MIAMI Y FORT LAUDERDALE: LOS MERCADOS DE OFICINAS MAS BUCADO EN ESTADOS UNIDOS

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Daniella Aragon-Andre
Levy Public Relations

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December 16, 2022

Tras las restricciones y cierres de los dos últimos años, las empresas están regresando de nuevo a las oficinas, dando un nuevo aspecto a los edificios corporativos que antes tenían un perfil “tradicional”, con cubículos, despachos cerrados y salas de reuniones. Este proceso está liderado, en parte, por empresas que fueron a contracorriente de la actividad económica y crecieron en medio de la crisis, como las tecnológicas, las sanitarias y las de asesoramiento financiero, aportando motivación al sector, que cuenta con ello para seguir reduciendo la tasa de desocupación de la industria en todo el país.

Con la decisión de algunas grandes empresas de trasladarse a Miami, submercados como Wynwood se están convirtiendo en nuevos puntos calientes del mercado. Wynwood ha estado atrayendo a clientes de renombre como Spotify, Live Nation, Chase, BlockChain, y más, debido a la fusión de arte y tecnología que está cambiando el paisaje cultural de la zona. Wynwood cerró el segundo trimestre con una media ponderada de 75,51 dólares por pie cuadrado para espacios de clase A y B, lo que supone un aumento del 19,3% interanual.

Para Tomas Sulichin, Presidente de la División Comercial en RelatedISG: “El aumento de la actividad de arrendamiento, la cantidad de empresas de renombre que se han mudado a la ciudad y la oleada de nuevos desarrollos en Miami, mantuvieron el mercado de oficinas robusto y allanaron el camino para un mayor crecimiento, ya que muchas empresas ampliaron sus oficinas y se adaptaron a la “nueva normalidad” y a la demanda de los empleados de espacios de calidad”.

Debido a este gran auge, se han propuesto varios proyectos comerciales para dar cabida a la alta demanda. Entre ellos se encuentran: One Brickell City Centre en Brickell, 700 N. Miami Avenue, el proyecto de Witkoff Group en Downtown Miami, Wynwood Plaza en Wynwood, y The URSA en el Design District.

En la actualización del último reporte del segundo trimestre del 2022 hecho por Blanca Commercial Real Estate, destaca que las principales industrias que buscan espacios de oficinas son las empresas de servicios financieros. Además, la firma ha observado que el mercado de oficinas de Miami sigue mostrando un crecimiento positivo en comparación con otros mercados metropolitanos importantes, debido a las consecuencias económicas de la pandemia.

Dado el continuo atractivo de Miami como destino ideal de oficinas para empresas nacionales e internacionales, también se anunciaron varios desarrollos importantes de oficinas de alta gama, ya que los promotores tratan de captar la demanda y satisfacer las necesidades planteadas por estas empresas. “Durante el año pasado, la calidad se mantuvo al frente de todos los movimientos importantes de oficinas y el aumento de la demanda de nuevos mercados se tradujo en el rendimiento estelar de los nuevos desarrollos de oficinas y el espacio de oficinas de clase A existente de primer nivel”, asegura Tere Blanca, CEO y fundadora de Blanca Commercial Real Estate. “Existe una buena oferta de nuevas oficinas a través de los centros de negocios en evolución de Broward que ha sido bien recibida tanto por los nuevos participantes en el mercado como por las empresas establecidas que buscan entornos de oficinas de calidad que sirvan como una herramienta para reclutar y retener el talento.”

Actividad de arrendamiento:

• Se espera que la actividad de arrendamiento siga siendo fuerte en los próximos trimestres y probablemente supere los resultados de años anteriores.

• Hasta la fecha, la actividad de arrendamiento ha alcanzado un total de 1.95 millones de metros cuadrados, lo que supone un aumento del 39% con respecto al primer semestre de 2021

• La velocidad de arrendamiento se aceleró desde el inicio de 2022, con transacciones completadas por un total de 991,000 metros cuadrados firmados en el segundo trimestre.

• Los nuevos inquilinos del mercado contribuyeron con 168,000 pies cuadrados de actividad de arrendamiento este trimestre y han representado el 15% de la actividad de arrendamiento total en la primera mitad del año.

Tarifas:

• La afluencia de nuevos inquilinos al mercado en todo Miami-Dade, junto con la continua actividad de arrendamiento de la base de inquilinos existentes, ha hecho que los propietarios continúen presionando las tasas, especialmente en los productos de Clase A.

• Con una fuerte actividad de arrendamiento y una nueva oferta controlada, se espera que los precios de los alquileres en toda la región sigan aumentando a medida que el espacio disponible sea más escaso, y que se entregue al mercado un nuevo producto de alta calidad con un pre-arrendamiento sustancial.

• El precio medio ponderado de venta terminó el trimestre en 47.51 $ SF para la Clase A y B combinada en Miami-Dade, un aumento del 2.2% sobre el trimestre anterior, y un aumento del 9.5% desde el segundo trimestre de 2021.

• El aumento fue impulsado en gran medida por los productos de Clase A, donde las tasas de alquiler han aumentado casi un 10% YOY a $ 55.12 por SF.

Por: Andreina Castro

Mayores informes en: www.levypublicrelations.com

Este es un fragmento del artículo de la edición 134 Miami y Fort Lauderdale: los mercados de oficinas más buscado en Estados Unidos  https://inmobiliare.com/inmobiliare-134/ 

*Nota del editor: Las opiniones aquí expresadas son responsabilidad del autor y no necesariamente reflejan la posición de Inmobiliare.

PROMINENT LAW FIRM INCREASE SIZE OF FUTURE FORT LAUDERDALE OFFICE

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Daniella Aragon-Andre
Levy Public Relations

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December 16, 2022

A new Class-A, 387,402-square-foot building in downtown Fort Lauderdale is now 100% leased after two contracts totaling 7,601 square feet recently closed.

One of those lease deals will expand the office footprint in that building of a large Florida law firm that was founded in Miami in 1910.

Shutts & Bowen added 3,670 more square feet to its future office branch in The Main Las Olas at 201 E. Las Olas, increasing the size of its office on the 22nd floor to 14,620 square feet.

The firm originally closed on a deal to occupy 10,950 square feet of office in April, but opted to upsize to ensure a comfortable environment for its attorneys and staff and have enough room for new attorneys and lateral partners who want to join Shutts & Bowen, a spokesman said.

“Shutts continues to be optimistic in South Florida,” Adam Miller, marketing director, stated in an e-mail.

Headquartered in Downtown Miami, Shutts & Bowen employs 300 attorneys in offices throughout Florida. The firm will be moving its Fort Lauderdale branch out of its 15,000-square-foot office of 24 years at 200 E. Broward Blvd. and into The Main Las Olas in March 2023.

Shutts & Bowen was represented by Zach Wendelin and Kevin Probel of CBRE. Danet LinaresTere BlancaChristina Jolley, and Sky Jones of Blanca Commercial Real Estate represented The Main’s landlords, Stiles and Shorenstein Properties LLC.

In addition, Blanca Commercial Real Estate team represented The Main in direct negotiations with Salt Lake City-based Zions Bank (Nasdaq: ZION) for its 3,931 square feet of office. The bank will relocate from a temporary co-working space to The Main Las Olas in the first quarter of 2023, a spokeswoman for Blanca Commercial Real Estate stated.

Finished in July 2021, the 25-story Main Las Olas is a 1.4-million-square foot complex built by Fort Lauderdale-based Stiles and San Francisco-based Shorenstein on 2.7 acres of land leased from Broward College. Besides the 387,000-plus-square-foot office component, Main Las Olas has 341 apartment units, 17,355 square feet of retail, a 2,951-square-foot fitness center, a 3,360-square-foot office lounge and conference center, and an outdoor terrace with a fire pit, bar, and a glass floor oculus with panoramic views of the ground below.

The Main Las Olas has the highest asking rents in Broward County, the Blanca Commercial Real Estate spokeswoman said. As of April its asking rents for office ranged from $48 to $50 a square foot, not counting property assessments, utilities, and other expenses.

Leasing the largest space within The Main Las Olas is RSM US LLP, an audit, tax, and consulting firm. RSM secured the entire top floor of The Main’s office building earlier this year. RSM is due to move into its 16,570-square-foot space in the first quarter of 2023.

Other companies that have leased space within Main Las Olas include JPMC, Marcum, Starr Indemnity, Raymond James, Cherry Bekaert, Synovus Bank, Walker Dunlop, and Starboard Value.

Since the pandemic, local and new-to-market companies have sought quality office space in South Florida, which resulted in higher asking rents and dropping vacancies, brokers have told the Business Journal. Although there is concern that the overall economy may slow the pace of deals, companies continue to move to the region.

LATIN AMERICA HELPS KEEP REAL ESTATE APPETITE STRONG IN MIAMI

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Daniella Aragon-Andre
Levy Public Relations

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December 16, 2022

Miami, Dec 16 (EFE).- Inflation and rising interest rates will affect the South Florida real estate market in 2023, but it will still remain strong thanks in part to foreign buyers, mainly from Latin America, which in 2022 were number one, according to specialists consulted by EFE.

“The general rise in prices, a lower flow of money and mortgages at 6.5% slow down the real estate boom that took place during the pandemic a bit, but the sector “will continue to be strong in 2023 and many people in the US, Latin America and Europe will want to keep coming,” Jennifer Wollmann, from the real estate firm Berkshier Hathaway, from EWR Realty, told Efe on Friday.

Housing inventory in South Florida remains tight, but the rise in prices for single-family homes, townhouses, and condominiums (apartments) is slowing.

“It’s not that prices go down, but that they level out,” Wollmann said, in part because “offers” for home purchases have loosened, that is, “if before there were 10 offers at the same time to get hold of the same house, now there are 2 or 3”, he clarified.

SOUTH FLORIDA WILL CONTINUE TO BE A REAL ESTATE HOT SPOT

“But the market is not going to stop. People continue to buy, “especially in the luxury real estate sector (from $1 million), where interest rates don’t matter because they pay in cash, without asking for a mortgage,” he said.

In addition, he adds, the wave of populist left-wing governments in Latin America and the crisis and instability in the region continue to encourage the outflow of capital and investment in South Florida.

In its report on foreign buyers in 2022, the Association of Realtors of Miami highlights that they bought residential properties worth 6.8 billion dollars, 34% more than in 2021 (5.1 billion).

Argentines, with 16% of purchases made by foreigners, Colombians (13%), Peruvians (8%), equal to Canadians), Venezuelans, Mexicans, Chileans and Brazilians (6% each) and French and Italians ( 3% each), were the biggest buyers this year.

For Stephen Bittel, general manager of the Terranova Corporation agency, the year 2023 “will be the story of two cities: Miami and Austin (Texas)”, cities that will continue to surpass the nation, while New York, Chicago and San Francisco will continue to suffer exodus of population and companies.

Not unique to South Florida in the US, the influx of new residents to this region is putting increasing pressure on affordable housing.

“In order to solve this serious problem, effective solutions and manpower are needed,” something that “represents an opportunity for the public and private sectors to work together,” said Tere Blanca, founder of Blanca Commercial Real Estate.

Blanca, like Bittel, warned of a possible “recession for next year”, with a “construction stoppage” due to the rise in interest rates and “increased construction costs”.

In a probable scenario for 2023, experts agree that buyers and sellers will find a “more stable market” with “better financing conditions and a slight increase in inventory” of housing.

While Wollmann cited Miami, Palm Beach and Broward, as well as Orlando and Tampa, as the areas of South Florida that most appeal to buyers, Tomas Sulichin, president of the Commercial Division of Related ISG Realty, noted that the North Miami, Hallandale Beach, Hollywood and Little Havana “will be in the spotlight as the major metropolises become overcrowded.”

Craig Studnicky, CEO of the firm ISG World, finds it unlikely that the recession will affect the real estate sector in South Florida in 2023, which is driven by “the constant influx of new residents” and companies.

INFLUX OF THOUSANDS OF NEW RESIDENTS TO SOUTH FLORIDA

In 2021, 122 companies moved their headquarters to Miami or opened offices in this coastal city, resulting in the arrival of thousands of new residents looking for housing, “a trend that is likely to continue in 2023,” Studnicky said.

Experts agree that the market is showing no signs of cooling off, despite rising mortgage rates. Home prices aren’t going down, especially since the population in South Florida continues to grow so fast and fast.

In the opinion of Michael Taylor, president of the construction company Current Builders, Florida “will continue to be a real estate hot spot” in 2023, with a sector that “has been booming since the pandemic” and that “will not experience a slowdown” at the rate of other US states

“High demand continues, as does the influx of new residents” to the state of Florida, “the opposite of what is happening nationally,” Taylor said.

HOW MARKETING MIAMI HAS BEEN KEY TO THE CITY’S BOOMING OFFICE SECTOR

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Daniella Aragon-Andre
Levy Public Relations

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The numbers show it has indeed been a historic time for Florida’s second-biggest city. Starting office rents for the Miami office market and Fort Lauderdale rose 17.7 percent between 2019 and the second quarter of 2022, according to data from CompStak. Of the deals tracked, more than 25 percent of the tenants inking deals in the region between the second quarter of 2020 and the second quarter of 2022 have come from the FIRE sector, an acronym for the finance, insurance, and real estate sectors. In addition to Blackstone, other major firms like Citadel, Goldman Sachs, and Microsoft have chosen to grow their presence in Miami, drawn by the promise of warmer weather, lower costs of living, and increasingly, talent that has relocated to the Sunshine State. This mass migration trend has been championed by the city’s leadership, especially Mayor Francis Suarez, who has made it his mission to market Miami as a better alternative for companies in traditional business hubs around the country.

Magic City

While Florida has always been a haven for retirees, tourists, and as a seasonal getaway for the wealthy, the recent migration to the state has been steadily rising. According to 2020 Census data, Florida is one of the fastest-growing states in the country in terms of population growth, adding 2.7 million residents between 2010 and 2020. On a city level, Miami’s recent growth spurt has been big news, but it does follow historical trends. Miami’s nickname, “Magic City,” derives from the city’s exponential population growth from just 5,000 in the early 1900s to more than 440,000 in 2020. However, that figure accounts for residents in Miami’s city limits. By incorporating the entire metropolitan area, the figure expands to 6.2 million.

Over the last 2 years, when the pandemic led people to flee places like New York City, once the epicenter of the coronavirus outbreak, many chose Miami. Mayor Suarez, who was first elected to office in 2017 and was reelected last fall, said in his victory speech in 2021 that he would “finish what we started,” pointing to his priorities of low taxes, courting the private sector, growing the city’s tech and finance sectors, and being “the capital of capital.” Several months later, a steady stream of companies have been moving their headquarters or opening and expanding their offices in the Miami area. Of the new leases signed in the city’s office market, 45 percent are from tenants new to the market, according to a report from the Miami Downtown Development Authority.

Eric Groffman, an Executive Vice President at CBRE’s Miami office, said there have been two distinct phases of companies migrating to Miami: in early 2021, when there was an initial wave of leasing deals with financial firms and venture capital firms; and the last 6 months up until now, where there has been a new wave of deals from many professional service firms, particularly law firms. Several big name firms including Sidley Austin, Kirkland & Ellis, and Reed Smith recently signed deals for major expansions of their office footprint. Groffman, who heads up a leasing team at CBRE that represents landlords, said he anticipates the next phase of companies that will make the move to Miami will take even larger footprints than they are seeing now.

“We think what’s coming are these bigger users and that’s why a lot of professional servicers are setting up for clients to be here in the near future,” Groffman said, pointing to Citadel’s lease at the under construction office tower 830 Brickell, where the firm will establish its new headquarters. His team is seeing more leases in the 50,000 to 100,000-square-foot range, a big change for a market where lease sypically average between 5,000 and 7,000 square feet. “I think other groups of similar size and scale will be moving to the market shortly,” he said.

Commercial real estate firms have taken notice of the Miami migration and started looking at deals. In April, New York City real estate magnate Harry Macklowe made his first buy in Miami when he acquired a development site for $31.9 million located next to Dadeland Mall. His firm has plans to build twin apartment towers at the site. Meanwhile, fellow New York-based firm Related Companies has been trying to build a residential and hotel complex at the site of the historic Deauville Beach Resort in Miami Beach. That project was approved by a city commission and will go to voters in November. Office development is picking up steam too, with more than 1.5 million square feet of office space currently under construction, according to an Avison Young report. That’s good news for Miami, which hasn’t been immune to the flight-to-quality trend. “We don’t have a huge amount of new product readily available,” Blanca said.

And as the city’s population grows, so has the demand for rental housing. In terms of rent growth, Miami recently ranked second in the country, according to a report from Apartments.com. “Every developer I know that has built and owns multifamily says their projects are full and whatever is delivered gets rented very quickly,” Blanca told me. In the second quarter of this year, the vacancy rate in Miami’s multifamily market was 1.2 percent, the lowest figure of all major markets in the US, according to Marcus & Millichap. Meanwhile, by the end of the year, 8,700 apartment units are expected to be completed in Miami’s metro area. While most of the projects coming online are luxury rentals, there are public-private partnerships underway to create more middle-income and workforce housing.

The right recipe

 

Miami has long been a top tourist destination for both domestic and international travelers. The city has the busiest cruise port in the world and is known for its vibrant nightlife and art scene. What it hasn’t historically been known for is being a tech hub, but that has started to change since late last year, when a tweet from the city’s mayor kicked off a movement of tech firms from Silicon Valley to Miami. And it’s not just the tech world and cryptocurrency that Suarez has been courting—-Miami’s mayor has been selling his city as a business-friendly utopia that has all the benefits of a big city without the higher taxes, crime, and regulation that he believes other major cities are struggling with. In an op-ed for the Wall Street Journal last month, Suarez said people are moving to Miami en masse to avoid what he calls “the socialist model” of other big cities like New York and San Francisco to adopt “the Miami model” philosophy.

Suarez’s message has clearly resonated with many people around the country, and some firms too. Citadel’s leader Ken Griffin announced he was moving his company’s headquarters from Chicago to Miami in June, months after he began raising concerns over crime rates in Chicago. In a letter to

employees announcing the move, Griffin didn’t mention crime as one of the factors leading to the relocation, but he did praise Miami’s corporate environment. “Our recipe for success is quite simple,” Suarez told Fox Business host Maria Bartiromo in a TV interview last month. “We basically keep taxes low, we keep people safe, and we lean into innovation.” He went on to say that Miami has a budget surplus of $145 million, has low unemployment, and is on track to have the lowest homicide rate since the 1930s. Suarez is a Republican, though in Miami, the office of Mayor is a non-partisan position. The city leader was reelected in a landslide last year and has become popular on a national level as well, with reports indicating he’s considering a presidential run. However, he has also taken criticism for not paying enough attention to local issues and controversy over the hiring and firing of the city’s former police chief.

While interest in Miami from corporate firms seems to be at an all-time high, there are notable hurdles that the city and development community are facing, like housing. The multifamily market is experiencing super low vacancy and rapidly rising rents, and while that’s good for the real estate industry, the higher rent burden has led residents to look outside the city limits for better deals. As a result, Miami’s population dropped by more than 30,000 residents between July 2020 and July 2021. There’s also the ever-present threat of hurricanes to the coastal city. Miami is one of the most vulnerable cities in the country when it comes to hurricanes, and recent reports have shown that the risk from storm surge and flooding will get worse over time. And while Suarez and other Florida officials have touted the ongoing migration of businesses and people to the Sunshine State, there have been reports that some people are moving back to cities they left during the pandemic.

Other cities looking to bring in more businesses and grow office districts may not take the same strategy as Suarez, especially given his message’s political bent, but what officials and the real estate industry can take from it is the role marketing and messaging can play in driving the conversation about a city, and what leads companies to act. Miami already had a lot going for it and a solid office market to begin with, and with Suarez’s appeal to businesses looking for a friendlier climate, it is gaining larger occupiers and growing rapidly. The city will have to contend with rapid increases in housing costs and the existential threat of hurricanes to its coastline going forward. Whether the office market eventually plateaus is something the industry is watching, but for now at least, the city and its commercial real estate industry are enjoying the spotlight.

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.

BLANCA COMMERCIAL REAL ESTATE LISTS AUSTIN BARKE FOR OVER $9 MILLION

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Daniella Aragon-Andre
Levy Public Relations

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Blanca Commercial Real Estate has been selected as the exclusive firm for the sale of the iconic Austin Burke Building in Miami’s Wynwood neighborhood. The property at 2601 NW 6th Ave. was built in 1967 and is listed for sale at $9.1 million. This 11,423 square foot building near I-95 is zoned “D-1,” which permits the development of up to a ten-story building. Blanca Commercial Real Estate exclusively represents the seller, Austin Burke, a longtime designer menswear clothing company.

“We are thrilled to bring to market the iconic Austin Burke building in the heart of Wynwood,” Cary Cohen says, Executive Vice President of Blanca Commercial Real Estate, a full-service commercial real estate firm in South Florida. “This Miami landmark has served as the headquarters for the preeminent men’s clothier for countless decades. The desire to modernize their establishment along with capitalizing on the exponential growth of South Florida real estate has led ownership on this path as they continue to expand its business. This sale will mark a new beginning for Austin Burke, the site, and contribute to the neighborhood’s landscape.”

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.

LEASE ROUNDUP: NUVEEN, ALLIANZ INK 6 NEW TENATS AT WATERFORD BIZ DISTRICT

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Daniella Aragon-Andre
Levy Public Relations

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August 15, 2022 09:45 AM

The numbers show it has indeed been a historic time for Florida’s second-biggest city. Starting office rents for the Miami office market and Fort Lauderdale rose 17.7 percent between 2019 and the second quarter of 2022, according to data from CompStak. Of the deals tracked, more than 25 percent of the tenants inking deals in the region between the second quarter of 2020 and the second quarter of 2022 have come from the FIRE sector, an acronym for the finance, insurance, and real estate sectors. In addition to Blackstone, other major firms like Citadel, Goldman Sachs, and Microsoft have chosen to grow their presence in Miami, drawn by the promise of warmer weather, lower costs of living, and increasingly, talent that has relocated to the Sunshine State. This mass migration trend has been championed by the city’s leadership, especially Mayor Francis Suarez, who has made it his mission to market Miami as a better alternative for companies in traditional business hubs around the country.

Magic City

While Florida has always been a haven for retirees, tourists, and as a seasonal getaway for the wealthy, the recent migration to the state has been steadily rising. According to 2020 Census data, Florida is one of the fastest-growing states in the country in terms of population growth, adding 2.7 million residents between 2010 and 2020. On a city level, Miami’s recent growth spurt has been big news, but it does follow historical trends. Miami’s nickname, “Magic City,” derives from the city’s exponential population growth from just 5,000 in the early 1900s to more than 440,000 in 2020. However, that figure accounts for residents in Miami’s city limits. By incorporating the entire metropolitan area, the figure expands to 6.2 million.

Over the last 2 years, when the pandemic led people to flee places like New York City, once the epicenter of the coronavirus outbreak, many chose Miami. Mayor Suarez, who was first elected to office in 2017 and was reelected last fall, said in his victory speech in 2021 that he would “finish what we started,” pointing to his priorities of low taxes, courting the private sector, growing the city’s tech and finance sectors, and being “the capital of capital.” Several months later, a steady stream of companies have been moving their headquarters or opening and expanding their offices in the Miami area. Of the new leases signed in the city’s office market, 45 percent are from tenants new to the market, according to a report from the Miami Downtown Development Authority.

Eric Groffman, an Executive Vice President at CBRE’s Miami office, said there have been two distinct phases of companies migrating to Miami: in early 2021, when there was an initial wave of leasing deals with financial firms and venture capital firms; and the last 6 months up until now, where there has been a new wave of deals from many professional service firms, particularly law firms. Several big name firms including Sidley Austin, Kirkland & Ellis, and Reed Smith recently signed deals for major expansions of their office footprint. Groffman, who heads up a leasing team at CBRE that represents landlords, said he anticipates the next phase of companies that will make the move to Miami will take even larger footprints than they are seeing now.

“We think what’s coming are these bigger users and that’s why a lot of professional servicers are setting up for clients to be here in the near future,” Groffman said, pointing to Citadel’s lease at the under construction office tower 830 Brickell, where the firm will establish its new headquarters. His team is seeing more leases in the 50,000 to 100,000-square-foot range, a big change for a market where lease sypically average between 5,000 and 7,000 square feet. “I think other groups of similar size and scale will be moving to the market shortly,” he said.

Commercial real estate firms have taken notice of the Miami migration and started looking at deals. In April, New York City real estate magnate Harry Macklowe made his first buy in Miami when he acquired a development site for $31.9 million located next to Dadeland Mall. His firm has plans to build twin apartment towers at the site. Meanwhile, fellow New York-based firm Related Companies has been trying to build a residential and hotel complex at the site of the historic Deauville Beach Resort in Miami Beach. That project was approved by a city commission and will go to voters in November. Office development is picking up steam too, with more than 1.5 million square feet of office space currently under construction, according to an Avison Young report. That’s good news for Miami, which hasn’t been immune to the flight-to-quality trend. “We don’t have a huge amount of new product readily available,” Blanca said.

And as the city’s population grows, so has the demand for rental housing. In terms of rent growth, Miami recently ranked second in the country, according to a report from Apartments.com. “Every developer I know that has built and owns multifamily says their projects are full and whatever is delivered gets rented very quickly,” Blanca told me. In the second quarter of this year, the vacancy rate in Miami’s multifamily market was 1.2 percent, the lowest figure of all major markets in the US, according to Marcus & Millichap. Meanwhile, by the end of the year, 8,700 apartment units are expected to be completed in Miami’s metro area. While most of the projects coming online are luxury rentals, there are public-private partnerships underway to create more middle-income and workforce housing.

The right recipe

 

Miami has long been a top tourist destination for both domestic and international travelers. The city has the busiest cruise port in the world and is known for its vibrant nightlife and art scene. What it hasn’t historically been known for is being a tech hub, but that has started to change since late last year, when a tweet from the city’s mayor kicked off a movement of tech firms from Silicon Valley to Miami. And it’s not just the tech world and cryptocurrency that Suarez has been courting—-Miami’s mayor has been selling his city as a business-friendly utopia that has all the benefits of a big city without the higher taxes, crime, and regulation that he believes other major cities are struggling with. In an op-ed for the Wall Street Journal last month, Suarez said people are moving to Miami en masse to avoid what he calls “the socialist model” of other big cities like New York and San Francisco to adopt “the Miami model” philosophy.

Suarez’s message has clearly resonated with many people around the country, and some firms too. Citadel’s leader Ken Griffin announced he was moving his company’s headquarters from Chicago to Miami in June, months after he began raising concerns over crime rates in Chicago. In a letter to

employees announcing the move, Griffin didn’t mention crime as one of the factors leading to the relocation, but he did praise Miami’s corporate environment. “Our recipe for success is quite simple,” Suarez told Fox Business host Maria Bartiromo in a TV interview last month. “We basically keep taxes low, we keep people safe, and we lean into innovation.” He went on to say that Miami has a budget surplus of $145 million, has low unemployment, and is on track to have the lowest homicide rate since the 1930s. Suarez is a Republican, though in Miami, the office of Mayor is a non-partisan position. The city leader was reelected in a landslide last year and has become popular on a national level as well, with reports indicating he’s considering a presidential run. However, he has also taken criticism for not paying enough attention to local issues and controversy over the hiring and firing of the city’s former police chief.

While interest in Miami from corporate firms seems to be at an all-time high, there are notable hurdles that the city and development community are facing, like housing. The multifamily market is experiencing super low vacancy and rapidly rising rents, and while that’s good for the real estate industry, the higher rent burden has led residents to look outside the city limits for better deals. As a result, Miami’s population dropped by more than 30,000 residents between July 2020 and July 2021. There’s also the ever-present threat of hurricanes to the coastal city. Miami is one of the most vulnerable cities in the country when it comes to hurricanes, and recent reports have shown that the risk from storm surge and flooding will get worse over time. And while Suarez and other Florida officials have touted the ongoing migration of businesses and people to the Sunshine State, there have been reports that some people are moving back to cities they left during the pandemic.

Other cities looking to bring in more businesses and grow office districts may not take the same strategy as Suarez, especially given his message’s political bent, but what officials and the real estate industry can take from it is the role marketing and messaging can play in driving the conversation about a city, and what leads companies to act. Miami already had a lot going for it and a solid office market to begin with, and with Suarez’s appeal to businesses looking for a friendlier climate, it is gaining larger occupiers and growing rapidly. The city will have to contend with rapid increases in housing costs and the existential threat of hurricanes to its coastline going forward. Whether the office market eventually plateaus is something the industry is watching, but for now at least, the city and its commercial real estate industry are enjoying the spotlight.

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.

PAY IT FORWARD: “BE ACTIVE IN THE MOMENT BUT PATIENT WITH THE RESULTS”

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Daniella Aragon-Andre
Levy Public Relations

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MIAMI – March 31, 2022 –What has been the biggest challenge in your particular role and how have you overcome those obstacles? My passion has always been to create and support the implementation of winning strategies for our clients. To accomplish this, my focus has been to build a team of top industry professionals that share my values, that care and are passionate about achieving success for our clients. Early on after launching the firm the operations of the business required more of my time than I enjoyed. I therefore had to focus on building a C-Suite of top talent in their respective areas of expertise Most recently, we have expanded our C-suite, brokerage team, and in-house marketing and research teams with top talent. We have also invested in the latest technologies that allow us to provide strategic insight to our clients, streamlined our operations, and set new standards in the market. These initiatives have allowed me to focus on client relationships and service, strategies to drive value for our clients, our overall company vision and lastly but not least, supporting negotiations and successful execution of deals.

What about your current role/position at the company are you most happy with? I am most happy working closely with our clients and our team creating and helping implement strategies that result in terrific outcomes for our clients. I also enjoy and feel grateful for having the privilege of helping unlock the full potential of my colleagues.

What is the best piece of advice you have received that has helped you succeed in your industry? It is all about how you show up, not only for your team and your clients but also for yourself. Being present, doing things with integrity and having good intentions goes a long way regardless of the industry you are in. A friend recently shared a post about the difference between passive and active patience. I encourage future leaders to embrace active patience which demands action and intention, even while waiting for results. Take time to build the skills you need to put yourself in the best position to succeed. There is almost always an action you can take to improve the odds. Be active in the moment but patient with the results. Think about this as you accelerate in your career, whether you are part of a team or building one.

How would you advise someone to succeed in the industry? It is an exciting time to be in the CRE industry, specifically in South Florida. I encourage young professionals to actively learn about all aspects of CRE. Having the flexibility to collaborate with different team members on a diverse array of projects will allow you to learn different perspectives and help you align yourself with areas you feel you can excel in. Build relationships with mentors in and out of the CRE industry. Put in the work and stay focused. Be curious, ask questions, set goals, hold yourself accountable, be proactive to participate and contribute. When you start succeeding, give back, pay it forward and know and stay true to your priorities.

Please share an initiative that you are working on that you are most proud of. I am very proud and passionate about the track record of success we have built since launching the firm in 2009. Today, I am excited about our investment in technology and unique platforms that will change how we capture data, provide real-time insight, and provide our clients unique foresight on market dynamics and opportunities.

In your opinion, what takeaways did we learn from the COVID-19 crisis? Communication is key. There is no such thing as over-communicating with your team, your clients, or your counterparts. Being flexible and nimble will set you apart especially in times of crisis and your ability to adapt and find solutions to unique situations will be valued. Embracing technology and new systems is a must.

What three terms would you use to describe your work mindset? Be present, mindful, and curious. Show up with enthusiasm and lead by example. A “no” will only get you closer to a “YES”. Stay focused, persistent and you will make it happen.

Where would you say commercial real estate needs to improve for women? We need to continue to cultivate the next generation of CRE women leaders by investing time in mentoring, supporting, networking, and expanding your team with young women who are eager to succeed within the industry.

How can women better position themselves for success both in general and in your specific area of focus? Focus on education and building relationships with mentors and sponsors from whom you can learn and who can guide you to the right opportunities. Put in the work and always expand your knowledge within your field. Lastly, know your worth and value what you bring to the table: Ask for the business, take on more responsibility, ask for the raise.

What, in particular, can women bring to the table as the industry continues to grapple and come out of the COVID-19 crisis? Their ability to lead with a commitment to building collaborative teams and executing on strategies that successfully create inclusiveness and diversity. Today, showing you value and genuinely care about your team and clients is a differentiator.

 

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.

MORE THAN HALF OF WORKERS BACK TO THE OFFICE IN DOWNTOWN FORT LAUDERDALE: REPORT

MEDIA CONTACT:

Lidia Dinkova
The Real Deal

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MIAMI – January 21, 2022 – Downtown Fort Lauderdale’s return to the office is outpacing that of major markets such as New York, San Francisco and Austin, as well as the national average, a new report shows.

From 50 percent to 55 percent of workers were back to working in the office in February in downtown Fort Lauderdale, a 10 percentage point increase compared with summer 2021, according to the report from the Fort Lauderdale Downtown Development Authority.

“I think what we are seeing is employees are eager to break the routine from the past two years from the pandemic,” said Matthew Schnur, research and innovation manager at the DDA.

The strong return to the office is partly rooted in the population influx to downtown, a “critical mass” that has fueled more retail and restaurant openings, he said. Dining and shopping options are vital to creating a vibrant downtown to draw workers, and office amenities such as gyms and rooftop bars are pivotal in prompting a return of employees, Schnur said.

The DDA study is based on estimates provided by office property managers and traffic in the garages, and compares to findings by nationwide Class A office building security provider Kastle Systems, whose “Back to Work Barometer” tracks occupancy in 10 U.S. metro areas.

Kastle Systems, which uses card swipe data for its estimates, does not track the Miami-Fort Lauderdale metro area. But it shows that almost 31 percent of New York workers were back to the office as of February, almost 25 percent in San Francisco, 50 percent in Houston and almost 52 percent in Austin. The national average of return to the office was 36.4 percent, according to Kastle Systems.

The DDA study focused exclusively on Class A office buildings from East Broward Boulevard south to the New River, and from South Federal Highway east roughly to Andrews Avenue, Schnur said.

Included in this area is the 25-story office tower that is part of The Main Las Olas, completed in 2020. It is part of the larger, 1.4 million-square-foot mixed-use development that spans a full city block and includes the Novo Las Olas apartment tower and retail. A partnership of Stiles and Shorenstein Properties developed the complex.

The Main office tower is 93 percent leased, with tenants including Synovus bank, which took 19,985 square feet, and audit and tax consulting firm RSM, which took 16,570 square feet, according to a news release.

Danet Linares of Blanca Commercial Real Estate is the leasing agent for the office building’s landlord.

The amenities at the tower, at 201 East Las Olas Boulevard, such as the gym, conference center and tenant lounge are playing a role in tenant demand, said Christina Stine Jolley, also of Blanca Commercial.

The tech company influx to South Florida largely has concentrated on Miami’s Wynwood, although the demand from these companies could start creeping north to downtown Fort Lauderdale. 

“Historically the downtown Fort Lauderdale office market has been driven by financial and legal service firms,” Stine Jolley said. “We have seen an influx of new-to-market firms in the last year or so, and that has included some tech [firms] and it also has included some real estate, legal, financial services, insurance” companies.

The direct vacancy rate across downtown Fort Lauderdale decreased to 18.7 percent in the fourth quarter of 2021, down by roughly 5 percent from the third quarter, said Stine Jolley, citing Blanca Commercial data.

“I think it speaks to the continued urbanization of downtown Fort Lauderdale. Just since the pandemic alone, we have seen over 275-plus residential move-ins every month,” she said. “People, they want to live and work here.… It’s something we are projecting is only going to increase and have greater velocity, frankly, over the next few years. “

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.

VENDEN CENTRO COMERCIAL HIDDEN LAKE POR $26M

MEDIA CONTACT:

Leonardo Morales
lmorales@diariolasamericas.com

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MIAMI – January 25, 2022 – Shoppes at Hidden Lake cuenta con espacios comerciales y para oficinas en dos plantas en la 127th Avenida del suroeste y la 128th St, en Kendall

“Esta oferta presentó a los inversores la oportunidad de adquirir un centro comercial recién construido y estable, con potencial de crecimiento”, dijo Cary Cohen, vicepresidente ejecutivo de Blanca Commercial Real Estate, la firma que gestionó la venta.

“El interés mundial por los activos inmobiliarios comerciales del sur de Florida siempre ha sido importante. Sin embargo, esta época de pandemia ha traído una cantidad sin precedentes de interés de los compradores nacionales que buscan colocar el capital en toda la región del sur de la Florida”, argumentó Cohen.

Blanca CRE es una de las principales empresas de servicios inmobiliarios comerciales de propiedad independiente en el sur de Florida y servicios de asesoramiento a los propietarios y usuarios de bienes raíces comerciales. Para más información, puede visitar www.blancacre.com.

Shoppes at Hidden Lake cuenta con espacios comerciales y para oficinas en la segunda planta, se encuentra rentado en un 96% de su capacidad y abarca un área de 62.744 pies cuadrados distribuidos en dos edificios. La propiedad se encuentra ubicada en la esquina de la 127th Avenida del suroeste y la 128th St, Kendall.

La propiedad también ofrece una gran proximidad a las zonas residenciales, incluyendo Country Walk, los cruces, Deerwood y los Hammocks, y está a pocos minutos del Aeropuerto Ejecutivo de Miami, con accesibilidad a los principales sistemas de transporte.

Desde su creación en 2009, Blanca CRE sigue destacándose por ofrecer un valor distintivo al cliente a través de un enfoque personalizado, una metodología única, una visión basada en estadísticas, amplia red y un profundo compromiso con la comunidad.

Las áreas de práctica incluyen la representación de los propietarios, la gestión de la propiedad, la consultoría de desarrollo, la representación de los inquilinos, los servicios de la comunidad de inquilinos, asesoramiento de construcción y la adquisición y disponibilidad de la propiedad de la tierra e inversiones.

Los informes trimestrales de mercado de Blanca son considerados como la referencia para muchos profesionales del sector inmobiliario. El esperado informe de mercado del cuarto trimestre del 2021 se publicará a finales de enero de 2022. Para más información, visite www.blancacre.com.

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.

ADRIAN BUILDERS SELLS MIAMI-DADE RETAIL CENTER FOR $26M

MEDIA CONTACT:

Brian Bandell

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MIAMI – January 21, 2022 – An affiliate of Miami-based Adrian Builders sold a retail center in the Tamiami neighborhood of southern Miami-Dade County for $26 million. The Shoppes at Hidden Lake LLLP, managed by Alvaro L. Adrian of Adrian Builders, sold the 81,680-square-foot property at 12700 and 12750 S.W. 128th St. The buyers were Palms Petroleum LLC, Palmetto Eastar Energy Petroleum LLC, Westar SC Holdings LLC, Palmetto Westar Energy Petroleum LLC, Southpoint Petroleum LLC and 27-141 Petroleum LLC, all managed by Tomas Pequeno in Miami. Cary Cohen of Blanca Commercial Real Estate represented the seller in the deal. The six LLCs each sold separate gas stations in Miami-Dade two weeks ago to Wilmington Delaware-based Trinity Petro. It appears they reinvested the proceeds of those sales into this retail center.

The price for this deal equated to $318 a square foot, showing there is still demand for retail property in Miami-Dade, as it holds up relatively well against competition from e-commerce. The shopping center’s tenants are mostly local businesses, including a barber shop, coffee bar, tobacco shop, sports bar and medical center. Cohen said the property is 96% leased. “This offering presented investors the rare opportunity to acquire an immaculate, newly constructed stabilized shopping center with upside potential,” Cohen said. “Assets like Hidden Lakes are highly sought after. We were able to close within 45 days of listing it.” The two-story project was built on the 4.26-acre site in 2018 and 2020.

About Blanca Commercial Real Estate

Blanca Commercial Real Estate, the leading independently owned commercial real estate brokerage firm in Florida, provides a complete range of brokerage and advisory services to owners and users of commercial real estate. Established in 2009, the firm is noted for delivering distinct client value through a personalized approach, unique methodology, data-driven insight, vast network and deep community engagement. Practice areas include landlord representation, property management, development consulting, tenant representation, tenant community services, build-to-suit advisory services, and land/investment property acquisition and disposition. For more information, visit www.blancacre.com.