Prime Fractured Office Condo Building Hits Market

Located at 2455 East Sunrise Boulevard, the office and retail space is directly across the street from the famed Galleria Mall.

MIAMI—Galleria Corporate Centre, a 168,844-square-foot, 13-story tower in Fort Lauderdale, is up for grabs. Avison Young just listed the asset. Located at 2455 East Sunrise Boulevard, the office and retail space is directly across the street from the famed Galleria Mall. Avison Young principal of investment sales David Duckworth is spearheading the marketing. “This opportunity presents a one-of-a-kind investment to a buyer to purchase a majority stake in a fractured office condo building at which previous ownership has already handled much of the heavy lifting in terms of expansive capital improvements for condo conversion,” Duckworth tells GlobeSt.com. “The key drivers of the market—lack of new office construction and decreasing vacancy—present favorable economics from an investment perspective, whether the buyer should retain ownership of units for in-place income generation or resell to small and mid-sized businesses looking to creating long-term equity.” Galleria Corporate Centre is a class A office building with offerings that rival the CBD. Recent renovations include marble flooring, windows throughout the lobby, and a new porte-cochère with valet service. New and existing upscale apartment developments surround the office building. “The developer has successfully sold approximately 65,000 square feet of office condo space at an average price of $300 per square foot,” says Duckworth. “The eventual buyer will have the opportunity to continue the condo sales program or hold it as an income producing asset.” Broward County’s office leasing activity is still accelerating. Avison’s second quarter 2016 reports show declining vacancy rates of 14.6%. Downtown Fort Lauderdale’s central business district reflects one of the lowest vacancy rates in the county at 12.3%. Surrounding submarkets are experiencing a rapid quarter-over-quarter decline in available space due to companies competing for more affordable class A office space and the influx of talent seeking to live and work in these areas. “With the lack of new office construction in eastern Fort Lauderdale outside of the CBD, demand will soon outpace supply,” says Duckworth. “The market continues to tighten as a result of narrowing space options and increasing class A rents, providing the opportunity for a buyer to harvest even greater ROI potential with Galleria Corporate Centre.”