New York Is The Most Expensive Co-Working City In The World
A new global study on flexible workspaces, the first of its kind, shows the U.S. far outpaces the rest of the world in terms of pricing.
The Instant Group, an international servicer of flexible office spaces, conducted an international study of flexible workspaces — whether serviced private offices, co-working or hybrids of both — across major cities, and found the four most expensive metros to rent a desk are all in the United States.
New York paces the world with an average rate of $1,110 per person, per desk, with San Francisco coming in just behind at $1,086 per person, per desk. Chicago came in third place, and Los Angeles in fourth. London had the highest rates outside of the U.S., at $897 per person, per desk.
Private offices managed by third-party firms such as Regus have been in existence for over 30 years, but the growth of co-working has changed the shape of the industry, especially now that some of them also offer more expensive private offices within the co-working spaces.
New York saw a massive 24% increase in the amount of flexible workspaces from 2015 to 2016, driven largely by WeWork adding 20 new locations in the city. Co-working or hybrid spaces make up a full 47% of flexible office space in New York, the highest such percentage of any American city included in the study.
Despite such rapid growth and astronomical rates, The Instant Group said demand remains strong for flexible workspaces in New York and across the country, and predicts further increases in pricing. WeWork's projected activity suggests co-working will continue to gain market share over serviced private offices in the flexible workspace arena.