South Florida office leasing fell off its peak this year.
The slowdown marks a turnaround from the leasing blitz of the past three years, as South Florida became a magnet for new-to-market companies. Firms opened offices in the tri-county region or moved their headquarters, attracted by the business friendly climate and rents that offered a bargain compared with New York and other office meccas.
This year, one office lease in the region topped 100,000 square feet. Separately, Miami’s Brickell Financial District, which has been a top choice especially for new-to-market companies, scored one new lease. By contrast, nine leases topped the 100,000-square-foot threshold last year, and Brickell scored four of the 10 biggest leases of 2022.
The slowdown could be rooted in remote work, a slowdown in the influx of out-of-state companies and elevated interest rates. The higher cost of capital means some tenants are pausing or scrapping plans for new offices. The Federal Reserve imposed three cuts to the benchmark rate this year, after 11 aggressive hikes in 2022 and last year, but rates have remained stubbornly high.
Yet, industry insiders argue that the slowdown isn’t because South Florida is no longer in demand, and is due to a lack of the top-notch offices that new-to-market companies seek. Brickell scored a bonanza in 2022 due to the 830 Brickell tower, which was under construction at the time and was completed this year. Once new projects in the financial district and elsewhere in South Florida start taking shape, leasing activity will pick up, brokers say.
Here are the top 10 office leases of 2024:
1. Citrix sale-leaseback
After a sale-leaseback deal, cloud computing and software company Citrix kept its headquarters in Fort Lauderdale.
Citrix sold the pair of buildings at 851 and 899 West Cypress Creek Road for $37 million, leasing back 139,500 square feet at the 851 West Cypress Creek Road building, according to records and data provided by Colliers.
The buyer was an entity tied to Maksim Slyusarchuk, founder and CEO of mortgage lender A&D Mortgage and Imperial Fund. Both firms are based in Hollywood.
2. JPMorgan Chase doubles down on Brickell
Financial services giant JPMorgan Chase doubled its Brickell office space.
New York-based JPMorgan leased 80,000 square feet at 1450 Brickell Avenue in Miami, so it now has 160,000 square feet at the 34-story tower.
The expansion allows for about 400 new employees, in addition to the existing staff of more than 500, according to the tenant’s news release. It will take JPMorgan about two years to complete renovations of the new office space.
The tower is owned by an entity tied to Ramon Llorens of Madrid, Spain-based mining, construction and real estate company EPSA Group, according to state corporate records.
3. DigitalBridge picks Delray Beach for new HQ
A digital infrastructure investment firm will move its headquarters to a mixed-use development under construction in Delray Beach.
DigitalBridge leased 79,100 square feet at 100 Southeast First Avenue within Sundy Village, where it will move once the project is completed next year. The firm now is at 750 Park of Commerce Drive in Boca Raton.
Boca Raton-based Pebb Capital is developing the 7-acre Sundy Village with 30,000 square feet of retail and 180,000 square feet of offices. Pebb will preserve and restore six buildings completed in the early 1900s, including the oldest home in Delray Beach, Sundy House.
4. Assurant leases at the Waterford Business District
A global insurer will move its Miami-Dade County office to the Waterford Business District.
Assurant leased 78,300 square feet at 701 Waterford Way in unincorporated Miami-Dade County, where it will move in June. The firm now is at 11222 Quail Roost Drive in an unincorporated area of south Miami-Dade.
Pimco Prime Real Estate and Nuveen Real Estate, a subsidiary of TIAA, own the Waterford Business District. The 250-acre office campus is near Miami International Airport.
5. Bayview Asset Management keeps Coral Gables HQ
Bayview Asset Management kept its headquarters in Coral Gables.
The investment manager that focuses on mortgage and consumer credit renewed its 55,100-square-foot lease at the Office at Merrick Park at 4425 Ponce De Leon Boulevard.
New York-based Brookfield Properties owns the six-story building.
6. Celsius leases in Boca Raton
Celsius, a fitness and energy beverage company, leased 53,100 square feet at the Peninsula Executive Center in Boca Raton. The office is at 2381 Northwest Executive Center Drive.
An entity in the care of Boston-based Talanian Realty owns the four-story building, according to records. CoStar Group reported that Celsius subleased its office space from a previous tenant.
7. Greenberg Traurig keeps Fort Lauderdale office
Law firm Greenberg Traurig stayed at its Fort Lauderdale office.
Greenberg Traurig renewed its 48,800-square-foot lease at the Bank of America Plaza tower at 401 East Las Olas Boulevard. The lease is for a 15-year term, CoStar reported.
Records show that Rreef, part of German asset manager DWS Group, owns the 23-story tower.
8. Cigna stays in Sunrise
Cigna Health and Life Insurance Company kept its office in Sunrise.
The insurer renewed its 47,900-square-foot lease at the Sawgrass Corporate Centre II building at 1571 Sawgrass Corporate Parkway.
Chicago-based Vanderbilt Office Properties and Naples, Florida-based Barron Collier Companies own the four-story, 91,200-square-foot building.
9. Winston & Strawn ditches Brickell in favor of downtown Miami
Law firm Winston & Strawn scrapped a plan for a Brickell office in favor of opening in downtown Miami.
Winston & Strawn leased 45,100 square feet at the Southeast Financial Center at 200 South Biscayne Boulevard, after backing out of a 35,000-square-foot prelease at the recently completed 830 Brickell tower in Miami. The Chicago-based law firm had signed the 830 Brickell lease in 2022. Vlad Doronin’s OKO Group and Cain International completed the 55-story tower at 830 Brickell Plaza this year. Law firm Kirkland & Ellis, which also had preleased at the building in 2022, took over the space vacated by Winston & Strawn.
Grupo Ponte Gadea, the real estate investment firm of Spanish billionaire Amancio Ortega, owns the 55-story Southeast Financial Center.
10. Quintairos, Prieto, Wood & Boyer stays in Kendall
Law firm Quintairos, Prieto, Wood & Boyer kept its Kendall office.
The firm renewed its 43,300-square-foot lease at 9300 South Dadeland Boulevard in unincorporated Miami-Dade County.
West Conshohocken, Pennsylvania-based Keystone Development + Investment owns the building, records show.
Source: The Real Deal’s analysis of data provided by Colliers and CBRE, as well as publicly available records.