Fort Lauderdale’s Largest Class A Office Development 100% Leased as Flight-to-Quality Increases
Written by: Melea VanOstrand
Source: Daily Business Review
“Over the last year, flight-to-quality remained at the forefront of all major office moves, and the uptick of new-to-market demand translated into the stellar performance of new office developments and top-tier existing Class A office space,” said Danet Linares, executive vice chairman of Blanca Commercial Real Estate.
Class A office developments continue to be in high demand in South Florida, as Fort Lauderdale’s biggest Class A, mixed-use development is 100% leased. This comes 24 months after getting a temporary certificate of occupancy for 3,670 of rentable square feet for the expansion of Shutts & Bowen and tenant Zions Bank, which is leasing 3,931 rentable square feet of office space.
The Main Las Olas, a 1.4 million-square-foot building with office, residential units and retail, is a 25-story property. The building is Fort Lauderdale’s first new construction Class A office space in over a decade.
Danet Linares, executive vice chairman of Blanca Commercial Real Estate, the property’s leasing team, says the company is thrilled to reach the milestone.
“Over the last year, flight-to-quality remained at the forefront of all major office moves, and the uptick of new-to-market demand translated into the stellar performance of new office developments and top-tier existing Class A office space,” said Linares in a press release.
According to Linares, being 100% leased signifies that Fort Lauderdale is now a player in the office sector. In the past, the downtown office market in Fort Lauderdale has been driven by financial and legal service firms. Now, tenants include the real estate and insurance sectors as well. A few tenants include JPMorgan Chase; Marcum, an accounting and advisory firm; RSM, an audit tax and consulting service; and Starr Indemnity, an insurance company. On the ground floor, Moxies and Fogo de Chão will occupy the anchor retail/restaurant space on the ground floor.
Rents at The Main Las Olas are just north of $50 triple net, a new standard of office space in South Florida.
The leases are an example of flight-to-quality, which has been one of the factors for major office moves and new-to-market demand for additional office and multifamily developments.
Broward County’s lower cost of living, labor and office rent are all big factors to drawing in large companies to the region. Well-known companies headquartered in the county include Citrix, Spirit, Chewy, AutoNation, Royal Caribbean International, Virgin Voyages and Microsoft’s Latin American headquarters.
The Main Las Olas consists of a 387,402-square-foot tower, 17,355 square feet of retail space, a 2,951-square-foot fitness center and a 3,360-square-foot office lounge among other amenities. The property was developed by Shorenstein Properties LLC and Stiles, and was designed by national architecture firm Cooper Carry.
Charles Malet, president and chief investment officer at Shorenstein, says the property underscores the company’s continued focus on developing best-in-class office properties in growing markets.
“As preferences for office spaces continue to evolve, we believe these types of top-quality spaces will remain the desired choice for tenants nationwide,” said Malet.
Stiles CEO Ken Stiles says the developers want to not only establish a new bar for luxury urban offices in Fort Lauderdale but in all of South Florida.
“The Main Las Olas offers a truly distinctive integrated work, life and entertainment experience with an unmatched level of quality, amenities, and design,” he said in a press release. “We are proud to have had the opportunity to continue our 72-year track record of quality development with this iconic project.”
