Last week my firm made a presentation at a private luncheon hosted by Gibraltar Bank. 
We focused on Coral Gables, so I wanted to share with you some of the highlights of this discussion. Coral Gables has been chugging along with decent office leasing activity, strong commercial sales and abundant new commercial development.
In 2012, two new office buildings totaling over 333,000 sq ft hit this 10.8 million sq ft submarket. The first, 396 Alhambra, quickly signed up a number of large tenants including HBO Latin America, Diageo and Millicom International to name a few. The 273,000 sq ft building is now stabilized at about 74% occupied. The other new building is called, The Building. Leave it to the advertising folks of Zubi Advertising to come up with such a unique moniker. The Building is shared between Zubi Advertising and Mas Group with some buffer space in between that will be leased out to other companies.
Other happenings in Coral Gables – 75 Valencia is finally stabilized. This building became a fractured office condo during the recession. It is well on the road to recovery due to its purchase by Chopard, a Swiss luxury jeweler and 75 Valencia occupant. Chopard has great plans for the renovation of the building and leasing activity has been strong in response to the stabilized ownership.
Overall Coral Gables is about 15% vacant. The Class A landlords are remodeling lobbies and common areas in an effort to remain current and competitive with not only each other, but also Brickell area buildings. Rental rates for Class A buildings average about $36.70 per sq ft and Class B rental rates average about $27.50 per sq ft.
Future development in Coral Gables includes The Berkowitz Group’s long-awaited Gables Station, a 330,000 sq ft retail tower similar to Dadeland Station. Agave Holdings, the developer of 396 Alhambra, is partnering with Allen Morris Company to build a Class A building on the Ponce Circle. Rental rates will be in the mid to high $40’s.
For commercial sales, below are some recent sales in and around Coral Gables.
| Address |
Sq Ft |
Sales Price |
Price Per Sq Ft |
| 425 S. Dixie Hwy. (Poe’s) |
9,111 |
$4,320,000 |
$474 |
| 3300 Ponce de Leon Blvd. |
9,800 |
$3,425,000 |
$350 |
| 1001 Ponce de Leon Blvd. |
11,790 |
$1,730,000 |
$143 |
| 2200 S. Dixie Hwy. (Renzi) |
32,000 |
$7,000,000 |
$218 |
| 75 Valencia Avenue |
83,000 |
$11,000,000 |
$132 |
Scott Sime, the principal of my firm, is an acknowledged Coral Gables expert. If you have questions or want more information about the commercial real estate market, give us a call.
