MIAMI—Wells Fargo recently inked an 82,000-square-foot lease renewal in Downtown Orlando. Waterford at Blue Lagoon in Miami's Airport West submarket keeps inking renewals. DLA Piper recently signed a long-term lease renewal and expansion at Southeast Financial Center in Downtown Miami.
Indeed, there are a whole lot of office space renewals going on in South Florida and beyond. The question is: How are rental rates affecting decision-making in terms of renewals, expansions and new-to-market tenants?
Donald Cartwright, senior vice president of JLL, has someinteresting perspectives on the question. Cartwright and JLL vice president Nicole Vassilaros are the exclusive leasing agents for Southeast Financial Center, a 1.225 million-square-foot tower known for attracting law firms and just inked another significant renewal and expansion.
“Leasing decisions vary from tenant to tenant, but most tenants weigh the total rent they are paying and the value that the space brings in terms of creating the most productive environment for their business,” Cartwright says. As an example, he says, a higher rate per square foot can be justified if the space is more efficient than a space with a lower rental rate.
“The most astute tenants will evaluate the building and the attributes of the space as it performs for the tenant and make a judgment based on the weight of those factors, not just the rent alone,” Cartwright says. “Additionally, immediate on-site and/or surrounding amenities coupled with building advancements have proven to garner a higher interest in leases and renewals.”
If you missed part one of this office series, you can still read it here: Is Miami Really the Most Expensive Office Market?
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