Traditional Firms Eye Ex-Telecom Office Space

MIAMI-Grubb & Ellis Co. is close to receiving commitments for at least some of the 45,000 sf of vacant space available at the 200 S.E. 1st St. At press time, the company was on the verge of closing two or three new leases that would bring the vacancy close to 28,000 sf to 30,000 sf, says Jonathan Kingsley, South Florida managing director and executive vice president for Grubb & Ellis.The 140,000-sf, 12-story, class B office building, built in 1970 and renovated in 1998, is going through a repositioning, he says. Major telecom companies that occupied the building have left vacancies in the last couple of years–although the 45,000 sf of total occupancy was not due solely to the telecom withdrawal, says Kingsley. Now more traditional tenants, such as law firms and accounting firms, are coming in. The building is offering office and telecom space. The rental rate for office space ranges from $14.50 per sf to $19 per sf full-service. The building’s telecom space is going for $35 per sf full-service. The office rates are lower than the average asking rent for the Q2 class B office space in Downtown Miami, which was $24.48, according to Grubb & Ellis statistics. The average vacancy rate in that submarket was 17% that quarter. Grubb’s Stephen Rutchik is handling leasing.