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Front Page » Communities » Doral office market exploding

Doral office market exploding

Written by on July 14, 2015
Doral office market exploding

When it comes to Doral’s office market, the maxim “If you build it, they will come” is frequently cited as a rationale for its success.

“Doral has been exploding in the past few years,” said Jon Chassen, partner in the law firm Bilzin Sumberg’s real estate and distressed property groups. “If your population moves west, you need infrastructure to support that population, and that includes residential and office space. And the population there is increasing significantly.”

There are large office complexes occupied by owner-users, including Lennar Corp., but the vast majority of offices are occupied by small- to mid-sized companies, he said. Many locate there to be easily accessible to their employees, as the area has good access to the Florida Turnpike, State Roads 826 and 836, and I-75. Conversely, companies that open offices in Doral can offer employees who live farther east a less-stressful reverse commute, he added.

“It’s not going to be for everybody,” Mr. Chassen said. “Certain businesses need to be downtown or in Brickell – law firms, financial institutions – and those guys are not going to change. But for a lot of other folks, if you don’t need to be downtown, and your employees live out west and they can be working and living in the same place, it’s a no-brainer.”

“Running a company in Doral has been traditionally been less expensive, both in terms of operating expenses and rent, than in the central business district or Brickell,” said David Martin, president and co-founder of Terra Inc., which has retail and residential projects in the area. “It’s cost-effective, there is good employment here and the city is pro-business.”

Rates for class A space are about $35 per square feet gross and around $28 per square foot for class B, observers say.

Terra’s latest project, Doral Commons, a 140,000-square-foot retail center at Northwest 107th Avenue and 74th Street, is 90% leased, with tenants including Publix supermarket, Citibank, GNC, AT&T Wireless, McDonald’s and TJ Maxx, the company said in a release.

“We’ve been in Doral for 10 years,” Mr. Martin said. “It’s always been a strategic location for office and residential,” given its proximity to major roadways and Miami International Airport. “It started out as an industrial area; then office and residential started to grow,” he explained. “Now there are homes available to employees of major companies, and that did not exist 20 years ago. It crosses off every check mark in the box, and when employees want to live here, that creates demand for office space.”

Masoud Shojaee, president and chairman of the board of Shoma Group, has said his company has the only class A building in Doral, referring to One Park Square, part of the 51-acre, mixed-use Park Square complex.

Completed in 2010, the 281,000-square-foot building is 90% leased, with Amadeus North America occupying 100,000 square feet. Blanca Commercial Real Estate Inc. is the leasing agent.

He is eager to firm up plans for a second class A building, which could be delivered within two years, Mr. Shojaee said this week. Bernard Zyscovich will be the architect. “It will be something different, something people have not seen before,” Mr. Shojaee said.

Asked how traffic – challenging enough now during morning, evening, and lunch rush hours – will accommodate all of the new growth, he suggested the city beef up existing trolley program.

“The city should ask the developers to pitch in,” Mr. Shojaee said. “The developers should assume some of the cost. Leave a legacy, that’s our philosophy.”

6 Responses to Doral office market exploding

  1. Michael Claus

    July 16, 2015 at 2:57 pm

    Living and working since 19 years in Doral I have seen the changes in this city, and for us long-time residents these changes are not pleasant. Over the past couple of years the quality of life has gone down the drain. Living in our gated communities is still nice, but has a feel like an ex-pat in the Middle-East. Traffic is horrendous, NW 36/41st (Doral Blvd) is during rush hour an beyond a parking lot. So is NW 87, 58 and others, and thers is no space left. What does an increased trolley service do, when the trolleys are stuck in the same traffic mass? The city is on tyarget to almost double its population, with the same streets. When I read all these articles and comments I just wonder where those people who write this are living. I would assume, not in Doral.

    Michael Claus

    • Juan Carlos Gomez

      July 19, 2015 at 12:35 pm

      Although I agree that traffic matters must be addressed, I believe that the changes are positive. Plus Doral has a great quality of life: great parks, excellent schools, low crime and very clean streets. I think most would agree that the changes are a net plus for its residents.

  2. John Jones

    July 18, 2015 at 12:55 am

    To the above writer: be happy there is growth and more money there!!!

    stop whining and complaining

    This attitude that things are better somewhere else si so typical of South Floridians! You don’t know how good you have it !

    A little traffic BIG DEAL!!!!!!!!!!!!!!

    I welcome all the growth!! Now let’s plan for it correctly!

  3. Juan C Gomez

    July 19, 2015 at 10:55 am

    While I agree traffic should be at the forefront of Doral City Planner concerns, the growth you are seeing is inevitable. What I don’t agree with is quality of life decreasing. How so? There’s great parks in Doral, the schools are excellent, crime is low, and the influx of culture has brought with it diverse options for lifestyle. Additionally, there is a major military presence within this community.
    It’s not for everyone, but ultimately the mixed use developments and the eventual bike and pedestrian lanes will change the way people live, work and play in this thriving community; in my opinion for the better. And yes, I live here.

  4. Juan Carlos Gomez

    July 19, 2015 at 12:20 pm

    Also, in this article Parc One is stated to be the only class A building in Doral.
    I think that this is a misnomer, I’d like to argue that there are other Class A buildings in Doral.
    Downtown Doral, Doral Costa, Doral Corporate Center, these are all Class A buildings given the broad definition of the title. Certainly based on amenities, finishes and SF rate, they meet the criteria. I’m certain they may be others not included in my list. Doral has come a long way.