South Florida Office Space

[brickell]

So when are we going to start seeing those anouncements for new office buildings? I wouldn't be suprised to see some of the current proposals converted to office. Met2, Icon Brickell and the Freedom Tower project would seem ideal to have some or all of their space be office.


http://www.bizjournals.com/southflor...04/story8.html


Tightening office space to benefit landlords
Susan Stabley

Fort Lauderdale's office market leapfrogged 10 spots to No. 1 in Marcus & Millichap's 2005 National Office Index, displacing Washington, D.C.

Miami ranked seventh, up seven places, while West Palm Beach moved up two slots to 10th place.

The limited amount of new office construction helped propel all three South Florida markets into Marcus & Millichap's top 10.

Fort Lauderdale rose above areas like Orange County and Manhattan and had the second highest forecast revenue growth of all 42 markets considered.

Net absorption of office space in Fort Lauderdale should hit its highest level since 2000 this year, according to the annual report, and more than 9,000 jobs that require offices are expected to be created.

Job growth also pushed the West Palm Beach market into the top 10, with about 6,300 positions in the office sector predicted. In Miami, 8,000 new office jobs have been forecast.

Already, South Florida's tightening office market has tilted the advantage to landlords.

"I think we have a situation in Miami we have not had in quite some time," said Tere Blanca, Cushman & Wakefield's senior managing director and branch manager for South Florida. "Short of any major event or financial market crisis, it's going to be, very soon, a very favorable landlord market."

Rents will likely increase by 50 cents a square foot across the board in Miami's central business district and as much as $1 a square foot in Coral Gables, where the office market is "very tight," she said.

Any concessions that still exist will evaporate and companies who require larger spaces will likely push out smaller tenants, she said.

"All these towers will have to juggle," said Blanca, who added that smaller tenants without renewal options in place might have a hard time securing a spot.

Blanca said to expect a developer to propose a spec building soon.

"We're at the doorstep of another real estate boom," said Greg Katz, executive VP for Fort Lauderdale-based Studley, a national commercial real estate firm specializing in tenant representation. "The condo market has to be saturated."

The skyline in urban areas across the three South Florida counties has been littered with cranes working on mostly residential and mixed-used development. Properties once marked for offices have been used for condos, keeping supply low.

And while it has helped South Florida take three places in Marcus & Millichap's office report, it may also make it very hard for developers to launch office towers in downtown areas.

Consider: Miami-based Rilea Group plans to build a 32-story, 500,000-square-foot office building at 1450 Brickell Ave., but it won't be ready until 2008. No office towers are under construction in the city's financial corridor or in downtown.

Rilea Group President and CEO Alan Ojeda said the only reason he's able to build office is because he locked in a contract before construction costs skyrocketed and closed on the land for about $95 a square foot. Today, land prices in the Brickell area have quintupled.

"I bought cheap," he said. "It is very difficult to pay $500 a square foot and be able to build an office building. What kind of rents would I have to charge?"

[Whiteeclipse]

Yes miami needs a office boom, what are we waiting for?

[dave8721]

Well Rilea said in the article that they dont see how anyone else will be able to bulid an office buliding. The land and materials are just too expensive considering what they can charge in rent. It would have to be mixed use or maybe 1 tower out of a 3 tower development or something. Or maybe a highrise office condo? Just a thought...

[streetscapeer]

True...I wonder if the same holds true for the CBD or maybe uptown....maybe will see more office construction in those areas, (even overtown or parkwest)

[streetscapeer]

thanks for the article....good read

[Whiteeclipse]

yes great idea, we need to start office development in overtown or parkwest

[MIAballinboi]

great we need an office boom, then hello 1000 footer

[The Mad Hatter!!]

office boom won't happen just yet 2 thing need to happen before, vacancy rates need to lower 2 percent more to 12%,and construction cost must decrease below $30 and an increase in rent could help.

if this happens the probable place for an office boom would be parkwest-and uptown because of cheaper land,zoning laws, andlack of office space in this area.

[Whiteeclipse]

I just hope in the future small companies won't go out of business just because they can't afford office space, since there won't be alot of office space in future and I'm sure the demand will be high and when theres high demand and not alot of supply then the rent will go up.

[nimbyhater]

really do think there will be an office boom in park west relatively soon

is a high rise office condo tower feasible? if it is, that would be a great way to get some big towers in miami...

[The Mad Hatter!!]

anyone notice how big royal caribbean and carnivals office buildings out on the islands they're huge they're like 10 stories high and 2 blocks wide.man i wish they had the own big skyscrapers in downtown

[Whiteeclipse]

2 weeks ago, I was watching the business channel (I think it was CNBC), they were talking about office condos and that they are very popular in Miami right now.

so maybe couple of developers are planning projects.

[dave8721]

Office condos are popular in Doral right now but they are all of the 5-6 story office park variety. Land and there for building costs are just soo much cheaper out there. I don't think an office condo has been done on a large scale yet. Is the Latitute office building an office condo?

[The Mad Hatter!!]

latitude one is office condo and sma should be also,and i believe riverfront will have 2 office condo blgd.

man gables is kicking our butts they're getting a new hq every month and a new office bldg proposed every other month.they're rents fees and land value make them easier to build there

[jdnn]

I hear that the largest concentration of offices in Metro Miami is actually Airport West (I'm not sure if this includes Doral). But from what I've heard, they've got more office space than even downtown Miami. But downtown Miami's office space is more of a prime spot.