In one of the largest downtown Miami office lease transactions this year, Cushman & Wakefield and Crocker Partners today announced that Citigroup, the global banking and financial services corporation, has signed for 125,000 square feet at Miami Center. Along with announcing Citigroup’s 15-year lease renewal as anchor tenant, Crocker Partners unveiled plans for a $20 million makeover of the 34-story, 786,267-square foot tower.
Cushman & Wakefield Senior Director Jon Blunk represented Crocker Partners in the transaction. Patrick Duffy of Newmark Grubb Knight Frank represented Citigroup.
Citigroup’s commitment is good news for the market and for Miami Center, the state’s second largest Class A office tower, according to Angelo Bianco, partner in Crocker Partners. “Citigroup shares our excitement in Miami’s future as a world class business center. Locking in a long term lease at today’s rental rates is a wise move. Tenant demand from both organic and new tenant growth is in its 4th consecutive year of expansion. Couple that fact with the limited amount of office development in the pipeline and we have a perfect storm on the 12-24 month horizon for a significant increase in rents.”
The renovations already underway include a makeover of the lobby and exterior plaza, a new entrance and valet, and modernization of the elevators. Miami Center, with unobstructed bay and ocean views, immediate transit access and the adjacent Intercontinental Hotel, is well positioned with the ongoing revitalization of Miami’s CBD. Crocker Partners, Miami’s largest Class A office owner with more than 1.5 million square feet in the market, recently completed a $15 million renovation of its nearby SunTrust International Center.
The Citigroup lease comes on the heels of a 25,000-square foot Miami Center lease renewal by international law firm Hughes Hubbard & Reed LLP.
Mr. Blunk said the recent commitments by large space tenants reflect confidence in Miami’s future as a dynamic global business center, a growing sense of urgency in a tightening market, and the desirability of Miami Center. Cushman & Wakefield’s latest Marketbeat report, he noted, forecasts continued office demand in the urban core, with the market poised for “incomparable growth in the next three to five years.”