The Miami Area’s Office Market as 2023 Ends: Cooling, But Still Hot

[gixxer1000]

Originally Posted by CXT2000

Mhm... except what I said is happening lol. It's smart, demand is there, NY developers have sold some assets in Miami to finance larger flagship projects in NYC and elsewhere.

I work in real estate development with clients in both markets, just letting the people on this forum know you're arguments aren't back by any data and contradictory to my personal experince.

[CXT2000]

Originally Posted by gixxer1000

I work in real estate development with clients in both markets, just letting the people on this forum know you're arguments aren't back by any data and contradictory to my personal experince.

We have the same experiences... I worked with Canadian, U.S and global markets (all at once) with MTL, NYC, Miami, SoCal markets, in addition to Europe and Asia.. real estate + foreign investment attraction + working alongside government bodies...

I think I have you on this one, bud.

[gixxer1000]

Originally Posted by CXT2000

We have the same experiences... I worked with Canadian, U.S and global markets (all at once) with MTL, NYC, Miami, SoCal markets, in addition to Europe and Asia.. real estate + foreign investment attraction + working alongside government bodies...

I think I have you on this one, bud.

No one who brags this much on the internet should be taken serously. The point was that we have differing anecdotal experiences but again you have no real data to make your point.

[MiamiLIFE]

Originally Posted by gixxer1000

I work in real estate development with clients in both markets, just letting the people on this forum know you're arguments aren't back by any data and contradictory to my personal experince.

My day to day work is with the large institutional owners (asset management and advisory firms) that own many of the buildings in Brickell and surrounding areas in Miami. This is my client base. They also own many of the apartments, industrial, and retail properties in the area as well. They're very much bullish on Miami office, which is opposite of their strategies in Los Angeles, San Francisco, NY and DC where many of the office buildings are going into default or the lead (anchor) tenants are looking to vacate the office buildings where they are tenants. Many of the Class B, outdated office properties in NY and DC are now trading for land value.

https://www.sfchronicle.com/realesta...g-18611324.php

[gixxer1000]

Originally Posted by MiamiLIFE

My day to day work is with the large institutional owners (asset management and advisory firms) that own many of the buildings in Brickell and surrounding areas in Miami. This is my client base. They also own many of the apartments, industrial, and retail properties in the area as well. They're very much bullish on Miami office, which is opposite of their strategies in Los Angeles, San Francisco, NY and DC where many of the office buildings are going into default or the lead (anchor) tenants are looking to vacate the office buildings where they are tenants. Many of the Class B, outdated office properties in NY and DC are now trading for land value.

https://www.sfchronicle.com/realesta...g-18611324.php

This expereince is similar to mine. I recently had a client in DC change an office building to residential. This is extremely hard to do as most typical office floorplans just don't translate over to residential well. But these cities are stuck where they have tons of office that no one is using and at the same time don't have enough residential.

[MiamiLIFE]

Originally Posted by gixxer1000

This expereince is similar to mine. I recently had a client in DC change an office building to residential. This is extremely hard to do as most typical office floorplans just don't translate over to residential well. But these cities are stuck where they have tons of office that no one is using and at the same time don't have enough residential.

And once these bldgs. go dark the city is losing precious tax revenue. With that said, most groups that do an office to resi conversion only do it once. LOL. Very expensive to do and often difficult to operate efficiently as apartments and hard to liquidate as condos. The floorplans are often very odd due to the columns. And running the HVAC and waste water lines is challenging. The building was designed as an office building originally with the risers locations established for that purpose. The office deals I am seeing are land value. I suspect those properties will be razed and not converted. Of the office stock that is obsolete, it is estimated that only about 2% to 3% is workable as resi or hotel conversion.

NY has 30 empire state bldgs to absorb into a new format and receiving virtually no tax revenue on that product. That's not good!

[CXT2000]

For all the hate NYC gets on here (and the really weird obsession on hating NYC and other cities) just remember more than a dozen office buildings are U/C, with an average of 1M sq ft for each. It's all about fight of quality, so people are (rightfully) abandoning class C/B office space and outdated ones in general. More in development in Manhattan alone vs all of Miami Metropolitan area....

Miami's office market slowed down, lots more renewals than new leases. Brickell is back in double digit vacancy rate, Brickell + CBD rate is between 16-20% depending on broker, Wynwood is still in the mid 30% vacancy rate...

Carry on, folks...