Full of Surprises: Where New Offices, Leases, Rent Hikes Are in South Florida
Some developers looking to fill a void are shifting to neighborhoods that haven't been big on office.
February 24, 2020 at 05:00 AM
11 minute read
The South Florida office market is full of surprises.
Big downtown buildings have the square footage, but the suburbs are landing some of the biggest leases.
Miami's Brickell Financial District leads on rents in Miami-Dade County. But offices near Miami International Airport enjoyed the biggest rent hikes.
And across the region, developers are increasingly opting for markets that had no office construction in decades. Miami's Brickell, Coconut Grove and Wynwood are building.
The 1 million-square-foot 830 Brickell tower on tap in Brickell will be the first new office space in four years in the neighborhood and its first speculative project in nearly a decade.
Miami's eclectic Coconut Grove and Wynwood, which for decades was defined by its aging warehouses and Puerto Rican residents, are starting a new phase as office centers.
Construction started on two towers long in the works in downtown West Palm Beach. And high-end Palm Beach Gardens, which hadn't seen a new office in a decade, is getting the two-building Divosta Towers with the first tower complete.
"It's healthy to have new development projects that are quality projects in locations that are solid, both strong neighborhoods that are emerging as office markets as well as established neighborhoods," said Tere Blanca, CEO of Blanca Commercial Real Estate, which is leasing several of the big new projects. "This has a way of attracting companies to Miami. It's healthy to have inventory to be able to recruit companies."
|Projects
South Florida saw over 655,000 square feet of office space completed last year, and more is coming, according to JLL data.
Over 3.4 million square feet is under construction with nearly 2 million in Miami-Dade, 615,252 in Broward County and 793,358 in Palm Beach County.
In Coconut Grove, a five-story, 95,000-square-foot office building was completed after two decades without construction. It was no surprise that 3310 Mary St. was fully leased when it opened last October. Terra, which developed the building, opened its new headquarters inside and accounting firm Kaufman Rossin will move in nearly 300 staff members.
Nearby, a development trio intent on reinvigorating CocoWalk's shopping and dining scaled down the retail in favor of the five-story, 85,762-square-foot One Cocowalk office building. By late last year, it was 65% pre-leased to coworking company Spaces and investment firm Boyne Capital.
The biggest headliner is the 56-story 830 Brickell, which will bring 615,000 square feet of rentable space to Miami's second-tallest office tower in 2021. Completed in 2016, Two and Three Brickell City Centre were the last new office additions, but a spec project like 830 Brickell hasn't been built since 600 Brickell in 2011. Spec developers don't build specifically for committed tenants but are betting on healthy demand.
Wynwood, which gentrified into an internationally known arts district with edgy eateries and bars, now is getting its first office buildings.
The 10-story, 298,597-square-foot 545Wyn will be done later this year on the heels of the completion of 12-story, 86,000-square-foot Cube Wynwd. Next on tap are the 12-story, 220,000-square-foot Gateway at Wynwood and three-story, 35,000-square-foot building planned by redevelopment pioneer Moishe Mana for the Puerto Rico Chamber of Commerce and Miami-Dade County offices.
In Broward, most new construction is suburban. Plantation boasts the most office development with 145,322 square feet on tap after 234,729 square feet was completed last year, according to JLL.
The 77.5-acre Plantation Pointe office park, which houses Motorola and the homegrown tech company Magic Leap, is getting two new office buildings. Illinois-based owner Torburn Partners Inc. started building a four-story, 153,715-square-foot building last summer and submitted plans for a second 10-story, 150,436-square-foot building.
In Pembroke Pines, the 330,000-square-foot Edison complex has opened the first of two buildings.
In the urban core, The Main Las Olas mixed-use project will bring a 25-story, 369,809-square-foot office tower. The long-expected seven-story, 100,000-square-foot 550 Building at 550 S. Andrews Ave. is finished.
Most recently, Doug McCraw and Lutz Hofbauer, the force behind the booming FATVillage northwest of downtown, partnered with others on a 5-acre mixed-use project.
Another new office complex of note is developer Inmobiliaria Brom's three-building Optima project spanning the county line in Aventura and Hallandale Beach. The 28-story, 300,000-square-foot Optima Onyx in Hallandale Beach is to be finished this year. It will add to the nine-story, 84,401-square-foot Optima White and four-story, 29,621-square-foot Optima Red, both in Aventura.
In West Palm Beach, a handful of major projects are on tap. They include Related Cos.' 20-story, nearly 300,000-square-foot 360 Rosemary to be finished next year and its 25-story, 270,000-square-foot One Flagler near the foot of the Royal Park Bridge connecting West Palm Beach and Palm Beach.
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