Average compensation for software engineers in NYC is $150k+ a year. Add in benefits and payroll taxes, etc. and you're looking at $180k+

Office space leases for around $75/year in NYC. A cramped open floor plan requires 80 square feet per person. A spacious 2 window private office is 150 square feet.

A company only saves about $5000 a year, even in the expensive NYC market. If an open floor plan results in an engineer being distracted for even 2 minutes an hour, it costs more in lost productivity than it saves in rent.