Note: For a complete picture of the New York City office market, this report tracks metrics for both traditionally leased office space (asking rents per sq. ft., vacancy rate) and the serviced/flex office industry (serviced office inventory, per-desk asking price). See the methodology section at the bottom for more information.
Key Takeaways
Shared Offices:
- Coworking inventory slightly contracted in Manhattan in Q3, with Queens and the Bronx seeing inventory upticks.
- Though several areas saw dropping coworking inventories, the share of coworking out of total office space increased across Manhattan and Brooklyn as traditional offices are being converted or decommissioned at a faster rate.
- Manhattan per-desk asking prices reached $891 at the end of Q3, a sizable 8.4% increase from Q2, with Lower Manhattan still outpricing Midtown ($915 per desk and $892 per desk, respectively).
Traditional Leases:
- Average asking rents for traditional office leases were flat Q-o-Q in Manhattan, retreating slightly in Brooklyn but appreciating by 6% in Queens to reach $44 per square foot.
- Manhattan’s overall office vacancy rate stood at 10.2% at the end of Q3, with Brooklyn nearly on par at 10.3%.
As the office market continues to trend towards equilibrium, New York City’s inventory is also undergoing a transformation. The city’s coworking inventory erased gains posted earlier in the year, now being situated slightly below where it was at the beginning of 2026. Nonetheless, the share taken up by coworking space is still growing as other office properties are being dropped at an even faster rate.
For traditional offices, city-wide rent growth was mostly flat even as a slight pullback was recorded nationally. Vacancies continue to contract, with Manhattan and Brooklyn both hovering just above the 10% mark.
Coworking Office Inventory: Coworking Share of Market Expands in Manhattan as Traditional Space Inventory Contracts
In Q3 2026, coworking space inventories in New York City contracted by a net 288,000 square feet to reach 14.9 million square feet. This brings the city’s inventory slightly below the level it recorded at the start of the year.
At a borough level, Manhattan took the brunt of the contraction, losing approximately 317,000 square feet of coworking and shared office space over the course of the third quarter. The borough’s net location count only decreased by one to 307, but a closer look at submarket-level trends shows more granularity: neighborhoods such as Times Square-Hell’s Kitchen, the City Hall area, the Plaza District and World Trade Center gained one to two coworking locations, while others like Gramercy Park, Murray Hill and Soho shed one location each. As such, the current drop could partly be attributed to operators relocating to other areas and trending toward coworking locations with a smaller footprint.
Additionally, while Manhattan’s overall coworking square footage dipped, its share in the borough’s total office inventory increased from 2.5% in June to 2.7% in September. Lower-quality office properties in Manhattan are being rapidly shed, either through conversion to other property types or decommissioning where conversions are not viable.
After a strong Q2 inventory gain, Brooklyn’s coworking market also hit the brakes as it contracted by around 4,000 square feet. Nonetheless, Brooklyn’s coworking inventory is still stronger than at the start of the year after the more than 120,000 square feet added last quarter. Bay Ridge-Sunset Park lost a coworking location totaling almost 22,000 square feet, but gains in the Central/Southern Brooklyn submarket softened the loss.
Meanwhile, inventory in New York’s other boroughs is steadily growing. Queens added inventory primarily in Jackson Heights-Elmhurst, expanding the borough’s net footprint by 12,000 square feet, while coworking expansion in the Bronx totaled almost 22,000 square feet in Q3, bringing its total inventory to 80,000 square feet.
Coworking and flex office space in Brooklyn now accounts for 5.4% of the borough’s total office stock compared to a national benchmark of 2.5% and a city-wide figure of 2.8%. Outdated office stock is also being dropped in Brooklyn, with total office inventories decreasing to around 39 million square feet at the end of September and contributing to the rising share represented by coworking space in the local office market.
Coworking now accounts for more than 20% of Williamsburg-Greenpoint’s office space. The neighborhood entrenched itself as the New York City neighborhood with the highest coworking density, with the 37 coworking locations here totaling 723,000 square feet out of the 3.6 million square feet of office space. Dumbo-Vinegar Hill boasts the next-highest coworking density at 10.9%, followed by Greenwich Village and Soho in Lower Manhattan.
Private Office Pricing Stats: Per-Desk Price Appreciation Picks up in Manhattan
Average per-desk asking prices for office space in Manhattan climbed to $891 per month at the end of September, appreciating by a sizable 8.4% Q-o-Q.
Price gains were concentrated in Midtown, where asking prices per desk climbed from $796 at the end of Q2 to $892 at the end of Q3, marking an increase of 12.2%. Meanwhile, prices in Lower Manhattan dropped by 3.4% over the same time period, but the area is still the borough’s most expensive at $915 per desk, per month.
Asking prices for Brooklyn private offices were almost flat for the second quarter running, resting at $718 per desk at the end of Q3.
While Brooklyn remains the more affordable option for companies priced out of Manhattan, price differences are uneven across different private office sizes. For offices sized for six to 10 desks, Brooklyn is around 17% cheaper compared to Manhattan, but the price gap widens to 36% for offices accommodating 11 to 20 desks.
Traditional Office Pricing: Queens Leads NYC Traditional Office Rent Growth
Asking rents for traditional office leases in Manhattan came in at $72.03 per square foot per year in Q3, one cent higher than in Q2, while Brooklyn’s average dipped by 0.6% to $39.23 per square foot. National average asking rents decreased by 1.5% over the same time period.
Meanwhile, Queens represented a bright spot in terms of asking rent appreciation. Prices here grew by 6% between Q2 and Q3, bringing the borough’s current average asking rate to $44.00 per square foot. This extends gains recorded in Q2, when Queens office space posted an asking rent growth of 4.6%.
The Plaza District remains the most expensive submarket for New York office space at $105.95 per square foot of traditional office space, with Lower Manhattan’s Greenwich Village next at $101.78 and East Village at $92.21.
Meanwhile, Brooklyn Heights was Brooklyn’s most expensive submarket in Q3 at $60.04 per square foot, followed by Red Hook – Carroll Gardens – Gowanus at $58.66 and Central/Southern Brooklyn at $51.65. At the opposite end, Williamsburg-Greenpoint is the city’s most affordable traditional office market, at just under $27 per square foot, followed by South Bronx at $27.20 and Bay Ridge-Sunset Park’s $35.90.
Vacancy Rates: Manhattan & Brooklyn Vacancies Drop to Just Above 10%
Vacancy figures continue to indicate strong demand in the Manhattan office market. The borough’s overall office vacancy rate dropped a further 60 basis points in Q3 to reach 10.2%, well below the national average of 17.8%. Meanwhile, Brooklyn’s rate is also trending down, now being only slightly above Manhattan’s at 10.3%.
Vacancy trends in New York’s highest-volume boroughs reflect the ongoing repositioning towards quality, indicating that the inventory loss is likely due to properties with softer occupancy going off-market rather than a general slowdown in demand.
Methodology
This quarterly report covers shared office space inventory, pricing and traditional office market context across the covered region.
Shared space inventory, asking rents and vacancy data were sourced from Yardi Research. Serviced office desk pricing was sourced from Hubble listing data.
Coworking (or flexible) space inventory refers to office inventory operated by coworking, serviced office and managed office providers. Quarter-over-quarter changes in shared inventory were reported in both absolute and percentage terms. The ratio of shared space out of total inventory is calculated as shared space inventory divided by total office inventory.
Average desk prices represent the average monthly listing price for a private office desk based on active Hubble listings during the reporting period.
To ensure statistical reliability, headline Desk Price figures are reported only for boroughs with at least 10 listings with pricing included and borough divisions with at least 5 listings with pricing included. Desk Price by Office Size segments average monthly desk pricing by the size of the private office using a lower threshold of at least 5 listings with pricing per borough and at least 3 listings with pricing per subdivision. Boroughs and subdivisions that fall below these thresholds are omitted from the corresponding tables.
Asking Rent refers to the average full-service (or “full-service equivalent”) asking rent per square foot per year for traditional office space that was available as of the report period.
Vacancy rates do not include owner-occupied properties.
Reporting periods are defined as follows:
- Q2 2026 — Data as of the end of June 2026.
- Q3 2026 — Data as of the end of September 2026.
See the Q2 2026 New York City office report for the previous quarter’s figures.
