FT. LAUDERDALE, FL-The 110 Tower in downtown Fort Lauderdale, formerly the AutoNation building, will be undergoing a $30-million renovation over the next 24 months after losing its lead tenant, AutoNation, last fall. It is currently 70% occupied. Downtown Fort Lauderdale’s office market had a 20.3% vacancy rate as of first quarter 2010, according to Marcus & Millichap research.

The first stage of the renovation of the 391,473-square-foot 110 Tower, built in 1988, involves the upgrade of the building’s mechanical systems, which is almost finished. The next step is the  largely  cosmetic renovation, which began a few weeks ago.

The 110 Tower, owned by Dallas-based Genesis Capital Partners, LLC, a subsidiary of the GenCap Group, also of Dallas, will undergo a transformation of the lobby, the exterior of the building’s main entrance, and tenant common areas as well as a make-over of restrooms on tenant floors. The lobby portion is scheduled for completion by the end of the year, says Laurel Oswald, vice president of Transwestern, the leasing agent for the building.

 “We are modernizing the look (of the building) with granite, marble and new lighting,” says Oswald. The architect for the renovation, AECOM, based in Ft. Lauderdale, will be able to see its plan carried out, thanks to the landlords’ willingness to spend significant money for quality finishes in the building, she says. 

During the renovation, the building will add 21,000-square feet of retail space in the lobby in addition to the 6,000-square feet currently occupied by Sabadell United Bank.  “Our retail broker is in negotiations with several groups for restaurant and convenience store tenants, says Oswald.

When AutoNation departed the 110 Tower, it left a 150,000-square foot hole.  So far, Transwestern has been able to rent out 50,000 square feet of that space and is now looking for more tenants. AutoNation relocated to a nearby building, the nearly 187,000-square-foot 200 Las Olas Circle building, a recently completed Stiles Corporation property. Auto Nation left a group of subtenants, some of which have been retained as direct tenants at the 110 Tower.

 One of those tenants is the law firm Tripp Scott which has taken 5,000 square feet which was added to the 25,000-square feet it already occupied at the 110 Tower. It signed a new lease in the third quarter of last year for about 30,000 square feet.

There are a number of law firms at the 110 Tower, in addition to the American Arbitration Association, which moved into its 15,298-square-foot space on June 1^st, because the building is across the street from the Broward County Courthouse.

Currently, the 110 Tower has about 100,000 square feet available, says Oswald. “We can offer building signage and naming rights for a large tenant,” she says. Lease rates at the 110 Tower range from $19 to $22, plus operating expenses of $11.98 per square foot, says Oswald.