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 square foot, vacancy rate) and the coworking/shared office industry (coworking inventory, per-desk asking price). See the methodology section at the bottom for more information.
Key Takeaways
Shared Offices:
- Coworking offices in New York City spanned 15.3 million square feet at the end of Q1 2026, accounting for 2.6% of the total office market.
- Manhattan’s coworking inventory expanded by 328,000 square feet quarter-over-quarter (Q-o-Q), with significant growth in Harlem/North Manhattan, the Plaza District and Gramercy Park.
- Per-desk asking prices in private offices in NYC decreased to $778 per month, with Midtown seeing the largest pricing cuts.
Traditional Leases:
- Average asking rents for leased offices in Manhattan increased by 2.1% Q-o-Q. The most expensive submarkets to lease office space were the Plaza District, Chelsea and SoHo.
- Vacancy rates for Manhattan offices stood at 13.1% at the end of March, while Brooklyn’s rate was 15.4% against a national average of 17.8%.
At the start of 2026, the New York City office market continued to spearhead the national trend toward recovery. Vacancies in Manhattan and Brooklyn retreated in the year’s first quarter, with both boroughs recording rates well below the national average.
Meanwhile, the coworking sector continues to gain steam as normalization carries on and large companies increasingly rely on flexible solutions for their workspace needs. Approximately 2.6% of New York’s office market composition is now in shared office spaces, with average per-desk pricing in private offices sitting at $778 per month city-wide.
Coworking Office Inventory: Harlem, Plaza District & Gramercy Park See Largest Expansions
At the end of Q1 2026, coworking spaces in New York City totaled 15.3 million square feet.
Manhattan added another net 328,000 square feet of space in coworking locations in Q1, bringing its total to 12.8 million square feet. Growth was concentrated in Gramercy Park (+91,900 sq. ft.), the Plaza District (+107,800 sq. ft.) and the Harlem-North Manhattan submarket (+132,500 sq. ft.).
Four new coworking arrivals — including coworking wet labs — in the Upper Manhattan submarket almost doubled Harlem-North Manhattan’s shared office inventory to 298,800 square feet, bringing its total figure above those in Hudson Square (279,700 sq. ft.) and United Nations/Turtle Bay (278,700 sq. ft.).
While Manhattan recorded the largest coworking growth by square footage, Brooklyn saw the biggest percentage growth in the first quarter of 2026 at 3.7%. Here, net inventory gains totaled 70,000 square feet, with 42,800 of that being in the Williamsburg-Greenpoint area and another 21,500 square feet in Dumbo.
Shared offices in Queens posted net gains of 16,000 square feet, boosting the borough’s inventory by 3.4%, while the coworking offering in the Bronx contracted by 2,800 square feet, or 4.6%.
Overall, flexible office solutions currently account for 2.6% of the New York City office space market, above the national benchmark of 2.3%. Brooklyn’s share of coworking space out of total office inventory ticked up from 4.3% to 4.4% in Q1, while Manhattan’s totals also increased by 10 basis points (bps) to 2.6%.
Brooklyn submarkets with lower overall office space volumes had the largest shared office shares out of total inventory. The Williamsburg-Greenpoint, Crown Heights-Central Brooklyn and Dumbo-Vinegar Hill submarkets all have coworking inventories in excess of 10% out of their respective office space markets.
Private Office Pricing Stats: Average Manhattan Price Per Desk Dips to $785 Per Month
At the end of Q1, average per-desk asking prices for private offices in Manhattan’s coworking spaces rested at $785 per month, which was down slightly from the $791-per-month average recorded at the end of 2025. Some granular variation was present, with Lower Manhattan prices increasing by 4.1% Q-o-Q, while those in Midtown dipped by 3.2%.
Manhattan’s per-desk price depreciation drove a city-wide price decrease. The average price per private office desk in all of New York City decreased from $785 per month in Q4 2025 to $778 in Q1 2026.
At the same time, Brooklyn desk pricing posted gains in the first quarter, with average prices reaching $716 per month after an 8.9% increase.
Looking at average costs across different office sizes, Lower Manhattan is home to the highest asking rates across all size ranges, with the exception of one to five desks. In that category, Upper Manhattan came first at $893 per month, although pricing fluctuations and a smaller sample size likely contributed to its high average price.
Traditional Office Pricing: Manhattan Average Asking Rents Climb 2.1% Q-o-Q to $69.80 Per Sq. Ft.
Borough-wide asking rents for Manhattan office spaces increased by 2.1% Q-o-Q to rest at $69.80 per square foot at the end of March. In the same timeframe, national asking rents dipped by a slight 0.2%.
Average asking rents in Brooklyn also increased by a sizable 3.2% on the quarter, while growth in the Bronx and Queens was more subdued at 1.7% and 0.5%, respectively.
Asking rents for traditional office space in the Plaza District reached $94.53 per square foot at the end of March 2026, narrowly beating Chelsea’s $94.18 average to become the most expensive office submarket in New York.
Three Lower Manhattan office submarkets trailed the Plaza District and Chelsea as the city’s most expensive by asking price: SoHo ($88.75 per sq. ft.), Greenwich Village ($85.09 per sq. ft.) and Tribeca ($83.51 per sq. ft.). United Nations-Turtle Bay was the only other submarket with average asking rents above the Manhattan baseline of $69.80 per square foot.
Switching over to the priciest areas for Brooklyn office space rents, the Brooklyn Heights office submarket took the crown at the end of Q1 with an average of $56.31 per square foot, more than 50% above the borough-wide asking average of $36.91. The priciest Queens submarket was Jackson Heights-Elmhurst with an average asking rent of $50.00 per square foot.
Vacancy Rates: Manhattan Vacancy Rate Decreases 50 bps Q-o-Q to 13.1%
Manhattan offices recorded a vacancy rate of 13.1% at the end of March, which was 470 bps below the national benchmark of 17.8%. The current rate represents a Q-o-Q decrease of 50 bps and a recovery from the end of 2025, when vacancies increased by 80 bps quarterly.
Meanwhile, vacancies in Brooklyn reached 15.4%, their lowest level since Q3 2024. While still elevated compared to pre-2020 numbers, vacancy rates in New York City’s highest-volume boroughs indicate a steadier path to office market equilibrium compared to other markets in the nation.
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. Private office desk pricing was sourced from Hubble listing data.
Shared (or flexible) space inventory refers to office inventory operated by coworking, serviced office and managed office providers. Quarter-over-quarter (Q-o-Q) 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:
- Q4 2025 — Data as of the end of December 2025.
- Q1 2026 — Data as of the end of March 2026.
