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Last week we reported that space is tight for industrial users under 50k SF. (We're gonna have to start sharing forklifts and bathrooms.) Avison Young principal Wayne Schuchts tells us about the market for larger industrial spaces both in Miami-Dade and Broward, which isn't as tight. 1) Close to equilibrium. A number of Miami-Dade spec industrial buildings are going up, with more on the drawing board (next to some doodles and a grocery list), but even so demand is strong enough to keep the market for large industrial space (100k-plus SF) roughly in equilibrium, Wayne says. In both Miami-Dade and Broward, there are seven or eight quality tenants looking for jumbo-sized deals. Broward is softer than Miami-Dade, but even so there's space to accommodate the demand. Above: Wayne with colleagues Jonathan Satter, Greg Martin, and Gary Gottlieb at the firm's Fourth Annual Charity Tennis Tournament last week in Tampa. 2) Tenants gravitate to quality. Additions to the supply might disrupt things in the near future, but demand's likely to catch up before long, Wayne says. As newer properties come on line, tenants will be drawn to them, looking for quality features, which usually means 30-foot ceilings instead of 24 (don't lose a balloon in there, though), column spacing, and a greater depth. Older properties in some submarkets might have a tougher time of it for a while, but in the longer run, a vast supply expansion in South Florida is unlikely, Wayne explains, simply because there isn't that much available land. 3) Users want to be owners. Most of the companies looking for large blocks are domestic users who're already in South Florida, looking for some kind of consolidation. Also, a good many other users (and not just the larger users) are seriously considering becoming owners, Wayne says. Recently he was involved in the sale of the 60k SF Quipp ITW Building Palmetto Lakes to its occupant. Low interest rates are encouraging users to buy, along with the sense that South Florida's a good place to invest their capital. |
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Two Tenants in the Hand... |
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 Each year for the last five, new office development in Miami-Dade has averaged 1.5M SF, putting enough new space on the market to give even the best older space a bit of the jitters. Attracting new tenants is still critical for the health of older buildings, but landlords are wise to put just as much effort into tenant retention, Brickell Bay Office Tower VP Christian Driussi tells us. When it comes time for tenants to choose renewal or find new space elsewhere, "they'll explore the market but the value of receiving attention to their daily needs will make their decision to stay much easier," he says. Landlords need to dot the i's and cross the t's early in a lease term--and keep doing it. (I's without dots and t's without crosses are just l's... for loss.) |
 Christian also says creative marketing is important. "In our advertising campaign, we purposely let our tenants to be our spokespersons," he tells us. (They are more interesting than a celebrity endorsement.) "We featured their comments on why they chose us. We believe this approach works--it's common for new tenants to say the building has been recommended by existing tenants." Recently Christian repped Brickell Bay Office Tower, which is now over 25 years old, in more than 37k SF in leasing, including a 13k SF lease renewal with Mallah Furman & Co, one of South Florida's largest accounting firms. The completed leases bring the tower to 92% occupied. |
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JLL Parties Hardy Snapped at the Mandarin Oriental Hotel in Miami recently: JLL new market director Doug Irmscher, South Florida managing director Steve Medwin, and Central Florida managing directors Chad Rupp and Chris Butler. The company brought together over 60 JLL execs from across the state and business lines for its annual JLL Spotlight Culture Awards that recognized members who excel. It was also a good excuse to have a Cuban-themed reception featuring cigar rollers and JLL-branded stogies, a salsa band and dancers, and mojito cocktails. |
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Now is Your Chance to Lease One Town Center CBRE SVP Michael Erickson has one unique office space opportunity: for only the second time in its 22-year history, the iconic One Town Center in Boca Raton is available for lease. Do you remember when it was a single tenant HQ? Now, the Class-A office space is owned by MetLife and has been renovated, opening itself up to tenant spaces (including just announced Kayne Anderson) that can accommodate all sizes up to 175k SF. Clients can't miss you--the 10-story property towers above the Boca Raton landscape. Being situated across from Town Center Mall, Boca Center, and Glades Plaza, tenants have access to everything that makes the town hot: retail, hotels, dining and more. For more sponsor info, click here. |
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