Starting with small pilot projects helps build trust and momentum.
Can coworking spaces help reduce brain drain in smaller towns?
Yes. Coworking enables professionals to work remotely while living locally, making smaller towns more attractive. Many local governments now use coworking as part of their talent retention strategy.
