It’s no secret that New York City is one of the top locations for startups to set up shop and successfully scale to full-fledged businesses. Coworking has also risen in popularity to meet a growing startup culture’s demand (and the need for flexibility). Manhattan, long known as the business hub of NYC, has established itself as a leader in this space, but this fast-paced borough is now facing competition from its more laid-back neighbor across the East River.
Brooklyn’s popularity among startups is on the rise thanks to more affordable living, the lower cost of coworking in Brooklyn vs. Manhattan, and a more relaxed atmosphere. In addition to being a more cost-effective location, Brooklyn offers many of the same perks as Manhattan, including access to top talent, a diverse ecosystem of opportunity — especially in the tech space, and easy access to an extensive network of venture capital firms for funding.
Below, we’ll take a closer look at what’s causing the shift, and why you shouldn’t rule Brooklyn out if you’re seeking an ideal place to establish your startup in NYC.
The Rise of Brooklyn as a Startup and Coworking Hub
Manhattan may have been the initial go-to for startups in New York City, but in the last decade, Brooklyn has become a hot spot for a growing (and successful) startup community. Brooklyn now plays a crucial role in New York City’s startup ecosystem, with over 1,600 startups and counting, according to data from AngelList. Brooklyn has proven to be especially lucrative for startups in the tech space, including sectors like fintech, ad-tech, and health tech. The creative and innovative individuals drawn to this borough, combined with venture capital firms investing in and committed to revitalizing Brooklyn’s tech scene, have created a perfect storm of prosperity.
The Benefit of Coworking in Brooklyn
As more startups have flocked to the area, creative coworking spaces in Brooklyn have become more common thanks to the flexibility and scalability they offer these fledgling businesses. With coworking spaces, startups rent only the space they need on a schedule that works best for them at more affordable rates. As the business scales, these shared office spaces make it easy to scale up (or even down) as needed, while reducing overhead costs. This flexibility can’t be matched by traditional office spaces that typically come with a commercial lease agreement of at least five to ten years that locks you into the same space, no matter how much your company may grow or evolve during that period.
There are several coworking (and startup) friendly neighborhoods in Brooklyn including:
- DUMBO is known for its cobblestone streets, beautiful architecture, and waterfront views, but it’s also considered Brooklyn’s flagship tech neighborhood. It houses a large concentration of startups and coworking spaces while still being close to Manhattan.
- Williamsburg, Brooklyn’s eclectic and trendy neighborhood, has become an ideal incubator for innovation, drawing in young professionals and housing a diverse mix of startups and coworking spaces. These spaces include Mindspace Williamsburg, a coworking space in a brand-new office complex offering private offices, large suites, dedicated desks, private event spaces, and more.
- Bushwick houses a vibrant arts scene, its streets boasting colorful murals and a diverse community. Its parks and green spaces make it an ideal place to live. It has also become known for being a startup-friendly area for creative industries and tech innovators, supported by a collaborative community of entrepreneurs.
Why Startups Are Choosing Brooklyn Over Manhattan
There’s no doubt that New York City should be a top choice for startup owners to consider: According to the 2024 Global Startup Ecosystem Report, New York City has remained in the top three startup ecosystems in the world since 2020 (with the Silicon Valley still leading the way, and London tied with NYC for second place).
However, if you compare boroughs, Brooklyn has a significant competitive edge over Manhattan in one crucial area: Its lower cost of living and more affordable office space.
As of 2024, Brooklyn is 15.5% less expensive overall than Manhattan, and even more significantly, Brooklyn housing costs are nearly 32% less expensive when compared to Manhattan’s.
This affordability alone makes Brooklyn worth considering for cash-strapped startup owners looking to reduce costs and create a sustainable business. You’ll still have easy access to Manhattan and the network of Venture Capital firms located there, without having to swallow the high costs of living and working that come with being situated at the core of the Big Apple.
Comparing Brooklyn and Manhattan Coworking Spaces
Brooklyn and Manhattan offer remote workers, startups, and small businesses a wide range of coworking space options. However, there are several key differences to keep in mind when comparing coworking in Brooklyn vs. Manhattan:
- The Cost: As noted above, Manhattan is more expensive than Brooklyn, which is reflected in the cost of its coworking space memberships. For reference, a hot desk in Brooklyn averages around $300 to $500 per month vs. $400 to $700 per month in Manhattan.
- The Atmosphere: Manhattan is known for its fast-paced and corporate environment, attracting professionals in areas like finance and law. Flexible coworking spaces in Brooklyn are associated with a more creative and innovative spirit, attracting a more diverse mix of startups and a more relaxed environment that tends to foster more collaboration.
- Flexibility and Lease Terms: While coworking spaces in both of these locations offer far more flexibility than traditional office spaces, Manhattan does trend towards requiring longer lease commitments due to high demand and its prime location. Conversely, Brooklyn is more flexible, allowing for a lower barrier to entry, which is helpful for early-stage startups. Our Mindspace Williamsburg location in Brooklyn even goes beyond offering the typical monthly memberships, providing day passes and multi-day bundles (and offices that remain open 24/7) for those who don’t need to commit to a traditional work schedule.
The Factors Driving Brooklyn’s Popularity
There are several advantages of Brooklyn for startups, so it’s no wonder that this borough’s popularity continues to grow. Out of New York State, Brooklyn has led the way in new job applications in 2024. According to an economic snapshot from the Brooklyn Chamber of Commerce, “while Manhattan remains the largest borough by business concentration, Brooklyn now boasts over a quarter of the city’s very small businesses and total businesses overall.” The three main factors below keep Brooklyn in the running with Manhattan as an ideal place for startups to take root.
1. Affordable Office Spaces in Brooklyn
Brooklyn offers more affordable coworking spaces; even traditional office spaces have lower price tags here. This factor alone is a winning one for startups and small businesses looking to reduce their operating costs.
2. A Strong Startup Ecosystem and Community
Brooklyn’s startup ecosystem is showing no signs of slowing its growth. Startups here span a wide range of sectors, including the tech and creative industries. The diversity found in Brooklyn’s neighborhoods naturally fosters more collaboration. Artists, designers, and innovators have long called Brooklyn home, and have created welcoming environments that encourage visionary thinking. As coworking hubs for startups have also increased in popularity, they have become ideal incubators for new ideas to take shape into established businesses.
3. Lifestyle and Work-Life Balance in Brooklyn
Unlike Manhattan’s more laced-up, corporate attitude, Brooklyn offers a more laid-back alternative to business and life. You still get all of the benefits of the city, including arts and culture, plentiful and diverse dining options, and access to gyms, shopping, and public transportation — with a more community-focused atmosphere and plenty of parks and green spaces to enjoy. The focus on having a more balanced division between work and life is reflected in the flexible work options found in the coworking spaces that allow entrepreneurs and startup owners to work in the same borough and even avoid the chaotic daily commutes into Manhattan if they so choose.
The Advantages of Brooklyn for Startups Continue to Grow
The combination of budget-friendly office solutions in Brooklyn, its creative energy, and the community-focused working (and living) Brooklyn offers make it an ideal place for startups to build their foundation and succeed. The cost of living and the high competition for office spaces in Manhattan continue to soar, putting it at a distinct disadvantage regarding what matters most to startups and their owners. As more entrepreneurs discover the opportunities Brooklyn offers, it will continue to be a key player in New York City’s startup ecosystem.
If you’re now convinced that Brooklyn is the ideal place for your startup, look no further than Mindspace Williamsburg. Our flexible coworking space offers a range of options to meet your needs, including private offices, desks, and large suites. We also provide all the amenities to set you and your business up for success, including an on-site gym, coffee and tea services, IT services, and professional networking events.
Contact us today to book a tour!