The Instant Group's latest data has also determined that supply of flexible office spaces in NYC is up 7% year-over-year, showing further development and competition among operators.
Global workspace innovation firm The Instant Group expects flexible office space demand to increase by 19 percent in New York City in 2022 over 2021, while supply – the number of flexible workspace centers in the market – has grown seven percent, to 495 spaces. This growth is seen primarily in Manhattan and Brooklyn.
Demand grew for all inquiry sizes between 2021-2022:
- Inquiries for 0-2 desks increased by five percent
- Inquiries for 3-9 desks increased the most, by 57 percent
- Inquiries for 10-25 desks increased by 23 percent
- Inquiries for 25+ desks increased by 26 percent
New York City’s flexible office space supply primarily consists of hybrid spaces, accounting for 51 percent of market share. Following this, serviced offices make up 34 percent, and co-working spaces make up 15 percent.
“In NYC, we're seeing companies, from smaller firms to Fortune 500s, turn to flexible office space as many adjust to a hybrid working solution,” said Michael Calistri, Director at The Instant Group. “While both supply and demand are increasing, supply is limited in the market and many top providers are at 95% capacity as firms continue to experiment with what is the best solution for them.”
Rates for workstations are also up from last year, increasing to $821 per desk for 2022 from $815 in 2021.
“This slight increase may be explained by current inflationary pressures, which are being felt across the United States, along with higher levels of demand,” added Calistri.
The included data is compiled via The Instant Group’s leading flexible workspace data platform, Instant Insight. Rate data is based on transacted rates, providing the most accurate view available within the industry, while demand data is based on demand coming through The Instant Group’s digital booking platform, Instant Offices.