How Much NYC Office Space Does Your Growing Company Need?
Whether you're outgrowing coworking, approaching the end of a sublease, expanding an existing office, or considering a direct lease, planning your next NYC office starts with understanding what your team needs today and where your company is going.
Growth can change a company's office requirements quickly. A space that works for 25 employees may not work for 50, and an office designed for 50 may become limiting as the team approaches 100. Lokal CRE helps growing companies determine how much office space they need, evaluate their current workplace, compare coworking, sublease and direct lease options, and develop an office strategy that supports their next stage of growth in New York City.
Your office needs can change quickly as your company grows. More employees may mean more desks, but headcount is only part of the equation. Meeting rooms, private offices, collaboration areas, phone booths, amenities, hybrid work patterns and future hiring can all change how much space your team actually needs.
A company may be outgrowing a coworking space, reaching the end of a sublease, running out of room in its current office, or simply realizing that its existing location no longer supports the way the business operates. The right time to evaluate your next office is often before space becomes a constraint.
When planning your next New York City office, consider not only your team today, but where you expect the business to be over the next two to three years. The goal is to find the right balance between space, flexibility, cost and room for growth.
Is Your Current Office Still Working for Your Business?
Where is your team going?
Current team size, hiring plans and expected headcount over the next 2–3 years.
How will your team use the office?
Desks, conference rooms, phone booths, private offices, collaboration and hybrid work.
What should the office cost?
Base rent, lease term, concessions, buildout, furniture and upfront capital requirements.
How much flexibility do you need?
Expansion rights, sublease options, lease term, growth capacity and timing.
There is no single square-foot-per-employee formula that works for every company. Two businesses with the same headcount can require very different amounts of office space depending on how they work, how often employees come into the office, the number of meeting and private spaces they need, and how much growth they want to accommodate.
As a starting point, growing companies in New York City can use team size to estimate an initial office requirement. From there, conference rooms, private offices, phone booths, collaboration areas, kitchens, reception areas and other workplace needs all influence the final amount of space required.
It is also important to plan beyond today's headcount. If your company has 50 employees today but expects to grow to 75 or 100 during the lease term, your office strategy should account for that growth without taking on significantly more space than you need too early.
How Much Office Space Does Your Team Actually Need?
Not sure how much space you need? Use our NYC Office Space Estimator to build a preliminary requirement based on your team and workplace needs.
When Does It Make Sense to Leave Coworking?
Coworking can be a great solution for a small or growing team. It offers flexibility, shared amenities, minimal upfront costs and the ability to move in without managing a buildout or committing to a traditional long-term lease.
But as a company grows, the economics can change quickly. Adding more desks, private offices, meeting rooms and dedicated space can significantly increase the cost per employee while still leaving your company with limited control over its workplace.
At a certain point, a furnished sublease or direct lease may provide more space, its own identity, better economics and greater control.
There is no single headcount at which every company should leave coworking. Growth plans, workplace needs, location, lease flexibility, capital requirements and how employees actually use the office all play a role.
Your team is growing quickly
Adding desks and private offices is becoming increasingly expensive.
You need more dedicated space
Meeting rooms, phone booths and collaboration areas are becoming harder to secure.
Your workplace needs its own identity
Your office is becoming an important part of recruiting, culture and how clients experience your company.
You need more control
Layout, branding, access, privacy and how your team uses the workplace matter more as the company grows.
The economics are changing
The cost of coworking should be compared with furnished subleases and direct lease opportunities in the NYC market.
Coworking vs. Sublease vs. Direct Lease: Which Is Right for Your Company?
Leaving coworking does not necessarily mean signing a long-term traditional lease or taking on a costly office buildout. Growing companies in New York have several options, and the right solution depends on headcount, growth expectations, timing, budget and how much flexibility the business needs.
For some companies, coworking remains the right solution. Others may benefit from a furnished sublease that provides their own office with limited upfront investment. Landlords are also increasingly offering turnkey, furnished direct spaces, sometimes with terms starting around three years, giving growing companies another flexible path to their own office.
Companies with more predictable growth and longer-term plans may benefit from a traditional direct lease, particularly when greater control over layout, branding, expansion and long-term workplace strategy is important.
COWORKING
Best for: Smaller teams and companies that need maximum flexibility.
Typical advantage: Move-in ready with shared amenities and minimal upfront commitment.
Consideration: Cost per employee can increase significantly as the team grows and needs more dedicated space.
SUBLEASE
Best for: Growing teams that want their own office while maintaining flexibility.
Typical advantage: Often turnkey and furnished, reducing upfront costs and allowing for faster move-in, with the potential for great value, and in some cases, below-market rent.
Consideration: Lease term, layout and expansion options are typically limited by the existing lease.
DIRECT LEASE
Best for: Companies ready for their own dedicated office and greater control over their workplace.
Typical advantage: Options range from turnkey furnished spaces to fully customized offices, with greater control over layout, identity and long-term strategy.
Consideration: Terms can start around three years for some turnkey spaces, while traditional direct leases typically require a longer commitment and may involve greater upfront investment.
The asking rent is only one part of the cost of an NYC office. When comparing coworking, subleases and direct leases, companies should look at the total economics of each option rather than simply comparing monthly rent or price per square foot.
Free rent, tenant improvement allowances, existing furniture and buildout, operating expenses, security requirements, moving costs and upfront capital can all materially change the economics of a deal. Lease term and flexibility matter too, particularly for companies that expect their headcount to change significantly over the next few years.
A space with a higher asking rent may ultimately be the better deal if it requires little upfront investment or includes significant landlord concessions. Likewise, a lower-priced space may become more expensive once buildout, furniture and other costs are taken into account.
The Economics of Your Next Office
Determining how much space you need is only the beginning. Finding the right office means balancing your team’s growth, workplace needs, location, budget, lease structure and long-term flexibility.
Lokal CRE specializes in NYC office tenant representation and works with startups, growth-stage companies, established businesses and international companies navigating these decisions. We help evaluate coworking, sublease and direct lease opportunities, compare the true economics of each option, negotiate lease terms and build an office strategy around where your company is going, not just where it is today.
Whether you're outgrowing coworking, approaching the end of a sublease, expanding your current office or planning your next stage of growth, Lokal can help you understand your options and find the right path forward.
Planning Your Next NYC Office? Lokal Can Help.
The starting point
Asking rent is important, but it does not tell you the full cost of an office.
Concessions matter
Free rent can materially reduce the effective cost of a lease.
Who pays for the work?
Tenant improvement allowances and existing buildout can significantly change the economics.
Upfront costs add up
Existing furniture and turnkey space can reduce capital requirements and speed up move-in.
Cash at signing matters
Security deposits and other requirements can materially affect upfront cash needs.
Flexibility has value
Lease term, expansion options, sublease rights and exit flexibility should be part of the comparison.
Ready to start planning your next office?