As migration to South Florida remains strong and as vacancy rates continue to fall, the demand in the Miami-Dade central business district isn’t faltering.
That’s according to Colliers Q2 Office Report, which says that trend is evidenced by strong leasing activity.
Most recently, four leases were signed at 801 Brickell, a 28-story, 415,000-square-foot office high-rise.
Nuveen Real Estate was represented by Colliers’ executive managing director Stephen Rutchik and managing director Tom Farmer, who helped negotiate two new leases and the renewals of investment firms Selvatra and Cassel Salpeter & Co., both long-time tenants. The space leased totals 10,883 square feet.
Nuveen has leased 3,487 square feet to use the office spaces as its Brickell headquarters and Chicago-based capital management firm StoicLane joined the tenant roster as well, causing 801 Brickell to be 87% leased.
“As tenants return to Brickell and new tenants enter the market, leasing activity has accelerated and tenants demand high-quality space, which Nuveen provides at 801 Brickell with a multimillion-dollar renovation and focus on elevating the tenant experience,” said Rutchik.
Right now, 801 Brickell is undergoing a multimillion-dollar transformation to enhance its lobby, redesign common areas and upgrade amenities, such as a wellness and conference center and tenant lounge.
According to the report, new-to-market companies and the migration of people and capital has caused occupancy levels to rise to 90.4%, which is a 35% hike in rental rates year-over-year at Brickell’s Class A office buildings.
Charles Russo, Southeast regional head for office and life sciences of Nuveen Real Estate says the company’s hands-on approach—by being local and interacting with leading market participants—has led them to be successful in driving asset values and growing assets under management across sectors.
“We currently have over 2.7 million square feet of Class A trophy office investments in Miami-Dade alone,” said Russo in a press release. “We are excited about our move to the newly-renovated 801 Brickell at a time when Miami is attracting top talent, companies and thought leadership across a diverse set of industries.”
Filling a Luxury Living Gap in Wynwood?
Nearby in Miami’s Wynwood Arts District, the submarket is also evolving into a thriving office market and place where people migrating to Miami are choosing to live. Leasing for Strate Wynwood, a mixed-use multifamily community located at 21 NE 22nd Ave. has begun.
The 257-apartment property opened up to residents in late March and offers 61,503 square feet of Class A office space and 33,474 square feet of ground-floor retail.
The Buzzoto Group, a real estate company headquartered in Maryland, is in charge of the leasing and residential property management at Strata Wynwood. Boston-based Rockhill Management, an affiliate of Rockpoint, is the commercial and retail management team for Strata Wynwood.
Bozzuto vice president Adanise Cross says he’s excited to fill a gap in luxury living in Wynwood with next-generation apartments.
“Underpinned by a robust real estate landscape and exuding a dynamic vibe that cannot be replicated, Miami’s multifamily market is arguably the hottest in the nation. There has never been a better time to introduce a new residential offering to a cultural epicenter like Wynwood,” said Cross in a press release.
People can now lease one, two and three-bedroom residences that range from 509 to 1,288 square feet, with terraces ranging from 250 to more than 2,000 square feet.
Other amenities at Strata Wynwood include a room for music and voice training, as well as a fitness center with a steam room and personal training areas. There’s also Legacy Fit, a partner interval training fitness studio on the group floor, which takes up 7,000 square feet.
According to JLL’s Q1 2022 Office Insight report for Miami-Dade, the trajectory for growth in Miami’s office market is expected to rise as demand for office space increases and the local economy booms as the talent pool gets bigger.
JLL recently closed a 75,000-square-foot lease at Quattro Miami, a four-building office park within the Airport West submarket. New Jersey-based medical research company, Evolution Research Group, will relocate from Hialeah and add 45,000 square feet of space to its footprint by leasing the entire building at 700 NW 107th Ave.
JLL managing director Doug Okun represented the landlord, Four 700 LLC, in the lease negations, while Avison Young’s David Herbert, Donna Abood and Joseph Abood represented ERG. Okun says the lease is the latest example of a national company making Miami home and providing leadership in medical research and technology.
“ERG could have chosen anywhere in Miami to expand its corporate headquarters, but it strategically selected Quattro East because of the capital improvements, upgraded amenities, and its convenient location and proximity for employees and customers,” said Okun in a statement.