February 10, 2018 | GlobeSt
Lowest Office Vacancy Rate in Any Miami Submarket Gets Even Lower
A new tenant means the first new Class A office space in Coconut Grove’s business district in more than 20 years will be fully leased.
By David Wilkening
MIAMI–Best-described as quaint or boutique, Coconut Grove is generally not best-known for its office market. Nevertheless CPA and advisory firm Kaufman Rossin is becoming the anchor tenant at developer Terra’s Mary Street in a market with a vacancy rate of 1.7%. That’s the lowest rate of any submarket in Miami-Dade County.
“I don’t know how that compares to the rest of the country but anytime you get below 5 or 6% in a stabilized market, it makes investors pretty happy,” JLL Vice President Randy Carballo who specializes in tenant rep and has completed several major deals in Coconut Grove, tells GlobeSt.com.
The lease keeps Kaufman Rossin in its longtime Coconut Grove neighborhood, where the company has grown to become one of the country’s top 100 CPA and advisory firms. Completion of the 64,666-square-foot Kaufman Rossin lease, coupled with a 13,174-square-foot lease recently signed by Mary Street co-developer Terra, means the project is fully leased.
The Touzet Studio-designed mixed-use building is now under construction and expected to be complete by mid-2019. The project includes 77,840 square feet of Class A offices across five floors, reimagined retail storefronts, and a publicly accessible parking garage.
Space Shortage Led to Pent-up Demand
The completion of the building will mark the first new delivery of Class A office space in Coconut Grove’s business district in more than 20 years.
The lack of space has led to recent pent-up demand. There’s 994,000 square feet of Class A and Class B space, roughly split in half, according to JLL figures. Another 250,000 square feet of space is underway.
Office space has been attractive to business owners and others who live in the Coconut Grove area.
“It has a lot of amenities that tenants are looking for. Good restaurants and hotels. Everything fairly walkable. It’s the type of live-work-play area you often hear about,” Carballo says.
Mary Street’s revamped retail program will total approximately 16,766 square-feet of frontage along Mary, Oak and Rice Streets. The space will cater to chef-driven restaurants with café seating and retailers serving Coconut Grove’s growing population of residents, visitors and daytime workforce. Signed tenants include Jaguar Therapeutic, OXXO Cleaners, Elia restaurant, the Workout Spot, and a private dentistry practice.
Amenities at Mary Street will include a state-of-the-art lobby for office tenants and guests, 24-hour security, covered valet and drop-off areas, and dedicated elevators with direct office access. Electric car charging stations, bicycle stations and bicycle storage are also available.
Kaufman Rossin was represented by Tom Capocefalo, senior managing director with Savills Studley. The development team was represented by Chris Dekker, VP with Mayfair Real Estate Advisors.