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14 Big Factors Driving CRE Trends This Year And Beyond

Author: Admin
Categories: Commercial News,Development,Healthcare,Leasing,Multifamily,Offices,Retail,Shopping Centers,Trends

The Covid-19 pandemic has created an unprecedented challenge for the real estate industry.

Commercial real estate professionals have had to navigate new obstacles like virtual showings, finding buyers during an economic downturn and perhaps most significantly, the shift away from centralized offices toward full-time remote work.

The current climate and circumstances will continue to impact real estate trends in the months and years to come, and if you’re in the industry, it’s important to be prepared for what’s ahead. To help, Forbes asked 14 members of Forbes Real Estate Council for their insights.

Below the members identified the biggest factors driving commercial real estate trends this year and beyond.

1. Utility Management For Remote Work

One factor is the ability of some companies to effectively and responsibly manage critical business initiatives while telecommuting. Companies are evaluating the health, safety and necessity of their employees working remotely versus maintaining the continuity of a central office location which may have redundant electrical power, data connectivity and other security measures necessary to maintain sales and operations. – Josh Gopan, Simone Development Companies

2. The Need For Office Space In The Home

While everyone has always needed a place to live, people’s homes now have added value. With many people shifting their workplaces from offices to their homes, their dwelling also has increased in importance. Conversely, this has had a detrimental effect on office space across the country. – Matt Picheny, MJP Property Group

3. Smart Amenities

The adoption of technology will drive smart amenities from the “nice-to-have” column to the “need-to-have” column as restrictions are put in place by local, regional and state governments. Adoption was already trending up pre-Covid-19, but should continue to see a strong increase over the next 12 to 24 months. – Marshall Friday, ADT Security Services

4. Newly Available Subleases

Large, established institutions, like Twitter, Facebook, etc. have put work from home requirements in place that are minimizing their physical space requirements. Combined with businesses negatively affected by Covid-19, there is a large volume of subleases hitting the market. Younger companies that are doing well are looking for flexible space and terms, so subleasing might be the top CRE trend. – Matt Weirich, Realync

5. Less Demand For Commercial Office Space

The outlook of office space is uncertain, but possibly very dark. Businesses had to adjust quickly to a virtual workforce. Many of those businesses will find that they can operate just as well without the overhead costs associated with owning or leasing a physical office. – Chris Bounds, reHacking / Bounds Realty Group by eXp Realty

6. Uncertainty Around Retail Business Operations

One of the key factors driving commercial real estate trends since Covid-19 is the uncertainty surrounding which type of businesses will be able to operate during the pandemic and how that drives the values of those assets. Businesses in strip malls, like nail salons and hair salons, have previously been immune from fluctuations in the economy, but are now at the peril of intermittent shutdowns. – Todd Sulzinger, Blue Elm Investments

7. Property Maintenance As A Priority

Covid-19 has pushed property maintenance to the forefront. Consumers are more concerned about disinfecting than ever, and well-maintained locations—including everything from sanitization to spotless floors and regular, visible cleaning to fresh landscaping—instill confidence. Facilities maintenance is an area companies will need to increase investment in as it becomes integral to brand experience. – Marc Shiffman, SMS Assist

8. High Demand For Essential Businesses

In the net lease world, investors are focusing on quality and stability, both for guarantor and real estate fundamentals. We’re seeing very high demand and capital being reallocated to essential businesses like grocery stores, dollar stores, auto parts and service centers, pharmacies, medical companies and quality guarantors in fast food. Stable cash flow with quality tenants paying rent wins in a high-risk market. – Kyle McCollum, Trinity Real Estate Investment Services

9. Short-Term Market Performance

Covid-19 prompted many investors to spend more time tracking short-term market performance. From an investment perspective, our strategy and analysis begins by evaluating which sectors experienced stability in the last 20 weeks. Multifamily, self-storage, healthcare, NNN retail and office performers are well-documented, however, we must consider how each asset will also perform in the long run. – Keith Lampi, Inland Private Capital Corporation

10. Increased Importance Of Rental Property Amenities

With many people sheltering in place, office properties are relatively empty and time spent at home has never been higher. This makes multifamily amenities increasingly important. The trend of renters seeking well-appointed properties is not new, but in the wake of Covid-19, the value of on-site dining options, co-working lounges, fitness centers and other amenities has never been greater. – Salvador Garcia, MAS Development Group

11. The Internet’s Impact On Land Value

Technology and digital connectivity have disrupted many industries and real estate is not immune. We have been forced to realize that such advances may alter our approach to land use and the built environment. There will be increasing discussion about the effect of the internet on the value of land generally, although we are in the very early stages. – Eliot Bencuya, Streitwise

12. Changes In How Office Space Will Be Used

When demand returns for office, the largest part of the workforce will be hybrid workers that come to the workplace two to three days a week. This is down from four to five days per week meaning a 20 to 30% decrease in demand for office, retail, hospitality, etc. This will dramatically shift how these assets are used and valued. We will see the productization of the office from a couple of products to several. – Jacob Bates, CommonGrounds Workplace

13. Industry Adaptability And Resilience

This trend is truly remarkable as it has shown how resilient the industry is. The market has made huge progress in creating work-from-home environments with management companies investment firms and doing the best they can through the use of many tech support programs. It’s been remarkable to see this trend take life while showing the industry stays strong (thanks to interest rates being low). – Heidi Burkhart, Dane Real Estate

14. Capital Reallocation

As we’ve seen in past downturns, there is a massive reallocation of capital for investment to commercial sectors deemed safer with cash flows that are perceived to be more durable. Look for pricing to tighten and competition to increase in multifamily, industrial, self-storage and medical sectors while loosening in retail, office and hospitality. – Max Comess, Hodges Ward Elliott, LLC.

 

Source: Forbes

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Miami Beach Approves Co-Working, Co-Living Project

Author: Admin
Categories: Commercial News,Development,Miami Beach,Multifamily,Offices,Retail

Miami Beach officials approved URBIN, a coworking, co-living project that includes wellness and a hotel.

URBIN Miami Beach Partners‘ project was approved for 62,000 square feet of development, including four floors of coworking with 139 desks, 49 co-living units, 56 hotel rooms, and a 4,000-square-foot wellness center at 1234 and 1260 Washington Ave. There would be a garden and lounge on the roof. The project would include a small retail space.

The developer, Rishi Kapoor, would demolish a retail building on the property and renovate an office building. The new building would rise six stories.

 

Source:  SFBJ

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Swire Sells Brickell City Centre Office Buildings

Author: Admin
Categories: Commercial News,Offices

Swire Properties sold two office buildings at Brickell City Centre for $163 million, marking the largest sale to close in South Florida during the pandemic.

Two Brickell City Centre and Three Brickell City Centre LLC, led by Swire Properties President Kieran Bowers sold the office portion of 78 Southwest Seventh Street and 98 Southeast Seventh Street in Miami to US VI 2 Brickell LLC and US VI 3 Brickell LLC, affiliates of Northwood Investors. Tenants include Akerman LLP and WeWork.

The combined $163 million purchase breaks down to $80.3 million for Two Brickell City Centre and $82.7 million for Three Brickell City Centre. Each building has about 130,000 square feet, which means they sold for roughly $630 per square foot.

In a statement, a spokesperson for Brickell City Centre said the buildings are nearly 100 percent occupied and that Swire plans to use the cash for future developments.

Northwood, a Denver, Colorado-based investment adviser, had about $8 billion of assets under management as of December. That includes Cheeca Lodge & Spa in the Florida Keys and the mixed-use project under construction at 1177 Kane Concourse in Bay Harbor Islands.

Swire’s more than $1 billion Brickell City Centre development also includes the East Miami hotel, condo towers Reach and Rise, and the open-air shopping center anchored by Saks Fifth Avenue and the luxury movie theater CMX. Two and Three Brickell City Centre were completed in 2016. Arquitectonica was the lead architect.

Swire Properties is headquartered at Brickell City Centre, but the company is a subsidiary of Hong Kong-based Swire Properties Limited.

The developer has plans for a second phase of Brickell City Centre. In early 2019, Swire and businessman Carlos Mattos scored final approval for a 100,000-square-foot-plus expansion that would have a 54-story, 588-unit residential tower, another 62-story, 384-unit residential tower, commercial space and parking.

 

Source:  The Real Deal

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Pair Of Mixed-Use Towers Planned For Wynwood

Author: Admin
Categories: Commercial News,Development,Multifamily,Offices,Retail,Wynwood

On the eastern side of growing Wynwood a developer plans a large mixed-use residential project that will also bring in new commercial tenants.

PRH CHO Dragon Wynwood LLC plans to build the pair of neighboring buildings at 2804, 2810, 2819, 2828, 2838 and 2804 NW First Ave.

The city’s Urban Development Review Board considered the project at a virtual meeting and recommended it for approval with a couple of thoughts.

With a current working title of Wynwood 29, the vast development tops out at 375,383 square feet.

The project includes a 12-story building that connects to an 8-story portion, and a separate 8-story building across the street, with 248 multifamily residential units, 28,071 square feet of ground floor commercial uses, a garage for 372 vehicles and room to park 22 bicycles.

Wynwood 29 will include a pool and amenity deck. The garage is intended for both residential and commercial tenants, as well as patrons.

The project is to have 6,360 square feet of open space.

The collection of parcels is between Northwest 28th and 29th streets, split by Northwest First Avenue.

The 12-story portion is planned for the southwest corner of Northwest 29th Street and First Avenue. The southern end of that block has the connected 8 stories. The ground floor is set for retail uses.

What’s referred to in the plans as Parcel 2 is on the northeast corner of Northwest 28th Street and First Avenue. Planned there is the 8-story building, which has eight levels of parking, seven levels of residential and ground floor retail.

The property is currently vacant and is within both the T5-O and T6-8-O Zoning Transects and the Wynwood Neighborhood Revitalization District (NRD-1) Overlay.

Multifamily structures sit to the east and west of the property.

Attorney Brian Dombrowski, representing the developer, told the review board the project was previously approved in September 2016 and this is a slightly modified design, updated after the company gained an additional parcel.

In a letter to the city, Mr. Dombrowski detailed requests for one warrant and several waivers in order to construct Wynwood 29.

The developer is requesting a warrant to allow on-street maneuverability to access two loading berths. Turning movements associated with more than one loading berth per development may be permitted on-street by warrant, except along Wynwood Corridors, under Miami 21 zoning.

The project proposes on-street maneuverability to access two loading berths from Northwest 28th Street, on the western portion of the project, according to the letter.

The waivers being sought include:

  • Up to a 30% reduction in required parking within the quarter-mile radius of a Transit Corridor. The property is within a quarter mile of multiple bus and trolley stops.
  • Up to a 10% increase in lot size from 40,000 square feet to 44,000.
  • Up to 90% lot coverage through the Flexible Lot Coverage Program, of the NRD-1 Regulations. This additional lot coverage allows both the activation of the roof terrace as well enhancing the pedestrian realm.
  • Up to a 10% increase in lot coverage for the T6-8-O portion of the property, allowing 84.3% of coverage when 80% is allowed.
  • To allow vehicular entry, loading docks, and service entries from the primary frontage, Northwest 28th Street.
  • Up to a 10% reduction in the minimum square footage for a one-bedroom residential unit. Miami 21 typically requires a minimum square footage for a one-bedroom residential unit of 550 square feet. The project proposes one-bedroom units at 531 square feet, 3.5% below the minimum.

“By reducing the minimum one-bedroom unit size, the Project can provide more affordable units. The Project’s proximity to mass transit makes it a great candidate for smaller, more affordable units,” wrote Mr. Dombrowski.

 

“Urban Land Institute studies indicate that smaller units have stronger occupancy rates than typical apartments and individuals choosing to live in smaller units are attracted to them because of a desire to sacrifice space for lower per unit cost and proximity to transit, employment, and vibrant mixed-use neighborhoods,” he said.

The project is designed by the architectural firm of Arquitectonica. Ray Fort, of the firm, described details of the Wynwood 29 project during the virtual meeting.

Mr. Fort told the board: “This quadrant of Wynwood is becoming the residential sector of Wynwood … it is a little bit quieter – there aren’t as many bars – and surrounding projects are planned to be residential,”

Board Chair Willy Bermello said, “I think the project is beautifully designed.”

And while he complimented the bright colors proposed for the project, Mr. Bermello mentioned a concern with the longevity of painted stucco.

“The issue of our Florida sun is that it’s not forgiving when it comes to bright colored paints. [How do you] maintain the crispness of those colors over time?” he asked.

Mr. Bermello asked if they had considered brick for the project.

Mr. Fort said they did not and referred to the size of the development.

Board member Anthony Tzamtzis also voiced concern about the painted surfaces.

“Did you consider glazed tiles? I think the painted stucco is degrading the concept you are trying to promote, which is the industrial [look],” said Mr. Tzamtzis. But he went on to congratulate Mr. Fort for “an extremely elegant presentation and thoughtful design.”

 

Board member Dean Lewis said the project is “well thought out, well detailed.”

He suggested a pedestrian bridge over Northwest First Avenue to connect the buildings.

Attorney Iris Escarra, also representing the developer, said they have discussed a pedestrian bridge but said it would require a separate approval from the city commission. She said such a bridge may be an option.

Board member Ignacio Permuy said: “I commend you on an exceptional job, starting from the massing to the architecture of the buildings … I truly appreciate the screening on the parking garage.”

Mr. Permuy said he understood the others’ comments about the bright painted stucco but added, “I don’t mind the color scheme that much. I understand comments … but this shows levels of playfulness, it shows you enjoyed designing this project.”

 

Board member Robert Behar said: “I like the whole project. You’ve done a great job.”

A motion to recommend approval of the project passed unanimously, with recommendations including the developer considering connecting the buildings, perhaps with a bridge, and to consider materials other than stucco.

 

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Miami-Dade Property Appraiser Getting Sued Over Tax Bills

Author: Admin
Categories: Commercial News,Healthcare,Multifamily,Offices,Retail,Shopping Centers

Affiliates of megamall developer Triple Five, along with Terra and Starwood Capital Group are crying foul over property tax bills from Miami-Dade County.

A number of developers and investment groups have recently filed lawsuits against Miami-Dade Property Appraiser Pedro J. Garcia for their tax appraisals for the 2019 tax year. Others include the owners of Aventura ParkSquare, the SunTrust office building on Brickell and the Delano South Beach.

The latest suits come as Miami-Dade issued preliminary taxable values for 2020 earlier this month, based on assessments and market conditions on Jan. 1. More such suits could arise, as businesses continue to lose money and commercial real estate values fall due to impacts of the coronavirus pandemic.

“A litigation showdown is looming between property owners and the government over property taxes,” said attorney Josh Migdal, a partner at the Miami law firm Mark Migdal & Hayden, who handles real estate cases.

“Property owners are faced with budget shortfalls due to decreased revenue,” Migdal added. “However, a decrease in tax revenue collection due to the virus will require the government to maximize its property tax collection to prevent its own budget shortfall.”

Florida is heavily reliant on property taxes since the state does not have a state income tax.

Overall, preliminary property tax values across Miami-Dade County rose in 2020 compared to the previous year. The estimated taxable value for Miami-Dade County properties totaled $324.36 million, up 5.1 percent from 2019, according to the property appraiser’s office.

The biggest increases were in West Miami (14.6 percent); Florida City (13.8 percent); Homestead (10.8 percent); Hialeah and North Miami (each up 10.4 percent). Much of the boost in appraised value is due to new construction, the property appraiser’s report shows.

Yet, the property appraiser’s office said falling prices for condos properties in Bal Harbour, North Bay Village, Key Biscayne and Aventura will have a negative impact on property taxes in 2020. It also says that coronavirus is starting to impact commercial real estate values.

“I will do everything within my authority to assist property owners who are struggling during these unprecedented times,” Garcia said in a statement. “As the real estate market changes during 2020, my office will consider these factors and make the necessary corrections permitted by law.”

The property appraiser’s office declined to comment on the recently filed suits. Among them, Triple Five, the Canadian developer, sued over the assessed value of its property in west Miami-Dade, where the group plans to build American Dream Miami mall.

The developer alleges the property appraiser gave an agricultural designation for 46.5 acres of its property, but denied the agriculture designation for two parcels totaling 38.32 acres. The properties were valued at $5.13 million and at $1.5 million, respectively, which the Triple Five alleges are “amounts in excess of their agricultural values.” The developer alleges the entire property should be classified as agricultural for the 2019 tax year, according to the complaint.

Developer Terra is also suing over a 11,865-square-foot parcel it owns at 2765 South Bayshore Drive in Coconut Grove. The company alleges the property is based on appraisal practices that are not “professionally accepted appraisal practices nor acceptable mass appraisal standards” in Miami-Dade County.

A company tied to Starwood Capital Group sued the property appraiser over a hotel it owns at 6700 Northwest 7th Street near Miami International Airport. The complaint alleges the $20 million assessment does not represent the value of Springhill Suites Miami Downtown/Medical Center because it exceeds the market value.

An affiliate of Integra Investments is suing the appraiser over Aventura ParkSquare, its mixed-use project in Aventura. The development group claims the property appraiser misappraised its property and it should not owe $106,629 in property taxes. The 1.2-million-square-foot project, at 2920 Northeast 207th Street, was completed in 2018. It includes a 131-unit luxury condo building, a 100,000-square-foot Class A office component, 55,000 square feet of ground-floor retail and restaurant space, and a hotel.

Alliance Re Holdings, the investment group that owns the SunTrust building at 777 Brickell Avenue is suing the property appraiser over its appraised value at the office tower. The group, led by Adolfo Geo Filho, who is tied to Brazilian construction company Construtora ARG, alleges it should not owe $2.2 million in property taxes. Alliance Re Holdings alleges the “Property Appraiser’s assessment of the property is arbitrarily based on appraisal practices.” The Filho-led group purchased the SunTrust building for $140 million in February 2015. Tenants include SunTrust, Truluck’s and Quest Workspaces.

The owner of the Delano South Beach is suing the property appraiser’s office over the hotel’s $172,905 tax bill. A company tied to SBE Entertainment Group, led by Sam Nazarian, also alleges the property assessment is arbitrarily based on appraisal practices that are not professionally accepted nor acceptable in Miami-Dade County.

 

Source:  The Real Deal

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Moishe Mana Unveils First Phase Of Downtown Miami Development

Author: Admin
Categories: Commercial News,Development,Multifamily,Offices,Retail

Moishe Mana could use the 50 buildings he owns to develop a mass of towers in the core of downtown Miami, but he’s moving forward with a different vision.

Mana will renovate buildings to attract tenants and limit the construction to about four stories, said Bernard Zyscovich, CEO Zyscovich Architects, which crafted the plan with Mana.

Mana spent hundreds of millions of dollars in recent years snapping up property downtown, especially along Flagler Street. The area has some of the oldest buildings in the city. Many of those Mana-owned buildings have vacant space on the ground floors as he works on development plans.

Now, Zyscovich says Mana has a multi-phase plan for his downtown properties, and he’s ready to start construction this summer.

While many of Mana’s properties are zoned for 50 to 80 stories, that’s not his vision, according to Zyscovich.

“We are looking at spreading development throughout downtown instead of coming up with tall buildings out of the box,” Zyscovich said. “We don’t think downtown is ready for high-rise max buildings. We need to develop it as a neighborhood.”

Mana will begin by renovating the 13-story building at 155 S. Miami Ave. Built in 1980 and totaling about 166,000 square feet, the building formerly house federal immigration offices and it looks the part of a staid government office. Zyscovich said its facade will be stripped away and replaced with an artistic facade, which will resemble an optical illusion. The ground floor of the building is currently not accessible from the street and will be opened up so there can be a coffee shop and social space.

Mana wants the building to house office and technology tenants.

“It’s a good first project because there’s enough square feet to occupy the building with many new uses,” Zyscovich said. “We have financing in place and hopefully before the summer is out we will start construction, which is really deconstruction.”

Mana will follow with another project on the same block, at South Miami Avenue and S.W. 2nd Street. That includes a modest-sized new building along with renovations to the parking garage and some historic structures that could house restaurants.

The second area Mana will develop is Flagler Station, at 48 E. Flagler St., Zyscovich said. That will include new storefronts.

“It will become a cool neighborhood with the idea of providing urban services to innovators and technology people,” he said.

As the projects are completed, Mana plans to introduce a membership group called Mana Commons. Members would receive living quarters, office space, and discounts on local food and beverages, Zyscovich said.

“Moishe likes to say he’s not a developer,” Zyscovich said. “He’s a venture capital guy who wants to create something more innovative with real estate than renter space. We rent space, of course, but space oriented toward particular uses that might exchange rent for a venture capital interest.”

 

Source:  SFBJ

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More Tech Firms Eye Miami As COVID Carries On

Author: Admin
Categories: Commercial News,Offices,Trends,Wynwood

In late February — before Covid-19 became a pandemic — Spotify inked a lease for 20,000 square feet to house its South Florida headquarters in Miami’s Wynwood neighborhood.

The music streaming service’s deal for all of the office space and large courtyard at the mixed-use development Oasis at Wynwood on North Miami Avenue was another sign of momentum for TAMI (technology, advertising, media and information) companies taking office space in South Florida.

But then coronavirus hit, prompting nearly half of the American workforce to set up shop in their homes and leading Twitter and Facebook to announce work-from-home policies that could lead to a potential void in the office markets in New York City and Silicon Valley.

South Florida, however, could benefit from the pandemic.

As residential brokers in the area report an uptick in sales and rentals largely fueled by homeowners fleeing dense markets like New York, office brokers say they’re starting to see a similar trend play out among tech firms.

Cushman & Wakefield’s Brian Gale, who was part of the leasing team that closed the deal with Spotify at 2335 North Miami Avenue, said he’s given five virtual presentations to major tech brands to take large spaces at 830 Brickell — one of South Florida’s largest office projects under construction.

OKO Group and Cain International are building the 57-story tower, which the developers say will be anchored by WeWork, with an expected delivery date of 2022. The property will have 490,000 square feet of office space, and will mark the first major office building to rise in Miami’s urban core in the last decade.

Facebook, Apple, Google, Uber and Chewy are among the many companies that already have a presence. Tech firms take up nearly 3 million square feet in South Florida. Broward has the largest share, with nearly 1.7 million square feet, compared to about 765,000 square feet in Miami-Dade and just under half a million square feet in Palm Beach County, according to CoStar data provided by CBRE.

As with most office landlords and leasing agents in other cities, South Florida’s office brokers aren’t convinced that working from home will become a long-term result of the pandemic. Companies that were looking to take advantage of the tax benefits, weather and more favorable housing costs are still planning moves to Florida, according to local real estate players.

“Companies like Twitter put their foot in their mouth too early. I believe that it’s really hard for people long term to work from home,” said Daniel de la Vega, whose firm One Commercial is marketing Creative HQ, an office condo in downtown Miami.

“Only the really wealthy ones would move in the past, the Barry Sternlichts of the world,” he added. “But now people our age want to get out of the major cities and they want to come to Miami and Fort Lauderdale.”

Ripe for the picking

Commercial brokers are negotiating a number of “blend and extends” where the landlord offers some free rent or concessions in exchange for longer leases. And for new leases, prospective tenants with the budget to do so are more concerned with building measures and office floor plans that follow the latest public health guidelines.

“Unless a landlord has got a lot of capital saved, it’s an ideal time for tenants to restructure leases. We’re going to see the markets change in favor of tenants.”

Keith Edelman, Colliers International

Carpe Real Estate Partners’ Erik Rutter, one of the developers behind the Oasis at Wynwood, said larger spaces and the ability to be outside will prevail, he argued.

“There will still be a demand for office space. The growth of Miami will continue, if not be propelled by, this pandemic,” Rutter said.

While some brokers believe there will be hesitation about returning to a high-rise office building versus a suburban, low-rise corporate campus, Gale said he’s negotiating nearly 200,000 square feet of proposals at 830 Brickell. Those conversations include one with a major tech tenant that is “very serious” about opening an office in Miami, he noted,

“People now are looking at new buildings as having better air quality, giving tenants the ability to really plan out how they’re going to look post-Covid,” Gale said, adding that many “are concerned with mass transportation and being on top of people” in New York City.

Local entrepreneur Brian Breslin echoed that point.

People who run their own tech startups or work remotely for larger companies are increasingly relocating to South Florida, said Breslin, the founder of Refresh Miami, a nonprofit that focuses on tech networking in the city. He said he believes more companies will follow recent WFH policies put in place by Twitter, Facebook and Shopify.

“Most people don’t have it in their budgets to space out employees six feet apart,” Breslin noted. “It would be unwise for us to think this is a short-term thing. A lot more of the traditional tech companies are rethinking their hiring processes.”

Keith Edelman, executive managing director of Colliers International South Florida, said most long-term deals are on hold as companies evaluate their office setups, which could put pressure on rental rates.

Edelman, who recently returned to his office, had been working remotely for more than two months, speaking with The Real Deal from his car. He said he believes work from home culture could take a toll on camaraderie and collaboration among employees — giving office tenants an incentive to be proactive in their leasing negotiations.

“Landlords are scared,” Edelman said. “Unless a landlord has got a lot of capital saved, it’s an ideal time for tenants to restructure leases. We’re going to see the markets change in favor of tenants.”

More pouring in

The wave of companies moving to South Florida isn’t limited to just tech, industry sources say.

Investment firms, insurance companies, hedge funds and family offices have also been making the move, driven by the lack of a state income tax.

Sandy Rubinstein, CEO of New Jersey-based digital marketing and advertising firm DXagency, bought a two-story office building just north of Wynwood for $2.25 million during the pandemic.

The Miami native plans to make the 2,678-square-foot property at 3634 Northwest Second Avenue the new headquarters for her firm, which counts Mastercard, Univision, NBC, Viacom and Green Valley Organics among its clients.

“A lot of our employees up here have asked if they could transfer,” Rubinstein told TRD in April. “Miami is such a good market for talent so I also want to take advantage of that now.”

 

Source:  The Real Deal

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Construction Of Mixed-Use Development In Miami’s Wynwood District Tops Out

Author: Admin
Categories: Commercial News,Development,Multifamily,Offices,Retail,Wynwood

CIM Group announced that it has topped out construction of the two eight-story towers set above the ground floor retail and three levels of office space which comprise CIM’s significant mixed-use development at 2201 N Miami Avenue in the Wynwood Arts District of Miami.

The development, which is a major contributor to the evolving Wynwood district, includes approximately 60,000 square feet of office space, 27,000 square feet of street-level retail and studio space, 257 apartments and approximately 480 parking stalls. The 1.78-acre site spans a full city block bounded by NE 22nd and NE 23rd Streets, with approximately 250 linear feet of frontage on N. Miami Avenue to the west and fronts the Brightline Rail to the east.

Three office floors are located above the street-level retail and studio space and extend across the full block creating expansive office space that allows for flexible configurations and the ability to divide the approximately 20,000-square-foot floor plates into office suites. The newly-constructed raw space provides the user the ability to design interiors to meet individual needs as well as a fresh approach to delineated employee spaces and distancing that reflect the demands of our new environment. Abundant floor-to-ceiling windows infuse the space with natural light, while 12-foot high ceilings add to the spaciousness.

Set above the retail and office base are two eight-story towers, at the northern and the southern ends of the block, providing contemporary apartments in a variety of sizes and floor plans, from studios to three-bedroom units.

The development has a central position in Wynwood, a distinctive area in the urban core of Miami, nationally recognized as a center for arts, innovation and culture, as well as one of the major settings for Art Basel, and one of the world’s largest street art installations. The ground floor retail space will accommodate a variety of shops, cafes and restaurants, galleries or other businesses that desire a prominent location in Wynwood.

The Wynwood Arts District has been transitioning from an industrial zone to a flourishing center for art, fashion and creative enterprises, with rehabilitated factories and warehouses repurposed for galleries, studios, bars, workshops, and offices — an evolving neighborhood, which includes more residential offerings.

The project is anticipated to be complete in mid-2021. CIM acquired the fully-entitled site in October 2018.

 

Source:  BusinessWire

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The COVID-19 Shutdown Tests Medical Office Buildings As An Investment

Author: Admin
Categories: Commercial News,Development,Healthcare,Offices

As U.S. health-care systems limit medical services to emergency and urgent care situations in the face of COVID-19, medical office buildings are standing empty, and the threat of tenants missing lease payments mounts.

Still, experts say, investors have every reason to keep MOBs high on their list of sector favorites. In addition to pent-up demand, strong sector fundamentals—aging Baby Boomers, expanded medical insurance coverage, new treatment options and shifts in service delivery—are expected to aid the MOB sector’s rebound and its love affair with investors.

“Medical office buildings and other outpatient care settings have been hot commodities in commercial real estate investment for the past several years,” according to Cushman & Wakefield’s 2020 Health Care Investor Outlook released at the end of last year. “Legacy investors are doubling down on the sector, while new investors are competing for the limited product supply.”

In the meantime, medical office building owners will have to wait for tenants and their patients to return.

“Most owners are trying to not make an impulsive decision, to wait and see how this situation plays out,” said Allen Bolden, a partner with HB Medical Real Estate.

But despite the MOB market’s underlying strength, too much time may prove to be an enemy.

“The fact that we don’t know if this will last another week or several months is why we can’t give solid answers to the future,” Bolden added. “The only thing we do know is the longer the economy is shut down, the more this will test the strength of MOBs as an investment.”

 

Source: CPE

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Coronavirus Could Set Back The Pro-Density Movement

Author: Admin
Categories: Commercial News,Development,Leasing,Multifamily,Offices,Trends

The movement toward dense, transit-adjacent development picked up steam over the last few years, but the coronavirus pandemic might prove to be a big setback.

The pandemic has forced a quick national pivot toward telecommuting, which some think could undercut the utility of living near transit, according to the New York Times. If you don’t need to go into the office so often, why not spread out a bit?

Density advocates and lawmakers will likely find the pandemic gives rivals new ammunition to argue against their push for more zoning.

Some pro-density lawmakers, like California State Sen. Scott Wiener cautioned that there will still be a need for housing in his state after the pandemic subsides. Wiener has been trying to pass a statewide transit-oriented development bill for years and presented his most recent version in early March, just before coronavirus took the state by storm.

Developers meanwhile have to weigh consumer interest in such housing. Bob Youngentob, CEO of Maryland-based developer EYA, said his firm might switch its focus from more dense transit developments to townhomes if demand for the former falls enough.

“The forced interaction of sharing doors and elevators has caused some anxiety,” Youngentob told the Times. “Townhomes, where you come in and out of your door, and you know you are the only one touching your door handle, provide some comfort.”

Those who continue to build dense projects might reconsider their design strategy for public health — walkways could become wider and open spaces larger, for example.

 

Source:  The Real Deal

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