By Shanna Naseery, Research Analyst
Miami Market Co-Working Stats:
- There are over 80 co-working locations in Miami (and counting).
- Co-working space accounts for approximately of 1.38 million square feet of space leased in the Miami market.
- Top co-working players in the market include: Regus, WeWork and Davinci Meetings & Co-working.
It’s no surprise that Miami now ranks as the #1 city for co-working, based on the amount of office space that co-working companies occupy in the market. There is approximately 1.38 million square feet of co-working space in Miami, which is about 3 percent of the market’s total inventory of office space. And new co-working spaces seem to be popping up all over the market, from Coral Gables to Aventura.
One benefit of co-working is the opportunity it provides for small business owners who are looking to work to in a cooperative space, without breaking the bank. The concept also provides a physical workspace for those whose only alternative is working from their home office or garage.
From the city’s perspective, co-working helps give Miami a boost in the race to becoming a top market for tech companies, as co-working space is a popular choice among start-ups.
So, What Does the Rise of Co-Working Mean for Brokers?
It’s business as usual, with a few potential perks.
Although landlords have not been particularly receptive to co-working in the Miami market, certain co-working operators are now offering revenue sharing deals as part of the lease agreement.
This trend could be a game-changer if it continues in the future.
And more recently, companies such as WeWork are now offering brokers bigger cuts if they are willing to help fill co-working spaces. Some companies are now offering brokers a 20 percent fee on a one-year lease, as opposed to 10 percent previously. They have also raised fees for expansions and renewals from 2 percent to 5 percent.
Cushman & Wakefield’s 2018 Miami Co-working Report provides details on co-working locations throughout the Miami market, including average cost per location.
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