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Virtual Office vs. Coworking Space: Key Differences

Office spaces have changed a lot with plenty of options available. Discover the difference between a virtual office And a coworking space. Entrepreneurs and business owners have multiple options for office space above and beyond the traditional offerings. Two of those options are virtual offices and co working spaces. But what is the difference between these two terms and why is it important to have both?

The working world is changing and now businesses and entrepreneurs have plenty of options to choose from. No longer are traditional office space leases the only option.

Two of those options are virtual offices and coworking spaces. Both are viable options for freelancers, contractors, consultants, and a host of other professionals.

Coworking Space

Virtual Office Space vs Coworking Office Space

It’s not possible to say that either office space option is a better choice in every case. People are different, and so are their work needs. A thorough analysis of the two options is necessary to determine which one is most appropriate. With that said, do you know which one is right for you?


Before we dive in, here are some definitions of both virtual office and coworking arrangements.

What is a Virtual Office Space?

A virtual office is an office that exists primarily in cyberspace. In other words, a freelancer ‘renting’ a virtual office would not have physical space in which to work everyday.


Instead, their monthly fee would cover certain benefits and amenities like call answering service, reception service, a physical street address, and mail and fax handling. In the digital age, virtual offices are essential.

What is Coworking Office Space?

A coworking arrangement is different. Coworking space is physical space offered to renters under a number of different configurations.


A typical coworking space involves multiple renters sharing an open collaboration space with access to individual offices and conference rooms as needed.

So What’s the Difference?

In summary, the main difference between a virtual office and an office coworking space is the physical space the person actually works in.


Virtual office renters physically work from home, coffee shops, or wherever else they happen to be when work needs to be done. Whereas coworking professionals work in shared spaces in an office building.


The primary benefit of both types of office arrangements is cost. A sole proprietor or freelancer can purchase a virtual office or coworking package for a fraction of the cost of maintaining dedicated office space.


Another benefit is access to services you wouldn’t have otherwise. These make your working life a lot easier, allowing you to do what you do best.

Benefits of Virtual Offices

Virtual offices are ideal for consultants, freelancers, and sole proprietors who need the benefits of a physical address without actually needing dedicated office space. Honestly, virtual offices are a game changer.


A physical address affords mail handling, parcel delivery, and a place to meet clients when communicating electronically is not optimal. Virtual office arrangements offer additional benefits unavailable in a home office.

Benefits of a Coworking Office Space

Coworking offers all the same benefits as virtual office spaces but with the addition of physical space in which to do one’s work. You can also enjoy all of the things you don’t have access to in a home office.


Coworking means shared space with like-minded workers, more collaboration, access to office equipment, and so forth. Sharing office space with another company has so many benefits.

Making a Decision About Your Virtual Office or Coworking Space

Now that you know the difference between a virtual office and a coworking space, the challenge is deciding which option is right for your workplace needs. The decision doesn’t have to be difficult. Just step back and assess your situation in both the present and the short-term future.


If you primarily work alone from a variety of locations, and you don’t plan to be in a physical office on a regular basis, a virtual office package is more than likely your best bet. A virtual office allows you to work remotely, while still having access to very valuable services.


If you value physical office space and a collaborative environment built around the idea of a business community, coworking is likely to be your preference.


Coworking gets you out of your home and in the presence of like-minded workers who share your passion for entrepreneurship.


In both cases, you’ll benefit from a prestigious physical address and a range of services that add legitimacy to your business venture.