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<\/p>\nManhattan is the largest coworking market in the U.S. by far, but a year after its largest player, WeWork, emerged from bankruptcy, the amount of space in the borough is on the decline.<\/p>\n
<\/p>\n
\n Bisnow\/Ethan Rothstein\n <\/p>\n
Manhattan lost 400K SF of coworking space between the first and second quarters, according to a new report by CoworkingCafe<\/a>, a research division of Yardi Systems<\/a>. The number of coworking spaces in the city dropped by 13.<\/p>\n There is now 10.9M SF of coworking space in Manhattan across 267 locations, down from 11.3M SF at the end of the first quarter, according to the report. Chicago, the second-largest U.S. coworking market, had 8.2M SF of inventory in Q2, up slightly from the prior quarter.\u00a0\u00a0<\/p>\n CoworkingCafe<\/a>\u00a0declined to provide a list of NYC spaces that closed, but\u00a0the report says\u00a0it was the first time in its history that Manhattan’s coworking market shrank.<\/p>\n \u201cThe slowdown reflects the city\u2019s oversaturation and high operating costs, prompting major players to reassess their space allocations and exit non-essential leases,\u201d the report says.<\/p>\n The findings come as somewhat of a surprise considering WeWork<\/a> has been signing new deals in the city, including\u00a0a 60K SF lease at 250 Broadway<\/a> last month and\u00a0a 55K SF lease at 250 Fifth Ave.<\/a> this week. But the fallout from its bankruptcy \u2014 which ended in the company\u00a0being taken private by Yardi<\/a>\u00a0last June\u00a0\u2014 could explain some of the shrinkage.<\/p>\n WeWork rejected more than 100 locations during its Chapter 11 bankruptcy and restructured hundreds more, many of which were negotiated with shorter terms<\/a>\u00a0and early termination clauses<\/a>. Its 55K SF\u00a0250 Fifth location, for instance, will replace its nearby location at 27 E. 28th St., where it signed a 108K SF deal in 2014, Commercial Observer reported<\/a>.<\/p>\n But even as it was closing dozens of locations in Manhattan, many were snapped up by competitors<\/a>, keeping the city’s overall market in growth mode until now.<\/p>\n A WeWork spokesperson declined to comment for this story.\u00a0<\/p>\n The company added two locations\u00a0in the top 50 markets tracked by CoworkingCafe in the second quarter, bringing it from 148 to 150, but its pace of growth was dwarfed by rivals. Regus<\/a> added nearly 50 locations in the second quarter. HQ, another International Workplace Group<\/a> subsidiary, added 23, and CBRE’s Industrious<\/a> grew by five locations.<\/p>\n \u201cThis demonstrates Regus\u2019s unmatched scale and ongoing aggressive growth strategy that\u2019s particularly focused on consolidating leadership in major urban centers while simultaneously penetrating high-potential secondary markets,\u201d the report says.<\/p>\n An IWG spokesperson didn’t respond to a request for comment.<\/p>\n Nationwide, the number of coworking spaces declined for the first time in the postpandemic era, from 7,840 to 7,742, although locations are getting bigger on average. The total coworking footprint in the U.S. is now 141.3M SF, up from 140.8M SF in the first quarter and roughly 137M SF at the end of 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"Manhattan is the largest coworking market in the U.S. by far, but a year after its largest player,…\n","protected":false},"author":3,"featured_media":131246,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[5229,79793,79790,79792,405,403,5226,5225,5228,5227,79788,79791,67,586,132,5230,68,2969,79789],"class_list":{"0":"post-131245","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-america","9":"tag-coworkingcafe","10":"tag-industrious","11":"tag-iwg","12":"tag-new-york","13":"tag-new-york-city","14":"tag-newyork","15":"tag-newyorkcity","16":"tag-ny","17":"tag-nyc","18":"tag-regus","19":"tag-spaces","20":"tag-united-states","21":"tag-united-states-of-america","22":"tag-unitedstates","23":"tag-unitedstatesofamerica","24":"tag-us","25":"tag-usa","26":"tag-wework"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114997820569103170","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/131245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=131245"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/131245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/131246"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=131245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=131245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=131245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}