(Crystal Proenza is associate editor of Real Estate Florida.)
MIAMI-Shoma Development's One Park Square, a 231,500-sf class A office building located in the Airport West submarket, has reached its pivotal topping-off point. The project, located at 3600 NW 82nd Ave., is part of the 51-acre Park Square at Doral mixed-use development slated for completion in 2010.
The six-story office building is set to be complete by yearend, with tenants ready to move in during the first quarter of 2009, says Maggie Kurtz, director of office brokerage with Cushman & Wakefield and the exclusive listing agent for One Park Square. The building is sure to attract the interest of tenants looking for an international headquarters executive office, particularly Latin American companies, local brokers agree.
"We anticipate being 30% leased by the year's end," Kurtz says, adding that there is currently a 26,000-sf lease being signed and another 100,000 sf of proposals and letters of intent in play. Leasing rates at the development range from $23 to $24 triple net, with projected operating expenses of $9 per sf for 2009 and a tenant improvement allowance of at least $25, says Kurtz.
"I think they're going to have some good activity because they are in line to be the first to be complete of about 972,000 sf of office space in the next year in the Airport West market," says Elizabeth Santos, senior associate with CB Richard Ellis in Miami. "There is probably only one building that's comparable to this, and that's 1000 Waterford," she says of the 235,000-sf class A project expected to come on line a few months after One Park Square.
The vacancy rate in the submarket is at 10.7%, according to CBRE second-quarter reports, and Santos suggests the new construction coming online in the next year will give the area a five-year inventory. "If you look at absorption trends from 2003 to now, the absorption trend over that five-and-a-half-year period has been 965,800 sf. Year to date for 2008, we have a negative absorption of 91,000 sf," she says.
One Park Square stands out from the competition in that it's the first mixed-use project of its kind, says Kurtz, adding that the project's 150,000-sf retail component should be in place by June 2009. About 1,000 residences were also originally planned for the development, but will now only include about 400 units, with more office and retail to be planned later, according to Shoma Development.
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