Move Over, Brickell and Downtown Miami: Wynwood's Office Submarket is Taking Off

Miami’s trendy Wynwood Arts District has emerged from the pandemic as a rapidly-growing submarket for office space as more businesses migrate away from downtown Miami.

A host of major companies have moved to Wynwood, including: Spotify, Live Nation Entertainment Co., Bank OZK, venture capital and startup building firm Atomic, led by Jack Abraham, and Founders Fund, the multibillion dollar venture capital firm led by PayPal co-founder Peter Thiel.

It’s a sign of what’s to come, according to Colliers International executive managing director Stephen Rutchik.

“Whether that’s in financial services, the accounting field, or lawyers, we’re now finding Brickell and downtown tenants when they’re touring the markets for a potential relocation, they’re looking at Wynwood as well, which is a recent development,” Rutchik said.

Rutchik says new-to-market tenants are driving a large portion of the demand in South Florida and adding one or two buildings in Wynwood to explore the market. 

“They’re looking for excitement,” Rutchik said. “They’re looking for something that really resonates with their previous experiences where they’re coming, but has a true offering for their employees, customers and clients.”

Companies that historically only look at the downtown Miami area now see Wynwood as a viable alternative, according to Shelby Rosenberg, head of development and acquisitions at R&B Realty Group, who said that’s because of its large employee base, unique restaurant options, culture and accessibility.

“What we loved about Wynwood specifically was the accessway. You don’t have the same congestion that you do maybe in Brickell or downtown, that can be a nightmare during rush hour,” Rosenberg said.

The Gateway at Wynwood, a uniquely designed 225,000-square-foot Class A office building with ground-floor retail, is a new project that will be completed by the end of the year. It will be one of the largest office buildings in the Wynwood area. It’s equipped with 25 feet of glass, an outdoor communal space with luxury amenities on the sixth floor and roof of the building, seven floors of office space, and five floors of covered parking. 

“We’re happy to be where we are today,” Rosenberg said. “We’re on schedule and on budget. The Miami market is really excited to embrace a product like ours, so overall really excited about it.”

Rutchik says there isn’t a downside to moving your business to the area, especially for those who want a Class A office where employees can have a better work-life balance.

“There’s a tremendous amount of demand for whom the market is resonating and who are deciding that’s the submarket they want to go into as an alternative to other submarkets in the area,” Rutchik said. “Tenants that, six months ago, would not have considered leaving the CBD are now exploring Wynwood, [which] is now validating the market and product. I expect we’ll see some announcements in the next few months of tenants leaving Brickell and downtown to go to Wynwood.”

Rutchik says good feedback from the first group of companies to exit the central business district is influencing companies to make that change.

Although Wynwood is increasingly popular, it’s not the only area in South Florida seeing a rise in new-to-market tenants or relocations. Edgewater, Midtown and the Design District are also emerging submarkets with large employee bases.  

“We do intend to continue our growth in South Florida, in Miami specifically,” Rosenberg said. “Whether that means development, stabilized assets, commercial or residential, I think all of these things are where we think makes sense.”

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