Is It Time to Leave Coworking? A Guide for Growing Austin Startups

Austin is home to one of the largest coworking markets in the country, with options ranging from high-end, full-service offices to value-driven shared desk environments. For early-stage companies and growing startups, coworking offers a flexible way to get into quality space without the commitment of a long-term lease.

However, as your team grows and your business matures, coworking may no longer be the best solution. This article breaks down the main types of coworking spaces in Austin and outlines when it might make sense for your company to explore leasing your own office space.

The Main Types of Coworking Spaces in Austin

There is a wide range of coworking providers in Austin, each catering to different types of businesses and working styles. Here are the key players and what sets them apart:

Industrious

Industrious is geared more toward professional services firms and companies that prefer privacy and polish. Unlike some of the more casual coworking environments, Industrious focuses on private offices and hospitality-driven service.

These spaces are well-suited for law firms, consulting groups, and financial services teams that need a more refined environment to meet with clients and work without distraction.

WeWork

WeWork is one of the most recognizable coworking brands and has a strong presence in Austin. It is known for modern, design-forward spaces with large common areas, open layouts, and a vibrant, community-driven atmosphere.

WeWork offers both floating desks and private offices, making it a popular choice for tech companies and startups. Many of its buildings are in prime downtown locations, and the flexible terms make it easy to scale up or down.

Firmspace

Firmspace offers some of the highest-end coworking environments in Austin. These spaces are designed for executives and professionals who need privacy, security, and top-tier amenities.

You will typically find fully enclosed offices, advanced IT infrastructure, and minimal shared space, making it ideal for companies that value discretion and a more traditional office feel within a coworking model.

Knotel

Knotel blurs the line between coworking and turnkey office suites. Its model involves leasing out fully built-out suites, often half floors or large sections of a building, that are designed, furnished, and managed by Knotel.

Each tenant has its own private space, often with its own entry, but utilities, internet, and other services are still included. This model works well for companies that want a standalone suite with the flexibility and convenience of coworking.

Regus

Regus is typically the value option in Austin’s coworking landscape. It offers a wide range of locations and space types, from single desks to private offices, but tends to be more budget-oriented and offers fewer amenities compared to others.

This can be a fit for companies that need a short-term or low-cost space with minimal frills.

These are some of the most well-known providers in Austin, but there are many other coworking brands across the city that offer a variety of spaces, styles, and services to meet different needs.

Why Companies Start in Coworking

Coworking makes sense for many startups and small teams, particularly in the early stages. Some of the key benefits include:

Flexibility: Month-to-month or short-term lease options allow you to avoid long commitments.
Access to premium buildings: You can get into Class A buildings without the requirement of signing a long-term lease or building out a space.
Minimal overhead: Furniture, internet, cleaning, and utilities are typically included.
Scalability: Many providers allow you to add desks or upgrade offices on short notice as your team grows.

When Does It Make Sense to Leave Coworking?

Coworking works well for early-stage companies, but it is not always the best long-term solution. Here is when it may make sense to explore leasing your own space:

Your Headcount Is Growing

Once your team begins to grow, coworking often becomes less practical. You may find yourself needing multiple offices within a coworking floor, and the shared amenities, such as conference rooms and kitchens, can start to feel limiting.

At this point, the cost per desk in coworking can exceed that of leasing your own space, especially if you are paying a premium for multiple private offices or suites.

You Want to Customize Your Space

In coworking, your ability to brand and customize is limited. You are sharing space with other companies, and you cannot reconfigure layouts or add unique features to support your workflow or culture.

Having your own leased office means you can design the space around your team’s needs, from dedicated conference rooms and kitchens to custom branding and signage.

You Are Ready for More Cost Efficiency

Coworking often comes with a premium price tag due to its flexibility and all-in pricing. But if you have a stable team size and a general idea of your space needs, traditional office space can be significantly more cost-effective on a per-desk basis.

Even when you factor in furniture, utilities, and internet, leasing your own space can deliver more value, especially over a longer term.

You Need More Privacy and Control

Shared coworking spaces are not ideal for every type of business. If your work requires privacy, sensitive client conversations, or secure data, having a dedicated office gives you more control and protection.

It also allows you to create a more consistent experience for clients and team members.

What to Consider Before Making the Switch

Before moving into a leased office, ask yourself:

Is your headcount stable or predictable for the next one to three years?
Can you commit to a lease term, typically three to five years?
Do you need branding, private meeting space, or dedicated amenities?
How does your current coworking cost compare to leasing on a per-desk basis?

If the answers point toward leasing, it may be time to explore your options.

Final Thoughts

Coworking is an excellent launchpad for startups and small teams. It offers flexibility, prime locations, and easy setup. But as your company grows, leasing your own office space can offer greater value, efficiency, and control.

If you are starting to wonder whether it is time to make the move, you are not alone, and we are here to help.

AQUILA’s office tenant representation team can help you evaluate your coworking costs and compare them to leasing options in Austin’s competitive office market.

Schedule a free consultation to get personalized guidance and find out what is possible for your team.