Former Miami Herald Headquarters Sells to Developer Eyeing Multioffice Use Amid South Florida Migration
“At the crossroads of South Florida’s major expressways, 3511 Doral is an ideal location for companies seeking to attract employees from South Florida’s growing talent pool,” said the CEO of Blanca Commercial Real Estate.
As the growing national interest and investment in Miami’s office market continues, local developer Parmenter Realty Partners has acquired 3511 Doral, the former home of The Miami Herald and El Nuevo Herald.
The office building is located at 3511 NW 91st Ave., the heart of Doral. The property’s sale listing agent, Blanca Commercial Real Estate in Miami, facilitated the sale for the seller.
The building was built in 1997, but the venture partners, including Prime Finance and Cudlob Capital, plan to use the building for multitenant use, aimed at companies who hope to expand or establish their presence in South Florida.
According to a Q4 Miami-Dade office market report by Marcus & Millichap, there was strong private investor interest, with prices in the $1 million to $10 million range accounting for 70% of all closings.
While net absorption is back in the positive for the first time in three years, the influx of arrivals keeps the vacancy rate moving up. The report predicts the vacancy rate will be 15.6% at the end of the year. Medical offices traded more frequently with buyers in the Kendall and the Miami International Airport submarkets, according to the report.
Office Market Growth Expected
The facility is near the airport, and features two on-site generators, a 12,000-gallon fuel tank, battery-powered power supply system and dual-window assembly. Parmenter president and CEO John Davidson said the building is a good fit for companies that require information technology infrastructure and around-the-clock business continuity.
“3511 Doral presented an opportunity to acquire an asset with 80,000-square-foot floorplates, the largest in the market, and unique attributes, such as soaring open ceilings, hardened infrastructure and redundant back-up power, which make it the perfect location for a corporate headquarters,” Davidson said in a press release.
Although about 100,000 people lost their jobs in Miami in 2020, according to the report, the region’s population grew by nearly 38,000 in the first eight months of the year. By the end of 2021, there’s expected to be 5.8% growth, which will cause office use to increase. An estimated 68,000 jobs will be created due to the migration.
“Parmenter remains bullish on the continued desirability of Florida as a destination for companies and individuals looking to move from high-cost, high-tax markets. We expect to see continued in-migration into such markets as Doral, which are rapidly evolving with new multi-family residential and retail projects providing an accessible and attractive live/work/play hub in Miami-Dade,” Davidson said.
Investors Looking to Doral
The investment in 3511 Doral is a testament to investors’ confidence in Doral as a home for major companies who want to expand their presence, believes Tere Blanca, CEO of Blanca Commercial Real Estate. Blanca represented the seller, colleague Cary Cohen.
“At the crossroads of South Florida’s major expressways, 3511 Doral is an ideal location for companies seeking to attract employees from South Florida’s growing talent pool,” Blanca said.
Blanca’s leasing team will include executive vice chairman Danet Linares, executive vice president Andres del Corral, and associate Jack Davidson.
JLL represented the buyer to secure financing. The team consisted of managing director Melissa Rose, director Maxx Carney and associate Reid Carleton.