Summary List Placement
Demand from big-name tech and finance firms looking for pricey, newly built office space in South Florida is igniting a commercial real estate boom.
As major companies, C-suite executives, and startup founders migrate to the Sunshine State at an accelerated pace — thanks to the migration of businesses away from urban centers like New York City set off by the coronavirus pandemic as well as alluring tax incentives — competition to lease prime office space is growing fierce.
Out-of-state companies are close to inking deals for prime office space in Miami and West Palm Beach, lending more support to the claims that Florida is ascending to rival Wall Street.
Insider has learned:
Seattle-based Microsoft is in advanced negotiations to take up 30,000 square feet at a brand-new office building in the Downtown Miami neighborhood of Brickell called 830 Brickell Plaza.
Hedge fund giant Citadel has shortlisted 830 Brickell Plaza in its search for an office of up to 80,000 square feet in Miami. Its head office sits in Chicago.
Law firm Baker McKenzie, also headquartered in Chicago, is also said to be in talks for space at 830 Brickell Plaza.
Elliott Management is close to inking a roughly 40,000 square foot lease at at 360 Rosemary Avenue in West Palm Beach, a new office building from mega-developer Related.
Maryland-based mortgage company New Day USA is finalizing a lease for about 50,000 square feet at 360 Rosemary.
Local private equity firm H.I.G. Capital recently signed on for a little over 20,000 square feet of office space at The Plaza, a mixed-use development in the Miami neighborhood of Coral Gables.
‘The overall activity in the market is beyond anything I have ever seen’
Miami has seen only a handful of new office projects in recent years.
The raft of big-name tenants clamoring to take space at 830 Brickell Plaza, a 55-story, under-construction office tower that is scheduled for completion late next year in the Brickell section of Downtown Miami, shows how gleaming new commercial spaces are capturing the interest of newcomers and local tenants alike.
“Right now we have 12 full-floor proposals,” said Brian Gale, a vice chairman at Cushman & Wakefield, who leads a Miami team overseeing leasing at 830 Brickell. “The overall activity in the market is beyond anything I have ever seen, and this is my 27th year in commercial real estate.”
None of the deals have been signed yet and could fall still through, sources warned.
Gale declined to confirm or comment on any specific transactions that were being negotiated at 830 Brickell. Citadel, Microsoft, and Baker McKenzie all declined to comment.
Major out-of-state tenants are about to sign in West Palm Beach
In West Palm Beach, another prominent office market in South Florida about 80 miles north of Downtown Miami, new office tower 360 Rosemary Avenue is drawing attention from out-of-state firms that are either relocating or setting up outposts in the area.
Maryland-based mortgage company New Day USA is finalizing a lease for about 50,000 square feet at 360 Rosemary, a roughly 300,000-square-foot office building scheduled for completion in the second quarter of …read more
Source:: Business Insider