The Miami Innovation District, a proposed tech hub, is one step closer to coming to Miami after land in Park West controlled by Michael Simkins' Innovate Development Group was cleared. Innovate Development Group purchased the land in 2014 for $54 million. Details and renderings of the proposed project were leaked in June, showing a 10 acre development including 3,850,000 SF of office space, 2,400,000 SF of residential units, 250,000 SF of retail space, and 2,500 parking spaces. Residential units would include 300 SF "micro-apartments" for the young, working class. There will also be an amenity area called the "Cloud Level" which will include classrooms, daycare, tech support, exhibition spaces, as well as landscaped green space and connection to different towers that are part of the complex. Part of the original proposal, a 633-foot LCD tower, has seen great pushback. Miami Innovation District will be designed by SHoP Architects, who designed the Barclays Center in Brooklyn as well as for Google and Uber. Miami Innovation District is expected to bring 700 permanent jobs and the project will contribute $5 million to the South East Overtown/ Park West CRA and 3% of annual sales or $1 million per year.
Miami Commercial Real Estate Market Outlook Strong Through 2017
Florida's economy will become the 16th largest in the world this year when gross product passes the $1 trillion mark, expected to happen by 2018. Factors driving this force are declining unemployment, declining vacancy rates and strengthening real estate prices. This should keep South Florida's commercial real estate market strong across office space, retail and industrial markets. In Miami the population continues to rise and the city has an unemployment rate of 5.5%. Miami has seen a glut of projects move toward completion and open over the past several years, with several more in the pipeline including Miami WorldCenter, Brickell City Centre and Design District. Despite that commerical vacancy rates in Miami continued to fall and major companies look to expand their footprint in the city including Ernst & Young. Fort Lauderdale & Broward County's unemployment rate is currently 4.6% with continued job growth expected. Office vacancy rates dropped to 9.4% and rental rates are expected to rise to adjust to the falling inventory levels. Opportunities for development in Fort Lauderdale over the next year will be in retail and multifamily projects. Domestic and international investment and interest are expected to remain strong for South Florida though 2017.
CK Prive Group to Build Mixed-Use Project on Biscayne Blvd. in North Miami Beach
CK Prive Group is planning to build a mixed-use project on Biscayne Blvd. in North Miami Beach. The development will be designed by Arquitectonica and will be located at the intersection of Biscayne Boulevard and 163rd Street. It will feature 198 residential apartment units, 160 hotel rooms, 130,000 SF of office space, 200,000 SF of retail and 1,400 parking spaces. Leasing is under way with retail leases asking around $50 to $70 per foot.
888 Brickell Ave. Office Tower Proposed
Developers Alphatur, NV have submitted plans to build a new office tower at 888 Brickell Ave. The proposed project has 304,950 SF of office space over 30 floors, a ground floor featuring retail and restaurant space, and a garage with 264 parking spots. The 472 foot tower will be designed by Arquitectonica. The project plans will be reviewed by Miami's Urban Design Review Board this month.
Ernst & Young and Regus Sign Leases at Two MiamiCentral
Ernst & Young and Regus have been announced as the anchor tenants at Two MiamiCentral, the new 190,000 SF Office Building in Downtown Miami. Two MiamiCentral is part of Downtonwn's 11-acre MiamiCentral initiative which also includes MiamiCentral Station which is the future home of the Birghtline. 60% of the potential office space at Two MiamiCentral is now leased as Florida East Coast Industries and Moss & Associates will also occupy the building which was designed by Skidmore, Owings & Merrill and will open in 2017. For Ernst & Young, the lease will be 108 months with two 60 month options. Along with an affiliate of All Aboard Florida, they have filed a Memorandum of Office Lease for 23,163 SF of the office space. Rail service will also commence in 2017. Learn more about MiamiCentral Station in our August Construction Update.
Las Olas City Centre sells for $220 Million
Las Olas City Centre has sold to Deutsche Bank for $220 million as reported by The Real Deal. Located at 401 East Las Olas Boulevard, 401 East Las Olas LLC sold the Class A Fort Lauderdale property to TAF gg Las Olas LP, an affiliate of Deutche Bank’s asset management arm RREEF Property Trust in a deal financed with a $100 million mortgage from Wells Fargo. Las Olas City Centre is a 23-story, 725,898 SF, LEED Gold certified, mixed-use commercial building with office space and retail built in 2002. Major tenants are Bank of America and Patriot National. Average rent at Las Olas City Centre is around $47 SF and there is about 408,064 SF of leasable space as per the CoStar Group. JP Morgan purchased the building in 2011 for $164 million and reported a 6.3% cap rate.
Mixed-Use Project Proposed at 929 Alton Road
Victor Uzan's Evergreen Overseas Holdings, Inc. has proposed a mixed use development at 929 Alton Road. The 4-story, 30,000 SF mixed-use use project will be designed by IDEA Architecture from Aventura. The proposal includes retail space, office space and 82 parking spaces. The office space would occupy the top floor, with ground floor retail and parking in the middle. The Miami Beach Planning Board will review the proposal during their September meeting. Evergreen Overseas Holdings, Inc. had previously proposed a 20 unit condo development at the same site in 2014.
Adam Neumann and Miguel McKelvey
WeWork to Lease 65,000 SF of Office Space at Two Brickell City Centre
WeWork on Miami Beach
WeWork has announced that they will lease 65,000 SF of office space in Brickell City Centre. The lease could account to close to half of Swire Properties' 132,280 SF of the space at Two Brickell City Centre going to the highly-valued and controversial Coworking/ Shared Work Space pioneer, according to The Real Deal. Asking rents were around $53 SF. In 2015 WeWork opened an original Miami location on Lincoln Road then opened a second space with 850 desks on Lenox Ave. in Miami Beach. WeWork is currently valued around $16 billion and was founded in 2010 by Adam Neumann and Miguel McKelvey. Sources via TheRealDeal.
