Looking to Relocate Your Business? Here are the Pros of Commercial Leasing in South Florida
South Florida has become the newest hot spot for corporate relocation. Prominent organizations from Silicon Valley, New York City, and notable e-commerce businesses are all making their way to sunny South Florida.
The migration trends started a few years back but gained extensive momentum at the beginning of the coronavirus pandemic. Initially, corporations expressed concern and hesitation towards a Floridian move to what it deemed to be the party hub. But the hesitance was short-lived as South Florida delivers advantageous options for high-quality commercial office leasing.
Why Lease in Florida?
Companies such as Icahn Enterprises have recently relocated to South Florida. Founded by Carl Icahn, the investor relocated the company headquarters to Milton Tower, Class A boutique tower located on 16690 Collins Avenue, Sunny Isles. “Seeing the ocean from your office is what many of our tenants embrace as a work-life balance and positive environment,” says Gilna Milton, President of Marketing & Advertising of J. Milton & Associates.
Recently completed, Milton Towers provides tenants of all types of businesses customized spaces. Executive suites range in size from 2,000 to 13,900-square feet. The 102,000-square-foot building features valet parking, floor-to-ceiling glass windows with direct ocean, intracoastal and city views, T1 and T3 data lines, fitness center, outdoor terraces, electric vehicle charging stations, parking garage and top notch professional management services.
Waterfront views are not the only perks for many corporations leasing in offices in Florida. Commercial leasing gives businesses many benefits including:
The flexibility to change and upgrade your space at the end of the lease
More tax deductions on the leasing costs
Freedom from the responsibility of maintaining the property, depending on your lease
To operate in a space too expensive to purchase
Image by Lance Anderson - Unsplash
Class A Office Buildings
Class A corporate leasing in South Florida has gained momentum as investors invest heavily in corporate development. These developments generally include buildings featuring high-quality amenities, finishes and are professionally managed. They are also typically located in the epicenter of businesses and key areas in South Florida, including Miami, Coral Gables, Sunny Islands, Fort Lauderdale, as well as West Palm Beach.
Cost of Class A Leasing
There are many factors that influence commercial leasing building costs. The condition of the space, size of the space, lease structure, and quality of the finishes are just a few. Commercial rents are calculated on a price per square foot basis because space can be divided or combined. To calculate the total annual rental rate, brokers take the price per square foot times total square feet.
Commercial Leasing Trends
Since 2019, demand for office space has been at an all-time high in Miami-Dade County. “The growth spurt is due to swelling population numbers, job growth, and the popularity of emerging neighborhoods,” said JLL Managing Director Matthew Cheezem.
According to JLL, there were 1,785,666 square feet of Class A office under development at the time. Locations included Coral Gables, Coconut Grove, Aventura, Brickell, Wynwood, and the Design District.
The rental rates throughout Miami-Dade spiked by 1.1% over the same period year-over-year to average asking rent of $41.11 a square foot. According to the Miami Herald, “The highest rents for Class A office spaces were in Coconut Grove ($55.78 per square foot), Brickell ($55.36), and Aventura ($54.85).”
Fast forward to 2020, office vacancies are at an all-time high but rents across South Florida continued to rise. Miami Dade had an asking rate of $41.68 per square foot (PSF), according to the report from Colliers International. Broward County had the lowest average asking rent, at $33.59 per square foot.
Now in 2021, Miami Downtown Development Authority averages the cost per square foot in an office space is $45.45 --the highest it has ever been. Specific locations costs were ever higher. Class A office rent averages at $63.49 PSF in Brickell. The lowest asking rent was $24.39 per square foot, in South Dade.
Image by Nastuh Abootalebi- Unsplash
Legal and Tax Benefit Programs
Florida is one of the few jurisdictions that support single-member LLCs as corporate. This relaxed taxation has smart investors moving their companies to the area.
Just recently, the Florida state sales tax rate applicable to the lease of commercial real estate property decreased from 5.7% to 5.5%. Prompting that the state will levy a 5.5% sales tax on all rent collected on commercial property. An added advantage to the South Florida commercial real estate market.
The Florida Department of Revenue, Sales and Use Tax on the Rental, Lease, or License to Use Commercial Real Property states that “Florida state sales tax at the rate of 5.5%, plus any applicable discretionary sales surtax, is due on the total rent charged for renting, leasing, or granting a license to use the commercial real property in Florida, unless the rent is specifically exempt.”
Relocation Tips
Should your company decide to move to Florida, whether it be to enjoy the weather or for the tax laws, here are a few tips to consider for smooth transitioning.
Understand the commercial real estate market
Know the final destination
Research new pool of applicants to hire
Set a plan of action
Find a commercial real estate broker who will guide you along the process
Ensure business license intact
Class A Properties Directory
Click below to launch slideshow >
MIAMI
Waterford Business District
800 Waterford Way, Miami, FL 33126
305-577-8850
Waterford Business District is a 250-acres professional office space designed to elevate tenants’ experiences and improve the quality of work life. Amenities include conference facilities, fitness centers, cafes, daycare, and more.
Panorama Tower
1100 Brickell Bay Drive, Miami, FL 33131
305-503-2100
Located at the epicenter of Brickell Avenue is the Panorama Tower. The 85 story building is equipped with residential apartments, a 22-story pedestal, a 208-room Hyatt Centric hotel, and additional high-end office and retail space.
545 Wyn
545 NW 26th St, Miami, FL 33127
Jessica Brown (312-202-3483)
Russ Cora (312-952-0279)
545 Wyn is a 298,000 square foot creative office and exclusive retail building that is located in the heart of Wynwood Arts District. The prime office space consists of oversized floor plates, indoor/outdoor lounges + deck, open-air balconies, and more.
River Landing
1400 NW North River Dr, Miam545i, FL 33125
Stephen Rutchik, Executive Managing Director
786-517-4985
An apartment tower, retail and restaurants, and Class A office space all in one. River Landing is located in the mid-River district along a waterfront linear park, which provides a stimulating environment for all.
The Wells Fargo Center
333 SE 2nd Ave, Miami, FL 33131
+1 305-350-0726
The Wells Fargo Center has become one of the most prominent addresses in Miami. The building in the heart of Downtown Miami provides office space with unique amenities. A fitness center, NBA-approved basketball court, virtual bowling, and a Whole Foods Market are all features of the first-generation office space.
Click below to launch slideshow >
CORAL GABLES
4000 Ponce
4000 Ponce De Leon Blvd, Coral Gables, FL 33146
786-796-1909
In the heart of the Coral Gables’ Southern Business District lies the classic Spanish Revival Mediterranean architecture that is home to an assortment of business owners. The building is efficient for full floor and multi-tenant use layouts.
Gables Corporate Plaza
2100 Ponce De Leon Blvd, Coral Gables, FL 33134
305-305-1280
Thirteen stories of office space with amenities including a full-service bank with ATM, a Blendthy Fresh Bar restaurant, Ecstasy Beauty Salon & Spa, and Fed Ex/UPS/DHL drop. The plaza is in close proximity to hotels, retailers, restaurants and entertainment.
The Plaza Coral Gables
2901 Ponce De Leon, Coral Gables, FL 33133
305-577-8851
The Plaza Coral Gables is a Class ‘A’ office space designed for modern-day work environments. Each of the two towers provides remarkable features to their tenants including amenity areas, outdoor spaces and technological advances.
Alhambra Towers
121 Alhambra Plz, Coral Gables, FL 33134
305-443-1000
Miami’s premier business tower located in the heart of Coral Gables. The Class A high-quality office space is above ground-floor retail, dining services, and a parking garage.
The Offices At THesis
1340 S Dixie Hwy, Coral Gables, FL 33146
305-577-8850
The luxury offices at THesis are a part of the amenity driven project, which consists of prime ground floor office space with unthinkable ceiling highest and frontage on US-1. The offices allow companies to control access to their space and incorporate necessary technology.
Click below to launch slideshow >
SUNNY ISLES
Milton Tower
16690 Collins Avenue, Sunny Isles Beach, FL 33160
305-546-6926
Milton Tower’s high-end office building is beautifully designed with onsite dining, residential-style amenities, and crystal blue ocean views. The class A office tower is 102,000 RSF and has floor to ceiling glass windows suitable for a next-level work environment.
One Netanya Center
323 Sunny Isles Blvd, Sunny Isles Beach, FL, 33160
786-228-83329
A boutique-styled office building with prime space for professionals looking to be located in North Miami-Dade County. The luxury office center offers spacious offices, garage parking, and opulent common area décor.
Click below to launch slideshow >
FORT LAUDERDALE
Radice Corporate Center
800 Corporate Drive, Boulevard Park Isles, Fort Lauderdale, FL 33334
John Criddle- Executive Director
954-377-0465
A three-building office complex with reflective glass features and a two-story atrium. Was last renovated in 2001, has visibility and access to I-95.
SunTrust Center
515 E Las Olas Blvd, Fort Lauderdale, FL 33301
+1 954 938 2600
17 story office tower has amenities and common areas throughout the building, which was recently remodeled. The both modern and functional space sets a new standard for offices in the area.
Tower 101
101 NE 3rd Avenue, Fort Lauderdale, FL 33301
John K. Criddle Executive Director
+1 954 377 0465
Tower 101 property is within walking distance from Las Olas Boulevard district. More specifically, the office spec suites are move-in ready with high-end finishes available. Building amenities include a full-service café, parking, courtesy shuttle service, and more.
Bayview Corporate Tower
6451 N Federal Hwy, Fort Lauderdale, FL 33308
Deanna Lobinsky- Executive Director
+1 954 377 0489
Broward County’s largest office building. 12 floors, panoramic views of the ocean, and newly renovated lobby, common areas, and move-in ready office suites.
One Financial Plaza
100 SE 3rd Avenue, Fort Lauderdale, FL 33394
954-727-0330
The building is considered one of the tallest and well-respected buildings in Fort Lauderdale. One Financial provides a boatload of amenities including a high-end conference center, gym, on-site deli, electric vehicle stations, and more.
Click below to launch slideshow >
WEST PALM BEACH
One Clearlake Centre
250 S Australian Ave, West Palm Beach, FL 33401
561-833-7680
Class-A 18-story office tower property. Fully equipped with a gym, redesigned lobby space, common areas, and floor landing with views of downtown West Palm Beach.
CityPlace Tower
525 Okeechobee Boulevard,
West Palm Beach, FL 33401
Mark Paterman- Managing Principal
561-227-2020
The newest class A office building with 300,000 rentable square feet. Features include LEED Silver Certification, luxurious finishes, valet services, and more.
Athena Vista I & II
2081 Vista Pkwy, West Palm Beach, FL 33411
954-776-6700
Athena Vista phase I & II are connected via a walkway. The office building is located in the Vista Center and has a sizable amount of space for office tenants.
The Press- Medical
2751 S Dixie Highway, Poinciana Park,
West Palm Beach, FL 33405
Mark Pateman Managing Principal
561-227-2021
A four-story office building in West Palm Beach. The Press-Medical was built just this year with a total of 176,000 square feet.