The three-story, 116,000-sf Clare Avenue property was acquired last month by Atlanta-based Holder Properties for an undisclosed sum. Conversion to telecom hotel use is being handled by US TechCenters, a Holder affiliate.
Telecom hotels are generally classified as hybrid space. Rental rates vary, depending on the extent of facility readiness for tech equipment installation and operation.
Flex space, which bears some relationship to this new breed of occupancy, has been commanding an average $8.43 per sf in the West Palm Beach market. Local warehouse space, which was the Clare Avenue building's former use, has been leasing for an average $6.01 per sf.
Thomas A. Dean, a Cushman & Wakefield director in the firm's Fort Lauderdale office, is leading the marketing effort for the US TechCenters project here. He is optimistic that sufficient demand exists in Central Palm Beach County to fill all of the redeveloped telecom hotel space. And that does not even include a previously announced plan by BellSouth to locate one of three South Florida network access points in West Palm Beach.
Dean says the US TechCenters facility will provide both storage and operational capacity for Internet service providers, local exchange carriers, application service providers and web hosters. The building is a mile from the CBD and three miles from the airport. Cushman & Wakefield is the leasing agent.
About 20 miles south of West Palm Beach in Boca Raton, Terremark Worldwide's T-Rex Technology Center is being readied. Terremark is also developing the 740,000-sf Technology Center of the Americas in Downtown Miami.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
