News

Last week’s Miami Today contained an interesting article about the role the suburban office market is expected to play in 2017 CRE.  As I discussed with reporter Catherine Lackner, the increasingly difficult commute to Miami’s central business district and rising rental rates is progressively pushing demand for office properties located in the suburbs, including Kendall, and in non-traditional office markets such as North Miami Beach. Kendall, especially east of the Turnpike, is experiencing an influx of capital from private and institutional investors seeking a piece of the CRE market.

The Miami Today article mentioned two of those 2016 deals: the $150 million sale of the Datran office complex near Dadeland Mall and the $285 million acquisition of the Palms at Town & Country, an open-air shopping center at N. Kendall Drive and 117th Avenue. The demand for CRE in the Kendall market is not limited to trophy assets.

Private investors and end-users are also seeking commercial properties in the $1 million to $20 million range in the vicinity of the Turnpike, Baptist Hospital, Miami-Dade College, shopping destinations like Dadeland Mall, and the Metromover, which connects Kendall with downtown Miami.  This was a frequent point of discussion from prospective buyers when I marketed the Nob Hill Professional Building at 9955 N. Kendall Drive.  The property closed in September for $2.15 million, more than $200 per square foot.

Catherine Lackner also reported that North Miami Beach is another promising area.  The city has recently undergone a major refurbishment and legislated business-friendly zoning codes to encourage renovation of its aging core.  Small office buildings are also being renovated along the Biscayne Boulevard corridor between Northeast 36th and 163rd streets.

Investors are acquiring well-positioned Class B and C properties to capitalize on the strategic location, great access and booming demographics.

Read the Miami Today article here: Suburban office markets strengthen as tenants beat traffic.pdf