Headway Office Park
A content marketing agency has leased 8,900 square feet within Headway Office Park in Lauderdale Lakes.
Conversion Media Group LLC will move to 4410 N. State Road 7. Donna Korn and Beau Ladwig of Cushman & Wakefield represented the landlord, YMP Real Estate Management, in the lease negotiations. Matt Avelar of Warehouse Realty represented Conversion Media Group.
Lauderdale Lakes-based YMP Real Estate Management paid $4 million for the three-story, 38-year-old building in June 2017, according to Reonomy.
Bridge Point Powerline Road
Dutch company PlantLab signed a lease for 50,570 square feet of warehouse space at 1981 N. Powerline Road, in the Bridge Point Powerline Road industrial park in Pompano Beach. Tom Viscount of Avison Young represented PlantLab. Tony Hoover and Larry Dinner of CBRE represented the landlord, Morgan Stanley.
According to Avison Young, PlantLab will use the space for the vertical farming of produce. The lease brings the 521,560-square-foot warehouse complex to 100% occupancy, the brokerage added.
Chicago-based Bridge Development built Bridge Point Powerline Road in 2018. Morgan Stanley paid $68.95 million for the properties in October 2019, according to the Broward County Property Appraiser’s website.
Yamato Office Center II
A year after selling its own building, property management company FirstService Residential signed a lease for a new 11,200-square-foot office space at Yamato Office Center II.
FirstService Residential will be moving to 999 Yamato Road in Boca Raton in November. Colliers’ Robert Listokin represented FirstService Residential. CBRE’s Jeffrey Kelly and John Jaspert represented the building’s landlord, MH Commercial Real Estate Fund LLC.
The lease deal comes after FirstService Residential sold its previous home, at 6300 Park of Commerce Blvd., for $8.3 million to Brookfield Properties, a subsidiary of Toronto-based Brookfield Asset Management (NYSE: BAM). Listokin represented FirstService Residential in that transaction. As part of that deal, FirstService Residential could remain as a tenant in the building for a year.
Miami-based Adler Real Estate Partners acquired Yamato Office Center II – at 999 and 1001 Yamato Road – for $94.93 million in May, according to Reonomy, a property research website. The four-story buildings were built in 1986.
Apartment rent growth slows in South Florida
Rents are expected to rise at a more predictable pace as transplants who moved to South Florida during the pandemic return home, according to research co-produced by Florida Atlantic University.
“Those Covid refugees placed a significant burden on the demand for rental units in Florida, and rents spiked to historic highs,” said Ken H. Johnson, a real estate economics professor at FAU’s College of Business. “With those workers returning home, Florida should see a cooling in its rent hikes.”
Data collected in Miami-Dade, Broward and Palm Beach counties suggest that rents in South Florida will only increase by about 6% next year, he said – a hike more in tune with historical trends.
South Florida rents increased dramatically during the pandemic as professionals who could work remotely arrived here from the Northeast and other regions. Over the past year, tri-county area rents climbed 28% to an average of $2,848 a month in June.
But Johnson said rent increases are slowing as some remote workers are being forced to return to the offices in their previous hometowns.
“When you worked in New York a year ago, you could work 100% remotely from home, and you can do that from an apartment in Fort Lauderdale,” he said. “But now, companies in New York are telling their employees to come to the office at least three times a week.”
Johnson cautioned that South Florida is still a highly competitive rental market, and rents are unlikely to decline.
“Our biggest problem is our [housing] inventory shortage,” he said. “We do not have enough units in southeast Florida.”
THE BIG NUMBER: $33 billion
The amount of assets under management by venture capital firm Andreessen Horowitz. Also known as a16z, the firm will lease an 8,000-square-foot space in the new Starwood Capital Group headquarters building in Miami Beach.
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