Highland Park Miami will increase Miami Medical District’s footprint by 10 p.c. Picture courtesy of Black Salmon and The Allen Morris Co.
Miami carried out properly via the primary 9 months of this 12 months, with deal quantity rising as compared with first-quarter information. As of September, the metro’s workplace market had some 2.4 million sq. ft underneath building, representing 3.6 p.c of complete inventory.
When in comparison with the nationwide and peer markets figures in relation to the proportion of inventory, the metro exceeded the U.S. determine (1.8 p.c) in addition to Charlotte’s (3.5 p.c), Washington D.C.’s (1.2 p.c) and Chicago’s (1.0 p.c) however was outpaced by Austin’s and Boston’s; each metros had under-construction pipelines accounting for five.6 p.c of complete inventory.
Regardless of the slowdown in building funding and the present financial local weather, Miami’s workplace pipeline remained sturdy, whereas the share of coworking area as share of complete leasable workplace area was one of many largest among the many gateway cities.
A number of initiatives underway
Builders added 180,223 sq. ft of workplace area this 12 months, unfold throughout 4 properties, whereas one other 26 properties have been underway. One of many largest workplace initiatives underneath building in Miami is Highland Park Miami, a $1 billion mixed-use venture that can enhance Miami Medical District’s footprint by roughly 10 p.c. Developed by Black Salmon and The Allen Morris Co., the venture will characteristic 500,000 sq. ft of medical-related workplace area, a 150-key lodge, 1,000 residential items and eating places.
830 Brickell. Picture courtesy of OKO Group/Cain Worldwide
The Class A+ workplace high-rise at 830 Brickell will complete 638,355 sq. ft upon its completion. Builders OKO Group and Cain Worldwide topped out the 55-story venture in June 2022, whereas supply is predicted by the tip of the 12 months.
One other main venture is Royal Caribbean‘s new headquarters, a Class A workplace mid-rise totaling 350,000 sq. ft in Miami’s Central Enterprise District. The $300 million venture was slated to return on-line by the tip of 2020, however the pandemic-induced building delays pushed the supply date to early 2024.
Deal quantity elevated since 2023’s first quarter
Within the third quarter of the 12 months, Miami’s workplace gross sales quantity totaled $309 million and 1.1 million sq. ft, with workplace buildings altering palms at a mean $360.5 per sq. foot. Miami appears to reemerge as a company hotspot, as compared with the $100 million gross sales quantity and 762,836 sq. ft recorded within the first quarter of 2023. On a year-to-date foundation, the typical sale value per sq. foot in Miami ticked $349, with a complete gross sales quantity set at $928 million. Throughout different markets, gross sales costs have been highest in Manhattan ($568 per sq. foot), Austin ($425 per sq. foot) and Boston ($314 per sq. foot).
Lincoln Place is Starwood Capital’s former headquarters. Picture courtesy of CommercialEdge
When it comes to complete gross sales quantity on a year-to-date foundation, Miami outperformed Charlotte ($172 million) and Austin ($496 million) however was outpaced by Los Angeles ($1.98 billion), Manhattan ($1.65 billion), Boston ($1.35 billion) and Chicago ($830 million).
One of many largest offers in Miami closed in September, when PGIM Actual Property bought 355 Alhambra Circle, a 224,241-square-foot Class A workplace constructing in Coral Gables, Fla. Princeton Worldwide Properties paid $90 million for the 16-story asset.
One other important acquisition recorded in September contains Black Lion Funding Group‘s $82 million buy of Lincoln Place in Miami Seaside, Fla. The 139,887-square-foot workplace constructing was bought by Nightingale Properties.
Flex workplace suppliers increasing in Miami
In comparison with different markets, Miami had one of many largest shares of coworking area as a share of leasable workplace stock, at 3.3 p.c in September. That outpaces Boston’s 1.7 p.c, Chicago’s 1.9 p.c and Manhattan’s 2.6 p.c price.
On the finish of the third quarter, flex workplace supplier Regus had the most important footprint in Miami, with operations totaling 280,355 sq. ft. The corporate was adopted by Industrious, with 215,000 sq. ft, whereas WeWork was third, with 195,369 sq. ft. Miami additionally had some 1.5 million sq. ft of shared area as of September, outpaced by Boston (2.6 million sq. ft) however outperforming Seattle (1.4 million sq. ft). In August, flex workplace supplier Quest Workspaces added 20,844 sq. ft of coworking area in Boca Raton, Fla., at 1200 Company Place, the place the corporate already operates a 21,120-square-foot area, now underneath renovation.
Wells Fargo Heart. Picture courtesy of Cushman & Wakefield
Vital leases in September included Greenberg Traurig‘s 128,450-square-foot renewal at MetLife Actual Property Funding’s Wells Fargo Heart in downtown Miami. On the constructing since 2010, the tenant dedicated to the identical five-floor area for the subsequent 5 years. Moreover, the renewal represents the town’s largest CBD workplace deal lately.
CBRE has been appointed as unique leasing agent in control of a 400,000-square-foot workplace improvement coming in Miami’s submarket of West Palm Seaside. The Class A, 26-story workplace tower is being developed by Cohen Brothers Realty Corp. and the primary tenant move-ins are anticipated to start in late 2026.
