NYC's Office Market rebounds in 2024
The coworking sector across the United States (US) experienced substantial growth in 2024. According to reports from Cushman & Wakefield and CoworkingCafe, the total number of coworking spaces increased by 22% by the third quarter, reaching 7,695 nationwide.
Manhattan remains the country's leading coworking market, boasting 273 locations and 11.27 million square feet of flexible office space. While Manhattan thrived, Brooklyn saw an 8% decline in its coworking square footage, suggesting regional variations in the market's dynamics.
According to Colliers, nearly 5 million square feet of older office space in Manhattan were repurposed for residential use in 2024 as part of a strategic move to address the evolving market. This initiative helped to tighten the overall supply of office space and adapt to changing demands. Furthermore, many landlords began offering flexible office solutions directly to attract tenants, demonstrating a willingness to adapt and innovate.
Hybrid work has become the dominant strategy for businesses, with 92% of surveyed CBRE clients adopting this model in 2024. Manhattan's office attendance reached 56% of average weekdays by May 2024, approaching 72% of pre-pandemic levels, according to data from NY Weekly and Trepp.
Notably, midweek attendance remained powerful, highlighting the continued importance of in-person collaboration. The "flight-to-quality" trend also persisted, with high demand for newer, premium office properties, especially trophy buildings that saw visitation levels nearing 2019 figures. Financial services firms drove a significant portion (31.1%) of new Manhattan leases over 10,000 square feet.
Manhattan's overall office vacancy rate stabilized in the fourth quarter of 2024. Reports from Cushman & Wakefield (23.3%) and Colliers (16.5%) showed some variations, but both indicated a leveling off.
Moody's also noted a decline in the New York metro's office vacancy rate, reaching 12.7% by the first quarter of 2025. Manhattan's office leasing volume between 23.4 million and 37 million square feet in 2024 marked its strongest year in five.
|
Product Type |
Monthly Price Range (Q4 2024) |
Source |
|
Hot Desk |
$400–$600 |
Optix |
|
Dedicated Desk |
$700–$1,200 |
Optix |
|
Private Office |
$2,000+ |
Optix |
|
Open Workspace (Median) |
$240 (Q4 2024), $339 (Q1 2025) |
CoworkingCafe |
|
Average Asking Rent (All Classes) |
$72.73 per sq ft (Manhattan Total) |
Cushman & Wakefield |
|
Average Asking Rent (Class A) |
$86.27 per sq ft (Midtown) / $59.22 per sq ft (Downtown) |
Cushman & Wakefield |
New York City's flexible office market commands premium prices. According to Optix, in the fourth quarter of 2024, hot desks ranged from $400 to $600 per month, dedicated desks from $700 to $1,200, and private offices started at $2,000 or more.
CoworkingCafe reported a median hot desk price of $240 in Q4 2024, rebounding to $339 in Q1 2025. The market remained largely tenant-favorable, with concessions increasing by 6.8% in 2024. Average asking rents across all classes stood at $72.73 per square foot in Manhattan, with Class A office space in Midtown commanding $86.27 per square foot.
|
Metric |
Value (2024) |
Source |
Notes |
|
US Coworking Spaces (End of Year) |
7,695 |
CoworkingCafe |
Represents a 22% increase in total spaces year-over-year as of Q3 2024 |
|
Manhattan Coworking Spaces (End of Year) |
273 |
CoworkingCafe |
A slight decline from Q3 2024 (275 spaces) |
|
Manhattan Coworking Square Footage |
11.27 million sq ft |
CoworkingCafe |
Remains the largest coworking market in the U.S. by SF; 1% increase from Q3 2024 |
|
Manhattan Overall Office Vacancy Rate (Q4) |
16.5% (Colliers) to 23.3% (C&W) |
Collier’s |
Varied by source, but signs of stabilization observed |
|
Manhattan Annual Office Leasing Volume |
33.34 million sq ft |
Collier’s |
Strongest year in five years |
|
Manhattan Office Attendance (May) |
56% of average weekdays |
New York Weekly |
Approximately 72% of pre-pandemic levels; midweek attendance robust |
|
Office Space Removed for Conversion |
Nearly 5.00 million sq ft |
Collier’s |
A significant factor in tightening the overall supply |
Table 2: key metrics and data points about the NYC and US coworking and office markets in 2024.
Key players like Regus (IWG), WeWork, and Industrious significantly shaped the flexible office market. CBRE's acquisition of Industrious for approximately $400 million underscored the sector's growth potential. Industrious has seen revenue grow over 50% annually since 2021, expanding to over 200 locations.
IWG reported record system-wide revenue of $4.2 billion in 2024, while WeWork attracted over 15 million unique visitors globally. Operators also enhance amenities to meet the rising demand for meeting rooms, event spaces, and coworking desks.
According to Precedence Research, the U.S. office market is expected to reach $52.58 billion by 2034, with a compound annual growth rate of 17.44% from 2025. Globally, the market could reach $136.46 billion by 2032.
Experts noted that technology, particularly artificial intelligence (AI), will play an important role in workplace strategies. The focus will increasingly shift towards enhancing employee experience, incorporating health, wellness, and sustainable practices. Landlords of older properties will need to upgrade or convert to remain competitive, while the market leans towards more agile, scalable spaces.
