Miami is a winner within the office space crisis. According to Capital Economics, the metropolitan area has outperformed and can proceed to achieve this. But this triumph was apparently not enough to avoid wasting Andreessen Horowitz’s Wall Street South office.
In May, the enterprise capital firm closed its Miami office, two years after opening, Bloomberg reported on Wednesday, seemingly giving up on its hopes of building a presence within the emerging crypto and financial hub. Miami has been dubbed “Wall Street South” because it has grow to be a brand new financial hub where increasingly corporations and the billionaires who run them are migrating.
The pandemic (and distant work) were already a difficulty when a16z signed a five-year deal rent in 2022, but crypto had not yet seen its collapse. A number of years later, there have been not enough employees using the office space, based on Bloomberg, citing people conversant in the matter. The company confirmed the news to Bloomberg but declined further comment.
At the tip of July 2022, billionaire and entrepreneur Ben Horowitz, a member of the founding duo, wrote that the corporate will open three recent offices in Miami Beach, New York and Santa Monica along with its existing locations in Menlo Park and San Francisco, and that its recent headquarters might be within the cloud. Tech-heavy metropolises within the West, especially San Francisco, are hardest hit by office problems, marred by lower demand and better rates of interest. And yet the enterprise firm has decided to desert its Miami office, owned by none aside from real estate billionaire Barry Sternlicht, a vocal opponent of the Federal Reserve and its monetary policy.
Be that as it could, it only took months for the $30 billion FTX empire to collapse in 48 hours. So Miami may not be the shiny crypto hub it once was, because it is evidently not only distant work that has forced a16z to desert its physical presence within the Magic City. According to Capital Economics, which previously called Miami a “winner” of the recent office cycle, office visits in town had “recovered to 90% of their pre-pandemic levels by July, well above the national figure of 72%,” it said, citing outside data. Additionally, Miami-Dade County recorded a record high within the second quarter. Office emptiness rate was 9.2%, which was significantly below the national average of 17.5%. accordingly Colliers. Andreessen Horowitz didn’t immediately reply to Fortunes Request for comment, and a Miami office shouldn’t be listed on the corporate’s website.
Not to say JPMorgan Chase, doubled at its office space in Miami, with plans to expand. Also in 2022, Goldman Sachs doubled its office space in downtown Miami and in the identical 12 months Citadel announced The recent global headquarters might be in Miami and has lease more office space since then. Oracle, Palantir and Hewlett Packard Enterprise have also moved their offices to Miami. And Amazon happens to be seek for some office space within the metropolitan area after company founder Jeff Bezos moved into town’s Billionaire Bunker.
The former a16z office is now the workplace of Bausch + Lomb, an organization that makes contact lenses, Brandon Charnas of Current Real Estate Advisors told Bloomberg. It was his industrial real estate firm that brokered the brand new deal and the unique lease. “We don’t see a lot of crypto companies saying they need office space in Miami,” Charnas said.
Another, Kevin Gonzalez of Colliers, who also helped broker the brand new deal, told Bloomberg: “There was a lot of hype around promoting cryptocurrencies in Miami, but cryptocurrencies had only a small office presence even at their peak.”
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