In one of the largest downtown Miami office lease transactions this year, Crocker Partners announced on Friday that Citigroup, the global banking and financial services corporation, has signed for 125,000 square feet at Miami Center, according to a release.
Along with announcing Citigroup’s 15-year lease renewal as anchor tenant, Crocker Partners unveiled plans for a $20 million makeover of the 34-story, 786,267-square foot tower.
Citigroup’s commitment is good news for the market and for Miami Center, the state’s second largest Class A office tower, according to Angelo Bianco, partner in Crocker Partners.
“Citigroup shares our excitement in Miami’s future. Locking in a long term lease at today’s rental rates is a wise move. Tenant demand from both organic and new tenant growth is in its 4th consecutive year of expansion. Couple that fact with the limited amount of office development in the pipeline and we have a perfect storm on the 12-24 month horizon for a significant increase in rents.”
Cushman & Wakefield Commercial Brokerage Services’ Senior Director Jon Blunk represented Crocker Partners in the transaction. Patrick Duffy of Newmark Grubb Knight Frank represented Citigroup.
The renovations, already underway, include a makeover of the lobby and exterior plaza, a new entrance and valet, and modernization of the elevators.
Miami Center is well positioned with the ongoing revitalization of Miami’s CBD. Crocker Partners, Miami’s largest Class A office owner with more than 1.5 million square feet in the market, recently completed a $15 million renovation of its nearby SunTrust International Center.
The Citigroup lease comes on the heels of a 25,000-square foot Miami Center lease renewal by international law firm Hughes Hubbard & Reed LLP.
Blunk said the recent commitments by large space tenants reflect confidence in Miami’s future as a dynamic global business center, a growing sense of urgency in a tightening market, and the desirability of Miami Center. Cushman & Wakefield’s latest Marketbeat report, he noted, forecasts continued office demand in the urban core, with the market poised for “incomparable growth in the next three to five years.”
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