Office Market Gets Some Love, Too
Condos aren’t the only property type with sizzle in ’14. Blanca Commercial Real Estate EVP Juan Ruiz tells us that everything points to this year as a strong one for office leasing. “In Doral/Airport West, for instance, no new office product has been delivered since 2009, and Doral Park Centre, which will be ready for occupancy during first quarter, is the only office building currently under construction,” he says. The logistics industry, the bulk of which is in Doral/Airport West, is booming and Juan says he knows of logistics companies considering moving their corporate offices out of warehouses and into nicer office buildings to enhance their image.
Juan says that office rents have stabilized marketwide, and although concessions are still present in most deals, they’re reduced. (Above is Doral Park Centre, which Juan reps.) “In fact, in many cases higher tenant improvement allowances are included not just as concessions, but because construction costs have increased because of the surge in residential construction,” he says. The CBD, which tends to be a great indicator, is very active. “At 1111 Brickell, for example, we’re seeing an incredible amount of activity. I wouldn’t be surprised if we see rental rates start to increase again next year."
