Miami market continues to lead the nation in ‘flex’ office space. Thank WeWork
The Miami market continues to be among the leaders in the nation when it comes to co-working space density, according to a new report.
Real estate consultancy CBRE says that at 3.2 percent, the Miami area now ranks third among metros for co-working, or “flex,” space penetration in its overall commercial market. Only San Francisco (4.0 percent) and Manhattan (3.6 percent) have more. And within Class A-only commercial space, Miami is now the national leader, with flex-space penetration of approximately 3.8 percent. The Miami market does not include Broward.
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In an interview, Arden Karson, senior managing director of South Florida for CBRE, said the prevalence of flex space in Miami reflects the area’s status as an international hub for the world’s largest businesses.
“It’s a great opportunity for companies that want a touch-down space” that allows simultaneous access to the U.S., Europe, and the Americas, she said.
The penetration rate also reflects the large volume of startup businesses that area entrepreneurs continue to churn out. Karson acknowledged that many of these are figuring out their growth strategies, so demand for short-term space commitments remain top-of-mind here.
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The CBRE report showed Brickell remains the dominant submarket for flexible work space, with 65.4 percent of the area’s total flex space leased in the past 12 months. The 146,000 square-foot lease that WeWork signed in a planned Brickell tower in Q1 2019 was the largest transaction during the period. WeWork remains the largest operator here, with 493,000 total square feet split between 9 locations. Other flex spaces have opened in Doral, Coconut Grove, and the Biscayne Boulevard corridor.
This story was originally published September 20, 2019 at 4:00 AM.