Coworking, Shared Offices and Private Offices: What Is the Difference?

Businesses looking for workspace today have considerably more choices than simply leasing a traditional office.

Terms such as coworking space, shared office, flexible office, dedicated desk and private office are often used interchangeably, but they describe different ways of working.

Understanding those differences can prevent a business from paying for space it does not need—or choosing an environment that does not provide enough privacy or functionality.

What Is Coworking?

Coworking generally refers to a shared working environment where individuals from different companies use common workspace.

A member might sit at any available workstation rather than occupying a permanently assigned office.

Advantages

Coworking can provide:

• Lower commitment than a traditional office

• Professional workspace outside the home

• Access to shared amenities

• Opportunities to meet other professionals

• Flexibility for occasional or hybrid workers

Potential disadvantages

Open environments may be less appropriate for people who spend much of the day on confidential calls or require complete concentration.

Workspace availability can also vary depending on the facility and membership arrangement.

What Is a Dedicated Workstation?

A dedicated workstation sits between coworking and a private office.

The user typically receives a specific desk or workstation while continuing to share the larger office environment.

This can work well for someone who wants consistency without paying for an enclosed office.

What Is a Shared Office?

“Shared office” is a broad term. It can mean several businesses occupying a common professional facility while sharing amenities such as reception areas, meeting rooms, internet and common spaces.

Individual businesses may still have their own private rooms.

What Is a Private Office?

A private office provides an enclosed workspace dedicated to one business or professional.

Its primary advantages are privacy, consistency and the ability to conduct calls and meetings with fewer distractions.

The tradeoff is usually higher cost compared with open coworking.

Which Is Best?

A useful rule is to match the workspace to how the business actually operates.

Coworking works well when flexibility and cost matter most.

Dedicated workstations make sense when someone wants a regular workspace without needing an enclosed room.

Private offices are generally better when confidentiality, phone usage or customer meetings are frequent.

Businesses should also consider whether the facility allows them to move between these options as their needs change.

That ability to scale may ultimately be more valuable than choosing the lowest-priced workspace available today.