Coworking Giant Regus Leases Entire Building in South of Fifth

Regus, a global leader in flexible office spaces, has secured a long-term lease for the entirety of 429 Lenox, a 45,789-square-foot Class A boutique office building in Miami Beach’s South of Fifth neighborhood. This marks Regus’ largest footprint in the area, reflecting the growing demand for coworking spaces in South Florida.

The lease was brokered by Colliers South Florida, with Vice Chair Stephen Rutchik and Vice President Ana Paula representing the landlord, Azora Exan. JLL’s Adam Bernstein represented Regus in the transaction.

“429 Lenox's prime location in the highly sought-after South of Fifth neighborhood made it an exceptional choice for Regus’ expansion,” said Paula. “As the market shifts towards prioritizing lifestyle, prime location, and modern workspaces, the property offers an unmatched blend of unique rooftop access, plug-and-play office solutions, and contemporary amenities. Its proximity to the MacArthur Causeway ensures seamless access in and out of Miami Beach, positioning it as an unparalleled option for today’s forward-thinking businesses.”

Designed by renowned architect Kobi Karp, 429 Lenox features contemporary office spaces tailored for businesses seeking a prestigious address in a dynamic, amenity-rich environment. Key features include a rooftop deck, on-site parking, and prime signage opportunities. Its South of Fifth location provides easy access to luxury residences, upscale dining, and Miami’s iconic beaches.

Arturo Vinueza, Vice President of Investments at Azora Exan, highlighted the significance of the lease: “We are excited to welcome Regus at 429 Lenox, marking a new chapter for our office building in the vibrant South of Fifth neighborhood. This lease highlights the strength of premium office space in Miami, particularly in walkable, amenity-rich areas, aligning with our national office investment thesis. We look forward to welcoming a diverse community of entrepreneurs and professionals who will thrive in this environment.”

Regus plans to operate the location under its SPACES brand, emphasizing flexibility and innovation in workspace solutions. The new office is set to open in the fourth quarter of 2024 and will join Regus’ other Miami Beach locations, solidifying its presence in the market.

The full-building lease underscores the increasing appeal of coworking spaces in Miami Beach, where office vacancy rates remain low, recorded at just 8.7% in Q3 2024. As companies continue to embrace hybrid work models, demand for adaptable, lifestyle-driven workspaces is surging. Coworking spaces like those offered by Regus cater to businesses seeking environments that enhance productivity and work-life balance.

The broader trend aligns with a post-pandemic shift in workplace priorities, with businesses opting for premium, flexible spaces in prime locations. The 429 Lenox lease reflects this evolution, cementing Miami Beach’s status as a competitive and vibrant office market.

WeWork Leaves Lincoln Road Location As Landlord Seeks $19.5 Million In Unpaid Rent

WeWork’s trouble’s due to COVID-19 continue as the landlord of their 350 Lincoln Road location has sued the co-working giant in Miami-Dade Circuit Court. SML 350 Lincoln Inc., an entity controlled by Shaul Levy and Meir Levy, alleges that WeWork breached their lease by failure to pay rent in April, May and June while occupying the 40,000 square foot space and now owes in-excess of $19.5 million in back-rent and legal fees. WeWork said in a statement that the lawsuit is without merit and will continue to work with the landlord to resolve the situation in a mutually beneficial fashion. WeWork’s 16-year lease at 350 Lincoln Road began in November 2014 and runs through October 2030.

WeWork will close the Lincoln Road location on August 14 and has also moved to consolidate its Miami Beach members to 429 Lenox Avenue. Last month we reported that Goddard Investment Group has moved to evict WeWork from the Lenox Avenue location, but the two parties were reportedly able to resolve their differences.

WeWork, which is now led by CEO Sandeep Mathrani, still has locations in Downtown Miami, Brickell and Coral Gables. Times have not been good to WeWork following its failed IPO in 2019. The coworking giant recently announced that it will being closing its first location to ever open in New York City and saw its valuation slashed from over $47 billion to $2.9 billion.

In May 2020, a group of WeWork’s members moved toward suing the co-working giant demanding that WeWork cease collecting rental fees. Many tenants had already requested rent relief, cancelled their leases or stopped paying, which put over $5.5 billion of CMBS loans backed by WeWork occupied properties at risk. Some of the CMBS loans back WeWork flagship locations in New York and San Francisco. WeWork has retained Newmark Knight Frank and JLL to try to renegotiate leases and negotiate concessions from landlords at some of their properties as the firm try to stave off a potential bankruptcy.

WeWork’s problems do not end there. Former CEO and co-founder Adam Neumann is reportedly under investigation for self-dealing by the New York State Attorney General. In addition, the Tokyo-based SoftBank led by Masayoshi Son and a special committee of WeWork board members have been locked in a legal battle after Softbank walked away from a $3 billion tender offer in April 2020 which was part of the $9.5 billion bailout package SoftBank signed with WeWork following WeWork’s failed IPO.

Goddard Investment Group Moves To Evict WeWork From South of Fifth Location

WeWork’s landlord at 429 Lenox Avenue, Goddard Investment Group, has moved to evict WeWork from their South of Fifth location at 429 Lenox Avenue in South Beach. The 43,500 SF building is fully leased by WeWork who skipped out on rent payments for April, May and June. An eviction notice reportedly alleges WeWork behind in excess of $650,000 in unpaid rent which must be paid by today or WeWork must vacate the property (July 7, 2020). WeWork first opened the South of Fifth location in early 2016 and is committed to the NNN lease until 2031. Goddard Investment Group financed 429 Lenox Ave. with a $23 million floating-rate loan issued by Granite Point Mortgage Trust, Inc. In Miami WeWork has other locations at 350 Lincoln Road, Brickell, Downtown Miami and Coral Gables.

Times have not been good to WeWork following its failed IPO in 2019. The coworking giant recently announced that it will being closing its first location to ever open in New York City and saw its valuation slashed from over $47 billion to $2.9 billion.

In May 2020, a group of WeWork’s members moved toward suing the co-working giant demanding that WeWork cease collecting rental fees. Many tenants had already requested rent relief, cancelled their leases or stopped paying, which put over $5.5 billion of CMBS loans backed by WeWork occupied properties at risk. Some of the CMBS loans back WeWork flagship locations in New York and San Francisco. WeWork has retained Newmark Knight Frank and JLL to try to renegotiate leases and negotiate concessions from landlords at some of their properties as the firm try to stave off a potential bankruptcy.

WeWork’s problems do not end there. Former CEO and co-founder Adam Neumann is reportedly under investigation for self-dealing by the New York State Attorney General. In addition, the Tokyo-based SoftBank led by Masayoshi Son and a special committee of WeWork board members have been locked in a legal battle after Softbank walked away from a $3 billion tender offer in April 2020 which was part of the $9.5 billion bailout package SoftBank signed with WeWork following WeWork’s failed IPO.