U.S. coworking inventory increased by a net 2 million square feet in the third quarter of 2026, reaching 168.4 million square feet, while the national traditional office vacancy rate remained at 17.8%, according to Hubble’s Q3 2026 U.S. National Office Report.
The number of coworking locations rose by 228 to 9,612, bringing coworking’s share of total U.S. office inventory to 2.5%, up from 2.3% in the previous quarter.
California Markets Lead Coworking Growth
The San Francisco Bay Area added 248,000 square feet of coworking space, the largest increase among the markets surveyed. Greater Los Angeles added 207,000 square feet, while Dallas-Fort Worth, Boston and Chicago also recorded gains.
Washington, D.C., lost 438,000 square feet of coworking inventory, while Manhattan shed 317,000 square feet. Despite these declines, coworking’s share of total office inventory increased in some markets as overall office stock contracted.
Brooklyn had the highest coworking penetration, with flexible workspace accounting for 5.4% of its office inventory, compared with the national average of 2.5%.
Manhattan Has the Highest Private Office Prices
The national average asking price for a private office desk reached $651 per month. Manhattan was the most expensive market at $891 per desk, followed by Austin at $740, Brooklyn at $718 and Boston at $695.
Philadelphia had the lowest average asking price at $414 per desk, followed by Houston at $434 and Chicago at $449. Nationally, asking prices declined as private office sizes increased, falling to an average of $597 per desk for offices with 20 or more desks.
New York Vacancy Rates Fall While National Rents Decline
The national office vacancy rate remained at 17.8% in Q3, following five consecutive quarters of declines from a peak of 19.9% in Q1 2025.
Manhattan’s vacancy rate fell 0.6 percentage points to 10.2%, the lowest among the markets surveyed. Brooklyn’s rate dropped by more than four percentage points to 10.3%, putting both boroughs well below the national average.
Meanwhile, average asking rents for traditional office leases declined 1.5% quarter over quarter to $33.18 per square foot annually. Philadelphia recorded the strongest rent growth, at 1.9%, while Dallas-Fort Worth saw the largest decline, at 2.1%.
Vacancy rates rose in several other markets. Austin recorded the highest rate among those surveyed at 24.5%, followed by Houston at 23.6% and the wider San Francisco Bay Area at 22.9%.
The report links falling vacancy in some markets to the removal of underperforming office properties through decommissioning, demolition and conversion to residential use, alongside continued demand for premium office space.
