Swedish real estate company Castellum announced the sale of its coworking subsidiary United Spaces to competitor iOffice on October 27, 2025, with finalization expected in Q4 2025. The transaction will boost Castellum’s annual earnings by approximately €2.74M and enables the property owner to refocus on core office and logistics real estate operations across Nordic cities.

United Spaces, founded in 2000 as one of Sweden’s pioneering coworking operators and fully acquired by Castellum in 2019, operates 10 locations and generated stable revenues of approximately €23M in 2024. The acquisition will double iOffice’s Swedish location count, with iOffice CEO Homan Tehrani scheduled to speak at the Coworking Europe 2025 conference in Berlin on November 19-20.

In the latest episode of the TWIC podcast, Hector Kolonas sat down with Greg Miley (now at Clockwise Offices), whose career has touched almost every seat around the flex space table (prev at Flexioffices, Instant, WeWork, Kitt, and Desana), to discuss strategic career moves, to insights on industry trends and the role of brokers.

Swedish flexible office provider Ioffice recorded revenue growth of 31% in 2024, rising from €19.2M to €25M, despite reporting an operating loss of €2M due to expansion investments and temporarily higher vacancy rates. The company opened two new locations during the year – one in Stockholm and its first in Gothenburg at the historic Naval Command School building – leading to a 47% increase in total rentable space from 23,600 to 34,700 sqm and 40% customer growth.

Founded in 2007, Ioffice remains privately funded without venture capital or external shareholders and is now one of Sweden’s five largest coworking operators.

Sweden’s coworking sector experienced a 6% average price decrease in 2024 according to Workaround marketplace, highlighting broader market challenges despite continued industry development.

This data was shared during the Sweden Coworking Awards 2024 which celebrates excellence across multiple categories. PS. Winners included 7A Office & Lounge Conference & Event as Coworking Space of the Year in Stockholm for its impressive entrance and comprehensive services. Outside the capital, IOFFICE Business Center took top honors for its modern design and welcoming atmosphere, while @squareworkspaces was recognized as Local Coworking of the Year for its entrepreneurial spirit. Other winners included Fabege CoW for sustainability and Helio Workspaces – Sveavägen 20 as Upstart of the Year for its rapid expansion and community-building efforts.

Homan Tehrani, founder and CEO of Ioffice, shares that VC cash has ‘doped up’ the local coworking industry. When comparing the 2023 turnover numbers for the top 5 operators in coworking and "office hotels" (not heard that term in a while), only 1 of them shows a positive sum. Instead of taking this as a sign that coworking is struggling in the country, Homan shares that the other 4 are struggling to turn a profit due to being VC-backed.

It’s an interesting comparison to the dotcom bubble, but we wonder if privately funded operators outperform VC-backed (or PE-backed) firms in other regions.