Coworking Market Expands With Vast Acquisition

Deal Highlights Growing Coworking Trend

New State Capital Partners, a New York-based private equity firm, has entered the coworking market. The firm acquired Vast Coworking Group from United Franchise Group. Vast operates several coworking brands, including Venture X, Office Evolution, and Intelligent Office. Together, these brands run more than 200 locations across the US and internationally. The portfolio spans roughly 2.7M SF of workspace. It currently serves about 70,000 members, according to Bisnow.

The transaction was completed with legal guidance from Morgan, Lewis & Bockius LLP for New State, while United Franchise Group was advised by Ice Miller LLP and Boxwood Partners. Deal terms were not disclosed.

Why It Matters

The coworking market has shown strong resilience as companies adopt hybrid work and reduce traditional office leases. The US coworking sector grew 5% quarter-over-quarter in Q4 2025, adding more than 7M SF of space. Dallas-Fort Worth remains a major coworking hub. The region has seen steady growth in flexible office locations as operators expand to meet rising demand. However, it now ranks third nationally, behind Los Angeles and Chicago.

Outlook for Vast and the Sector

New State Capital Partners views the franchise-driven approach of Vast Coworking Group as key to long-term growth. The acquisition is expected to enhance the coworking platform, supporting franchisees and improving the member experience. Despite financial challenges faced by other operators—such as the bankruptcy and restructuring of WeWork and NeueHouse—the overall coworking market continues to grow as demand for flexible office options increases.