By Danet Linares
January 25, 2019

Miami’s pursuit of Amazon thrust our region’s technology sector to the forefront, but new data from the Miami Downtown Development Authority indicate that tech companies have been eyeing our urban core as a viable home base for years.

The DDA’s newly released office sector survey, which tracked market activity over the past five years, found that 72 percent of all new-to-market technology firms coming to Greater Miami are settling in Downtown.

This metric is just one example of how our region’s largest office market is becoming more diverse as new industries set their sights on our city, lured by favorable demographics, an improved transit system, a variety of housing options, and significant cost advantages compared to other gateway cities.

Our Downtown office market comprises more than 22 million square feet of rentable space, amounting to Florida’s most significant employment hub and one of its primary economic engines. All told, over 250,000 people spend their weekdays in our urban core — more than ever before.

A quick survey of the market’s tenant list is a “who’s who” of the business world, with brands like Royal Caribbean, JP Morgan Chase, HIG Capital, Fortress Investment Group, Mastercard, Facebook and Porsche calling Downtown Miami home.

The Downtown office market has historically been dominated by a handful of sectors, most notably law and professional services, real estate, and banking and finance. In fact, Downtown is home to the highest concentration of financial institutions in the United States outside of New York, including 60 international banks, 100 alternate investment firms, and regional headquarters for four of the world’s largest accounting firms.

While these industries still occupy most of the space in Downtown, the DDA study found that our tenant base is becoming more varied. Notably, the past few years have seen an uptick in the number of tech, hospitality and media companies leasing space. Together, these three sectors have accounted for 38 percent of all new-to-market leases signed since 2013.

Recent examples of tenants that have relocated to Downtown from out-of-town or from other markets in South Florida include the CONCACAF soccer association, Cisneros, Google, Uber, Viacom/MTV, and I-Squared Capital. Two of the country’s largest operators of co-working space — WeWork and Regus — are also expanding in our Downtown.

Given Downtown Miami’s evolution from a 9-to-5 business district into a thriving 24/7 residential and commercial neighborhood over the past decade, these dynamics shouldn’t come as a surprise. For the first time, our urban core offers companies and their employees a walkable district that is densely populated and home to a range of housing, dining and entertainment options.

These factors are becoming more important as employees gravitate toward job opportunities in close proximity to their home.

A series of improvements in the urban core — from new transportation options and public parks, to the debut of cultural outlets and improved pedestrian access — have coincided with stability in the office market. Average occupancy levels, rental rates and tenant renewal rates are at their highest points in years, driven by pricing that remains well below that of places like New York, Washington, D.C., and San Francisco.

There’s reason for continued optimism.

The launch of Virgin Trains’ service into Downtown in 2018, coupled with the planned connection to Tri-Rail this year, will make commuting from points north even easier while significantly broadening our workforce.

Few downtowns in the country can compete when it comes to location. From an accessibility standpoint, office users are placing immense value on the fact that our Downtown is right off I-95, minutes away Miami Beach and Miami International Airport, and adjacent to PortMiami.

The advent of new arts and culture venues within the past decade has greatly enhanced quality of life in Downtown, with the Adrienne Arsht Center, Pérez Art Museum Miami, Frost Science Museum, and ArtMiami earning high praise among companies surveying the market.

Likewise, mixed-use developments such as Brickell City Centre, MiamiCentral and Miami Worldcenter are enhancing Downtown’s stature as a shopping, dining and entertainment destination.

The next chapter in Downtown Miami’s story will be centered on sustaining commercial and residential growth through investments in mobility, walkability and education, ensuring Downtown remains a desirable place to live and work. Projects like The Underline, the Downtown Baywalk and the renovation of Flagler Street will be welcomed additions.

As Miami’s urban core strengthens its appeal as a vibrant neighborhood that is home to a growing number of companies and residents, our Downtown office market is becoming more diverse. The result is a healthier, more resilient local economy.

 

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By Catherine Lackner
October 24, 2017

The glacial pace of Flagler Street’s renovation downtown has built frustration since the project was proposed in 2011. Last week, directors of Miami’s Downtown Development Authority agreed to another delay, this one for three months. Supporters say it’s a good thing.

“The task force is recommending a 90-day pause,” said Brian Alonso, who co-chairs the Flagler Street Task Force with Neisen Kasdin, authority vice chair and office-managing partner of Akerman LLP. “And, based on the history, this was not taken lightly.”

Moishe Mana, who has invested in Wynwood and bought a portfolio of Flagler Street properties, wants to study with his architect, Bernard Zyscovich, a possible incorporation of cobblestones into the driving surface, said Mr. Alonso, a principal in his family’s real estate business.

Mr. Mana will pay for the study, which comes as the project is between contractors. The city fired the first, F.H. Paschen; Lanzo Construction has been chosen to continue the work but isn’t under contract yet. The board didn’t discuss whether Mr. Mana would contribute to the upgrade if the study finds incorporating the pavers is the way to proceed.

Adding cobblestone would probably require drainage changes and add engineering challenges, so reconstruction can’t go forward in tandem with the study, said board and Flagler Task Force member Gary Ressler, a principal of the Tilia family of companies, which owns the historic Alfred I. Dupont Building at 169 E Flagler St.

“90 days?” asked board member Danet Linares, executive vice president of Blanca Commercial Real Estate. “We’ve already lost so much time. And this is coming at the 11th hour.”

Mr. Mana is the street’s largest stakeholder, said Ken Russell, authority chair and Miami commissioner, and it’s appropriate that he weigh in on the project.

Construction began in early 2016, but only one block has been finished. Authority members faulted Miami’s Office of Capital Improvements for not supervising the contractor. Multiple problems at the jobsite have include a maze of underground utilities that didn’t conform to site maps and other unforeseen obstacles.

The project began before Mr. Mana acquired his properties, Mr. Ressler said. “Mana is now the largest property owner on Flagler, and he is passionate about the street’s success.” The street is already shut down and there is usually a construction moratorium in November and December for the holidays, he said.

“It’s a moment in between,” Mr. Zyscovich said. “It’s three months at no cost to the city, to see if this is worth doing, and it’s the last possible moment” to make such a large-scale change before reconstruction resumes.

“Does the city accept?” asked board member Jerome Hollo, vice president of Florida East Coast Realty.

“We don’t object,” said Jeovanny Rodriguez, director of the Capital Improvement Program. “We realize it’s going to take time; there’s a question of the impact on utilities. We can’t do the construction at the same time.”

“It’s a matter of doing it right versus doing it fast,” Mr. Russell said. “I really trust the task force; they’re the stakeholders on the street.” Directors agreed, and unanimously approved the pause.

 

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By Brian Bandell
July 31, 2017

Stearns Weaver Miller, one of South Florida’s largest law firms, will open a new office in the new 2020 Salzedo mixed-use building in Coral Gables.

The firm signed a 3,000-square-foot lease for the penthouse space in the building with developer Codina Partners. Danet Linares of Blanca Commercial Real Estate represented the landlord in the deal.

Stearns Weaver Miller currently has offices in downtown Miami, Fort Launderdale, Tampa and Tallahassee. It ranked No. 9 on the Business Journal’s Law Firms list with 98 South Florida attorneys.

“Armando Codina, executive chairman of Codina Partners, is a rare breed – a visionary who delivers more than he promises,” said Eugene Stearns, board chair and shareholder at Stearns Weaver Miller. “We listened to him more than 30 years ago when he asked us to move our then-small law firm to the other side of town in Museum Tower. Looking back on it that was a pivotal decision in our lives. We have since grown into a successful statewide law firm headquartered in the building Armando built. Now for our second Dade County office, we join Armando on the other side of Coral Gables at 2020 Salzedo.”

Codina Partners and its affiliates CC Homes and CC Residential are also tenants in 2020 Salzedo, which has its 49,379 square feet of office space 95 percent leased. The building also has 213 apartments and 6,882 square feet of retail. Pastry chef Antonio Bachour will open a restaurant and bakery on the ground floor.

“We are proud to help companies establish operations at 2020 Salzedo, a centrally located, luxury property that will enable their next phase of growth,” Linares said.

Stearns Weaver Miller Weissler Alhadeff & Sitterson is the No. 8 law firm in Southeast Florida by number of lawyers and partners, according to the South Florida Business Journal‘s 2017 Book of Lists.

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