Brickell Office Submarket Going Strong

MIAMI-The two new class A, mixed-use buildings in the Brickell submarket of Miami-Dade County–Espirito Santo Plaza and Millennium Tower–have been well received and are about 80% and 95% leased, respectively, says a June county office report just released by CB Richard Ellis. In addition, former high sublease space in this submarket is being absorbed with companies such as Mellon Bank and Sterling Financial taking such space long term.The Downtown submarket has seen just 81,000 sf of leasing activity in the last six months, and vacancy rates have begun to rise. Certain tenants have relocated to submarkets with better space alternatives, the report states.In Coral Gables, Hines’ 2525 Ponce project has topped off and is experiencing strong pre-leasing. In the last year, direct vacancy rates have dropped from 16.2% to 13.1%. In addition, average asking rental rates are rebounding after falling in 2002 and much of 2003.In the airport submarket, property owners are aggressive for good deals, according to the report. Most of the new leasing here is at class A facilities, helping to stabilize class A average asking rental rates. Good rates and large spaces have meant strong leasing activity here.The Miami Beach submarket is starting to improve, although it has had the largest vacancy rates in Miami-Dade. Lower asking rates recently have meant more leasing activity here.