A megaproject seeks to solve the recession in the commercial real estate sector that has hit Miami in 2023

The office market in Miami is projected to see a 25% decline in leasing activity in 2023. (AP/Marta Lavandier)

He miami office marketOne who was immune to economic challenges for years is experiencing significant recession,

An Investigation of Commercial Real Estate Services Firm JLLpublished by Wall Street Journal (WSJ), revealed that leasing activity decreased by 25% during 2023 compared to 2022 and sublet vacancies increased by 66% by the end of the year. ,There is a slowdown in activity in new markets“, They said WSJ, steven hurwitzOf JLL, ,It seems like we are at a new turning point,

Growing interests and mixed work models have punished office market in usaAs cities are being greatly affected miami, which had managed these challenges better than others, due to a steady stream of corporate relocations and a limited supply of office buildings. However, this extraordinary landscape will end with office construction work Slowing down after recent peak in Q2 2023.

A 66% increase in sublease vacancies has rocked Miami’s real estate landscape. (Joe Raddle/Getty Images)

juan ariasDirector of Market Analysis Cost In this south floridashed light on New Construction Being affected by high interest rates, increased costs of building materials and labor and a Slowdown in leasing activity Amidst the soft economic environment. ,office pace is slowing downAnd new company transfers are also decreasing,” he said arias,

miami An effort to shift from an economy primarily oriented toward leisure and tourism to one New capital of trade and finance, The city has managed to attract Financial and technology firms northeast of usa And other parts of the country.

However, it also has to be faced Most acute development challenges Since the pandemic accelerated business. Single-family home prices and rents have increased miami Higher than almost anywhere else, and homeowner’s insurance costs are skyrocketing. These trends make it difficult for employees to move to the city and for officials who go there miami they figure it out best private schools They are already at their maximum capacity.

One Brickell City Center tower is positioned as a future landmark in Miami’s urban renewal. (One Brickell City Center)

Despite recent ups and downs, office market in miami remains one of the most solid usaclosing with last year Highest annual increase in office rent One of the major markets of the country. The vacancy rate in the city lies between 8.4% lowest in the United StatesThere is evidence of a strong net absorption that exceeds 46,450 square meters of occupied space.

This mobility attracts the attention of important investors such as Chairman of the concerned, stephen rosswhich focuses its efforts on developing new projects south florida, Building of; construction of One Brickell City CenterAn impressive skyscraper spanning 139,355 square meters and 68 floors, it is one of the most ambitious initiatives on the horizon. miami,

Ross Description of this project “most important in miami“, Whereas henry botPresident of Swire“Considers this”a lighthouse As for the city, its outdoor terraces on almost all floors were highlighted. Scheduled for completion in 2028, the building promises to be a milestone in the urban renewal and commercial attraction of the area.

One Brickell City Center is scheduled to be completed in 2028. (One Brickell City Center)

Although One Brickell City Center In miamiWhat promises to be the city’s tallest corporate building is facing difficulties finding a tenant after just a year of construction.

In the beginning, Ross spoke to ken griffinExecutive Director of citadel, about the possibility of moving his hedge fund firm’s headquarters to the above development. However, after a series of negotiations which also included discussions regarding the purchase of a minority stake miami dolphins -Whose team Ross is the majority owner, griffin decided not to settle in One Brickell City Center,

Instead, it decided to focus on developing its own waterfront site, acquired in 2022, which would also include a luxury hotel on top of an office tower.

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