MIAMI—It’s one of largest Downtown Miami office lease deals of 2015. Global banking and financial services firm Citigroup just inked a 125,000-square-foot lease at Miami 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. 

Citigroup’s 15-year lease renewal is giving the building owner, Crocker Partners, confidence to make capital improvements to the building Crocker will invest in a $20 million makeover of the 34-story, 786,267-square foot tower.

Cushman & Wakefield Commercial Brokerage Services’ senior director Jon Blunk represented Crocker Partners in the transaction. Patrick Duffy of Newmark Grubb Knight Frank represented Citigroup. Angelo Bianco, partner in Crocker, called Citigroup’s recommitment as anchor tenant of Florida’s second-largest class A office tower is good news for both the market and Miami Center.

“Citigroup shares our excitement in Miami’s future. Locking in a long-term lease at today’s rental rates is a wise move,” says Bianco. “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 are already underway. They include a makeover of the lobby and exterior plaza, a new entrance and valet, and modernization of the elevators.

Pulling back the lens, Miami Center is well positioned with the ongoing revitalization of Miami’s CBD. So is Crocker. On top of the Miami Center investments, Miami’s largest class A office owner with more than 1.5 million square feet in the market also recently completed a $15 million renovation of its nearby SunTrust International Center.

As Blunk sees it, the recent commitments by large office 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. CushWake’s latest Marketbeat report, he notes, forecasts continued office demand in the urban core, with the market poised for “incomparable growth in the next three to five years.”