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Demand For Flex Workspace Up 58 Percent From Pre-Pandemic Across U.S., With Miami Outpacing All Other Cities

 The Instant Group, a global workspace innovation firm working across 175 countries and whose digital platforms constitute the world’s largest digital marketplace for flexible workspace, has found Miami leading the way in flexible workspace demand while San Francisco is seeing the largest decline, in its new U.S. Market Summary analysis.

Demand has dropped 24 percent since 2019 in San Francisco, whereas Miami has seen demand skyrocket 143 percent.

“As hybrid work cultures take shape and people are empowered to choose where they live and where they work, we see a real increase in demand in ‘lifestyle’ cities and away from California which has struggled with high taxes, high cost of living, and high office costs,” said Joe Brady, CEO Americas, The Instant Group. “This migration is shaking up U.S. business hubs like New York and Chicago, as secondary cities have their moment in the sun with flex enabling companies to test out new markets for expanding talent.”

Demand For Flex Across the U.S.

Long-established corporate powerhouses such as New York City and Chicago are yet to fully recover but new business hubs such as Tampa and Houston are starting to emerge and are even outpacing traditional commercial hotspots.

The increase in demand in Texas – in large part a reported result of companies leaving California – is driving increased demand for flex space across the state – Austin +26 percent, Houston +66 percent and Dallas +32% when compared to pre-pandemic levels.

Similarly, Phoenix (+71 percent), Nashville (+2 percent) and Denver (+21 percent) have all seen demand for flex flourish in response to the growing number of companies relocating or expanding into these states.

Houston is a standout as leading technology companies are relocating their offices to the city. Demand for flex workspace from tech companies has increased 167 percent, while San-Francisco has seen a 33 percent drop, as companies want to place themselves close to the leading giants in their sector. Houston has also seen some of the highest supply growth in the country since the beginning of 2020 (+6 percent), led by Common Desk who has expanded to six locations across the city.

Supply Growth And Cost-Per-Desk Across U.S. Markets

Supply growth was highly uneven across the U.S., which impacted certain cities’ cost-per-desk.

City

Desk rate 2021

Rate change 2020-2021

Indianapolis

$517

22%

Tampa

$558

5%

Houston

$472

3%

Miami

$578

3%

Atlanta

$516

2%

New York City (Manhattan)

$737

1%

Chicago

$535

0%

Orlando

$492

-4%

Seattle

$544

-13%

Las Vegas

$508

-14%

Los Angeles

$563

-17%

San Francisco

$566

-23%

 

By operator, Industrious accounted for the largest growth share, 15 percent of all new flex locations since early 2021. However, supply is also diversifying, with 66 percent of new supply growth outside the top four largest operators.

Methodology

Data within the report is compiled via The Instant Group’s leading flexible workspace data platform Instant Insight. Rate data is based on transacted rates providing the most accurate view available within the industry, while demand data is based on inquiries coming through The Instant Group’s leading digital platform Instant Offices.

 

Source: PR Newswire

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