New York City’s office market remained one of the country’s strongest in the second quarter of 2026, but growth shifted outside Manhattan as Brooklyn expanded its coworking footprint while the city’s largest office market contracted.
According to Hubble’s Q2 2026 NYC Office Report, Brooklyn’s coworking inventory grew 6.2% quarter over quarter to 2.1 million square feet, adding a net 122,600 square feet. Over the same period, Manhattan’s coworking inventory declined by more than 200,000 square feet as several shared office and flexible workspace locations closed or downsized.
Brooklyn leads coworking expansion
Much of Brooklyn’s growth came from neighborhoods with relatively small coworking footprints. Bay Ridge-Sunset Park posted the largest increase, expanding its inventory by 74% in a single quarter, while Central and Southern Brooklyn, Bushwick-Bedford-Stuyvesant, and Williamsburg-Greenpoint also added space.
Despite Manhattan’s quarterly decline, the borough still accounts for the vast majority of New York City’s 15.2 million square feet of coworking space.
Office rents continue climbing
Traditional office rents increased across much of the city. Manhattan asking rents rose 3.2% during the quarter to just over $72 per square foot, outpacing the national average increase of 2.7%.
Brooklyn recorded the largest borough-level jump, with asking rents climbing 6.9% to $39.46 per square foot.
The Plaza District remained New York City’s most expensive office submarket, with asking rents reaching $107.46 per square foot.
Vacancy remains steady
Manhattan’s office vacancy rate held steady at 13.1% in the second quarter, remaining well below the national average.
The report suggests New York’s office market is becoming increasingly split, with premium traditional office space continuing to strengthen in Manhattan while coworking growth shifts toward outer boroughs where flexible workspace remains less saturated.
