Miami Beach wants to develop parking lots near Lincoln Road into Class A office space, banking on demand fueled by executives migrating south.
Developers can submit letters of intent by 3 p.m. on Jan. 11 for a public-private partnership to redevelop the three lots next to Lincoln Road between Alton Road and Meridian Avenue. Combined, the land could be developed into more than 383,000 square feet of mixed-use office space, according to a press release.
Voters would have to approve any project on city owned land through a referendum. The new office buildings would include on-site parking garages.
Commissioner Ricky Arriola pitched the idea to the commission in January, and proponents say that the pandemic has only accelerated the trend of companies opening up shop in South Florida.
Among the biggest names to do so in recent years include Barry Sternlicht, who relocated Starwood Capital Group to Miami Beach from Greenwich, Connecticut; and Carl Icahn, who moved Icahn Enterprises to Sunny Isles Beach, near his Indian Creek Village home.
Luxury home sales on Miami Beach’s islands – the Sunset Islands, Alison, Hibiscus, the Venetians and others – have surged in recent months, and many of the buyers are executives or owners of out-of-state companies.
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Commercial broker Lyle Stern, who is vice president of the Lincoln Road Business Improvement District, said it’s “unquestionable” that the demand is there for new offices in Miami Beach, and that the need will only increase by the time the new buildings are delivered. Stern added that the out-of-state buyers closing on homes want to be able to walk to work or drive a short distance, which is why he thinks the Lincoln Road area would be a good fit.
During the pandemic, office vacancies in South Florida have risen. Miami Beach’s office vacancy rate was nearly 14 percent in the third quarter, according to a report from JLL.
At 1674 Meridian Avenue, near one of the lots, Integra Investments and Constellation Group are completing a multimillion-dollar renovation of the office building. The companies acquired the property more than a year ago for $10.1 million.
WeWork vacated a 40,000-square-foot space at 350 Lincoln Road in August, after striking a deal with its landlord at its other Miami Beach location.