More office space is in the pipeline for Wynwood. But when will tenants flood in?
Office space development in Wynwood keeps growing, but some South Florida brokers are struggling to find tenants to fill the new inventory.
The ongoing construction is to blame for the lull in office leasing activity in Wynwood, Danet Linares, vice chairman of Blanca Commercial Real Estate, said Thursday at a CREW luncheon. Her team oversees leasing for Cube Wynwd at 222 NW 24th St. It will take several years for the inventory to be filled, brokers on the panel said.
“The tenants are out there, but there is a lot of construction,” Linares said. “The infrastructure is coming. When the cranes go away and the dust settles, we’ll see the offices filled.”
.jpg)
Office demand is driven in part by companies leasing in areas where their employees, especially millennials, want to work, Linares said.
Still, some commercial brokers are struggling to fill leases in the area. Brian Gale of Cushman and Wakefield of Florida oversees leasing of Oasis Wynwood at 2319 N. Miami Ave.
“Where are the tenants if Wynwood is where millennials want to be?” he asked.
It will take five years for Wynwood to see its office market fully occupied, said CBRE Senior Vice President Maggie Kurtz.
Wynwood’s office market development took off in 2018 with several projects announced that year. The 10-story 545 Wyn at 545 NW 26th St. will be completed by the summer with retail on the bottom and office space on top. Other projects are in the pipeline, including by development firm Fortis Design + Build and another by developer Moishe Mana.
The office market across Miami-Dade County is flourishing. According to the third quarter 2019 Office Insight report by the real estate services firm JLL, Miami-Dade had 1,816,666 square feet of Class A and Class B office space under construction in the third quarter of 2019. That’s the biggest construction boom since 2009.
