Businesses Are Looking to South Florida for Class A Office Space

The Miami Beach area is becoming a hotspot for investors and business owners who want Class A office space.

That’s according to Victor Ballestas of Miami-based real estate developer Integra Investments, who said the Miami Beach office market is changing significantly. 

Ballestas said that as people feel more comfortable going back to the office after a year of shutdowns, they want their work environment to be in a convenient area that feels like a home office.

“Mainly because of the traffic from the northeast, and the fact that CEOs and corporate guys that are moving down are wanting to position themselves personally on Miami Beach in waterfront homes,” Ballestas said. “They want to be able to walk to work or a short drive to the office, so that’s parked a lot of interest in Class A office space in Miami Beach.”

Ballestas said Miami Beach is a good middle ground for people who like being in the city but don’t want to live in the suburbs.

Right now, Integra Investments is completing the repositioning of 1674 Meridian, just two blocks from Lincoln Road, into a Class A office building with move-in ready office suites within 31,270 square feet of space. The company acquired the building in August 2019 for $10 million, in partnership with Constellation Group. There are already outside-market firms looking to relocate their offices later this year, according to Ballestas.

“Generally our office rents are pretty cheap, relative to New York,” Ballestas said. “I think most of the people who are coming down are looking for Class A, as nice as possible. A lot of them ask for outdoor space, some balconies, or maybe a rooftop.”

Todd Rosenberg, co-founder and managing principal at Pebb Capital, a real estate investment and private firm based in Boca Raton, says fitness centers, food and beverage areas, and spas are popular amenities in the boutique office experience.

“It feels like they’re getting work accomplished in a professional environment, but where they’re still enjoying all the things that they’ve come to enjoy in Miami Beach,” Rosenberg said.

Rosenberg says the type of residents who come to Miami Beach are typically empty nesters or singles who want to take advantage of the luxury lifestyle and tax benefits. Class-A developments are also coming to Delray Beach, Boca Raton, West Palm Beach and Palm Beach Islands.

“The office market has been undersupplied in South Florida for at least 10 years,” Rosenberg said. “Which now becomes a great opportunity for anyone who either has or is planning to build in these newly concentrated areas with new office users.”

There aren’t currently many Class A offices in Miami Beach, but Pebb Capital is under contract to acquire a Class A, mixed-use high-end property focused on lifestyle and beverage, full-service restaurants, two fast-casual restaurants, all on top of 212 underground parking spaces.

There will also be a 55,000-square-foot boutique office building and a 20,000-square-foot rooftop and office social club. Rosenberg said the deal should close in 30 to 45 days, and hopes to have the project finished in 2022. 

Read more: 

Expect ‘Cranes Popping Up’: 8 Ways COVID-19 is Reshaping the South Florida Real Estate Market

First Mixed-Use Class A Office Space to Break Ground in Miami Beach