South Florida Office Brokers Association

Tag: avison young

  • 189,000-SF Broward Office Building Back In Play

    189,000-SF Broward Office Building Back In Play

    A 189,000-square-foot office building in Sunrise is being offered to prospective tenants, adding another large block of available space to Broward County.

    Chetu Inc., a global software development company headquartered in Sunrise, has retained Avison Young brokers Justin Cope, Greg Martin and Lisa Blumer to market the five-story building at 1500 Concord Terrace. The property sits within the 22-acre Sawgrass International Corporate Park, a location near Sawgrass Mills and the broader Sawgrass business district.

    Chetu currently occupies one full floor totaling about 36,000 square feet. The remaining four floors have reportedly been vacant for several years, creating a rare opportunity for a tenant seeking a full-building presence or a large contiguous office footprint. The owner has indicated it would consider relocating if a user wanted to lease the entire property.

    The space is being marketed at roughly $30 per square foot on a triple-net basis and is described as fully built out and immediately available. The property also includes a 7,500-square-foot data center on the first floor, which could appeal to users with technology, operations or infrastructure needs.

    Chetu has said it is not leaving the market and remains in growth mode. A company spokesperson stated that the firm is expanding and hiring.

    The building is owned by Bansi Properties, the real estate development company led by Chetu CEO Atal Bansal. Bansi Properties acquired the asset for $25 million in 2021, with plans at the time for Chetu to anchor the building while leasing the balance to outside tenants.

    The Sunrise property followed Chetu’s earlier development of a 63,000-square-foot headquarters in Plantation, which opened in 2019. The company later said its growth required additional space. Bansi Properties also secured a long-term IRS lease at the Plantation building for the agency’s Broward County office.

    The listing comes as Chetu continues to deal with legal fallout from customer disputes. In October, the company was ordered to pay more than $500,000, including punitive damages, in a fraud case involving a Washington state barbershop chain that alleged the company failed to deliver promised software while continuing to collect fees. Chetu appealed the decision in January.

    Source: Bisnow

  • Fort Lauderdale’s Office Sector Sees Pick Up In Spec Suites

    Fort Lauderdale’s Office Sector Sees Pick Up In Spec Suites

    Spec suites are gaining traction in South Florida’s commercial real estate market.

    Fort Lauderdale, in particular, is emerging as a key player in this trend, offering 52 spec suites across 16 properties, totaling more than 61,000 square feet, according to a recent report from Avison Young. This represents a notable increase in activity, with 17 transactions completed so far this year, compared to just 12 in 2023.

    The Downtown Fort Lauderdale submarket is leading the way, providing 26 suites spanning over 61,000 square feet. In comparison, Southwest Broward offers 13 suites with a combined 38,000 square feet of space. Smaller spec suite offerings can also be found in areas like Pompano Beach and Hollywood, each providing just over 10,000 square feet.

    At present, Fort Lauderdale’s office market includes 29 vacant, built-out spaces, with 23 more still under construction or in the planning stages.

    “As more companies look to establish offices in South Florida, spec suites offer a quick and convenient solution, reducing the time and effort required for planning and construction,” said Greg Martin, Managing Director of Avison Young’s Fort Lauderdale office. “Moreover, the increasing demand from tenants seeking to adjust their office space for better productivity is further driving the need for ‘move-in ready’ spaces. The time, cost, and energy savings benefit both landlords and tenants.”

    Most importantly, the office sector is recovering from the pandemic’s effects. South Florida is leading the nation in office space recovery, with nearly 90% of employees back to in-office work, according to the Fort Lauderdale Downtown Development Authority.

    “Although remote work remains a part of the equation, Downtown Fort Lauderdale has largely remained unaffected by the decline in office worker foot traffic,” the authority noted.

    Many industry experts, including those at Goldman Sachs, believe the office market has already hit its lowest point.

     

    Source: GlobeSt.

  • Cigna Renews 48,000 SF Office Lease

    Cigna Renews 48,000 SF Office Lease

    Cigna Health & Life Insurance Company has renewed its 47,879-square-foot office lease at Sawgrass Corporate Centre II, located at 1571 Sawgrass Corporate Parkway in Sunrise.

    The 64-month renewal comprises two full floors, keeping the 4-story building 98 percent occupied.

    Avison Young represented landlords Vanderbilt Office Properties and Barron Colliers in the lease deal.

     

    Source:  Commercial Observer

  • Some South Florida Suburban Offices Will Be Redeveloped

    Some South Florida Suburban Offices Will Be Redeveloped

    South Florida’s office market will continue outperform most parts of the nation, but some buildings will fail or be redeveloped, a commercial real estate advisor said.

    David Duckworth, a principal of Avison Young‘s Fort Lauderdale office, said while there are predictions of nationwide commercial mortgage backed security defaults in the office sector, quality office buildings in South Florida continue to attract companies. At least for now.

    “The news is worse than the reality at the moment,” Duckworth said. “People are … anticipating that things will get pretty bad, but down here it is not that bad yet. Vacancies are in the mid-teens in the tri-county area. That’s not great. But it’s not run-for-your life terrible either.”

    Duckworth said new-to-market and local businesses are still seeking office space with amenities that will encourage employees to return to work. This “flight to quality,” Duckworth said, will create a two-pronged office market.

    On one side are the Class A office buildings, particularly in urban centers and downtown areas, which “will be just fine.”

    On the other are suburban Class B and Class C offices that were often used as operation call centers. “Those places will be in a lot of trouble,” Duckworth said.

    Lenders, though, are reluctant to back any sort of office product of any class or of any locations. “They’re lumping all office into one bad bucket,” he said.

    “There are still buyers of office product, but debt is very expensive and challenging,” Duckworth said. “People who have purchased or refinanced … are having a hard time when debt comes due, and their debt will be 100 or 200 basis points higher than when they received the debt. They might have to add additional capital to refinance.”

    Nationally, office transactions plummeted 58.6% in the first quarter of 2023. According to recent market reports from Avison Young, investors are buying less office product in Broward and Palm Beach counties.

    In Broward, office sales volume fell 56.6% year-over-year to $107.8 million. The price per square foot also fell 6.63% from last year to $205.05 per square foot.

    In Palm Beach County, office transactions totaled $100 million in the first quarter, a decline of 25.7% from the last quarter and a drop of 78.5% from last year. Price per square foot for office product fell 17.55% from last year to $230.88 per square foot.

    But in Miami-Dade County, the $147.2 million in office transactions in Q1 2023 was 10.5% higher than the end of last year, Avison Young stated. Office product also sold at an average of $365.03 per square foot, a 16.34% increase from last year. However, in the second and third quarters of 2022, office product traded at rates above $270 per square foot, according to graphs from Avison Young. In short, Miami-Dade saw the first drop in price since the Federal Reserve started raising interest rates.

    Still, many of the office products acquired will be repurposed for other uses, Duckworth said.

    In other cases, developers will add residential and retail to an office product to make it more valuable. For example, WRC Properties plan to add up to 800 apartment units to the 250-acre Waterford Business Park in western Miami-Dade. And Pebb Enterprises and BH Group want to add residential to the 29-acre Office Depot (Nasdaq: ODP) they recently acquired for $104 million.

    “It is a trend we will see more and more of, office buildings excess parking areas for other uses,” Duckworth said.

    Suburban areas, such as Cypress Creek in Fort Lauderdale, also will see office product demolished and replaced with residential uses, he added.

    As time goes on, Duckworth said there will be “some foreclosures” of office buildings by landlords unable to finance or sell their products. But it won’t be anywhere near as rough as it was in the economic downturn of 2008 and 2009.

    “I don’t see that much doom and gloom, but six months from now that may look different, but that doesn’t feel that way right now,” he said.

     

    Source:  SFBJ

     

  • Avison Young Arranges For FAU Startup Incubator To Take Space At Boynton Beach City Hall

    Avison Young Arranges For FAU Startup Incubator To Take Space At Boynton Beach City Hall

    Avison Young announced that, following a Boynton Beach City Commission 4-0 vote on July 20, FAU Tech Runway has been approved to lease the 1,850-square-foot, ground-floor innovation and collaborative office space at City Hall at Boynton Beach Town Square.

    As part of the agreement, Boynton Beach’s Department of Economic Development and Strategy will provide a one-time $50,0000 grant for programming within the space.

    “FAU Tech Runway is excited to open a satellite office in Boynton Beach and be part of the City’s effort to help entrepreneurs,” said Joshua D. Glanzer, Associate Vice President of Media Relations and Public Affairs at Florida Atlantic University. “We look forward to the next steps with the City and its partners while we finalize the necessary paperwork.”

    Located at 100 E. Ocean Ave., Town Square represents a public-private partnership between the City of Boynton Beach, the Boynton Beach Community Redevelopment Agency, and E2L Real Estate Solutions, master developer of the 16.5-acre complex anchoring the heart of downtown Boynton Beach.

    “Having first-hand experience with the Research Park at FAU in Boca Raton and the success of hosting Tech Runway graduates in the Park, it was clear that FAU would be the ideal growth accelerator and value creator for Town Square,” said Keith O’Donnell, Principal with Avison Young. “Together, the unique opportunity for FAU Tech Runway to expand its offerings and brand in Palm Beach County at Town Square, the County’s first City Hall public-private partnership.”

    O’Donnell has worked alongside the public-private partnership and spearheaded the Boynton Beach Town Square assignment for the past five years. Additionally, he handled the relocation of the entire City Municipal Services off-site for two years while the project was developed.

    “As the five-year master developer on the Town Square project, we’re looking to the future and believe welcoming FAU Tech Runway for the space to provide programming for new businesses and entrepreneurs marks an important milestone,” said Mark Hefferin, President of E2L Real Estate Solutions, LLC. “It has been wonderful to witness the City of Boynton Beach creating forward-thinking opportunities for its citizens, and we’re pleased that Avison Young brought FAU to the table to be a part of what the city is building.”

    The Town Square project includes the $118 million renovation of the historic Boynton Beach High School into an Arts and Cultural Center, a Children’s Schoolhouse Museum, fire station, residential, retail and hospitality space, amphitheater, hotel, parking garages, library, a new City Hall and creates a positive community and economic impact.

    “We are excited that FAU Tech Runway will operate the space at Town Square, which offers on-campus resources unavailable anywhere else in Palm Beach County,” said Lori LaVerriere, Boynton Beach City Manager. “Having a tech and business incubator at City Hall not only facilitates a pipeline of startups in the city, but it also plays a significant role in establishing the future of downtown.”

    The City of Boynton Beach is undergoing a renaissance and regeneration. Current and future planned development underscore the City’s growth and investment opportunities. Planned projects such as 115 North Federal Hwy., the CRA’s East Boynton Beach Boulevard (BBB) Corridor project, and Riverwalk complement the redevelopment of Downtown Boynton Beach as a destination for residents, visitors, and businesses.

     

  • Two-Building Boynton Beach Office Portfolio Sells

    Two-Building Boynton Beach Office Portfolio Sells

    Avison Young’s Florida Capital Markets Group negotiated the sales of two office buildings totaling 55,000 square feet in Boynton Beach. The assets sold in two separate transactions on behalf of the seller for a combined price of $9,150,000.

    Representing the seller, TP Ten LLC, Avison Young Principals David Duckworth; John K. Crotty, CCIM; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; Gary Gottlieb, SIOR, RPA; Vice President Brian C. de la Fé; and Associate Berkley Bloodworth completed the transactions.

    • Congress Executive Center at 1301 N. Congress Avenue, a four-story, 40,226-square-foot professional and medical office building, sold for $6.3 million to Triple Double Investments, LLC, managed by Andrew Greenbaum.
    • Boynton Beach Promenade at 1101 N. Congress Avenue, a two-story, 15,302-square-foot office building, sold for $2.85 million to Siloam Holding Company managed by Dr. Gherghina.

    Adjacent to the soon-to-be-redeveloped Boynton Beach Mall, the properties boast abundant parking, high walkability, and prominent visibility and access from Congress Avenue. The class B buildings were 50% occupied at the time of sale, and each buyer has associated businesses with plans to absorb significant portions of the vacancy.

    “The demand for office properties is strengthening along with optimism regarding the COVID-19 vaccine, allowing more people to return to work safely,” said Duckworth. “Selling the assets along the highly-trafficked North Congress Avenue in two separate transactions allowed the seller to maximize the pricing.”

    According to Avison Young research, first quarter 2021 posted Boynton Beach’s total office vacancy rate at 13.1%, which has remained steady throughout the pandemic. Leasing activity in 2021 is on track to outpace the previous year.

     

  • Avison Young To Lease 750,000 SF Of Office Space At Proposed Mixed-Use Project In Sunrise

    Avison Young To Lease 750,000 SF Of Office Space At Proposed Mixed-Use Project In Sunrise

    Avison Young has been tapped by GL Commercial as the exclusive marketing and leasing agency for the three-building suburban office component of the Radius at Sawgrass in Sunrise.

    Spanning 31 acres just off of the Sawgrass Expressway with excellent frontage along Sunrise Boulevard, the proposed mixed-use project consists of 750,000 square feet of office, 50,000 square feet of retail, and 750 residential units.

    Avison Young’s Greg Martin, Principal and Managing Director of the firm’s Fort Lauderdale operations; Justin Cope, Principal; and Lisa Blumer, Senior Associate, will lead leasing efforts on behalf of Sunrise-based GL Commercial.

    “Corporate relocations continue to ramp up in South Florida as several global brands and businesses currently seek space in the market,” said Martin. “We look forward to engaging the international resources our firm has developed through our integrated consulting and data analytics platform to help secure the right corporate users.”

    According to Avison Young’s market analysis, 205 companies moved from multiple regions to Florida since 2018. Post-Covid office users are particularly attracted to lifestyle campuses where employees can live, work, and play. Radius is positioned to draw tenants that desire to be proximate to current major employers in the area, such as Ultimate Software, American Express, Ford Motor Company, HCA Parallon, AT&T, T-Mobile, DHL, and GL Homes.

    “With its central location and complementary retail and multifamily components, Radius at Sawgrass offices are ideal for companies interested in a Southeastern footprint,” added Martin. “As a global firm, our team members collaborate across markets and partner with economic redevelopment agencies to identify corporations interested in relocating headquarters or staking new flags in South Florida.”

     

  • Weston Office Building Changes Hands

    Weston Office Building Changes Hands

    Avison Young’s Florida Capital Markets Group closed the $8.3 million sale of the 33,720-rentable-square-foot landmark office building, Weston Commerce Center, at 1625 N Commerce Parkway in Weston.

    The asset was the second of the seller’s 100% occupied, two-building portfolio to sell within three months, both sales totaling $17.2 million.

    The seller, HRE/SEFIRA Weston Office, LLC, a joint venture between Highline Real Estate Capital and Sefira Capital, acquired the portfolio in 2017 for $13 million. Fox Ridge Capital, LLC was the buyer in the transaction.

    On behalf of the seller, the Weston Commerce Center sale was completed by Avison Young Principals David Duckworth; John K. Crotty, CCIM; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; Vice President Brian C. de la Fé; and Associates Emily Brais and Berkley Bloodworth. The team also facilitated the sale of the portfolio’s other building, a J.P. Morgan Chase Bank-anchored building at 1040 Weston Road, for $8.9 million in December 2020.

    “Weston Commerce Center maintained its 100% occupancy rate during the pandemic, which is a testament to the strength of the asset and the market and what attracted strong investor interest,” said Duckworth. “Our client, with the support of the Avison Young leasing team, worked diligently to increase the portfolio’s value and led to a notable return on investment following the sales.”

    At the time of the HRE/SEFIRA acquisition in 2017, the properties were 82% occupied. Over the course of three years, the ownership partners increased occupancy to 100% and grew the portfolio’s net operating income by nearly 45%.

    “When we acquired the portfolio, we recognized the strength of the Weston submarket and saw the opportunity to drive occupancy and rental rates through the completion of aesthetic improvements and proactive asset management,” said David Moret, President of Highline Real Estate Capital. With the assistance of Avison Young’s leasing team including Principal Greg Martin and Senior Associate Lisa Blumer, the buildings reached full occupancy well ahead of schedule, and we were able to substantially increase rental rates, which ultimately led to two successful sales during a pandemic after a hold period of less than four years.”

     

  • Class A Office Portfolio In Fort Lauderdale Hits The Market

    Class A Office Portfolio In Fort Lauderdale Hits The Market

    Avison Young’s Florida Capital Markets Group has been exclusively tapped on behalf of a fund managed by DRA Advisors LLC to sell Pinnacle Corporate Park, a two-building, class A office portfolio at 500 and 550 W. Cypress Creek Road in Fort Lauderdale.

    The asset totals 259,458 square feet on 14.31 acres in Broward County’s Cypress Creek submarket.

    Avison Young Principals John K. Crotty, CCIM; David Duckworth; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; Greg Martin, and George Vail will lead the sale. The transaction team also includes Avison Young Vice President Brian C. de la Fé and Associates Berkley Bloodworth and Emily Brais.

    Over the past 24 months, the Avison Young leasing team led by Martin completed 17 lease transactions totaling 91,000 square feet

    “Pinnacle Corporate Park is the most desirable property in the Cypress Creek submarket due to its strong occupancy, rental rate growth, and immediate potential for lease-up,” said Crotty. “In addition to the existing value, the offering provides the opportunity to maximize land on the site in the coming years through residential development.”

    Pinnacle Corporate Park coming to market represents the trend of large funds and institutional owners’ confidence to sell large office assets again, as sales declined immediately following the pandemic. The deal would be similar to the recent $78.42 million Plantation Crossroads three-building portfolio sale.

    “We are seeing an uptick in demand for investors looking to deploy capital in well-located South Florida office assets,” said Duckworth. “Pinnacle Corporate Park is ideally situated near major expressways, transit, and amenities, and provides the perfect opportunity.”

    Pinnacle Corporate Park is positioned in the heart of Fort Lauderdale’s Uptown Urban Village, a master plan that supports the development of a thriving, transit-supportive, mixed-use neighborhood. Its offices are less than a mile from Interstate 95 and directly accessible from the Cypress Creek Tri-Rail station.

     

  • Paul Marko Discusses State Of South Florida CRE

    Paul Marko Discusses State Of South Florida CRE

    Today, you hear everywhere that “data is key.”

    Amenity offerings are evolving rapidly, and new challenges are reshaping the real estate market. A real estate expert that can navigate this data-driven and tenant-oriented environment is essential. Paul Marko was recently appointed as principal of the South Florida Avison Young team, and he applied his 30 years of experience in office tenant representation, buyer broker services and portfolio administration to answer some of our questions about the South Florida and national commercial real estate markets.

    Q: What are your thoughts on the national CRE market, in terms of trends and challenges during the current pandemic?

    The multifamily, retail, and office commercial real estate sectors have been most affected by the pandemic and have had to pause and closely examine and re-evaluate the “what ifs” and “if, thens.” Industrial remains a market leader and has grown exponentially due to e-commerce and cold storage demand.

    From an office standpoint, the unknown future impact of the pandemic has created an inflection point for the needs of tenants and end-users. Due to the pandemic, most companies and industries are uniquely facing impacts on workforce, workspace, culture, office schedules, and technology, all while navigating racial equality and political concerns in an election year. Therefore, commercial real estate professionals and landlords will have to place an emphasis on tenants shifting needs and respond with a customized approach.

    It is important to note that remote working and full return to the office are not mutually exclusive. The current environment is affecting various businesses in vastly different ways. A partial return to the workplace with modified schedules, shift working, or agile workspaces is also being implemented. The safety and comfort of employees is paramount while allowing proximity for idea sharing and innovation to flourish.

    Q: What would you say stands out about the South Florida office market?

    South Florida is attractive to businesses for many reasons, including no state income tax and a low barrier to entry. Large developable tracts of land for new office development are scarce, but the region is ripe for redevelopment. This market is appealing to businesses looking to relocate and/or expand from out of state.

    With the exception of Miami, which is a global city, the balance of South Florida is considered a secondary market. Our office market has been impacted, but not in the same way as primary markets like New York, Chicago, or Los Angeles. South Florida has shown resiliency.

    With regards to the office market, I am seeing few new leases, and most office tenants, upon receiving notice of lease expiration, are requesting 12 to 18 month extensions. The landlord does not want the vacancy, and the tenant is not sure about a longer-term renewal. As long as the landlord can get lender approval, this extension seems like a good compromise and collaborative solution to the unknowns of the pandemic impacts currently on our South Florida business climate. As it relates to the office tenants, leases expire every day, leaving a tenant with three choices: renew, move, or buy.

    Q: Where do you see it going in the future? Are there any safety measures and policies that you think might or should be adopted into best practices for commercial real estate going forward, beyond this pandemic?

    Ongoing safety measures will include touchless entry points, more thorough sanitization processes, cleaner air filtration, and continued social distancing. The pandemic has forced us to be mindful of germ transfer, which is a positive. The question is whether our vigilance will lessen once there is a vaccine or with the simple passage of time.

    I have represented a national law firm for 25 years. Like most firms, the objective was to have the attorneys in individual offices. Once the pandemic hit, and everyone was forced to work from home, the firm realized that the attorneys could in fact be productive.  There was now a good argument for flexible schedules and shared offices. Further, with appropriate surface sanitization service, and collaborative scheduling, they could have multiple attorneys share one office. For this firm, this has reduced the overall required office space by 50-60%.

    Currently, we are seeing a reduction in office densities, but we believe it is temporary. A trend that may last for the long-term is tenants adopting agile and flexible workspaces and technology enhanced furniture that can be moved and used in different ways.

    Q: In your experience, how has the evolution of online marketing affected the commercial real estate industry?

    The printed format for marketing purposes is obsolete. Dynamic, real-time, interactive materials with data-driven insights to help clients achieve better outcomes are what the future holds.

    Q: Could you provide us some background on what attracted you to a career in commercial real estate?

    I started my commercial real estate career as an appraiser in the late 1980s. I was a MAI candidate and Florida State Certified General Licensed Appraiser. I loved interpreting the data and formulating an opinion of market value. It was advisory and consultative, which fits my personality well. My appraisal experience is a unique credential in the commercial real estate industry which contributes to my value proposition. After about five years in appraisal, I had an opportunity to move into office leasing and brokerage. I was the broker for an existing 500,000 SF office development that IBM vacated in Boca Raton, Florida. I interacted with South Florida’s top tenant representative brokers and realized office tenant representation was what I wanted to do. Over the years, I have been fortunate to be one of South Florida’s most successful office tenant representatives, office buyer broker representatives, and small-mid cap corporate portfolio account representatives. My career took me from Miami-based Codina Realty ONCOR International, CBRE, Stiles Corporation, and now Avison Young.

    Avison Young is a great match for my skill set; its recent expansion of consulting across the Americas and investment in technology and innovation will enhance my ability to use data and analytics to fuel insights for the companies and industries I serve. The firm’s culture of collaboration, integrated services, and a client-centric approach are consistent with my business approach.

    Q: Do you have any personal experience advice that you would impart as an absolute must for those looking to get into the CRE industry?

    The absolute “must haves” for this industry are passion and patience. Commercial real estate is fluid and the ever-changing needs of the participants keeps me engaged. Years of experience helped me realize my passion is based in curiosity. I feel blessed to have found that. Many people never find their career passion. Curiosity made me a good appraiser and it is critical for my role as an office tenant representative and buyer broker. I am always looking for a value-add solution for my clients.

    Q: Any other insights that you would like to share?

    While I see technology and digitization of services shaping the future of commercial real estate, I also see a real need to return to community and customized strategy. We must intentionally seek ways for both to meet.

     

    Source:  Commercial Cafe