MIAMI—The office condo trend is not dead. In fact, Newgard Development Group is giving it new life at the iconic One Flagler.

Newgard is selling boutique office condominiums at the 15-story office building, which is located at 14 Northeast First Avenue in Downtown Miami. Internationally acclaimed architect Morris Lapidus, the creative genuis behind the Eden Roc Miami Beach Hotel and Fontainebleau Hotel in Miami Beach, as well as Lincoln Road, designed the tower.

"As Miami goes global, the downtown market for premium boutique office space continues to see strong demand from international and domestic buyers and businesses looking to establish a presence in the urban core,” says Harvey Hernandez, chairman and managing director of Newgard, which is also developing the Centro tower downtown. “As a result, Newgard Group sees long term value in delivering a well-located, architect-designed building to market as an office condo building with prices well below replacement cost.”

Newgard is offering already-leased condo offices with prices starting from $200,000 at One Flagler, which rises 14 floors and spans 143,000 square feet. Office space units range in size from 600 square feet to 11,200 square feet. Offices offer views of the Downtown Miami skyline and the Atlantic Ocean.

Newgard's office condos come to market at a time when Downtown Miami is seeing strong office absorption. According to a report from the Miami Downtown Development Authority, 750,000 square feet of office space has been leased in Miami's urban core since the recession and the office vacancy rate in Downtown Miami has dramatically decreased in recent years.

With its detailed glass curtain walls and rooftop penthouse, One Flagler was one of the most modern buildings in the United States when it opened in 1952 as the Ainsley Building. Now, it's undergoing $10 million in building upgrades, including renovations to the lobby, office spaces, common areas, and restrooms. Elevators, electrical, and HVAC systems are also being updated.

Pointing to steady job growth that's generating new office space demand while new office development slows, Marcus & Millichap expects positive net absorption to reduce office vacancy rates and drive up rents. That said, Miami's office market is still not back on par with its pre-recession low in vacancy or peak rents.

According to M&M, developers will bring online 260,000 square feet of office space in 2014. That total includes 30,000 square feet in two medical office properties. By way of comparison, only 172,000 square feet was delivered in 2013.

Against that backdrop, the firm predicts vacancy rates will drop 190 basis points to 14.8% in 2014. That would better the 80 basis point drop in Miami's office market in 2013. Meanwhile, average rent in Miami-Dade County will grow 2.8% to $29.24 per square foot in 2014, M&M figures, after a 2.1% gain last year.

“Expansion in predominantly office-using employment sectors is likewise strong, led by professional and business services, and financial services,” M&M reports. “The booming housing market, growing need for healthcare, and foreign in-migration and investment will create office-using jobs in areas such as residential mortgage brokerage, port commerce and international banking.”