Commercial Real Estate

Coral Gables Remains A Prime Location For Class A Properties

COMMERCIAL OFFICE SPACE: COMPARING THE MARKETS

One of the leading attractions for businesses to locate to Coral Gables is the city’s array of well-designed, handsome Class A office buildings, most of them clustered in the highly walkable downtown. Many of the 50,000 workers who commute daily into the Gables – or did so pre-pandemic – populate these mid-rise buildings, which are capped at 16 stories high.

Coral Gables’ office space is compelling for multiple reasons. First, those who commute (as opposed to local residents, who can practically walk) to work, do so with remarkably less traffic congestion than other Miami submarkets. Second, the array of fine dining in downtown Coral Gables is unmatched elsewhere. Finally, the pricing for space is significantly less – nearly 17 percent less – than either downtown Miami or Brickell.

“When it comes to occupancy, Coral Gables holds its own,” says Rolando Alvarez, a senior agent with the commercial division of Coldwell Banker. “When a multinational is looking to relocate to Miami, they look at Brickell, Downtown [Miami] and the Gables. Brickell is considered Wall Street south, second only to New York, with the highest concentration of international banks. [But downtown] Coral Gables is the sexy, great living location in the City Beautiful, with a great business sector that is well regarded.”

While occupancy is still officially at over 90 percent, that may shrink due to the pandemic. “You don’t see the vacancies yet,” says

Alvarez. “It will take six months to figure that out. [But] we are going to see quite a bit of vacancies that we haven’t seen yet… If you are a landlord, you are not sleeping well these days.”

Just how much the commercial space footprint diminishes is a matter of debate, however, and the reduction may not be as severe as first predicted.

“There will be some companies that want to downsize postcoronavirus, after having so many employees working at home,” says Donna Abood, a principal and managing director for Avison Young. “But the human factor in business is the number one factor that makes a business successful and profitable.” Abood notes that depression and loneliness, especially among younger workers, is at an all time high. “There is no substitute for human contact, for collaboration and interaction.”

With workers already returning to offices downtown, Abood predicts the net pandemic fallout “will probably be about 10 percent, meaning that about 10 percent would be the staff permanently at home and 10 percent the amount to downsize.” Another change she foresees is shorter leases, three to five years long as compared to seven to 10 years. What she does not see is a steep fall-off in pricing. In addition to professional firms, such as accounting, legal and architectural, “we are still highly coveted by Latin American companies. They love their Coral Gables headquarters.”

Leading Commercial Properties

121 Alhambra PlazaAlhambra Towers

TYPE: CLASS A

BUILT: 2003

SQ. FT.: 174,307

TYPICAL FLOOR: 22,600 SQ. FT.

AVAILABLE: 6.5% (6.0% VACANT)

220 Alhambra Circle

BUILDING: TYPE: CLASS A

BUILT: 1997

SQ. FT.: 176,990

TYPICAL FLOOR: 13,846 SQ. FT.

AVAILABLE: 18.9% (11.9% VACANT)

355 Alhambra Circle

TYPE: CLASS A

BUILT: 2001

SQ. FT.: 222,884

TYPICAL FLOOR: 13,930 SQ. FT.

AVAILABLE: 18.8% (16.9% VACANT)

Leading Commercial Properties

396 Alhambra Circle

TYPE: CLASS A

BUILT: 2012

SQ. FT.: 170,185

TYPICAL FLOOR: 10,767 SQ. FT.

AVAILABLE: 9.3% (6.6% VACANT)

1200 Ponce de Leon Blvd.

TYPE: CLASS A

BUILT: 2018

SQ. FT.: 95,008

TYPICAL FLOOR: 5,938 SQ. FT.

AVAILABLE: 64.3% (84.4% VACANT)

2525 Ponce de Leon Blvd.

TYPE: CLASS A

BUILT: 2004

SQ. FT.: 254,592

TYPICAL FLOOR: 21,176 SQ. FT.

AVAILABLE: 11.9% (5.2% VACANT)