32 / 56
Cushman & Wakefield of Florida, Inc.
/
32
Class A leasing included the Ritz-Carlton Yacht Collection’s new 14,000 SF headquarters
at SBS Biscayne Bank Tower while Housing Trust Group renewed and expanded their
office for 8,400 SF at Bayview Executive Center. With its first new tenants, transactional
activity was executed at the recently completed GL Tower for Max Strang Architecture
(2,800 SF) and Carmardo Law Firm (1,100 SF).
At the Class B Mayfair in the Grove, a new bookstore operator executed a 7,800 SF
lease.
COCONUT GROVE SUPPLY
HIGHLIGHTS (CONTINUED)
Planned office construction will provide tenants and Coconut Grove prospects new
options. At midyear 2017, 300,000 SF were proposed; by third quarter, the figure grew
to 716,000 SF including one project that broke ground. Several of the projects have
2018/2019 completions. All of the projects will offer retail amenities.
Under construction as of third quarter, the Mary Street development is a 95,000 SF
building, of which 75,000 SF will be office with the remaining comprised of retail space.
Completion is scheduled by year-end 2018.
The One and Two Cocowalk development will result from a revitalization of the existing
200,000 SF Cocowalk retail/destination complex into a new and rebranded mixed-
use project. Phase I (One Cocowalk) will include a 7,200 SF stand-alone office with
completion set for first quarter 2018; demolition for Phase II will then commence.
Two Cocowalk will be a newly constructed five-story, 79,000 SF office building with
completion scheduled by third quarter 2019. Of note, will be ample parking at 3.5/1,000
SF and floor plates of 18,000-20,000 SF. The project will have ground floor retail and a
rooftop deck available for events.
LointerHome closed in 2017 on a site for the construction of 27@Lincoln, a 68,000 SF
office and retail building. Construction is anticipated to start in the first quarter of 2018.
Announced at midyear 2017, was another planned five-story office building. Located
at 3480 Main Highway in the heart of the Grove’s commercial district, the building will
offer 44,000 SF of office space and 6,500 SF of rooftop restaurant space. In the third
quarter, the existing building had been demolished although no construction dates had
yet to be confirmed.
EXECUTED LEASES
3Q 2017
% Of Total By Employment Industry
41%
33%
23%
3%
COCONUT GROVE Executed Leases, 3Q 2017
% of Total by Employment Industry
Leisure &
Real Estate
Business S
Law Firm
Real Estate
Business Services
Leisure & Hospitality
Law Firm
COCONUT GROVE DEMAND
HIGHLIGHTS
The Grove’s existing office tenants were characteristically smaller (under 10,000 SF) and
primarily made up of business support users, followed by finance and law firms. There
were, however, a handful of large users whose movement can have a disproportionate
impact on a small and shifting inventory. This had contributed to some of the wider
swings in vacancy and absorption such as Sapient, a new to market user in late 2012
who executed a 54,000 SF lease at Mayfair in the Grove.
Third quarter saw the highest levels of positive absorption in almost four years. This
was true for both classes of space where 13,000 SF–14,000 SF of new occupancy
was gained for each class of space. Less than 43,000 SF in total remained vacant at
quarter’s end. Despite limited choices due to extremely low levels of supply, several
noted transactions were executed this quarter.
41%
3%
23%
33%