Startups today are rewriting the rules of growth, and nowhere is that more evident than in how they choose where to operate.
The days when location decisions were based solely on rent prices, foot traffic, or proximity to central business districts are fading. In their place, a more dynamic, data-informed model is emerging—one powered by the rise of co-working spaces. With the flexibility of shared work environments comes an unexpected benefit: a rich stream of behavioral data. Welcome to Location Strategy 2.0, where smart startups are using co-working data to drive faster, more informed business moves.
The shift began subtly. As more companies embraced remote and hybrid work models, the demand for flexible office arrangements soared. Co-working spaces like WeWork, Industrious, and regional players began collecting valuable information—not just about occupancy, but about the types of businesses using the space, how often they come in, what hours are busiest, and where members move over time. For startups trying to make critical location decisions without the luxury of large real estate budgets or long-term leases, this anonymized data became a strategic asset.
Rather than making long-term bets on office space in traditional “hot” areas, startups began analyzing co-working usage patterns to detect emerging trends. If a spike in bookings was observed in a secondary neighborhood, or if a concentration of specific industry professionals gathered regularly in a particular space, that insight often preceded a broader market shift. In this way, startups could anticipate where talent, clients, or collaborators were naturally clustering—sometimes before the real estate market caught up. Co-working platforms became living, breathing maps of workforce movement, offering early signals on where to go next.
This kind of data also enabled smarter market entry strategies. Instead of setting up full-fledged offices in new cities, startups tested the waters by booking desks or meeting rooms in co-working hubs. Over weeks or months, they gathered firsthand insights: which neighborhoods had active startup ecosystems, how easy it was to attract local freelancers or contractors, and whether in-person collaboration was gaining traction in that region. These pilot periods not only minimized upfront costs but also ensured that expansion was based on behavioral evidence, not assumptions.
In some cases, startups weren’t just looking at where people worked, but who was working there. Co-working environments often host a mix of industries, from fintech and marketing to legal and creative services. By tracking where key user segments spent their time, startups were able to identify opportunities for customer acquisition, partnerships, or even hiring. A healthtech company noticing a growing number of therapists using shared spaces in Berlin, for instance, might decide to co-locate to strengthen its product feedback loop and user research. In this way, co-working data extended beyond logistics and into strategy, helping companies build community around their brand.
The pandemic made this shift even more relevant. With fixed offices underutilized and team structures becoming more fluid, startups realized they needed more agility in their real estate decisions. Co-working data offered not just flexibility but intelligence. It revealed how their teams moved, where hybrid work was thriving, and how to align physical presence with business needs in real time. The ability to access granular, time-sensitive insights gave startups a competitive edge in a volatile environment.
Ultimately, the evolution of location strategy reflects a broader truth: startups succeed not just by being fast, but by being informed. Co-working spaces, once seen merely as transitional options, now act as sensors for the entrepreneurial economy.
The startups that understand this—those that harness co-working data to guide expansion, engagement, and investment—are building smarter, leaner, and more responsive organizations. In a world where physical location is no longer a static decision but a strategic lever, the companies that move with insight will be the ones that lead.
Author is Director of RPS Group
