After 15 years, a multifamily developer is trading Miami’s Central Business District for Coconut Grove.
The Miami-based American Land Ventures signed a 4,252-square-foot office lease at One CocoWalk in September, according to a press release. The company is moving to the Grove to be closer to where its employees reside. It is currently leasing and subleasing a 6,000-square-foot space in Brickell until the first quarter of 2021.
As a result of American Land Ventures, the five-story, 85,745-square-foot office building is 85% leased. Its other office tenants include the law firm Weinberg, Hudgins, Gunn & Dial, the private equity firm Boyne Capital, and the co-working company Spaces. Office leasing started in 2018; both the office and retail spaces will open in the fourth quarter 2020.
Blanca Commercial Real Estate represented the owner of One CocoWalk, and JLL Managing Directors Steven Hurwitz and Doug Okun represented the tenant American Land Ventures.
“In the pandemic, people are thinking about offices that would be close to their homes. That’s a trend that benefits us and benefits submarkets like Coconut Grove,” said Tom Roth, principal of Grass River Property.
Asking rents at One CocoWalk run from $44 to $46 per square foot triple net, Roth said. According to the second quarter 2020 JLL office insight report, average asking rents for Class A office space are at $58.12 per square foot and $42.16 per square foot for Class B office space. In Brickell, the average asking rents are at $62.33 per square foot for Class A office space and at $38.79 per square foot for Class B office space.
Seeing demand for office space at One CocoWalk, Grass River Property will convert 9,615 square feet of retail space, or about 15%, of the total 64,255 square feet of retail and restaurant space into an office. Gap once anchored the soon-to-be converted retail space for years.
For American Land Ventures, the move has been in the works since prior to the pandemic, Hurwitz said. Other firms have decided to relocate to the Grove, including the development firm Related Group and tech company Taxfyle, fueling brokers’ and investors’ predictions that office markets in Miami suburbs will continue to grow.
The development firm opened over 30 years ago and it has developed about 20 projects across Florida, including Vu New River Apartments in Fort Lauderdale, New River Village II Condo in Fort Lauderdale, and Cove at the Landings in Doral.