Manhattan remained New York City’s largest coworking market in the second quarter of 2026, but its flexible office footprint contracted while Brooklyn continued to expand. New data from Hubble shows coworking growth is increasingly shifting toward Brooklyn, even as Manhattan’s traditional office market remains resilient.
Brooklyn Adds Coworking Space While Manhattan Pulls Back
New York City’s coworking inventory edged down slightly to 15.2 million square feet during the second quarter.
The decline was driven entirely by Manhattan, where coworking inventory fell by roughly 200,800 square feet after several operators reduced or closed locations. The pullback partially offset gains made during the first quarter and represented just 1.6% of Manhattan’s coworking inventory.
Brooklyn largely made up the difference, adding a net 122,600 square feet—a 6.2% quarterly increase—to reach 2.1 million square feet of coworking space.
Growth was strongest in Bay Ridge–Sunset Park, which expanded its coworking inventory by 74%, while Central and Southern Brooklyn and Bushwick–Bedford-Stuyvesant also posted notable gains. Williamsburg-Greenpoint and Dumbo continued adding space at a slower pace.
Brooklyn’s flexible workspace now represents 4.7% of the borough’s total office inventory, well above Manhattan’s 2.5% and the national average of 2.3%.
Manhattan Private Office Prices Rebound
After a softer first quarter, Manhattan’s average private office pricing climbed 4.6% to $821 per desk.
Brooklyn remained the more affordable option across every office size. Private offices for 11 to 20 desks cost up to 31% less than comparable space in Manhattan, making the borough an increasingly attractive choice for growing businesses.
Traditional Office Market Holds Firm
While coworking activity shifted toward Brooklyn, Manhattan’s conventional office market remained stable.
Average asking rents in Manhattan increased 3.2% during the quarter to just over $72 per square foot, while vacancy held steady at 13.1%.
Brooklyn recorded the strongest rent growth among New York’s boroughs, with asking rents climbing 6.9% quarter over quarter to $39.46 per square foot.
The data suggests that while Manhattan continues to anchor New York’s office market, coworking operators are finding more room for expansion in Brooklyn, where flexible workspace demand continues to spread beyond its traditional hubs.
