Square Footage Is Out. Experience Is In.

Remember when leasing office space basically meant: how many desks fit in here, and is the Wi-Fi fast enough? Those days are — thankfully — gone. The new question isn't how big is it? It's how does it make me feel?

We're living through a genuine rethink of what office space is for. Companies are signing fewer, smaller leases and yet, paradoxically, they're demanding more from the spaces they do choose. More amenities, more flexibility, more soul. The office has gone from a place you have to be, to a place you actually want to go.

For coworking operators, this isn't just a trend to acknowledge, it's the entire game. And we think we're playing it pretty well.

The Numbers Don't Lie (But They Are Interesting)

Let's ground this in some data, because the shift is real and it's measurable.

CBRE's analysis of H1 2024 data reveals that while companies signed slightly more office leases than the pre-pandemic average, the average lease size was 27% smaller. Yet 59% of companies that relocated chose to upgrade their space. Smaller footprint, higher standards. That's the vibe.

Companies are leasing less space overall but when they do sign, they are choosing offices that offer location, experience, and scale, effectively concentrating demand into a narrower slice of the market. Translation: nobody wants a mediocre cube farm anymore, no matter how cheap the rent is.

"The question isn't how much space a company has anymore, it's how well the space fits the way their team actually works."

The best workspaces aren't just functional, they're places people actually want to stay.

The Flight to Quality Is Very Real

There's a phrase circulating in commercial real estate right now: "flight to quality." Tenants are ditching Class B and C buildings for trophy spaces and prime buildings that justify the commute. The logic is simple, if you're going to ask your team to come in, the space has to be worth it.

Trophy spaces, with their state-of-the-art amenities, are dominating the office market. Tenants are generally willing to pay higher rents to secure these premier spaces, aiming to entice employees back to the office. Some experts predict that within a few years, trophy buildings will essentially run out of space entirely.

Prime office buildings captured 18% of top deals by square footage in 2025, despite comprising just 8% of total U.S. office inventory, a clear signal that quality wins, even at a premium.

And here's where coworking fits beautifully into the picture. A well-run coworking space is, by definition, a premium experience in a flexible package. You get the amenities of a trophy building without a 10-year lease commitment. For startups, growing teams, and remote-first companies, that's a wildly compelling offer.

Experience Is the New Rent

So what does "experience" actually mean in an office context? It's not just a nicer coffee machine (though that helps). It's the full environment of how the space makes you feel, what it lets you do, the community it builds around you.

In 2025, tenants are not just renting square footage, they are paying for comfort, community, and convenience. Parking, break rooms with natural light, wellness areas, social zones — these have moved from "nice to have" to baseline expectations.

When professionals don't have to leave the building for basic needs whether that's a quiet break area, refreshments, or wellness options they stay engaged and focused. Amenities reduce friction throughout the day, allowing people to move seamlessly between tasks without unnecessary interruptions. The result is a workday that feels balanced instead of draining.

What This Looks Like at The Rotunda

We could talk about this in the abstract all day, but let's get concrete because we've been quietly building exactly this kind of experience at UnCommon Coworking at The Rotunda in Oakland.

The Rotunda is one of Oakland's most iconic buildings, and UnCommon's presence there is designed to match its stature. This isn't a row of desks next to a printer. It's a full ecosystem of work, wellness, creativity, and community — all in one building.

Getting Here Is Part of the Experience

The best workspace in the world doesn't work if getting there feels like a punishment. Accessibility is part of what makes a coworking space genuinely usable. 

At UnCommon Coworking at The Rotunda, that thinking starts with location. Positioned above the 12th St BART station, the connection between Oakland and San Francisco becomes fast, seamless, and predictable. Whether you’re commuting from the East Bay or heading into the city for a mid-afternoon meeting, it’s a straight shot—no complex transfers, no guesswork, just easy movement.

And it’s not just BART. The building is surrounded by AC Transit bus lines, making local access just as seamless. For members with clients or colleagues across the Bay, the Oakland Ferry Terminal is less than a mile away—a genuinely magical way to cross the Bay. It’s calm, scenic, and turns the commute into something you might actually look forward to.

San Francisco isn’t “across the Bay” in the abstract—it’s part of your daily radius. Step onto BART downstairs and be in the Financial District in 20 minutes. Or take the ferry and arrive refreshed instead of rushed.

In a market where the commute is increasingly part of the calculus on whether to come in at all, being walkable, transit-connected, and ferry-adjacent isn't a small thing. It's the kind of frictionless access that makes showing up feel like a choice — not a chore.

Here’s a closer look at what’s inside the Rotunda:

The Coworking Comeback Is Actually Happening

There was a period post-pandemic where people questioned whether coworking had a future. (Spoiler: it did.) The sector has not only rebounded, it's thriving, and on better footing than ever.

Coworking spaces are experiencing a resurgence as companies and workers seek flexible solutions. And the growth isn't just anecdotal.  Coworking operators are increasingly offering a fundamentally different value proposition: one where readiness, cost transparency, and agility matter more than square footage alone.

The hybrid work model has been an unexpected gift to flexible workspace. Teams don't need 5,000 sq ft of dedicated office anymore but they do need a place that's genuinely inspiring when they do come in. A coworking membership checks that box without locking you into a decade-long lease.

The Human Side of It All

Here's something the data doesn't fully capture: people are lonely. Post-pandemic, the "third place" (not home, not a traditional office) has become genuinely important to wellbeing. A coworking space done right isn't just a real estate play, it's a community.

In coworking spaces, amenities go beyond mere conveniences; they act as catalysts for community building and fostering connections among tenants. By making your space a hub for relaxing, socializing, and networking, you offer members a sense of community that makes their monthly subscription fee well worth the continued investment.

When you have a podcast studio next to a wellness room next to a golf simulator next to a conference room that seats 60, you're not just covering every work need, you're creating reasons for people to stick around, interact, and build something together. That's the intangible that no square footage calculation can capture.

What This Means If You're Looking for Space

Whether you're a solo founder, a growing team of 12, or a tech company evaluating a flexible hub strategy in Oakland, here's what to keep in mind as you navigate the current market:

Stop optimizing for size alone. The research is clear, a smaller, high-quality space drives better outcomes for teams than a large, generic one. Ask not "how many desks?" but "will my team actually want to come here?"

Think about the full day, not just the work hours. A space that accommodates your workout, your team lunch, your podcast interview, and your afternoon brainstorm is simply a better day at work.

Flexibility isn't just a lease term — it's a mindset. Modular rooms, bookable studios, event-ready spaces and flexibility built into the fabric of the building is worth more than any tenant improvement allowance.

The shift from square footage to experience isn't a trend. It's the permanent new reality of how we think about work, workspace, and the role an office plays in a person's life. The companies and spaces that understand this that treat their members as whole humans with whole lives are the ones that are going to matter going forward.

We think UnCommon falls squarely in that category. But then again, we might be a little biased.

Sources

— CBRE, U.S. Office Lease Signings H1 2024 https://www.cbre.com/insights/briefs/us-sees-uptick-in-office-lease-signings-but-for-less-space-on-average

— CBRE, San Francisco Bay Area Top 100 Leases 2025 https://www.cbre.com/press-releases/san-francisco-bay-area-claims-14-of-the-largest-office-leases-in-2025

— NAIOP Research Foundation, The Office Market 2025: Turning the Corner https://www.naiop.org/research-and-publications/magazine/2025/spring-2025/development-ownership/the-office-market-2025-turning-the-corner/

— NAIOP Research Foundation, Office Space Demand Forecast Q4 2024 https://www.naiop.org/research-and-publications/research-reports/reports/office-space-demand-forecast-4q24/

— World Property Journal, Flight to Quality Drives U.S. Downtown Office Market 2025 https://www.worldpropertyjournal.com

— Hubble HQ, NYC Office Market Overview: 2025 Trends https://hubblehq.com/blog/nyc-office-market-overview-trends-insights

— Newmark, United States Office Market Overview Q1 2025 https://www.nmrk.com/insights/market-report/united-states-office-market-overview

— Meketa, Navigating Structural Shifts in the Office Sector https://meketa.com/wp-content/uploads/2025/07/MEKETA_Office-Space.pdf

— OfficeRnD, 12 Must-Have Coworking Space Amenities 2025 https://www.officernd.com/blog/coworking-space-amenities/

— Optix, 18 Unique Coworking Amenities to Add to Your Space https://www.optixapp.com/blog/coworking-amenities/

— Optix, What to Know About Wellness Coworking Spaces https://www.optixapp.com/blog/wellness-coworking/

— Sentient Workspace, The Hidden Benefits of Premium Coworking Amenities https://www.sentientworkspace.com/the-hidden-benefits-of-premium-coworking-space/

— CHRE, What Office Tenants Really Want in 2025 https://chopkinsrealestate.com/what-office-tenants-really-want-in-2025-and-how-landlords-should-respond/

— Biofilico, Healthy Coworking Spaces: Wellness Benefits & Design https://biofilico.com/news/healthy-coworking-spaces-wellness-benefits-design