New York Developer The Related Companies Bets Big on West Palm Beach — The Wall Street Journal (Miami: lease, hotel)

[Orionsdolph]

New York Developer The Related Companies Bets Big on West Palm Beach — The Wall Street Journal



"Related will announce on Tuesday that it is planning a new office tower, known as 515 Fern. The 25-story building will feature 456,000 square feet of office and 15,000 square feet of retail, which they expect will become the largest office building in downtown West Palm Beach.

The firm has also acquired in recent years multiple buildings within the same West Palm Beach neighborhood, bringing Related’s total office square footage in the city to more than 2 million square feet and cementing its position as the biggest private commercial landowner in West Palm’s downtown.


Other developers also see the city as a budding alternative to building in more crowded Miami or the increasingly bustling city of Miami Beach. Late last year an affiliate of Starwood Capital Group, in partnership with two New York developers, purchased a West Palm Beach development site for a planned multifamily project.

Billionaire Palm Beach developer Jeff Greene is developing a pair of mixed office and luxury residential towers called One West Palm that he expects to finish in the next 12 months. The project stalled during the pandemic, when Mr. Greene said he was unsure about the demand for office space, but construction is now going full-throttle.


Related Group, the independently owned and run “sister company” to Related Cos., based in Miami, took control of Transit Village, a $1.3 billion mixed-use development covering 10 acres on the West Palm Beach site of the Tri-Rail train station stop.

“With easy access to other booming cities and a growing number of national companies, we expect West Palm Beach and the surrounding areas to continue to grow rapidly,” said Jon Paul Perez, president of Miami-based Related Group.


Related Cos. has built office, retail and residential properties in New York and other cities for decades. It is best known recently for its 26-acre Hudson Yards mixed-use development on the west side of Manhattan.

But during the pandemic, the company turned much of its attention to South Florida, and West Palm Beach in particular, where they have a 40-acre project in development.


Now, with so many finance, tech and other businesses relocating to South Florida, Related is making West Palm Beach its beachhead in the region and betting that the state will continue to pull business from New York.

“We saw where things were going, so we put together a program and capitalized on it,” Mr. Ross said. “Right now the trend of growth is really more in Florida today than in New York.”

His bet could go wrong again if companies and new residents opt for downtown Miami or other districts over West Palm Beach. While Related is developing an office tower in Miami, and is gearing up to redevelop a historic hotel in Miami Beach, the firm is putting most of its South Florida chips on West Palm.


So far, that wager is paying off. Related’s initial West Palm Beach office tower, known as 360 Rosemary, is fully leased. Tenants include BlackRock Inc., Goldman Sachs Group Inc., the hedge fund Elliott Management Corp. and Steven Cohen’s Point72 Asset Management, according to people familiar with the matter.

Demand has been so strong that Related said it is in the process of converting part of the parking garage in the building to accommodate more office tenants. The location of the new development is steps away from the Brightline train station that connects to Miami, and will include a covered pedestrian pathway from the station along the eastern facade of the building."


https://www.wsj.com/articles/new-yor...ch-11663070403

[MrKnight]

Impressive and great news for downtown WPB!

[FL_Expert]

Originally Posted by Orionsdolph

So far, that wager is paying off. Related’s initial West Palm Beach office tower, known as 360 Rosemary, is fully leased. Tenants include BlackRock Inc., Goldman Sachs Group Inc., the hedge fund Elliott Management Corp. and Steven Cohen’s Point72 Asset Management, according to people familiar with the matter.

Wow, so many big players in the same building.

Thanks for sharing the article. It’s interesting what WPB is becoming. It wasn’t long ago downtown WPB was sketchy and now it seems to have completely changed. I have a hard time picturing what’s in store for WPB long-term, but the balance of power in South Florida will shift north some if this keeps up.

[beach43ofus]

NYC is dying, & Wall Street is moving to Florida. This company is cashing in on the demographic trend.

[BrooklynJo]

Originally Posted by beach43ofus

NYC is dying, & Wall Street is moving to Florida. This company is cashing in on the demographic trend.

New York is dying? Please give me w/e marijuana you are smoking lmao.
Wall Street is staying in NYC forever.

[Alfiehurt]

Originally Posted by beach43ofus

NYC is dying, & Wall Street is moving to Florida. This company is cashing in on the demographic trend.

Come up to the Meat Packing District, Tribeca, SoHo, midtown, even Hudson Yards, even East Harlem for dinning without a reservation

Walk into the Whitney Museum of Art, MET museum and get on line for while to get in

Try getting a same day Broadway show tkt without expecting long wait and paying big bucks

New York is alive and well, businesslike, financially
But wealthy New York also gets cold and because it has disposable income can afford spending time in WPB

[wanderer34]

Originally Posted by beach43ofus

NYC is dying, & Wall Street is moving to Florida. This company is cashing in on the demographic trend.

It's like this: NYC isn't dying, but it's losing some ground, mainly to Miami! NYC, as long as it's the largest city and the largest media, corporate, and transportation hub will never lose to Miami. It's just Miami, along with Chicago, and to a certain degree, SF, are the only cities that can really go toe to toe with NYC on a financial basis, but as the years, and decades go by, NYC loses some ground and it will be interesting what the later decades behold for NYC.

[BrooklynJo]

Originally Posted by wanderer34

It's like this: NYC isn't dying, but it's losing some ground, mainly to Miami! NYC, as long as it's the largest city and the largest media, corporate, and transportation hub will never lose to Miami. It's just Miami, along with Chicago, and to a certain degree, SF, are the only cities that can really go toe to toe with NYC on a financial basis, but as the years, and decades go by, NYC loses some ground and it will be interesting what the later decades behold for NYC.

Miami acts more like an extension for NYC companies. This thread is a perfect example. Related companies is just adding an office in west palm beach...not moving there.

[City Guy997S]

Originally Posted by FL_Expert

Wow, so many big players in the same building.

Thanks for sharing the article. It’s interesting what WPB is becoming. It wasn’t long ago downtown WPB was sketchy and now it seems to have completely changed. I have a hard time picturing what’s in store for WPB long-term, but the balance of power in South Florida will shift north some if this keeps up.

Nah............ WPB its still sketchy.

[City Guy997S]

Originally Posted by BrooklynJo

New York is dying? Please give me w/e marijuana you are smoking lmao.
Wall Street is staying in NYC forever.

Funny guys like Carl Icahn and Steve Cohen bailed on NYC. Ken Griffin bailed on Chicago.

Better weather, significantly better taxes and cheaper cost of living is hard to beat.

If one or two guys bailed then they are seen as outliers but if a few big guys do it then Miami is more acceptable.

Wallstreet during Covid was vacant, everyone working remote. So it if worked then, why not move the whole office to Miami.