MIAMI COMMERCIAL REAL ESTATE REPORT FROM BLANCA HINTS AT INCREASED ACTIVITY

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Blanca Commercial Real Estate recently released a report on Miami’s office market, indicating that the region outperforms the nation, with consistent leasing activity expected to increase in the next quarter. An anticipated influx of company relocations and expansions could continue furthering the area’s reputation as Wall Street South. The report from Blanca hints at the new activity in Miami Beach and other upcoming world-class projects set for construction later this year that could signal a new tier of ultra-premium office space emerging in the region—upwards of $200 per square foot. Other key findings include:

  • Miami’s commercial real estate market is stable, with 744,000 square feet of leasing activity in Q1, aligning with historical averages. Although this figure is down 11% YoY due to deal timing, the market is expected to rebound with significant lease transactions in Q2, indicating a reliable and resilient market.
  • Rental rates are rising; Brickell has high rates, but new projects in Miami Beach are asking even more. While Brickell averages the highest asking rates ($86 per square foot, driven by Class A asking rates increasing to an average of $98 per square foot), new projects in Miami Beach have the highest asking rates, with rates in the most exclusive premier assets approaching $200 per square foot.
  • Overall, Miami-Dade’s asking rates in the mid-50s are comparable to gateway markets like downtown D.C., Boston, LA, and Chicago. When they begin construction this year, world-class projects could redefine Miami’s top pricing brackets from $120 to $200 per square foot (triple net).
  • There is strong demand from existing tenants, with key lease and expansion wins, including Quirch Foods’ 29,000 square-foot renewal in Coral Gables and Point72’s 6,900 SF Brickell expansion.
  • The countywide vacancy rate for Class A and B office space decreased from 17% to 16.7%, likely due to the lack of new deliveries this quarter and strong leasing activity from existing tenants. The most significant drops in vacancy rates were in submarkets where new projects were delivered in the past two years, such as Coral Gables (The Plaza North Tower) and Wynwood (545 Wyn – main photo), which are 95% and 83% leased, respectively, indicative of the continued flight to quality trend across the region.
  • The future looks bright with new construction, as more than half (51%) of the 1.8 million square feet under construction is expected to be delivered this year, including 830 Brickell and 601 Miami in the Central Business District. Only 25% of this year’s new office space remains available, making it an active year for project delivery, barring any setbacks.

RISK MANAGEMENT COMPANY INKS MIAMI LARGEST OFFICE LEASE TRANSACTION YTD

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Nuveen Real Estate, PIMCO Prime Real Estate, LLC, and Blanca Commercial Real Estate announced that Assurant, a leading global business services company that supports, protects and connects major consumer purchases, to the vibrant and rapidly growing Waterford Business District (WBD).

Totaling 78,000 square feet, Assurant’s lease at Waterford Business District is the largest office lease transaction year-to-date in Miami. The company will occupy suites 500, 600 and 700 at 701 Waterford Way.

Spanning 250 acres in the heart of Miami-Dade County and adjacent to Miami International Airport, the Waterford Business District provides prime accessibility to major residential and business hubs. WBD is the premier business center in South Florida comprising over 1.65 million square feet of exceptional office space.

Tenants are increasingly favoring the leasing of office spaces that surpass mere expectations, prioritizing factors such as a desirable location, convenience, and amenities that will contribute to employee well-being and overall satisfaction—elements that are inherent to WBD’s 7 Class A office buildings and its surroundings.

“Waterford Business District takes pride in offering a diverse range of amenities and thoughtfully crafted tenant community programs to cultivate an environment where individuals get genuine enjoyment from their work,” said Charles Russo, Nuveen’s Senior Director, Head of Southeast- Workplace, Retail, and Mixed-Use. “Companies, including Assurant, are increasingly drawn to dynamic hubs like Waterford due to the compelling combination of exceptional office spaces as well as a thriving business ecosystem. The real appeal lies in Waterford’s commitment to providing innovative work environments that align seamlessly with the evolving needs of today’s businesses, making it an irresistible destination for those seeking a lively workplace,” he adds.

Assurant’s decision to relocate to Waterford Business District shows its commitment to providing an office environment tailored to meet the evolving needs and preferences of its Miami-based workforce.

WBD has consistently attracted top-tier companies, with Subway and FedEx among its esteemed tenants underscoring the district’s commitment to providing top-quality office spaces within a vibrant campus setting. The recent addition of Assurant and continued investments by ownership further solidify WBD’s position as a true corporate campus committed to meeting the evolving demands of global enterprises.

Blanca Commercial Real Estate is the exclusive leasing agent for the WBD portfolio and the recent Assurant lease stands as the second-largest deal since Blanca assumed leasing responsibilities. Leading the leasing team are Juan Ruiz, Vice Chairman; Andres del Corral, Executive Vice President; Jack Davidson, Associate; Jessy Aguila, Marketing and Leasing Director; and Tere Blanca, Chairman & CEO.

Since 2019, Blanca has closed leases totaling over 1 million square feet of office space, including the Subway lease totalling more than 60,000 square feet. In January 2012, the ownership team facilitated the Burger King Built-to-Suit (BTS) deal sold to Apollo Steelbridge. Additionally, WBD was honored with a TOBY award, showcasing the excellence of the property which is managed by Cushman and Wakefield. This award highlights the overall success and quality of the joint venture’s WBD portfolio.

Brent Woodruff, Matthew Goodman, and Tyler Wyant from CBRE represented Assurant in this lease transaction.

“As the demand for innovative and enhanced office space and experiences continues to surge, Waterford Business District is ideally positioned to meet these needs head-on,” said Juan Ruiz, Vice Chairman of Blanca CRE. “Our commitment to providing a workplace that seamlessly blends cutting-edge amenities with unparalleled convenience resonates with companies seeking a dynamic and forward-thinking environment. Assurant’s move to WBD underscores the appeal of this thriving corporate district, where the fusion of exceptional office spaces and a wealth of amenities align perfectly with the evolving preferences of today’s businesses.”

The Waterford Business District has undergone notable transformations, establishing itself as a state-of-the-art corporate campus through forward-thinking initiatives and renovations. Led by the joint venture between Nuveen Real Estate and Allianz, whose participation in the JV is managed by PIMCO Prime Real Estate, LLC, these investments encompass various amenities such as a complimentary shuttle service, bike share programs, Tesla executive transportation, fitness centers, waterfront outdoor areas, and enhanced Wi-Fi connectivity. Upgrades extend to conference facilities, tenant lounges, restrooms, lobbies, and common areas, while tenant-engaging activities like outdoor yoga classes and gourmet food trucks contribute to the lively atmosphere. And with the WBD Tenant App providing regular updates on building events, access to amenities, and exclusive discounts, the tenant experience is further enriched.

The Waterford Business District offers a diverse array of office spaces catering to tenants requiring 1,000 to 140,000 square feet. Additionally, WBD presents unique build-to-suit opportunities with an additional 30 acres of fully entitled land that can accommodate up to 850,000 square feet of office space, 800 units of multi-family housing, 30,000 square feet of retail space, 500 restaurant seats, a 10,000 square-foot health club, and 962 hotel rooms. This distinctive proposition positions WBD as an ideal location for large enterprises who prefer a highly accessible, interconnected headquarters located in the vibrant heart of Miami.