The History of Coworking: From Frank Lloyd Wright to Modern Flexible Workspaces in India

The coworking revolution has transformed how we work in recent years, but did you know the concept has roots dating back over a century? While today’s flexible workspaces seem like a modern innovation, the journey began long before digital nomads and startup culture. For Indian professionals and businesses navigating the rapidly evolving workspace landscape, understanding this history provides valuable context for current trends.

Life Before Coworking: The 1980s

The Origins: A Century of Workspace Evolution

Although coworking spaces have gained tremendous popularity in recent years, their conceptual foundation dates back to 1903. Frank Lloyd Wright, the renowned architect, designed the first open-plan working space for Larkin Administration in Buffalo, New York. This innovative design planted the seeds for collaborative workspaces that would evolve over the next century.

Throughout the 20th century, office spaces underwent dramatic transformations. From beige cubicle farms to bright, open spaces, workplace design followed trends that reflected changing business philosophies. However, despite these physical changes, the traditional 9-to-5 work schedule remained largely unchanged. Workers would arrive in the morning, spend approximately eight hours at their desks, and then leave for home—a routine that eventually became stifling for many.

The 1980s: Early Precursors to Coworking

The 1980s marked the beginning of significant shifts in workspace concepts. Several key developments created the conditions for coworking to emerge:

• Mark Dixon’s Innovation: The launch of Regus (now IWG) offered flexible office solutions for business travelers. These managed offices contained many features that would later become standard in coworking spaces.

• Economic Factors: The global recession at the start of the decade forced companies to explore cost-cutting measures, with flexible office arrangements becoming an attractive solution.

• Technological Revolution: The invention of the World Wide Web by Tim Berners-Lee enabled remote access to files and resources, making flexible work locations increasingly viable.

The 1990s: Experimentation and Early Concepts

The 1990s saw businesses and entrepreneurs experimenting with alternative workspace arrangements:

• 1994: Advertising agency Chiat/Day collaborated with designer Gaetano Pesce to create a revolutionary office space in New York. Their space had no assigned desks or personal equipment, encouraging collaborative work. While initially successful creatively, some employees struggled to focus without dedicated workspace.

• 1995: A group of computer engineers in Berlin launched C-Base, considered one of the first “hackerspaces.” This space allowed computer enthusiasts to share expertise, ideas, and equipment, recognizing that many tech professionals no longer required fixed workplaces.

• 1999: Bernard DeKoven coined the term “coworking,” although his concept differed from today’s model. He envisioned coworking as collaborative work between equals rather than a shared physical space.

• 1999: New York saw the opening of “42 West 42,” a software company offering short-term office rentals with premium amenities. While lacking the networking and community events common in today’s coworking spaces, it helped popularize the concept of flexible workspace rental.

Coworking Spaces Start To Take Off: The 2000s

The 2000s: Coworking Takes Shape

The new millennium saw coworking develop into a recognizable concept:

• 2002: “Schraubenfabrik,” an “entrepreneurial center” opened in Austria, offering freelancers and solo professionals an alternative to home offices. That same year, Denmark saw LYNfabriikken combine office space with a coffee shop, inspiring new thinking about productive work environments.

• 2003: Brad Neuberg launched the Nine to Five Group, attempting to create community for freelancers and self-employed workers, though this early initiative failed to gain traction.

• 2004: The original “entrepreneurial center” expanded with “Hutfabrik,” forming the first coworking space network under Konnex Communities. That same year, the Gate 3 Work Club opened in California, featuring private spaces, collaborative areas, and quiet zones—elements that define modern coworking spaces—though it only remained open for a year.

• 2005: A crucial year for coworking. Apple announced they were selling more laptops than desktops, facilitating mobile work. In August, Brad Neuberg opened the first official coworking space in San Francisco, with developer Ray Baxter becoming the world’s first official coworker. Meanwhile, Berlin’s St. Oberholz café began offering free internet access, becoming an unofficial coworking hub. In London, students returning from Johannesburg launched “The Hub,” inspired by community collaboration they witnessed in South Africa.

Coworking in the 2000s

• 2006: After San Francisco Coworking Space closed, Neuberg and colleagues launched “The Hat Factory” and “Citizen Space.” By this time, approximately 30 coworking spaces existed worldwide. Chris Messina (the creator of hashtags on Twitter) launched the Coworking Wiki, a resource to connect coworkers and spaces.

Coworking in 2006

• 2007: “Coworking” began trending on Google searches. The first official German coworking space, Business Class Net, opened in Berlin. IndyHall in Philadelphia pioneered the “bootstrapping” method, where 30 members pre-paid memberships to fund the space’s launch. Coworking spaces emerged across Europe, including Barcelona’s Gracia WorkCentre, Spain’s first coworking center.

Coworking in 2007

• 2008: Cubes & Crayons launched in San Francisco, innovating by offering childcare within their membership packages. “Coworking visas” were introduced, allowing members to access other spaces globally at no additional cost. By year’s end, over 160 coworking spaces operated worldwide.

• 2009: The movement gained intellectual recognition with the publication of “I’m Outta Here. How coworking is making the office obsolete” by Drew Jones, Todd Sunstead, and Tony Bacigalupo.

The 2010s: Coworking Goes Mainstream

The past decade saw coworking transform from niche concept to global phenomenon:

• 2010: WeWork launched its first location, following Adam Neumann and Miguel McKelvey’s eco-friendly workspace initiative. Deskmag released its first issue, becoming the premier online magazine dedicated to coworking. The first major coworking meetup was organized by Loosecubes alongside Link Coworking’s Liz Elam, attracting 120 enthusiasts.

• 2011: NextSpace became the first angel-funded coworking space, raising $425,000 and elevating coworking as a viable investment. In Germany, coworking gained political representation when Simon Kowalewski, owner of Berlin-based Yorck52, was elected to parliament representing the Pirate Party.

• 2012: Japan hosted its first coworking conference, with the country’s coworking spaces growing from 5 to over 70 in just one year, sparking growth across Asia. The hashtag #Coworking appeared in 93,000 tweets, with “coworking” appearing in 217,000 tweets total. Worldwide, coworking spaces reached 2,150 locations.

• 2013: Nine companies operated at least 5 separate coworking locations each. The world’s first Coworking Health Insurance Plan launched, offering freelancers access to health benefits previously only available to traditional employees.

• 2014: Global coworking venues jumped to 5,780 with 295,000 members, nearly doubling from 3,400 spaces with 151,000 members in 2013.

• 2015: The Wikipedia article on coworking was translated into 23 languages, reflecting global interest. Regus (now IWG) operated 2,768 flexible office locations and acquired Dutch coworking company Spaces.

• 2016: Major corporations began embracing coworking. HSBC moved 300 staff members into a coworking space, while KPMG followed suit in New York and London. Microsoft and IBM later adopted similar approaches for some teams.

• 2017: The number of worldwide coworkers surpassed 1 million, with global coworking spaces reaching 12,100 locations.

• 2018: The Hub, started by London students, evolved into Impact Hub with 100 locations across 5 continents and 50 countries. Some coworking spaces began accepting cryptocurrency as payment. WeWork opened its 50th NYC location, becoming Manhattan’s second-largest office tenant. London emerged as the global coworking capital, with spaces occupying approximately 10.7 million square feet in central London.

Coworking Arrives in India: A Transformative Journey

While the global coworking movement was gaining momentum in the early 2010s, India was just beginning its own flexible workspace revolution. The unique trajectory of coworking in India reflects the country’s distinct economic development, technological growth, and entrepreneurial culture:

• 2012-2013: The Pioneers
  India’s coworking journey began around 2012 with pioneers like Jaaga in Bengaluru and The Hive in Mumbai. These early spaces primarily catered to freelancers, digital nomads, and small startups seeking affordable alternatives to traditional offices. Unlike their Western counterparts, these spaces faced unique challenges including unreliable power supply, connectivity issues, and cultural resistance to shared working environments.

• 2015: Startup India Initiative
  The government’s “Startup India” initiative launched in 2015 became a catalyst for coworking growth. The policy aimed to build a strong ecosystem for nurturing innovation, creating jobs, and facilitating investment, indirectly boosting demand for flexible workspaces that could accommodate India’s burgeoning startup ecosystem.

• 2016: The WeWork Effect
  WeWork’s entry into the Indian market in 2016, with its first location in Bengaluru, was a pivotal moment. The brand’s global presence and premium positioning helped legitimize the coworking concept for larger Indian corporations who had previously been skeptical. This period saw significant domestic investment in homegrown coworking brands like 91springboard, Awfis, and CoWrks.

• 2017-2019: Rapid Expansion
  These years witnessed explosive growth in the Indian coworking sector. The number of spaces increased from approximately 300 in 2017 to over 1,000 by 2019. Major metropolitan centers like Bengaluru, Mumbai, Delhi NCR, Chennai, and Hyderabad became hotspots. Unlike the West, India’s coworking spaces developed unique models catering to specific industries—tech-focused spaces in Bengaluru, finance-oriented spaces in Mumbai, and creative hubs in Delhi.

• 2019: The BFSI Shift
  A significant trend emerged as Banking, Financial Services, and Insurance (BFSI) companies began adopting coworking spaces, breaking away from their traditionally conservative approach to real estate. Major banks like HSBC, Standard Chartered, and domestic financial institutions began utilizing flexible workspaces for specific teams and projects, particularly in Mumbai and Chennai.

Coworking in India Today: Adapting to Local Needs

India’s coworking landscape has developed distinct characteristics that set it apart from global counterparts:

• Value-Added Services: Indian coworking spaces frequently offer specialized services beyond workspace, including company registration assistance, GST filing support, and virtual office services—particularly valuable for SMEs and startups navigating complex regulatory requirements.

• Tier 2 and 3 City Expansion: While initially concentrated in metropolitan areas, coworking has expanded to cities like Pune, Ahmedabad, Jaipur, Kochi, and Indore. This growth aligns with the government’s Smart Cities initiative and reflects the distributed nature of India’s tech talent.

• Corporate Dominance: Unlike Western markets where freelancers and startups dominate, approximately 60-70% of Indian coworking members are from established corporations seeking flexible expansion options, satellite offices, or innovation hubs.

• Cultural Adaptation: Successful Indian coworking spaces have incorporated elements of local culture—from design aesthetics and cuisine in common areas to accommodating cultural practices like prayer rooms and festival celebrations.

• Focus on Community: Community building has taken unique forms in India, with spaces organizing industry-specific networking events, workshops on regulatory compliance, and connecting members to local investor networks.

Chennai’s Coworking Revolution

Chennai, once considered conservative in its approach to office space, has emerged as a coworking hub with its own distinctive characteristics:

• IT Corridor Transformation: The Old Mahabalipuram Road (OMR) and surrounding areas have witnessed significant coworking development, offering alternatives to the traditional IT parks that dominated the landscape.

• Manufacturing-Tech Fusion: Chennai’s unique position as both a manufacturing and technology center has influenced its coworking spaces, which often cater to hardware startups, R&D teams, and engineering consultancies alongside traditional tech companies.

• Suburban Expansion: Areas like Ambattur, Mogappair, Anna Nagar, and Porur have seen substantial growth in coworking facilities, reflecting Chennai professionals’ preference for workspaces closer to residential areas to avoid the city’s increasing traffic congestion.

• Cost Advantage: Chennai offers among the most competitive pricing for premium coworking spaces in major Indian cities, making it attractive for startups and SMEs with budget constraints.

Post-Pandemic Evolution in India

The COVID-19 pandemic dramatically accelerated coworking trends in India, perhaps more profoundly than in many Western markets:

• Corporate Decentralization: Major Indian corporations and MNCs with Indian operations have embraced the “hub-and-spoke” model, maintaining a central headquarters while establishing satellite offices in coworking spaces closer to where employees live.

• Flexible Lease Terms: The uncertain business environment has driven demand for shorter, more flexible lease arrangements, which coworking spaces are uniquely positioned to offer compared to traditional commercial real estate.

• Health and Wellness Focus: Indian coworking spaces have implemented extensive health protocols, improved ventilation systems, and contactless technologies—features that are now expected by members rather than considered premium additions.

• Enterprise Solutions: Custom-built, branded spaces within coworking centers (managed office solutions) have seen tremendous growth as companies seek the flexibility of coworking with the privacy and branding of traditional offices.

The Future of Coworking in India

As we look toward the future, several trends are shaping India’s coworking landscape:

• Integration with Smart City Initiatives: Coworking spaces are increasingly partnering with municipal governments to establish innovation hubs that align with India’s smart city development goals.

• Sustainability Focus: Newer coworking spaces in India are emphasizing sustainable design, energy efficiency, and waste reduction—responding to growing environmental consciousness among younger Indian professionals.

• Specialized Ecosystems: Industry-specific coworking spaces are emerging, such as fintech-focused hubs in Mumbai, biotech spaces in Hyderabad, and creative industry centers in Delhi.

• Technology Integration: Indian coworking spaces are rapidly adopting advanced technologies including AI-powered space management, IoT-enabled facilities, and sophisticated access control systems.

• Growth Projections: Industry analysts project that the Indian flexible workspace market will grow at a CAGR of approximately 15% between 2023-2028, potentially reaching 60 million square feet by 2025.

As the traditional boundaries between home and office continue to blur, coworking spaces in India are evolving from simple shared offices to comprehensive work ecosystems that support the changing nature of work itself. From Frank Lloyd Wright’s early open-plan vision to today’s technology-enabled coworking networks across India, the evolution reflects our country’s embrace of flexible, collaborative, and community-oriented work environments.

Experience the Benefits of Coworking at Crizone

At Crizone Business Centre in Chennai, we’re proud to be part of India’s workspace revolution. Our coworking spaces in Ambattur and Mogappair embody the best of both global coworking standards and locally-tailored solutions that address the unique needs of Indian professionals and businesses.

Whether you’re an entrepreneur launching your first startup, a freelancer seeking a professional environment, an established business looking for flexible expansion, or a corporation implementing a hybrid work model, Crizone offers the perfect blend of flexibility, community, professional amenities, and cost-efficiency.

Contact us today to discover how joining our coworking community can transform your work experience and business potential in Chennai’s dynamic business landscape.