Blanca: Miami’s CBD inventory increased by 1.3 million square feet with the completion of 1450 Brickell and Wells Fargo Center. 600 Brickell, although partially completed, was placed on hold. But when it hits the market it will add another 600,000 rentable square feet of class A office space.

This is significant growth—over 15% on a 12.4 million square foot market—for Miami’s CBD market. However, I am optimistic about Miami’s CBD market given that this market has been transformed during the past 24 months becoming a true urban center with over 70,000 residents and a daytime business population of over 200,000 that can enjoy at their footsteps world class cultural, entertainment and sports activities by taking a short walk or ride in the MetroMover. Retail and restaurants have followed and will continue to expand to serve this urban 24-hour center. This kind of environment retains and attracts new business.

LeClaire: What are some prime examples of success in the CBD?

Blanca: Corporate tenants have proven that they are still willing to pay a premium for class A office space in the Miami market. One of the best examples is the wave of activity we’ve seen at 1450 Brickell. This year we completed 230,000 rentable square feet of leases, attracting top global and multinational firms and entrepreneurial companies. This trophy asset is now 53% leased after having securing its CO this past February.

We expect 1450 Brickell to be at 65% around February 2011. About 20% of the space leased at 1450 Brickell came from new tenants entering the market. As for the broader market, I believe we’ll see the bulk of the space absorbed within the next three years. There is pent up demand—organic growth that will result in continued expansion by tenants. Corporate profits have notably increased, as business investment has too, and this will positively impact the office market in Miami’s CBD. Miami is an international hub for commerce and trade. Global companies will continue to establish operations here.

LeClaire: How does the residential population growth taking shape in Miami’s urban core factor into your outlook for the office market? Are you seeing more interest in urban locations among users?

Blanca: The dramatic population growth in Miami’s Brickell and downtown markets has had a huge impact on the area’s retail market, now home to one of the country’s lowest retail vacancy rates. There is availability of a range of housing options, many of which are now affordable, and this is having a net-positive effect on the office market. Companies from major cities are recognizing Brickell and downtown Miami as a viable urban market, a place where their employees and executives can reside and entertain. A vibrant downtown is a huge boost to the Miami office market.

Corporate tenants in particular are increasingly looking at quality of life factors when making real estate decisions, and we’ve seen increases in demand nationwide for office space located in an urban environment. In addition to Miami’s downtown and Brickell markets, cities like Doral and Coral Gables will also benefit from this demand because of their established and growing residential communities, schools, retail and excellent quality office supply.

One Park Square at Doral, for instance, which we lease on behalf of New Boston Shoma Park Square, is now over 50% leased after Amadeus North America signed a lease this past September for 105,000 rentable square feet to relocate its corporate headquarters to the project. The land surrounding One Park Square has the entitlements in place to allow for the development of retail, office, hotel and multi-family residential and when developed it will offer a truly urban experience in Doral, which is the heart of Miami-Dade’s international trade business.