• South Florida

How Miami’s Co-Working Explosion is Impacting the Market

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.

Download the full 2018 Miami Co-Working Report here.


For more information contact:

Chris Owen
Florida Research Manager
407-541-4417
chris.owen@cushwake.com

 

Shanna Naseery
Research Analyst
305-533-2845
shanna.naseery@cushwake.com

  • South Florida

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