Demolition work is under way on the east side of the CocoWalk complex in Coconut Grove to make way for a five-story office building and street-level retail space.
It will be the first new office building to open since 1989 in Coconut Grove, where the office vacancy rate is 1 percent, according to research by Blanca Commercial Real Estate.
Construction of the 85,000-square-foot office building, called One CocoWalk, and the 20,000 square feet of street-level retail space is scheduled to conclude in the fourth quarter of 2019.
Chase Bank, the Cinepolis movie theater, The Gap, YouFit Health Club and other CocoWalk tenants will remain open for business during the project.
The $70 million project is part of a redevelopment of CocoWalk by Federal Realty Investment Trust, Grass River Property and the Comras Company, which together bought the Mediterranean-style, 1990s-era property in 2015.
The demolition of the east side of CocoWalk follows the start of a large-scale remodeling project on the west side of the property.