Despite all of the new development that Miami is currently experiencing, the rising population and the city's ability to attract new companies has put a strain on the supply of office space according to Guy Bradley, CEO of Swire Properties. Enter the next phase of Swire Properties's Brickell City Centre initiative, One Brickell City Centre, which is slated to break ground in 2018 and take advantage of an office market that is gaining steam. One Brickell City Centre will rise 1,049 ft, covering 80 floors, making it the tallest building in the Southeastern United States. The building is designed by Arquitectonica. Over 50% of the proposed project will be office space. On the same earnings call, Bradley touted the success of Brickell City Centre's retail portion, which is over 91% leased. This comes at a time when Swire Properties has seen condo sales in Brickell City Centre's Rise and Reach buildings come to a grinding halt, with just 4 units going under contract since mid-February.
Gateway at Wynwood Proposed on North Miami Avenue
Gateway at Wynwood has been proposed by an affiliate of R&B Realty in New York, for a 1.1-acre site between Northwest 29th Street and 30th Street on North Miami Avenue. The project will be a 12-story, 464,700 SF office building designed by Kobi Karp with 184,000 SF of office space with 34,000 SF of ground floor retail, 574 parking spaces and a rooftop amenity deck. The proposal is currently under review by Miami's Urban Design Review Board.
Tibor Hollo to Break Ground on 92-Story One Bayfront Plaza in January 2019
Tibor Hollo's Florida East Coast Realty expects to break ground on the 1,049 foot, 92-story One Bayfront Plaza in January 2019 with completion is expected at some point in mid to late 2022. The 1,049 foot design by architectual firm Kohn Pedersen Fox will maximize the height approved by the FAA. One Bayfront Plaza will feature 902 apartments, 200 hotel rooms, 532,000 SF of Class A Office Space, 103,959 SF of retail, pedestrian bridge to the metromover and 1,055 parking spaces. The residences and hotel will feature a sky recreation deck which will have 2 pools, one being for residents and one for hotel guests. There will also be another amenity deck on the 40th floor. Check out our coverage of One Bayfront Plaza's New Renderings, new plan submission, and application to the FAA to increase height.
Photo via Miami Herald
Resorts World Applies to Renovate The Omni into Office Space & Boulevard Shops Update
Change may finally be coming to the vacant Omni Mall in Edgewater at 500 Biscayne Boulevard as Resorts World Omni, LLC has applied for a construction permit to renovate 24,550 SF into office space. Blufin Construction is the contractor on record for their application. Currently both Resorts World Bimini and Crystal Cruises use 500 Biscayne Boulevard as their headquarter address. Crystal Cruises last year leased 40,000 SF of office space in the Omni Building, adjacent to their Boulevard Shops sales center. Resorts World Bimini and Crystal Cruises are owned by Genting Group, a Malaysian conglomerate that has business interests in leisure, hospitality, plantations, properties, power generation, oil and gas, e-commerce, information technology and biotechnology.
Last year Crystal Cruises began reconstruction of The Boulevard Shops on an adjacent lot at 1401 Biscayne Boulevard. Their plan was unveiled at the 2016 Fort Lauderdale SeaTrade show for the Boulevard Shops project for Crystal Cruises which will include a renovation and expansion of the historic building to offer a cafe and bistro with indoor and outdoor seating, cigar bar and sales center for Crystal Residences. Crystal Residences will be onboard condos featured on 2 of their cruise ships. The renovation of The Boulevard Shops is being designed by architect Richard Heisenbottle.
Miami Innovation District Coming to Park West
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.