Miami: Office construction in the city hits a new record
Miami’s office construction scored its highest level since 2009. The record is due by two factors: companies are moving here to increase their participation in the Latin America market, and tenants are relocating from high-tax states, appointed the Wall Street Journal.
The 1.9 million square feet of office space in the pipeline is considerably higher than the 500,000 square feet that were planned in 2011, according to data from CBRE. This is equal to about 2.7 percent of the city’s current office inventory.
The chief of staff at Mana Group, Theodore Ward intends to remodel a few properties Mana acquired in downtown to attract Silicon Valley companies that are searching for low-tax states with “high quality of life with a business environment,” according to the Journal. Changes in the tax law in 2017 is bringing many wealthy home buyers to South Florida.
As of new office projects, the 57-story glass office tower 830 Brickell, from OKO Group and Cain International, has 146,000 square feet leased by WeWork. The Brickell office building is expected to open in 2022.
The price for rent in Miami has climbed since 2014, while vacancy rates have fallen. Also, more than half of what is under development has been leased, according to Christos Costandinides of the CoStar Group.