Demand for Flex Workspace up 58 Percent From Pre-pandemic Across the US, With Miami Outpacing All Other Cities, According to the Instant Group’s US Market Summary
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.”
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Demand for Flex Across the US
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.
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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.
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