Recent Short Sale Building Sees New Leasing Activity

BOCA RATON, FL-Office leasing activity may have hit the bottom in Broward County, but the upward climb hasn’t started yet. Still, there are sign of life even in once-distressed buildings. Case in point: the Coral Springs Executive Tower just inked a 10,666-square foot deal in Coral Springs.

The Coral Springs Executive Tower traded hands in March. Pimo Capital acquired the building from Coneca Properties for $6.5 million, or about $81 a foot, in a short sale. Built in 1985, the property spans 80,380 square feet.

Richard Gerber, an associate at Bryason Realty Corp. represented the tenant, McFarlane & Dolan, in the lease. Charles Shane, president of Bryason Realty, represented the landlord, 210 Capital LLC. The law firm will move into its new space, which is located at 210 N. University Dr. in Coral Springs, in January.

“Full floor leases of 10,000-plus square feet are rare in this market, where are more firms are downsizing than are expanding,” Gerber tells GlobeSt.com. “Conditions are slightly improved, though still below 2007 levels.”

Coral Springs is in a unique position because it is officially in Broward County yet is closer to the Palm Beach County market. Specifically, Coral Springs is 20 miles northwest of Fort Lauderdale and 10 miles southwest of Boca Raton.

Broward County's office market experienced slight market corrections during the first half of 2011. Vacancy rates remained above 18% as moderate year-to-date negative absorption was reported, according to the latest report from CB Richard Ellis.

CBRE predicts asking rents will likely remain stable, and tenant concessions such as free rent and tenant improvement dollars will remain the dominant tools owners use in lease negotiations. Growth will likely be moderate through the first half of 2012, the firm reports, with stronger signs of improvement gaining momentum during 2013.

Meanwhile, Palm Beach’s office market is holding steady. The activity in the office market continues to illustrate signs of improvement, but vacancies are still higher than desired for landlords. The market experienced a decrease in vacancy by 1.7 percentage points from second quarter 2010 to a current 26%, according to CBRE.