The top leases of 2013 show an even split between large tenants renewing or relocating. This is interesting because it is proof that large tenants are still finding value in relocations, even if it’s just across the street. It also shows that large blocks of inventory were still up for grabs in 2013. Right now in Miami-Dade County, there are less than 40 office buildings with over 30,000 sf of contiguous space. There are less than 20 buildings with over 50,000 sf of contiguous space and I have to say that some of the options are poor-quality buildings. This limited inventory could generate a new wave of speculative office construction.
FedEx is staying at its long-time home in the Waterford/Blue Lagoon area where everyone can see their sign on the 836. Law firms and banks were the most active groups in 2013. Bupa Latin America is one of my landlord transactions this past year and this lease is a consolidation of their three locations into a single location.
Tenant |
Sq Feet |
Submarket | Transaction Type |
FedEx Logistics/transportation |
73,000 |
Miami Airport |
Renewal/ |
Shutts & Bowen Law Firm |
70,000 |
Downtown |
Relocation |
Royal Bank of Canada Financial Services |
65,009 |
Brickell |
Renewal |
Northern Trust Bank Financial Services |
62,000 |
Brickell |
Relocation |
Total Bank Financial Services |
60,000 |
Downtown |
Relocation |
Bupa Latin America Health Insurance |
59,600 |
Kendall |
Relocation |
Starboard Cruise Services Duty-free Merchandise |
58,000 |
Doral |
Renewal/ |
White & Case Law Firm |
57,954 |
Downtown |
Renewal |
Fowler White Burnett Law Firm |
45,000 |
Brickell |
Renewal |
West Coast University For Profit University |
40,000 |
Doral |
New |
2014 is anticipated to be a year of continued strong leasing activity. If your lease is expiring in 2014, you need to begin planning your course of action immediately. The good buildings are experiencing strong leasing activity and the inventory of space continues to shrink. Please call me so we can discuss the appropriate strategy for you.
Next week I am attending a luncheon that features a widely-noted real estate economist who will provide us with his 2014 forecast. I always enjoy Hugh Kelly and find his analysis to be entertaining and accurate. My next posting will include his insights and I’ll be checking to see how he did on his 2013 predictions.