Not only is pre-leasing well beyond the 50% originally projected, but recent deals have closed at $35 per sf, up from $30 per sf at the outset of marketing two years ago, according to Codina Realty Services, the building's leasing agent.
Naming a building for an anchor tenant has long been crucial in nailing down a major space commitment. In the case of Barclays Financial Center, it has also proved valuable in attracting other tenants. The tightening Brickell Ave. office market hasn't hurt, either. The overall office vacancy rate here was only 7.3% at mid-year, according to Cushman & Wakefield, and just 6.3% for direct space.
When Barclays Bank signed for 100,000 sf and received building naming rights for the tower, numerous financial services firms came knocking on the door of Codina Realty Services. There was so much demand for available space that asking rents rose $5 per sf, says Codina vice chairman Jack Lowell.
Tere Blanca de Ulloa, a Codina vice president, tells GlobeSt.com confidentiality agreements prohibit disclosure of specific rental rates and lease terms for any of the new tenancies. However, brokers in the market report that none of the leases is for less than five years, and range up to 10 years.
Some of the firms moving to Barclays Financial Center will be coming from other Miami buildings. Donaldson Lufkin & Jenrette is leaving One Biscayne Tower in a move to 48,000 sf at the new building. Morgan Stanley Dean Witter, now at 801 Brickell, will also have 48,000 sf.Additionally, Prudential Securities will be housing a retail branch office for its international division in 24,000 sf, and Arthur Andersen is taking 55,000 sf. Non-financial tenants include the law firm of Hogan & Hartson and Regal Business Centre.
Lowell says the building's financial identity has been a prime drawing card along with other amenities such as panoramic Biscayne Bay views from upper floors and interior finishes of black marble, natural travertine and rose granite stretching across the lobby floor and surrounded by mahogany walls.
Barclays Financial Center is part of a complex that includes a 22-story, 278-room JW Marriott, one of the Marriott chain's new upscale hotels that opened last month. MDM Development Group developed Barclays Financial Center and the Marriott hotel.
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