Starting a real estate app or coworking business in NYC: licenses, the FARE Act and costs

By Solomon Wiesen, editor. Updated October 2026. Editorial standards | How this site is funded

Real estate and flexible office space are two of New York’s biggest startup categories and two of its most regulated. Brokers need a state license, the FARE Act moved most rental broker fees onto landlords in June 2025, and a coworking operator lives or dies on its lease, in a Manhattan market where available office space fell to 13.7% in Q3 2026.

This page combines the site’s former real estate app and coworking guides. Both businesses sit on the same New York reality: the space or the deal is what makes money, and the rules decide who pays whom.

Manhattan office availability is falling

Share of Manhattan office space available for lease, per CBRE. Lower availability means landlords have more pricing power and coworking operators pay more for space.

Q3 2025

16.6%

Q2 2026

14.4%

Q3 2026Average asking rent $80.40 per sq ft

13.7%

0%5%10%15%20%

Real estate brokerages and listing apps

• Licensing: the New York Department of State licenses real estate salespersons and brokers, with required education and, for brokers, experience. Arranging deals for a fee generally requires a licensed broker; publishing listings alone does not.
• The FARE Act: in effect since June 2025, the Fairness in Apartment Rental Expenses Act generally requires whoever hires the broker to pay the broker fee, usually the landlord. A rental startup built on tenant-paid fees needs a new model; see the NYC Department of Consumer and Worker Protection for current guidance.
• Fair housing: NYC bans discrimination including by source of income, and listing platforms have to be designed around it.
• Short-term rentals: the city’s registration rules sharply limit Airbnb-style listings.

Commission income arrives at closing, often weeks or months after the work, so plan working capital. Commission advances are marketed to brokers at high annualized costs; price one before you agree.

Coworking and meeting rooms

Selling desks by the hour or month against a long lease is the central risk of coworking. WeWork filed for Chapter 11 in November 2023 and came out with Yardi as majority owner, about 170 locations and roughly $4 billion of debt cleared (Inman). The operators doing well in 2026 increasingly run management agreements with landlords instead of master leases, which is part of why CBRE bought Industrious.

• Landlord consent: subleasing or licensing space to others generally needs the landlord’s permission; build it into the lease.
• Commercial rent tax: Manhattan tenants south of 96th Street paying $250,000 or more a year owe it, at an effective 3.9% of base rent; see the startup tax calendar.
• Occupancy and fire safety: the certificate of occupancy limits use and headcount, and the FDNY has its own rules for larger gatherings.
• Accessibility and insurance: public-facing space must be accessible, and landlords and members expect proof of liability coverage.

What it costs to start

NYC proptech and flexible office companies to know

Details were checked in October 2026; call ahead before you visit.

Bilt Rewards

Loyalty program and co-branded credit card that lets renters earn points on rent, with a payments platform for landlords.

• Address: 837 Washington Street, New York, NY
• Phone: (844) 822-2458
• Funding: Raised $250M in July 2025 at a $10.75B valuation, after rounds led by Left Lane Capital (2022) and General Catalyst (2024). (source)
• Founded: 2019

TheGuarantors

Insurtech offering rent guarantees, security deposit replacement and renters insurance.

• Address: One World Trade Center, New York, NY 10007
• Phone: (212) 266-0160
• Funding: More than $110M in equity and debt, including a $35M growth financing from CIBC Innovation Banking in May 2023. (source)
• Founded: 2015

Convene

Operator of bookable meeting, event and flexible office space in NYC and other cities.

• Address: 530 Fifth Avenue, New York, NY 10036
• Phone: 1-888-730-7307
• Funding: A $152M Series D in 2018 led by ArrowMark Partners, with RXR Realty, Brookfield, Durst and BlackRock among investors. (source)

Industrious

Coworking and flexible office provider with staffed NYC locations, private offices, memberships and meeting rooms.

• Address: 135 W 50th Street, New York, NY 10020
• Phone: (917) 546-0811 (sales)
• Funding: CBRE bought the remainder of the company in January 2025 at an $800M valuation, paying about $400M; it is now a CBRE subsidiary. (source)

Two more New York names show how the sector is consolidating: Compass completed its all-stock purchase of Anywhere Real Estate on January 9, 2026 (Real Estate News), and Latch, the smart lock company, now operates as DOOR and trades over the counter.

How to finance a real estate or coworking business

For brokerages, a line of credit bridges the gap between work and commission. For coworking, build-out and furniture can be financed and landlords sometimes contribute to improvements; because rent is a large fixed cost and bookings vary, a cash advance that takes a share of daily deposits amplifies every slow month. Read how a merchant cash advance works and compare any offer with the MCA vs. loan calculator.

Where to go next

General information, not legal or financial advice. Lender terms change; confirm them with the lender before you apply.