Manhattan’s Coworking Market Remains Strong Despite Slight Reduction in Space
Manhattan continues to hold a prominent position in the coworking industry, even with a minor decline in its overall footprint. During the third quarter of 2024, the borough ranked third nationwide for the number of coworking venues, despite a slight reduction in total space dedicated to coworking.
The third quarter saw a 4% increase in the number of coworking spaces across Manhattan, bringing the total to 275. This puts Manhattan just behind Los Angeles with 292 venues and Dallas with 279. Other top coworking markets include Washington, D.C., with 266 spaces, and Chicago with 255.
Although Manhattan remains a leader in the coworking scene, its total coworking footprint has slightly decreased. The borough currently boasts 11.2 million square feet of coworking space, marking a 6% drop from the 11.9 million square feet recorded in the second quarter of 2024. This dip also represents a decrease from the previous year, but Manhattan still holds the largest coworking footprint in the country.
In addition to having the largest coworking space inventory, Manhattan also leads in the average size of coworking venues. The typical space in Manhattan spans about 40,597 square feet—though this represents a 10% decrease compared to the previous quarter. San Francisco and Chicago follow, with average coworking space sizes of 29,397 square feet and 26,068 square feet, respectively.
However, not all areas of New York City have experienced growth in the coworking sector. Brooklyn, for example, saw a 15% reduction in the average size of coworking spaces, with an average size of 25,066 square feet.
Despite the slight shrinkage in space, Manhattan remains the most expensive coworking market in the U.S. The average monthly cost for an open workspace in Manhattan is $299, nearly double the national average of $150. For dedicated desks, the average rate is $510 per month, compared to the national median of $300.
Nationwide, coworking spaces increased by 7% by the end of the third quarter, reaching a total of 7,538 flex workspaces. Cities like Philadelphia, Indianapolis, and Nashville also saw significant growth in coworking spaces, adding to the expanding coworking trend across the country.
As the coworking sector continues to evolve, Manhattan maintains its position as a key player in the industry, with its high demand for premium spaces and robust market activity.
