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Wynwood’s commercial real estate continues to thrive as several large technology companies, financial institutions and top food and beverage concepts continue to choose this desirable neighborhood as their headquarters.
Randy Carballo, senior vice president of CBRE’s Miami office, says Wynwood has transformed over the last three to four years thanks to its vertical expansion. With the variety of housing products currently offered in Wynwood, companies are competing to stay in this submarket.
“Rent levels have increased significantly, well over 20%,” says Carvallo. “A few years ago Wynwood office products were repurposed warehouses and small projects. is raised.”
According to Blanca Licensed Real Estate Broker’s Miami Office Market Q3 2022 report, the Wynwood Design District submarket has an average selling price per square foot of $78.35 for Class A office space and $67 for Class B. is a dollar.
The vacancy rate fell from 53.5% to 27.7% for Class A office space in Q3 of this year after its high in Q3 2020.
The weighted average vacancy rate increased by 22.4% year-on-year and the direct vacancy rate decreased by 37.5% year-on-year. There was a net absorption of 212,316 square feet. This is the change in occupied space measured between this year and last year, including vacant and newly constructed spaces. Branca reports 252,428 square feet of office space under construction as of this quarter, with 320,904 square feet of total leasable space.
New tenants include Knotel, which leases 38,400 sf in Wincatcher. MindSpace leases 30,000 sf at Gateway in Wynwood. The Chef’s Warehouse to lease 4,100 square feet of space at 545 Wyn.
A new development of about one million square feet is about to come online, Carballo added. “Our team represents LYNQ at Wynwood, a brand new trophy office space of approximately 330,000 square feet on Fifth Avenue. , continues to flood into this market for users looking for blocks of large spaces that don’t actually exist. [overall] market. “
According to the Colliers Miami-Dade County Office 22Q3 report, the Wynwood and Design District has 40 office space buildings with a total inventory of 1,955,890 square feet.
Colliers’ third-quarter retail report showed retail space inventory at 2,795,620 sq ft, gross vacancy at 7.3%, net absorption area at 9,010 sq ft, space under construction at 15,000 sq ft, and average asking price at 1 $69.40 per square foot. .
With the growth of multifamily developments in Wynwood, the region’s retail and office submarkets are opening up more to living, working and playing environments. “In a few years, he will have over 5,000 homes in Wynwood,” said Carballo. “Two years ago there were less than 500 homes there, so that says a lot. , a new service is coming to the region, which, combined with the future potential of the Brightline station, will soon come to fruition… Wynwood has a long way to go and is one of the more exciting regions than South Florida. It’s one.”
Related ISG Realty’s October report, using CoStar data, found that last year’s top retail leases in the Wynwood Design District area included 2610 N Miami Avenue, leased by Metro 1 Commercial. 3711 NE 2nd Ave. For Eichholtz Furniture, leased to DWNTWN Realty Advisors. 3800 NE Miami Ct. leased by Cushman & Wakefield.
According to the same report, Wynwood’s retail average asking rent was $61.69, up 12.4% from last year.
In addition, Endeavor Miami, a local chapter of a global non-profit organization that helps entrepreneurs and is supported by the John S. and James L. Knight Foundation, has identified its Coral Gables office as a “strategic location” for its organization. Moved to Wynwood. Managing Director Claudia Durand said: His new office is 3,000 square feet.
Wynwood’s gateway, which has 24,041 square feet of flexible retail space and a total of 183,990 square feet of Class A office space, announced in May that tech startup OpenStore would lease approximately 26,000 square feet. In the same building, investment firm Baseline will lease his 5,000-square-foot office. Asian-Fusion Steakhouse Daliyah and Mizu Rooftop Garden each lease approximately 6,000 square feet of ground floor space, while he leases 3,000 square feet of rooftop space.
Marcus & Millichap also relocated its Miami office from the Waterford Business District near Miami International Airport to Gateway in Wynwood, renting 12,029 square feet on the seventh floor, costing significantly more than the previous office space. paid, the company said in March. Venture capital firm Funders Fund also leased his 14,914-square-foot space on his 10th floor of the building, and biopharmaceutical company Veru also leased his 12,155-square-foot office, according to Business Journal.
PricewaterhouseCoopers, better known as PwC, also signed a contract for 38,409 square feet in the 545 Wyn office building, according to the Commercial Observer. Schonfeld Strategic Advisors has leased his 20,000-square-foot space in Wynwood’s mixed-use development, The Dorsey.
Other companies that have recently expanded into the region include Spotify Technology, Blockchain.com, Live Nation, Chase Bank and renewable energy company Spearmint Energy.
“This market has transformed into something that just three or four years ago was not an office market. We were able to create a great space,” says Kevin. Gonzalez, senior managing director of Colliers team Kingsley Luchik, said: “In his 18 months alone, he has absorbed nearly half a million square feet by new companies that have taken up space in the area.”
Experts agree that the new Wynwood residential development is contributing to the high density of commercial real estate in the area. Drew Schoul, CBRE’s Executive Vice President of Advisory and Transaction Services, said: “There are specific retailers that serve the daytime population, and there are groups of retailers. [service] It includes the residential population that calls Wynwood home, as well as the daytime population. ”