What revenue do coworking spaces in Japan generate?
The primary sources of income for Japanese coworking spaces come from membership fees and desk rentals. In major cities and larger spaces, private offices generate the highest revenue, similar to global trends.
On average, a coworking space in Japan earns about 55,000 yen (currently US$370) per workstation per month, while in major cities, this figure increases to 94,000 yen (US$630).
Since revenue depends heavily on occupancy, lower usage rates reduce income, particularly affecting smaller spaces in less urban areas.
How do Japanese coworking spaces differ in layout and services?
On average, Japanese coworking spaces prioritize open work areas over private offices. Event spaces are also more common. However, design concepts with more private offices—similar to WeWork—are also usual in major cities.
Operating hours also differ significantly. While 24/7 access is standard in many countries, only a few Japanese coworking spaces operate around the clock. Even in major cities, access outside regular business hours is usually restricted to members renting private offices. Phone booths are also less common in Japan than in other countries.
Smaller spaces in Japan have a unique feature. Instead of traditional coffee or kitchen areas, they more frequently offer mini convenience stores.
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How large are Coworking Spaces in Japan?
Japanese coworking spaces are smaller than the global average, with most under 1,000 square meters. In major cities, they typically have around 100 members, while the workspace size per desk, at 11 square meters, is comparable internationally.
Another notable difference is the allocation of space to single companies. In major Japanese cities, coworking spaces rent out a maximum of 25% of their space to a single company, whereas this proportion tends to be higher in other countries.
Cultural Differences in Positioning?
Like elsewhere, Japanese coworking spaces emphasize a central location and a strong community. However, self-representation differs in key areas.
Few Japanese operators describe their spaces as premium workspaces, even though they report significant investments in their launch. This discrepancy may be cultural. While Japanese businesses value modesty in communication, they still aim to highlight their achievements.
In contrast, Western spaces more often emphasize aggressive marketing and a quick return on investment, sometimes leading to investments being presented as lower than they actually are. However, as the survey did not examine the reasoning behind these perceptions, this remains a hypothesis.
Another possible factor is real estate costs
About half of Japanese coworking spaces rent their locations, which is lower than the global average. Traditional lease agreements dominate in major cities with more than 1 million inhabitants, where rents are high by international standards, and new buildings incur extra costs due to strict earthquake safety regulations.
In smaller cities, ownership and management contracts are more common. Many buildings remain vacant due to a declining population, making it easier to acquire property at lower prices or negotiate management agreements with landlords. However, as the survey did not directly investigate these ownership dynamics, this interpretation remains speculative.
Future Outlook
Expectations for the next few months are more cautious in Japan than internationally, but most operators still anticipate growth in membership, revenue, and profitability, particularly in major cities.
In 2025, operators primarily expect rising demand for hybrid workplace models and further diversification of coworking spaces.
