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Cushman & Wakefield of Florida, Inc.
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KENDALL/SOUTH DADE SUPPLY
HIGHLIGHTS (CONTINUED)
The combined direct vacancy at Dadeland Centre I and II was reduced to under 3.0% at
the close of third quarter. Kendall’s smallest (68,000 SF) Class A building was Dadeland
@ 9700. The building was fully leased since midyear 2015. By year-end 2017, a 9,600 SF
penthouse will be available for occupancy.
Among Class B buildings, the last 18 months saw vacancy rates in the 12.0%-13.0%
range. Third quarter’s small but positive absorption aided a reduction in current supply
levels. 2016 witnessed Class B’s highest lost occupancy (-75,000 SF) posted since 2007.
Contributing was the loss of 20,000+ SF vacated in the Citibank Building.
In West Kendall, five buildings make up the office core of the Kendall Summit park. At
third quarter, the largest contiguous space totaled 12,000 SF and was located on the
2nd floor at the 11430 N. Kendall Drive building. The park is located near the Florida
Turnpike, 9.0 miles west of the Dadeland Mall urban core and was 71.0% leased at the
close of the quarter.
KENDALL/SOUTH DADE DEMAND
HIGHLIGHTS
Most tenants in the prime competitive set occupy less than 10,000 SF or less and
were drawn to the market’s proximity of residential communities in the area, including
West Kendall, South Miami, Pinecrest, Palmetto Bay, Cutler Bay and Coconut Grove.
The biggest draw is the area’s convenient access to two Metrorail stations, one of which
is located at the Dadeland Centre project.
In a continuation of last quarter, leasing volumes were lower and smaller. The majority of
existing tenants in the competitive set of buildings were law firms and financial services
users. Third quarter’s transactions fell within similar industries, with office tenants from
finance, legal and healthcare signing leases during the quarter. Year-to-date leasing
activity for both Class A and Class B users totaled 57,000 SF.
Among the competitive Class A buildings, Datran Center executed two renewals at third
quarter. Morgan Stanley executed a 3,500 SF for their 17th floor office (Two Datran)
while the law offices of Woodbury, Santiago et al executed a 3,200 SF lease for their
17th floor office (One Datran).
Accounting firm, CAPA, signed a 2,000 SF lease at the two-building, Class A Dadeland
Centre project. In addition, Velocity Mortgage executed 2,500 SF this quarter. Both
deals occurred in Building I (9155 South Dadeland Boulevard) and were new leases at
the building.
In West Kendall, the Kendall Summit park welcomed new user, SOC (Specialist on Call)
who executed a 2,500 SF lease while a therapy group renewed and expanded for 1,500
SF.
EXECUTED LEASES
3Q 2017
% Of Total By Employment Industry
36%
26%
21%
16%
KENDALL Executed Leases, 3Q 2017
% of Total by Employment Industry
Financial
Healthcar
Law Firm
Real Estat
21%
26%
16%
36%
Financial Services
Law Firm
Real Estate
Healthcare