Coral Gables office occupancy, demand soar
With office occupancy reaching 93.34% in Coral Gables and leasing costs increasing up to 20% in the past few years, industry experts anticipate a continued healthy office market in the Gables across all Class A, B and C markets.
“The Coral Gables market is very healthy overall,” said Steven Hurwitz, director of office leasing and partner at CREC. “Total occupancy is in the low 90s percent-wise across all Class A, B, and C properties.”
“There is not one asset or class,” he said, “that is smaller than the others.”
According to a Miami-Dade County office market report by Avison Young, office lease rates in the Gables average $39.86, with total vacancy at 7.13%.
As for new office space being delivered in the Gables, the Avison Young report states that 71,582 square feet of offices are currently under construction.
However, Mr. Hurwitz said of the construction, “New deliveries are being delivered in small-scale amounts.”
“There is a strong office demand in the Gables,” he said, “but not a lot of new supply.”
“Giralda Place, a mixed-use resident project at 2222 Ponce de Leon Blvd., is being delivered soon, which will be a great new addition to the Gables,” he said. “However, not a lot of other huge projects are being built or put out that challenge the current inventory.”
“Giralda Place,” said co-developer Cristo Brown, “will offer up to 100,000 square feet, with 13,000 square feet being new luxury retail options, along with 33 condos.”
As for office space, he said, “Giralda Place will offer up to 57,000 square feet. of office space.”
“The Gables is hot right now,” Mr. Brown said. “There is a lot of action from financial companies, telecommunication companies, media companies, banks and brokers in regards to utilizing office space in the Gables.”
The reason the office space market in the Gables is so healthy, he said, “is due to the walkability and amenities for tenants and employees.”