NCL will keep headquarters in South Florida
South Florida Business Journal - August 18, 2006by Darcie Lunsford
Despite concerns following Hurricane Wilma, Norwegian Cruise Line's parent company will not be sailing away from South Florida.
Instead, it appears as if the 1,200-employee firm, now based near Miami International Airport, is scouting for a local spot to anchor a new 200,000-square-foot headquarters, according to real estate sources familiar with the project.
Some of these approved office towers say there waiting for a major tenant before starting construction, well Merry X-mas. I would love to see some of these big companys headquarters like NCL move into downtown. Imagine if Downtown had NCL, Royal Carribbean, Carnival, Burger King etc. I will keep dreaming.dave8721 said:
I could see the cruise lines moving downtown. It would make sense for them to be close to the port. I couldn't see the more US centered corporations like BK, Lennar, Ryder or any of the Latin America HQ's that are in Coral Gables or Blue Lagoon moving downtown though anytime soon. The main offices downtown (other than Government which is by far downtown's biggest employer) are mostly lawyers and banks. The lawyers are there to be near the courthouses.umiami305 said:Some of these approved office towers say there waiting for a major tenant before starting construction, well Merry X-mas. I would love to see some of these big companys headquarters like NCL move into downtown. Imagine if Downtown had NCL, Royal Carribbean, Carnival, Burger King etc. I will keep dreaming.
Yeah...of course they care, and organizations like the Downtown Development Authority court them like crazy. The DDA, Beacon Council, and Greater Miami Chamber of Commerce work on this constantly.nimbyhater said:if we just get a few of the bk's, lennars, and ryders to move downtown, maybe more can follow... is there anything government can do to promote this? or any reason they would even give a shit?
Office rents rising after years of flat-lining
By Marilyn Bowden
After several years of near-stagnation, office rental rates are on the rise, a trend likely to continue at least until new construction takes some of the pressure off tight vacancies, brokers say.
"The Miami-Dade submarket is seeing an incredible evaporation of available space in submarkets across the board," said Diana Parker, a director at Cushman & Wakefield of South Florida. "As a result, we have seen increases in rental rates of $1.50-$4.00 across the board since the beginning of this year, and there will be more appreciations."
According to Cushman & Wakefield's midyear market report, rates across all classes countywide now average $25.01 a square foot - a $1.35 increase from a year earlier.
In Airport West, overall vacancy is at 7%, 8.3% in Class A buildings, said Richard Schuchts, a vice president at Flagler Development who handles leasing at Westside Plaza
Asking rates are at $22.78 overall, he said, and $25.49 in Class A.
"Compared to the first quarter, that's about a 10% increase on paper," he said, "but because concessions were so high and landlords were doing deals well below their asking prices, it's more like a 25% increase."
Because current vacancy figures don't take into account several deals that are committed but not fully executed, Mr. Schuchts said, appreciation will continue.
"There are very few options for new buildings," he said, "and they will have rents in the range of $30 and up, because the cost of new construction has been driven by high land and constructions costs. That means that Class A in the rest of the Airport West market will probably rise to the high $20s."
Relocating tenants will also have to deal with those higher construction costs in building out their space, which today will cost 20 to 30% more than last year, Ms. Parker said - and most landlords aren't as willing to provide reasonable tenant improvement allowances.
"If the lease has a five-year term," she said, "it's going by the wayside. It would have to be for a minimum seven- to 10-year lease. Otherwise they can't justify it."
While it makes sense for tenants in this environment to renew early, Ms. Parker said, with lease rates slated to continue rising, most landlords aren't willing to lock in a deal at today's rates.
In most cases, rents aren't rising fast enough to balance out landlord expenses, said Eric Siegrist, vice president of leasing for Crescent Real Estate Equities Ltd. Partnership, whose Miami properties include The Miami Center downtown, The Alhambra and The Colonnade in Coral Gables and Datran Center in South Dade.
"Our net rents today, after you take out commissions, tenant improvement dollars and operating expenses, are less than a couple of years ago," he said. "Insurance is going up, and in any instance where the landlord is doing the work construction costs have gone up. Rents are not rising proportionally."
That equation will affect new buildings conceptualized, Mr. Siegrist said. "With operating costs increasing and construction costs in some cases 40% higher, developers are going to have an amazingly low threshold of return even if they get $40 a foot. This will be a major obstacle, because a lot of Miami's tenants are law firms, and they can't afford what Fortune 500 companies could pay."
A typical Fortune 500 company budgets $120 to $150 a square foot to build out new space and put in the technology and furniture, Mr. Siegrist said - so even if a tenant in a new building could get a landlord to agree to a $50 tenant improvement allowance, "they would have a $100 shortfall per square foot on top of paying the highest rent in the market."