Financial services firm Rothschild & Co won’t be opening at the 830 Brickell tower, marking the third company that leased during South Florida’s boom to scrap its planned office.
Rothschild, which traces its roots to 18th century Europe when Rothschild family members rose to prominence in banking, had leased 5,000 square feet last year at 830 Brickell in Miami. The deal marked the firm’s first South Florida outpost.
A spokesperson for the 830 Brickell developers confirmed to The Real Deal that Rothschild won’t be moving into the tower. Vlad Doronin’s OKO Group and Cain International are developing the 55-story 830 Brickell at 830 Brickell Plaza. London-based Cain is led by CEO Jonathan Goldstein.
The building is fully leased after another company absorbed Rothschild’s space, a source said, declining to identify the firm.
Originally expected to be completed in 2022, the tower now has its temporary certificate of occupancy. As tenants are building out their interior spaces, a final certificate of occupancy is expected by year-end, the spokesperson said.
Rothschild’s lease at 830 Brickell was part of a surge in demand from late 2020 through early last year. At the time, new-to-market companies expanded or moved to the tri-county region. That pushed up rents to record levels at new buildings in prime areas, and earned the tri-county region a reputation as an office market haven.
830 Brickell was a prime choice among out-of-state companies, leading the way among South Florida office properties in scoring leases at a record $100 per square foot. The final 830 Brickell leases were priced at nearly $200 a square foot, according to an 830 Brickell news release last month.
But this year, not only has the pipeline of new-to-market tenants dried and rent growth calmed, but at least two other firms have opted to back out of South Florida leases.
Venture capital firm Andreessen Horowitz closed its 8,300-square-foot outpost at 2340 Collins Avenue in Miami Beach, after leasing it in 2022. Eye health products company Bausch + Lomb took over the space. Also, law firm Winston & Strawn, which had leased 35,000 square feet in 2022 at 830 Brickell, scrapped its planned office. Law firm Kirkland & Ellis, which also had leased at the tower in 2022, took over Winston’s space.
Whether these decampments signal a larger exodus from South Florida by firms that leased during the boom is yet to play out. Market optimists have been quick to point out the vacated offices were absorbed by other firms, and the market’s occupancy and rents remain high.
Rothschild’s exit from its lease came as Eric Hirschfield, a partner who led the South Florida office, retired to spend time with his family, according to Bloomberg, which first reported that the company closed its Miami office. Rothschild also plans to shut its Chicago office, according to Bloomberg. The company’s executive chairman is Alexandre de Rothschild.
830 Brickell’s other tenants include Sidley Austin, Thoma Bravo, billionaire hedge funder Ken Griffin’s Citadel, Santander Bank and Corient, which formerly was called CI Financial.