TWO MAJOR BACK-2-BACK LAS OLAS OFFICE SALES SIGNAL FORT LAUDERDALE’S MARKET STRENGTH

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Levy Public Relations

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Key Points:

  • $428M in Office Deals : Two Las Olas office complexes changed hands for a combined $428 million, showing strong investor confidence.
  • More Affordable Than Miami & Palm Beach : Downtown Fort Lauderdale’s office rents average $53.36 per square foot, significantly lower than Miami’s Brickell and West Palm Beach.
  • New Class A Office Space Incoming : The upcoming T3 FAT Village development will add 180,000 square feet of premium office space, boosting Fort Lauderdale’s appeal.

Big Sales on Las Olas: What Investors Need to Know

Fort Lauderdale’s office market may not be grabbing the national spotlight like Miami’s Brickell or West Palm Beach, but recent high-profile transactions on Las Olas Boulevard prove there’s still serious value in the city’s commercial real estate.

In February, two major Class A office properties were sold for a combined $428 million, marking some of the largest office deals in South Florida this year. These transactions suggest that Fort Lauderdale remains an attractive and undervalued market for investors looking for stable returns.

The Properties: Who Bought What?

Las Olas Centre Towers (350 & 450 E. Las Olas Blvd.)

  • Sold for: $208 million
  • Buyer: Bradford Allen Investment Advisors (Chicago-based)
  • Occupancy: 69%
  • Planned Upgrades: $25 million in renovations

Bank of America Plaza at Las Olas City Center (401 E. Las Olas Blvd.)

  • Sold for: Over $220 million
  • Buyers: Square2 Capital, Highline Real Estate Capital, and Lone Star Funds
  • Occupancy: 94%
  • Key Feature: Recently renovated, maintaining its trophy property status

Unlike other South Florida suburban office transactions, which have seen properties sell at a loss, these sales maintained their value—a promising sign for Fort Lauderdale’s office sector.

“The acquisition of Bank of America Plaza at Las Olas Centre reflects our confidence in the long-term strength of the South Florida office market and the continued demand for high-quality, well-located assets. At Square2 Capital, we take a strategic, hands-on approach to repositioning officeproperties, creating environments that attract top-tier tenants and drive long-term value. 401 Las Olas Boulevard aligns perfectly with this vision, reinforcing our commitment to downtown Fort Lauderdale’s growth and evolution as a premier business hub. Our past success with 501 & 515 Las Olas demonstrated the power of thoughtful asset transformation, and we look forward to applying that same expertise to this landmark property in partnership with Highline Real Estate Capital and Lone Star Funds,” said Jay Caplin, Principal at Square2 Capital.

Why Fort Lauderdale? The Market’s Unique Strengths

Despite Broward County’s drop from No. 10 to No. 21 among mid-sized U.S. office markets, investors are recognizing Fort Lauderdale’s affordability and strategic location.

  • Lower Office Rents:
    • Downtown Fort Lauderdale: $53.36 per sq. ft.
    • Hallandale (Broward’s priciest submarket): $56.53 per sq. ft.
    • Brickell (Miami’s prime office hub): Up to $100 per sq. ft.
  • Strong Infrastructure & Workforce:
    • Downtown Fort Lauderdale’s population grew 38% from 2020 to 2024.
    • The city has a large talent pool within walking distance of office hubs.
  • Central Location Advantage:
    • Positioned between Miami and West Palm Beach, making it an attractive alternative to higher-priced markets.

“Downtown Fort Lauderdale’s two major office acquisitions reflect the market’s strength and growing appeal to investors. Fueled by shifting demographics, a desirable lifestyle, and unmatched accessibility, the city has evolved into a vibrant, year-round destination with thriving neighborhoods and a strong job market. As a result, Downtown Fort Lauderdale continues to draw both office tenants and urban residents. These acquisitions send a strong signal to the market that investors recognize the city’s value and long-term potential as a premier destination to live and work,” said Christina Stine Jolley, Senior Vice President & Broward Market Lead at Blanca Commercial Real Estate.

What’s Next? New Office Supply on the Horizon

T3 FAT Village (Flagler Village) – A Game Changer

  • Developer: Hines & Urban Street Development
  • Size: 180,000 square feet of new Class A office space
  • Leasing Demand: Already attracting high interest from potential tenants

With few new office projects delivered in recent years, this development could help Fort Lauderdale compete with Miami and West Palm Beach in attracting new-to-market tenants.

Final Takeaway: A Market to Watch

The $428 million in office transactions and the addition of new premium office space signal that Fort Lauderdale is still a strong and growing office market. With lower rents than its neighbors, increasing demand, and strategic investments, the city is positioning itself as a prime destination for companies and investors alike.

While Fort Lauderdale’s office sector may not dominate the headlines like Miami’s Brickell, it remains one of South Florida’s most attractive undervalued opportunities. Investors who recognize this early could benefit from rising demand and future value growth.

Published: February 24, 2025