Manhattan Coworking Shrinks, Market Share Rises

Despite its established status, New York City’s coworking market is undergoing a transformation alongside changes in the traditional office sector, according to a recent report by Hubble. Though coworking inventory shrank in the third quarter compared to the one before it, the sector is growing its share of total office inventory, as traditional properties are being converted or decommissioned at a faster rate.

During the third quarter of 2026, the Big Apple’s total coworking inventory dropped to 14.9 million square feet after losing 288,000 square feet of space. The total now stands slightly below the level recorded at the start of the year.

Manhattan’s coworking inventory continued the contraction streak that began after the first quarter of 2026. From July through September, the borough lost approximately 317,000 square feet of coworking and shared office space. While Times Square-Hell’s Kitchen, the City Hall area, the Plaza District and World Trade Center gained one to two coworking locations each, Gramercy Park, Murray Hill and Soho shed one location each.

After Brooklyn added more than 120,000 square feet of inventory through June, the borough registered a roughly 4,000-square-foot contraction during the third quarter. Despite the slight decline, Brooklyn’s coworking inventory remains above its level at the start of 2026.

The average per-desk asking price for private offices in Manhattan rose 8.4 percent quarter-over-quarter to $891 through September. Lower Manhattan remained the city’s most expensive area, despite a 3.4 percent drop during the same time frame to $915 per desk, per month. Brooklyn’s asking prices remained nearly flat for a second consecutive quarter, at $718 per desk.

Manhattan stays office king, Brooklyn and Queens tail behind

For traditional office leases, Manhattan’s average asking rents edged by one cent quarter-over-quarter, to $72.03 per square foot. The Plaza District and Greenwich Village remained the city’s two most expensive submarkets on the general office front, clocking in at $105.95 and $101.78 per square foot, respectively. Trailing behind them were East Village and United Nations-Turtle Bay.

Meanwhile, Brooklyn’s average asking rent declined 0.6 percent to $39.23 per square foot. Brooklyn Heights set itself apart as the borough’s most expensive submarket during the third quarter, at $60.04 per square foot. Queens moved in the opposite direction, with asking rents increasing 6 percent to $44 per square foot.