Leasing Activity
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The CBD posted one of the largest Class A renewals recorded – the extension and expansion of Citibank at the premier Miami Center office building in the Downtown sector. Totaling 185,000 s.f., the transaction comprised Citibank’s 162,000 s.f. renewal and the 23,000 s.f. expansion of Smith Barney (a division of Citigroup Global Capital Markets Inc.). Smith Barney is expected to relocate from another trophy CBD tower – 701 Brickell - by first quarter 2008.
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Other significant leasing activity in the CBD occurred towards the end of the year, with fourth quarter recording several impressive transactions:
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Law firm Carlton Field’s renewal and expansion, which totaled nearly 77,000 square feet in Downtown’s Bank of America Tower building
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Terremark Worldwide is relocating next September from Coconut Grove to One Biscayne Tower in Downtown, leasing 36,000 s.f. feet and taking the 28th and 29th floors.
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Two significant leases were renewed at New World Tower in Downtown:
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Zyscovich, Inc. renewed 26,000 s.f.
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World-renowned retailer LVMH renewed 17,000 s.f. LVMH’s portfolio includes such recognized names as Moet & Chandon, Louis Vuitton, Dior, Sephora and Fendi.
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Law firm Peckar & Abramson renewed nearly 20,000 s.f. on the 30th floor at SunTrust International Center.
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On the Class B front, 800 Brickell in the CBD’s Brickell corridor welcomed the legendary designer Ferragamo Latin America who leased 4,300 s.f. in a new transaction.
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Suburban Coral Gables’ trophy tower 121 Alhambra, whose office space is fully leased, signed 6,150 s.f. on the ground floor with a popular Brickell eatery/club, Novecento, who will take occupancy next February.
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Anticipate a 6,100 s.f. sublease coming available next year with the potential vacating of the LaSalle Bank space on the 12th floor, due to their recent purchase by Bank of America. The space has term until 2012.
Sales Activity
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Among the competing second-tiered Downtown Class A buildings, all eyes have been on SunTrust International Center (a 420,000 s.f. second-tiered Class A asset) as the building is both on the market for sale and the current beneficiary of one of the largest year-end lease transactions - the 20,000 s.f. renewal by law firm Peckar & Abramson.
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Also for sale in Downtown are two Class B office buildings:
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Courthouse Plaza (nearly 75,000 s.f.), situated across the street from the county courthouse. The asking price is nearly $9.7 million from the seller, Mihato Realty LLC. According to CoStar, the building’s office space is fully leased.
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One Riverview Square (163,000 s.f.) remains for sale on the market. Built in 2004, the Class B building is fully occupied by various government agencies.
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The office condo-converted SBS Tower in suburban Coconut Grove is on the market. The majority of tenants are still under lease. Major lease expirations for the largest tenants such as architectural firm Bermello and global communications firm Terremark Worldwide are less than two years away. While both tenants have been touring outside the submarket, Terremark officially announced its relocation at year-end – to Downtown Miami where the firm will occupy just over 36,000 s.f. at One Biscayne Tower.
Construction Activity
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In Miami’s CBD – the remaining two proposed trophy towers received their final permitting in hand at the end of the quarter for advanced full fledged construction. In addition to the one Class A asset already under way (1450 Brickell totaling just under 600,000 SF), 680 Brickell (597,000 SF) and Met 2 (700,000 SF) all have 2010 delivery dates, when nearly 1.9 million square feet of new inventory will be added to the market. As of this writing, no pre-leasing for any of the buildings has been announced.
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Approval has been granted on what will be the city of Coral Gables’ largest project: Old Spanish Village, a seven acre mixed-use development which will begin construction in early 2009 and deliver by 2010. The new office product will include a luxury, 15-story, 203,000 s.f. office tower with average floor plates of 22,000 s.f.
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The first tenant to commit will be the Cisneros Group, a privately-held media and entertainment conglomerate who will house their world headquarters in one of the Penthouse suites and the 14th floor, for total occupancy of 50,000 s.f.
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A retail bank branch will office on the ground floor with drive-through lanes.
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On the Airport's Class B new development front, look to proposed office supply at N.W. 87th Avenue just south of 25th Street where construction is expected to begin by midyear 2008 for a 160,000 s.f. building. The office segment will comprise 125,000 s.f. of Class B space along with 35,000 s.f. of retail space. To be called 8750 Gateway Center, marketing has begun on the retail portion only. The project is being developed by its owner, DBH Properties, Ltd.
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The suburban Miami Airport area’s first hotel condominium project will comprise 240 units and is situated along the 12th and 13th fairways of the Doral Resort’s “Blue Monster”, according to Globest.com. The newly appointed Preferred Hotels & Resorts will operate the facility. Preferred is a global entity with such signature projects as Atlantis in the Bahamas, the Lodge at Pebble Beach and Washington D.C.’s Mandarin Oriental.
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