Bisnow conducted an analysis of how it has changed the South Florida real estate market since 2010, when they were in the midst of the Great Recession. The Newmark Knight Frank research team rounded up the 5 top office sales and leases of the decade.
By Miami Diario Newsroom
Looking at the data, Newmark Knight Frank Chief Executive Officer Steve Medwin said that with population and tourism growth in Miami and South Florida, every time a large office building comes on the market, "it attracts a lot of attention because it is an opportunity for large institutions to put a lot of money to work and bet in Miami».
You don't see it very often." The most expensive deal of the decade was the 2016 sale of the Southeast Financial Center, a downtown tower that houses many law firms, to an entity controlled by Spanish billionaire Amancio Ortega, founder of Zara clothing stores. .
"A building like Southeast Financial, it's 1.1M SF," Medwin said. "I think it's the largest office building south of Atlanta. When it comes out on the market, people bid on it and pay a lot for it. So you'll see prices go up a lot per square foot over the last 10 years." In general, the main agreements highlight the institutionalization of the market, Medwin said. “It is the group of buyers who have capital looking to place it, and when they have the opportunity to put $100M, $200M, $500M, this is a great option for them,” he said.
"So we've seen the biggest sales, but they don't trade very often. It's not like a condo, where it's bought and sold every two years, typically five to ten years when it's sold. So [these] won't be back on the market for a while."
top sales (determined by price):
1. Southeast Financial Center: 200 South Biscayne Blvd., Miami
Buyer: Ponte Gadea USA
Seller: JP Morgan Asset Management
Date: December 2016
Size: 1.1MSF
Price: $516.6M ($452 per SF)
2. Portfolio Waterford & Blue Lagoon: 5201-5301 Blue Lagoon Drive, Miami
Buyer: Allianz RE of America
Vendor: TIAA-CREF (now Nuveen)
Date: November 2015
Size: 914KSF
Price: $269.4M ($374 per SF)
3. Miami Center (now Citigroup Center): 201 South Biscayne Blvd., Miami
Buyer: Crocker Partners
Sold by: Sumitomo Corp.
Date: July 2012
Size: 803KSF
Price: $260M ($324 per SF)
4. 1111 Brickell: 1111 Brickell Ave., Miami
Buyer: Kohlberg, Kravis, Roberts & Co.
Seller: Prudential Real Estate Investors
Date: June 2018
Size: 522KSF
Price: $248.5M ($476 per SF)
5. Phillips Point: 777 South Flagler Drive, West Palm Beach
Buyer: AEW Capital
Seller: Prudential Real Estate Investors
Date: June 2015
Size: 423KSF
Price: $245.5M ($580 per SF)
Source: bisnow