Commercial market: South America, Europe driving Miami office sector

Miami /
May.May 02, 2012 05:30 PM

Miami’s office market is beginning to show signs of strength, supported by foreign firms from South America and Europe looking to tap the Americas. What was once a trend of very small operations looking to get a foothold in Miami, foreign companies are now beginning to take larger spaces.

“They’re coming from South America and from Europe,” said Christian Driussi, vice president and general manager at Brickell Bay Office Tower in downtown Miami.

Miami’s market has been improving as of late, according to a report from Colliers International South Florida released last week.

The office sector’s progress hasn’t yet been reflected in rents, and the vacancy rate has been dropping across the board, with Miami-Dade’s overall office vacancy down near 16 percent, according to the report.

As The Real Deal reported last year, some of the Latin American buyers driving Miami’s residential boom had begun exploring small-scale office space.

Now, those small leases are turning into 2,000-, 5,000-plus-square-foot offices, according Blanca Commercial Real Estate CEO Tere Blanca.

“We continue to see the trickle effects of companies coming from South America and Europe opening offices in Miami,” she said. “It’s now the case that they’re large relocations, although others have smaller requirements.”

Many of those firms are coming from the reinsurance and banking sectors, she said.

Blanca said 1450 Brickell would officially announce the relocation of a major Latin company within the next 60 days that executed a lease for the whole floor.

“It’s not just South America,” she said. “We’re not talking specifically about any one country, but global companies that either have or had a presence are expanding to these markets that Miami offers to run their business regionally.”

That undisclosed tenant is likely be Miller Latin America, which reportedly took a full-floor lease at the property in March, according to the Miami Herald.

“I think Miami is becoming more and more international, so you continue to see South Americans coming to Miami’s [commercial market],” Driussi said.

While foreign tenants are helping drive growth, another trend is showing life: expansions.

According to Blanca’s Danet Linares, seven of the tenants at 1450 Brickell either have expanded or are in the process of expanding.

“Because of the economy, [tenants] feel they are in a better situation now and are ready to continue to grow, and part of that growth requires more office space,” Driussi said.


Related Articles

arrow_forward_ios
From left: Scott Sherman and Ben Mandell (Tricera Capital, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Tricera Capital co-founder Ben Mandell buys out partner Scott Sherman
Tricera Capital co-founder Ben Mandell buys out partner Scott Sherman
Innovation District (DB Lewis Architect-Thresholds Intl, iStock)
Mike Zoi’s Motorsport firm proposes offices at Magic City Innovation District
Mike Zoi’s Motorsport firm proposes offices at Magic City Innovation District
From left: David Edelstein, Alex Karakhanian and Victor Ballestas in front of the property at 3601 North Miami Avenue (Lndmrk Development, Tricap, Integra Investments, LoopNet)
David Edelstein, partners buy Design District dev site, plan office tower
David Edelstein, partners buy Design District dev site, plan office tower
Nuveen CEO Jose Minaya and 801 Brickell Avenue in Miami (Nuveen, Colliers)
Lease roundup: Nuveen moving Southeast HQ to 801 Brickell
Lease roundup: Nuveen moving Southeast HQ to 801 Brickell
From left: Buyers Neil Merin, Dung Lam and Jordan Paul along with 1001 Yamato Road (top) and 999 Yamato Road (bottom) (NAI/Merin Hunter Codman, Moris Moreno)
Yamato Office Center in Boca Raton trades for $46M
Yamato Office Center in Boca Raton trades for $46M
The Gateway at Wynwood office building at 2916 North Miami Avenue with R&B Realty Group CEO Aron Rosenberg (LinkedIn, R&B Realty Group)
Lease roundup: Gateway at Wynwood, Goodtime Hotel score tenants
Lease roundup: Gateway at Wynwood, Goodtime Hotel score tenants
Pebb Enterprises' Ian Weiner (right) and Banyan Development's  Jason Sher with Research Park at Florida Atlantic University (Pebb, Avison Young, LinkedIn, iStock)
Pebb, Banyan pay $37.5M for Research Park at FAU in Boca Raton
Pebb, Banyan pay $37.5M for Research Park at FAU in Boca Raton
Don Peebles and Barry Sternlicht with renderings of proposals to develop city-owned property in Miami Beach (Starwood Capital Group, Integra Investments, Comrass Company, Wikipedia, Getty)
Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road
Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...