{"id":9422,"date":"2024-01-04T11:13:43","date_gmt":"2024-01-04T16:13:43","guid":{"rendered":"https:\/\/www.lee-associates.com\/southflorida\/?p=9422"},"modified":"2024-01-04T11:19:59","modified_gmt":"2024-01-04T16:19:59","slug":"limited-availability-keeps-groves-office-market-strong","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/southflorida\/2024\/01\/04\/limited-availability-keeps-groves-office-market-strong\/","title":{"rendered":"Limited availability keeps Grove’s office market strong"},"content":{"rendered":"
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Miami Today Discusses Coconut Grove Office Market with Lee & Associates South Florida Principal, Bert Checa<\/h3><\/div><\/div>
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'Limited availability keeps Grove's office market strong'<\/h1>\n
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By Janetsky Lug<\/a>o \u00a0\u2013\u00a0<\/span> Miami Today<\/div>\n
January 4th, 2024<\/div>\n

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Coconut Grove office occupancy rates and demand arc holding strong, driven in part by the area's limited availability of office space.<\/p>\n

The Grove's lack of new office space development continues to contribute to South Florida's lowest office submarket vacancy percentage, which in December was 3% vacancy in Class A and B space combined, said Bert Checa<\/a>, a principal at Lee & Associates South Florida<\/a>. Rental rates continue to hold in the mid $60s per foot, with recent transactions coming in the low $60s full service.<\/p>\n

Developers have noticed the need for additional office space in the Coconut Grove market and have proposed two new developments totaling 92,596 square feet projected to be completed in late 2024 to mid-2025, said Mr. Checa. Until then, tenants with lease renewals coming up in the Grove market will see record renewal rates and a very strong landlord market.<\/p>\n

Some tenants in the Grove market have started to look to Coral Gables as an alternate sister market with comparable quality office buildings and amenities at S10 per foot lower rental on average.<\/p>\n

The average rate per foot has remained constant as no change was seen over the last three quarters of 2023.<\/p>\n

''It's holding stable,\" said Mr. Checa. \"It seems to have found a ceiling. I dare to say, however, if the new projects that are proposed for the late 2024, early 2025 quarters, if those arc not built, those rates will continue to increase. The only thing that's going to stabilize the rates or keep them from continuing to increase is to add additional office space square footage to the market which those 92,596 ... should give the market sufficient supply to hold the rates from continuing to increase.\"<\/p>\n

However, this continuity may not remain through 2024.<\/p>\n

''It's [the price per foot] currently stable,\" said Mr. Checa. \" I don't know if it'll stay stable until the end of 2024. It all depends ...on what the tenants do. If tenants really start continuing to go to sister markets, it will stay stable. Now if tenants want to remain in the Grove and will renew at whatever rate the landlords propose, you may still see an increase of those rates further.\"<\/p>\n

The two new developments coming to Coconut Grove will help alleviate the limited space available in the area.<\/p>\n

''The first one [development] is Vizcaya Capital 2871 Oak Ave,\" said Mr. Checa. ''It's 32,596 square feet and their asking rate is $100 per foot. The second [development] is 3120 Commodore Plaza. It's 60,000 square feet, rental rate has not been published yet is to be determined. I feel it's going to be somewhere in line with $90 to $100 a foot just like the other project.\"<\/p>\n

Vizcaya Capital ''is supposed to be completed end of 2024 and ... 3120 Commodore Plaza says 2025, it does not provide the actual quarter and all of this data is from CoStar,\" said Mr. Checa.<\/p>\n

Professionals in the field have witnessed high demand for office space in the area as they continue to see office spaces in new buildings max out in occupancy.<\/p>\n

Read More...<\/a><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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About Lee & Associates South Florida<\/strong><\/h3>\n

Lee & Associates South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent\u2019s ability to earn profit share resulting in the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making.\u00a0 The Lee & Associates\u2019 robust national network that sold and leased over $32 Billion in 2022 offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com<\/a>\u00a0or follow us on\u00a0Facebook<\/a>,\u00a0LinkedIn<\/a>,\u00a0Twitter<\/a>\u00a0and\u00a0Instagram<\/a>, our company local news<\/a>.<\/p>\n

About Lee & Associates<\/strong><\/h3>\n

Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown its service platform to include over 75 offices\u00a0in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers. \u00a0For the latest news from Lee & Associates, visit\u00a0lee-associates.com<\/a>\u00a0or follow us on\u00a0Facebook<\/a>,\u00a0LinkedIn<\/a>,\u00a0Twitter<\/a>\u00a0and\u00a0Link<\/a>, our company blog.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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\n\t\t\t\n\t\t\t\"Lee\n\t\t\t<\/a><\/div>\n\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

‘Limited availability keeps Grove’s office market strong’ By Janetsky Lugo \u00a0\u2013\u00a0 Miami Today January 4th, 2024   Coconut Grove office occupancy rates and demand arc holding strong, driven in part by the area’s limited availability of office space. The Grove’s lack of new office space development continues to contribute to South Florida’s lowest office submarket vacancy percentage, which in December was 3% vacancy in Class A and B space combined, said Bert Checa, a principal…<\/p>\n","protected":false},"author":76,"featured_media":9423,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,1811,107],"tags":[1845],"class_list":["post-9422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-medical","category-office","tag-bert-checa"],"yoast_head":"\nLimited availability keeps Grove's office market strong - Lee & Associates South Florida<\/title>\n<meta name=\"description\" content=\"Miami Today Discusses Coconut Grove Office Market with Lee & Associates South Florida Principal, Bert Checa\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/southflorida\/2024\/01\/04\/limited-availability-keeps-groves-office-market-strong\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Limited availability keeps Grove's office market strong\" \/>\n<meta property=\"og:description\" content=\"Miami Today Discusses Coconut Grove Office Market with Lee & Associates South Florida Principal, Bert Checa\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lee-associates.com\/southflorida\/2024\/01\/04\/limited-availability-keeps-groves-office-market-strong\/\" \/>\n<meta property=\"og:site_name\" content=\"Lee & Associates South Florida\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-04T16:13:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-04T16:19:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lee-associates.com\/southflorida\/wp-content\/uploads\/sites\/62\/2024\/01\/PR-Banner-Miami-Today_Bert-Checa.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1250\" \/>\n\t<meta property=\"og:image:height\" content=\"521\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"ssabatier\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ssabatier\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/2024\\\/01\\\/04\\\/limited-availability-keeps-groves-office-market-strong\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/2024\\\/01\\\/04\\\/limited-availability-keeps-groves-office-market-strong\\\/\"},\"author\":{\"name\":\"ssabatier\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/#\\\/schema\\\/person\\\/d5447dfddeb31f214f5f2eb84c74068a\"},\"headline\":\"Limited availability keeps Grove’s office market strong\",\"datePublished\":\"2024-01-04T16:13:43+00:00\",\"dateModified\":\"2024-01-04T16:19:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/2024\\\/01\\\/04\\\/limited-availability-keeps-groves-office-market-strong\\\/\"},\"wordCount\":843,\"image\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/2024\\\/01\\\/04\\\/limited-availability-keeps-groves-office-market-strong\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/wp-content\\\/uploads\\\/sites\\\/62\\\/2024\\\/01\\\/PR-Banner-Miami-Today_Bert-Checa.png\",\"keywords\":[\"Bert Checa\"],\"articleSection\":[\"All News\",\"Medical\",\"Office\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/2024\\\/01\\\/04\\\/limited-availability-keeps-groves-office-market-strong\\\/\",\"url\":\"https:\\\/\\\/www.lee-associates.com\\\/southflorida\\\/2024\\\/01\\\/04\\\/limited-availability-keeps-groves-office-market-strong\\\/\",\"name\":\"Limited availability keeps Grove's office market strong - 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