Class A office space in Miami Beach is in scarce supply and with financial services and tech firms migrating here, Related President J.P. Perez says interest is high.
“We have significant demand, significant meaning almost 100% of demand for the office space already with financial firms, hedge funds, family offices and tech companies,” Perez told the Planning Board.
Related has owned the 3.71-acre parcel on the southeastern tip of Terminal Island since 2013. The site is approved for cargo terminal operations which was its previous use. Initially, Related proposed a 25-story, 300-ft tall residential tower and then a taller, slimmer tower at 34 stories, 457 feet but following strong objections from the US Coast Guard, Related changed gears and in May last year proposed two small office towers “when the world was changing” due to COVID, Perez said.
“There was significant migration down to South Florida,” he said. “There’s a lot of companies moving. CEOs, Chairmen buying houses, relocating their families, and they have nowhere to office in Miami Beach. There hasn’t been new product built in Miami Beach for at least ten years, so there’s actually no supply. This would be meeting that new demand.”
In addition to being a good investment for Related, Perez told the Board, the project will also be good for the City of Miami Beach as it seeks to diversify its tax base away from a heavy emphasis on the tourism industry which has been hit hard by COVID and other events in recent years.
“Other than this project, I’m looking at additional sites for companies that you’re well aware of for office spaces of 200,000 sq. ft. or more, all between Miami and West Palm Beach,” Perez said. “Miami Beach is a lot of their priorities because a lot of the heads of these companies are actually buying and choosing to live in Miami Beach and would prefer not to have to travel across the water to the downtown or Brickell.”
“The tenant demand is there and as a developer we need to act on that demand,” he said.
The Planning Board approved a Certificate of Use Permit (CUP) required for developments over 50,000 sq. ft. One Island Park will contain approximately 161,671 sq. ft. of office space. Earlier this month, City Commissioners approved a height increase for the site from 40 to 75 feet, an increase the developer said was necessary to provide the 14-ft tall ceilings required by users of high-end office space.
Attorney Tracy Slavens of Holland & Knight said, pending Design Review Board (DRB) approval, Related plans to seek a building permit at the end of this year.
“We really do think that we’ll be capturing a group of people that want to live and work in Miami Beach,” Slavens told the Planning Board. “One example of someone that lives in Miami Beach but had to locate their offices elsewhere because they couldn’t find product was Carl Icahn. He lives on North Bay Road, but his office is in Sunny Isles Beach. We’d like to capture him and the economic development that his business brings in our community and people like him.”
“We think this is not only the most appropriate use but the best use for our community,” she said. “It really allows us to have people living, working, and playing in Miami Beach.”
The existing mega-yacht marina will remain as part of the project.
Next stop is the Design Review Board this week.
Renderings: Arquitectonica
