No signs of slowdown for Florida office property managers
By Eman Elshahawy Data Reporter, South Florida Business JournalSince last year, office property managers in South Florida have become more important as the region’s buildings compete for new and existing tenants.
These firms look to meet the needs of business tenants seeking high-end space.
Cushman & Wakefield, the region’s largest commercial property management firm by square feet under management, reported nearly one-fourth of that is office space.
Leigh Griffin, the company’s operations director for the Florida market, doesn’t foresee demand slowing down, despite fears of a market cooldown.
She said this is largely due to the in-migration of companies from Northeast and West Coast states that are opening offices in the region, which accelerated office development and leasing activity.
Florida was one of the first states to exceed pre-pandemic job numbers as a result of loosened restrictions, favorable year-round weather and tax savings.
According to Cushman & Wakefield’s 2021 South Florida Office Report, over 60% of all new office leasing activity comprised Class A properties as demand for more affordable, high-quality, collaborative space grew.
“Larger companies are competing against other firms on a daily basis for employees,” said office leasing agent Ryan Holtzman, an executive director in the Miami office of Cushman & Wakefield. “So they want to be in the office building that gives their employees the best daily life.”
This year, he said, the firm’s leasing division has taken on several large-firm tenants in the highly anticipated 830 Brickell office building. Amenities will include a full concierge with drivers available, a 2,500-square-foot fitness center, and rooftop restaurant and bar with a 360-degree view of downtown Miami.
In addition, Holtzman said “spec suites,” or move-in-ready office space, has become a popular commodity, beneficial for companies that want an office, but haven’t hired any employees yet.
“A lot of these firms want to be here as soon as yesterday,” he said. “So when a firm comes down and perhaps is just starting to hire, they can move into a space that is high end and ready to go before they get that employee headcount.”
Source: Inside the List: No signs of slowdown for local office property managers