trend downtown slurping up available offices
vacancies in Miami's central business district have declined considerably
as professionals see a continuing increase in telecom tenants seeking
in the central business district which includes downtown and
the Brickell corridor declined significantly since the end
of 1997, figures from commercial developer Terranova show. Office
vacancy downtown at the end of '97 was 16.5% and in Brickell 17.2%.
Today, downtown's vacancy rate is down to 12.68% while Brickell's
is only 5.9%.
Garfinkle, a partner at IEA which owns New World Tower and
the 200 Southeast First Building, among others said vacancy
at the two downtown towers has decreased dramatically since IEA bought
them and had them retrofitted for telecommunications tenants.
buildings have a technology orientation," Mr. Garfinkle said.
"Our vacancy has dropped dramatically because our marketing has
been towards telecom companies."
his company bought New World Tower in 1997, he said, it was less than
50% occupied. Now the building is at 97% occupancy, he said.
Garfinkle said the 200 SE First Building was at 30% occupancy when
his company purchased it. Now, he said, it is more than 90% occupied.
great deal of the increase in occupancy, Mr. Garfinkle said, has to
do with telecommunications tenants taking residence there. Some of
IEA's telecom tenants include AT&T International Telephone, EPIK Communications,
FPL Fibernet and Genuity.
is establishing itself as one of the telecom centers of the world,"
Mr. Garfinkle said. "The proof is in the pudding. Telecom tenants
are absorbing the space out there."
Holly, managing director of Insignia ESG which represents several
telecommunications tenants in the central business district
said his firm this year has helped move telecom firms into more than
200,000 square feet.
to three years ago, that is a tenfold increase in telecom tenants
and the space they require," Mr. Holly said. "There have
been no new office buildings in downtown for 15 years."
said the Technology Center of the Americas, which will house a proposed
Network Access Point Internet-relay station, is the only office building
under construction in the central business district. The 700,000-square-foot,
Terremark-developed structure at 50 NE Ninth St. is expected to be
complete by spring 2001. Office market experts say the NAP will draw
even more telecommunications tenants into the area.
Mr. Holly said, is in the market to find office space for telecommunications
companies ABR Infocom and Lightspeed Miami.
Gale, managing director for Taylor & Mathis which leases office
space at 701 Brickell, 777 Brickell and Museum Tower said without
a doubt telecommunications tenants are taking over offices in the
central business district.
think there is no question that the single largest industry that is
absorbing space in the CBD is telecommunications tenants," Mr.
Gale said. "Most of the fiber optic in the city is in the CBD."
said his company recently signed a letter of intent for 32,000 square
feet for a telecom company at 701 Brickell that he cannot announce
until the deal is sealed. A request by a telecommunications firm for
this much space is not uncommon, he said.
main reason they want to be in the CBD is because of all the fiber-optic
loops currently located there," Mr. Gale said. "Also, they
all want to be near each other."