Posts

LessonsLearned
Beth Azor, principal, Azor Advisory Services; Aly-khan Merali, CFO and chief investment officer, Turnberry Associates; Jack Lowell, executive VP, Colliers International South Florida; Avra Jain, principal, Vagabond Group; and Chris Weilminster, executive VP, Federal Realty at the Greater Miami Chamber of Commerce real estate summit

Beth Azor, principal, Azor Advisory Services; Aly-khan Merali, CFO and chief investment officer, Turnberry Associates; Jack Lowell, executive VP, Colliers International South Florida; Avra Jain, principal, Vagabond Group; and Chris Weilminster, executive VP, Federal Realty at the Greater Miami Chamber of Commerce real estate summit

The experts gathered for the Greater Miami Chamber of Commerce’s South Florida Real Estate Summit stressed that the market is not headed for a downturn, even though growth has slowed.

About 450 people gathered at Miami’s Jungle Island on Thursday for the event, which featured two panels and various speakers. Miami Commissioner Francis Suarez told attendees that 2015 saw the highest volume ever for the city’s building department, with 174 permits issued and $2.4 billion in ongoing construction. “That is why you are waiting so long in the building department,” he said.

Here are five highlights from the panels:

Retail Carries Great Potential, At A Moderate Pace

South Florida has about 6 million square feet of retail proposed or under construction, with a handful of new malls planned and four malls set to expand, said Beth Azor, principal of Azor Advisory Services.

“That is a little crazy,” Beth Azor said. “I am not sure how much will be built. SoLe Mia and American Dream Miami will probably happen, but four or five other projects we hope are not built because limited supply keeps our market healthier.”

Azor is looking to sign tenants at a new retail center at Northwest 79th Street and Northwest 32nd Avenue.

“Retail leasing is going well at SoLe Mia in North Miami, and rents there are better than on nearby Biscayne Boulevard,” said Aly-khan Merali, CFO and chief investment officer of Turnberry Associates, the co-developer of the project. “It’s focused on signing tenants that will be relevant in three or five years,” he said.

Construction crews used a fleet of roughly 100 construction trucks on Saturday to haul concrete to the site of All Aboard Florida’s Brightline train station in downtown Miami, marking the final foundation work at the site.

The pour was expected to complete the foundation at the company’s MiamiCentral station. The company said crews poured 5,500 cubic yards of concrete at the site, which spans six city blocks and is located within walking distance of the American Airlines Arena and a short shuttle ride from PortMiami.

The work was expected to take about 18 hours to complete. Brightline officials said Saturday’s work will mark the largest concrete pour at the site.

After the weekend work, Brightline officials said vertical construction is set begin on the station’s buildings and train platforms.

 

Source: Palm Beach Post

The developer of Brickell City Centre has placed a larger bet on the office market, as it has converted a planned wellness usage into “Class A” office.

In 2014, law firm Akerman LLP signed a lease to occupy 80 percent of the 130,000-square-foot Brickell City Centre Green tower that was under construction as part of the $1.05 billion project in Miami. The rest of the space was supposed to be for wellness, but developer Swire Properties has made the 26,000 square feet available for office tenants. It also rebranded the tower Three Brickell City Centre. The project will include another office tower of the same size, Two Brickell City Centre.

“One of the two towers, Three Brickell City Centre, although designed with use flexibility, was originally designated as a wellness center, but current market conditions show demand for additional office space,” said Edward Owen, Swire Properties’ office leasing manager. “Swire decided that it was in the best interest of the market to create supply to further Brickell’s growth as a leading international business hub.”

Arquitectonica designed both buildings, which will have floor-to-ceiling glass and 10-foot high walls. Brickell City Centre will also feature a shopping center, restaurants, condos and a hotel. The office, condo and hotel parts of the project should be ready this winter.

According to Cushman & Wakefield’s second quarter report, the Class A office market in downtown Miami has a 13.3 percent vacancy rate and average asking rent of $41.81 per square foot. The last new office delivery was 2010.

CBRE reports that about 1 million square feet of office space is under construction in Miami-Dade County, with Brickell City Centre and All Aboard Florida’s Miami Central Station as the largest projects.

The Business Journal is tracking another 5.4 million square feet of office space that’s in the pipeline in South Florida, as described in a recent centerpiece.

Click here for a “Behind the Scenes” slideshow of the Brickell City Center

 

Source: SFBJ