Regions Southeast | Miami
Nov 6, 2007
By: Amanda Marsh, Associate Editor
Law firm Carlton Fields has inked a $40 million-plus, 11-year early lease extension and expansion for 76,900 square feet at Bank of America Tower at International Place in Miami, CPN learned exclusively today.
This deal highlights the need for Downtown Miami landlords to grab tenant renewals early. By 2010, over 1.8 million square feet of Class A office space is set to deliver in the Downtown area, including: MDM Development Group's Met 2 at 301 S.E. Third Avenue; Rilea Group Inc.'s 1450 Brickell; and Foram Group Inc.'s Brickell Financial Centre at 680 Brickell Ave. If all buildings deliver, this means a 33 percent increase in the market's Class A office space, noted Danet Linares, vice president of leasing & marketing for Wealth Capital Management, who brokered the deal for the landlord in-house.
Downtown Miami's last major Class A office delivery boom happened in 2004, with new projects such as Espirito Santo Plaza pulling tenants away from older buildings. Bank of America Tower was no exception: that year, the building's occupancy rate dipped to 73 percent.
Linares (pictured) said that Bank of America Tower's marketing focus then went back to basics, and after a tenant survey, the landlord renovated the building's ground floor and added amenities to both attract and retain tenants. The building is now 97 percent leased.
The projected space is "a little scary" for landlords, Linares said. "You do what you can, but sometimes there's nothing you can do," she said. "You need to keep your current tenants happy, make sure they have what they need and keep your building up-to-date."
Carlton Fields' lease was not up for renewal until 2010. Studley Inc. executive vice president & branch manager Andrew Lechter, who represented the law firm in the deal, said that the tenant did consider the new alternatives, but only one of the three buildings is a sure project at this point, as the others are awaiting major anchor tenants.
Bank of America Tower, on the other hand, turned out to be a better economic alternative for Carlton Fields. The building allowed for a net expansion of approximately 20,000 square feet; the space is needed over the next few years and may not have been available if the law firm had committed its space elsewhere. "If the situation is a good thing, it's a bird in the hand," Lechter said. "You can be leaving a lot on the table if you wait for the perfect moment (to renew a lease)."
Linares also noted that Wealth Capital Management was able to offer Carlton Fields a tenant improvement allowance that it could use now instead of starting in 2010.
"Whether rumors or reality, new buildings are certainly a good motivator to consider one's real estate situation sooner than conventional wisdom dictates," Lechter added. "If the (current) building and economics work better than a projected alternative, then why not?"
By: Amanda Marsh, Associate Editor
Law firm Carlton Fields has inked a $40 million-plus, 11-year early lease extension and expansion for 76,900 square feet at Bank of America Tower at International Place in Miami, CPN learned exclusively today.This deal highlights the need for Downtown Miami landlords to grab tenant renewals early. By 2010, over 1.8 million square feet of Class A office space is set to deliver in the Downtown area, including: MDM Development Group's Met 2 at 301 S.E. Third Avenue; Rilea Group Inc.'s 1450 Brickell; and Foram Group Inc.'s Brickell Financial Centre at 680 Brickell Ave. If all buildings deliver, this means a 33 percent increase in the market's Class A office space, noted Danet Linares, vice president of leasing & marketing for Wealth Capital Management, who brokered the deal for the landlord in-house.
Downtown Miami's last major Class A office delivery boom happened in 2004, with new projects such as Espirito Santo Plaza pulling tenants away from older buildings. Bank of America Tower was no exception: that year, the building's occupancy rate dipped to 73 percent.
Linares (pictured) said that Bank of America Tower's marketing focus then went back to basics, and after a tenant survey, the landlord renovated the building's ground floor and added amenities to both attract and retain tenants. The building is now 97 percent leased.
The projected space is "a little scary" for landlords, Linares said. "You do what you can, but sometimes there's nothing you can do," she said. "You need to keep your current tenants happy, make sure they have what they need and keep your building up-to-date."
Carlton Fields' lease was not up for renewal until 2010. Studley Inc. executive vice president & branch manager Andrew Lechter, who represented the law firm in the deal, said that the tenant did consider the new alternatives, but only one of the three buildings is a sure project at this point, as the others are awaiting major anchor tenants.
Bank of America Tower, on the other hand, turned out to be a better economic alternative for Carlton Fields. The building allowed for a net expansion of approximately 20,000 square feet; the space is needed over the next few years and may not have been available if the law firm had committed its space elsewhere. "If the situation is a good thing, it's a bird in the hand," Lechter said. "You can be leaving a lot on the table if you wait for the perfect moment (to renew a lease)."
Linares also noted that Wealth Capital Management was able to offer Carlton Fields a tenant improvement allowance that it could use now instead of starting in 2010.
"Whether rumors or reality, new buildings are certainly a good motivator to consider one's real estate situation sooner than conventional wisdom dictates," Lechter added. "If the (current) building and economics work better than a projected alternative, then why not?"
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