Demand for flex workspace is up 58% when compared to pre-pandemic level across the US with Miami outpacing all other cities with demand growth increasing 143%. 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 outpace traditional commercial hotspots.
The US market is returning to the office but the flex office market looks quite different when compared to pre-pandemic levels.
Miami is leading the way in flexible workspace demand growing 143 percent while San Francisco is seeing the largest decline with demand decrease of 24 percent since 2019.
“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.”
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.
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