Posts Tagged : Doug Okun

With supply scarce, Doral offices are 91% full, prices rising

With supply scarce, Doral offices are 91% full, prices rising

Week of Thursday, August 3, 2017

By Katherine Lackner

Codina Partners build 8333 Downtown and has three more office buildings on the way in a tight market.

With scare supply and no new product in the pipeline, the Doral office market continues to be robust, observers say.

“Institutional capital now accepts that Doral is a mature, exciting and deep market, and one they want to be in,” said Doug Okun, Senior Vice President at CREC. “It’s become a first-class city.”

The new residential stock “is a driver,” he said, as are the ever-increasing amenities, including retail, schools, restaurants and infrastructure. Most buildings offer plentiful parking, which is not the case in urban markets or even some suburban markets, he said.

With about a 91% occupancy, pressure is being put on lease prices and concessions are becoming rarer, he said. Space in a class A building can fetch $40 per square foot, “which was hard to image five or 10 years ago,” Mr. Okun said. Class B space leases in the high $20s or low $30s per square foot, he said.

Most developers consider mixed-use projects or residential units to be the highest and best use for their land, he said. That, combined with high construction costs, suggest that the dearth of new office buildings will continue, further driving up demand for existing space.

“I remain bullish on the Doral office market,” Mr. Okun said. “I think it will continue to get better, and almost every data point supports that.”

“We are witnessing Doral become more of an urbanized environment,” said Ericka Witkowski, associate with Avison Young. “The ‘live-work-play’ play dynamic, in addition to the already acclaimed economic benefits of leasing in Doral, is really creating the ideal ambience that attracts major corporate headquarters. That will continue to grow this submarket. Doral continues to be one of the most sought-after markets in South Florida, which is attested to by a less-than-9% vacancy rate.”

“County-wide year-to-date leasing activity remains up 6% year-on-year, driven to a notable degree by non-CBD submarkets that had been unsettlingly quiet through 2016,” said JLL’s second-quarter 2017 office market report. One of the larger deals inked that quarter was the Everest Business Funding lease of 27,000 square feet in Downtown Doral, the report noted, but, on the whole, transactions were smaller.

JLL lumps Doral into the Miami Airport submarket, where rents overall are $30 per square foot and vacancy is 9%, according to the report. Class A space in that submarket can be had for $33 per square foot (and the vacancy rate is 8%), while class B space leases for $27 per square foot and the vacancy rate is 11%, the report said.

CREC Assigned To Lease 3 Institutional Office Properties Totaling More Than 500,000 SF

CREC has been appointed to lead leasing at three office properties in South Florida’s key office markets of Brickell and Coral Gables.

The office buildings become the latest addition to CREC’s portfolio, which includes more than 100 properties totaling 13 million square feet across the state’s major markets. As the commercial real estate industry continues to consolidate amongst national firms, CREC remains Florida’s premier independent full-service commercial real estate firm, with offices in Miami, Fort Lauderdale and Orlando.

“We are thrilled with this new assignment, which comes on the heels of two other significant leasing and management contracts for institutional partners, highlighting CREC’s ability to continue to thrive and differentiate in a market otherwise defined by consolidation within the national brokerage houses,” said Carol Brooks, President of CREC.

Steven Hurwitz, Partner, Doug Okun, Senior Vice President, and Katie Fernandez-Espinosa, Senior Leasing Associate, will lead the office leasing efforts.

“Our institutional clients enjoy our full-service platform, local market expertise and track record to provide a holistic approach to real estate services,” CREC’s Steven Hurwitz said. “We have a uniquely collaborative team approach among disciplines, enabling us to provide institutional quality service in an entrepreneurial setting.”

The newest CREC assignments include:

800 Brickell Avenue: Located in Miami’s Brickell Financial District, CREC will lead the leasing efforts at the 15-story office tower 800 Brickell Avenue that has more than 212,000 square feet of office space and is home to tenants such as TotalBank, StateTrust, Prudential Insurance and Anheuser-Busch Companies.

The Alhambra: Situated in the heart of the Coral Gables Business District, CREC will oversee the leasing of The Alhambra office property located at 2 Alhambra Plaza. The building has 221,000 square feet of rentable office space and a tenant roster that includes Disney, Crystal Lagoons, Campbell Sales and Gresham, Smith and Partners.

The Alhambra West: Just a few blocks east, CREC will also handle the leasing at The Alhambra West, an office building totaling 91,000 square feet at 95 Merrick Way. The office property is home to tenants such as Northwestern University, Starbucks, US Department of State, and Pipeline Workspaces.

Seven Office Components Headed for Doral

Responding to market demand, several new office spaces are taking shape in Doral, while there is churn in the market farther east in Waterford, sources say…

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