A modestly sized company in Miami can save an average of $70,129 a year by securing space in a coworking location instead of leasing an office, a new report shows.
According to a report from Coworking Cafe, Miami is among the 20 U.S. cities where it’s cheaper to become a member of a coworking space, as opposed to leasing an office.
The report lists the average annual coworking costs for desk-type subscriptions for 10 people in the month of July versus the annual rental cost of a 2,000-square-foot office for 10 people. Under those standards, Coworking Cafe calculated it was 61.1% cheaper to be in a coworking space than a regular office space in Miami – the fifth-highest discount out of 94 cities listed.
Miami isn’t the only South Florida city mentioned in the report. At No. 21 was Coral Gables, where it was 47.1% cheaper to open in a coworking location versus a regular office. The annual cost savings by going the coworking route was $49,750, the report stated. In Fort Lauderdale (No. 48), where coworking was 35.9% cheaper, a company could save $25,043 a year. The report ranks West Palm Beach at No. 63. In that city, coworking was typically 30.1% cheaper than an office lease, and the annual cost savings was $21,719.
Other cities in Florida where coworking was cheaper than a regular office for a team of 10 are:
- No. 24, Tampa: 45.9% less.
- No. 31, Plantation: 43.4% less.
- No. 33, Hollywood: 43.1% less.
- No. 68: Orlando: 27.1% less.
- No. 72, Jacksonville: 25.3% less.
- No. 82: Boca Raton: 17.3% less.
Of the 94 cities listed, there were only three where it was cheaper to lease an office, as opposed to moving into a coworking space. In Cincinnati, it was 4.5% cheaper to lease an office. In Memphis, Tennessee, an office was 10.2% more affordable than coworking. In Oakland, California, the office discount for a team of 10 was 33.1%.
Coworking Cafe is an affiliate of Yardi Systems, a proptech company that analyzes and lists rates for commercial properties such as offices and apartments. Anant Yardi, the CEO of Yardi Systems, acquired a majority stake in coworking giant WeWork when it emerged from bankruptcy in May. A month later, four Yardi Systems executives, including Yardi, were appointed as WeWork board members. According to a statement from Yardi, WeWork will be operated as a separate company.
Yardi’s affiliates have long tracked the trajectory of coworking companies, which have proliferated throughout the tri-county area since the pandemic. Coworking operators have told the Business Journal that demand for desk space has spiked, partly due to coworking companies offering more flexible terms than traditional office landlords.
Not all coworking companies have increased the number of locations, however. At the height of the pandemic, WeWork shut down a pair of locations in Miami-Dade County. During its Chapter 11 reorganization, WeWork closed its last location in Miami Beach. WeWork continues to operate three locations in the city of Miami and two in Coral Gables.
Source: SFBJ
