It’s the largest office deal so far this year in Miami-Dade County—and one of the largest ever at Waterford. Miami Children’s Health System (MCHS) has signed a lease for 79,156 square feet of office space at 5301 Waterford, a nine-story, 204,887 square foot office building in Miami.
As MCHS continues its evolution from a hospital to a full-blown health system with eight outpatient centers, the organization is moving its corporate headquarters to accommodate growth. The Waterford location is near Miami Children’s Hospital main campus. The organization will take up residency in the new space in the third quarter of 2014.
“Our management team conducted a methodical and comprehensive study to establish the guiding principles for this office relocation and consolidation,” says Dr. Narendra Kini, MCHS president and CEO. “We approached our search for a new headquarters as a holistic business decision, with the goal of supporting the continued evolution of our healthcare institution.”
Cresa South Florida managing principals Alan Kleber and John Marshall represented MCHS in the transaction. Stephen Smith and Ana Paula of The Hogan Group represented the landlord, TIAA-CREF. Financial terms of the deal were not disclosed.
“We developed a commercial real estate strategy for MCHS that included a comprehensive plan to support the organization’s evolution from a hospital to a health system,” says Kleber. “By consolidating and relocating its non-clinical support and administrative space into one location at Waterford, the organization will drive greater administrative and operational efficiencies. The office space is being designed to accommodate future growth without expanding, ultimately reducing the cost per employee.”
The new location will house some staff members, MCHS non-clinical support and administrative departments currently working at 6101 Blue Lagoon Drive and 701 Waterford Way. MCHS execs believe the move will optimize performance and build on the organization’s use of Lean business-improvement model principles. The new office space also reduces average annual costs per employee by managing overall occupancy costs, and includes provisions to accommodate future growth without increasing space.
“A critical factor in MCHS’s decision to relocate its headquarters to Waterford was its proximity to major arteries and the ease of access to the major highway systems, which offer a convenience to employees,” says Marshall. “After careful market study, 5301 Waterford was the most optimal location for off-campus office space, because it is close to MCHS’s main campus, allowing employees to easily transfer between locations on a daily basis or as needed.”
The deal puts the six-building Waterford portfolio—also including 701, 703, 1000, 5200 and 5201Waterford—at 92%leased. The 5301 building, which recently underwent major enhancements to the lobby and other common areas, is now 89% leased.
“This transaction confirms the strength of the market in Waterford,” says Smith. “We were able to backfill the recent vacancy in 5301 in a very short period of time. We are very excited to have MCHS as a long-term tenant at Waterford.”
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