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August 7, 2014
Owners/Tenants:
Now Who's in Charge?
More than any time in the past six years, Downtown Miami's office market has a more level playing field, JLL SVP Don Cartwright tells us. (Landlords no longer have to play blindfolded or hopping on one square foot.)
As the local economy has improved and more jobs created, the tenant's market has slowly evaporated, says Don, here with colleague Nicole Vassilaros. For tenants that prefer premium views in the Class-A buildings, landlords have the advantage. Since there's a larger supply of not-quite-Class-A space, tenants searching there still have leverage, though less than recent years.
Don and Nichole recently repped Southeast Financial Center in law firm McDonald Hopkins' expansion by 9k SF (total 12k SF). The 1.2M SF, Class-A Southeast Financial Center is a hive of law firms—26 in all—and Don has seen a resurgence among Miami professional service firms. (Don't cut someone in line at the office cafeteria or 26 lawyers will be there to file suit.) Jeb Bush Jr. repped McDonald Hopkins.
Suburban office owners are benefiting from the strengthened fundamentals, too. Flagler VP-asset solutions group Cary Cohen tells us he's seeing increased investor demandandtenant interest. He recently repped the seller of the 28k SF Lakeside Office Park Buildings 1 & 3 in Kendall. He tells us it drew several bidders, with Lakeside Property Holdings winning out. Within two weeks, he adds, the new owners expect to achieve 100% occupancy.
The Wynwood Rush
New Yorkers are coming to Wynwood to remake it in the image of SoHo—or Williamsburg or the Meat Packing District, it depends on whom you ask. Aztec Group director Charles Penan (snapped with colleague Howard Taft) tells us that investors from a lot of places want to be in Wynwood, interested in developing retail, multifamily, office and hotels. “Wynwood's underserved by these classes of real estate, with demand outpacing the supply of land, and properties available for sale,” he says.
The transition will probably be incremental, Charles adds—local deal by local deal. Recently Aztec Group oversaw the acquisition funding for 2301 N Miami Ave, a retail property bought by Atlas Real Estate Partners. Financing was provided by US Century Bank. (Five-years, 55% loan-to-cost, 4.25% fixed rate.) The 33k SF property, formerly a warehouse, consists of four individual storefronts. They'll be home to art galleries and design retailers, who will add to the neighborhood's rising art scene, Charles says. (The odds are against the structure staying exactly that shade of pale in Wynwood, too.)
St. George, Rotarian Extraordinaire
Congrats to Berger Commercial Realty SVP St. George Guardabassi, who's been named Rotarian of the Year by the Rotary Club of Fort Lauderdale. St. George, snapped with his family in Philly recently, received the honor for chairing the New River Raft Race, an annual fundraiser that supports the mission of the club. Besides being a Rotarian, he's prez of the Hundred Club of Broward County and a member of the Fort Lauderdale Marine Advisory Board.
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