And The Winner Of The Most Expensive City For Coworking Spaces Globally Is… New York
New York City leads the world in co-working prices and despite the cost per person, the demand remains high.
New York is the most expensive co-working city in the US and the world. Anybody surprised? Didn’t think so. A recent study published by the Instant Group, an international servicer of flexible office spaces, confirms it. Co-working is now a global phenomenon and the findings show how key markets such as London, New York, Hong Kong and Sydney are experiencing rapid change in workspace availability.
The report also offers an overall view of the developments in each global city and explores where the market is heading next. With an impressive average growth rate of 20% across the emerging markets (the UAE and Asia-Pacific), the more established cities like New York and London are working hard to keep up with the emerging competitors. While these cities remain the largest markets for flexible workspace, the fastest expansion is happening in Hong Kong, Abu Dhabi, Berlin and Sydney, where a strong demand is driving supply.
And yes, even with the confirmation that New York leads the world in co-working prices, and despite the cost per person, per desk, the demand remains strong. Let’s have a look at some of the average costs in the US. The price to rent a desk in a flexible office space for the 12-month period ending February 2017 in NYC was $1,110 (on average). San Francisco is the second most expensive at $1,086 per person, per month (PP/PM). Third place goes to Chicago ($1024 PP/PM) and Los Angeles is fourth ($959 PP/PM).
Globally, London had the highest rates at $897 PP/PM. Paris ($842 PP/PM), Tokyo ($833 PP/PM), and Dubai ($755 PP/PM) are also part of the list.
New York experienced a 24% increase in the amount of flexible workspaces from 2015 to 2016. This accomplishment was mostly driven by WeWork adding 20 new locations in the city during this period (the underlying growth just over 17%). The total number of centers in the city is 330. Currently, 47% of flexible office space in the city consist of co-working and hybrid spaces.
According to the Instant Group, the number of total flexible workspace providers across the US is now up to more than 4,000, half of which are concentrated in California, Texas, Florida, New York and Illinois. It is important to highlight that California leads as the state with both the most flexible space and also the largest number of dedicated co-working spaces. This is a logical trend since the technology, media, advertising and information technology companies in San Francisco and Palo Alto are adopting this system more and more.
The study concludes by stating that despite such rapid growth and astronomical rates, demand will remain strong in New York and across the country. They also predict further increases in pricing.
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