New Tower Brings Brickell Office Vacancy To Near 25%

600 Brickell at Brickell World Plaza, the last of the new buildings to come to Brickell, is now on the market, adding 487,000 square feet to the Brickell office inventory and shooting vacancy up to between 23% and 25%.
“They’re over 90% leased and occupied, with a very good amount of activity, including lots of expansions,” he said. “So it’s an interesting dynamic.”
Among recent leases are Willis Florida’s 19,000-square-foot transaction at 1450 Brickell and the renewal of Aon and British Consulate General leases at 1001 Brickell Bay Drive. “Dialing out 600 Brickell,” Mr. Kingsley said, “all this activity is starting to signal stabilization. Concessions are beginning to curb.”
Leasing at 1450 Brickell, opened a year ago, is reportedly at 70%. “They did a great job on the front end,” Mr. Kingsley said, “but on balance it looks like Brickell is thriving partially because landlords are being very aggressive in rates and concessions, and partly because tenants are seeing that the window of opportunity is closing.”
Jack Lowell, Vice President at Flagler Real Estate Services, said CoStar computes Brickell vacancy including 600 Brickell at about 23%, indicating a pick-up in actual leasing. “We do have some signs of positive activity,” he said, “and some people are starting to ask for expansions. Shadow and sublet space are certainly declining.”
“The residential market has recovered so well along Brickell Avenue,” Mr. Lovell said, “and the increased residency, increased foot traffic and nightlife has invigorated the market. That excitement carries over to the office market as well.
Source: Miami Today



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