MIAMI—If you questioned the demand for office condos in South Florida, consider this proof point: Just three months after coming to market, Downtown Miami’s One Flagler office condominium hit the 50% sales mark.
What’s more, the early sales at One Flagler, a 15-story boutique building that’s undergoing $10 million worth of renovations, is showing there’s a growing appeal among international businesses for Downtown Miami office space. The iconic building is attracting foreign investors.
“There is no doubt that demand for luxury condos in Miami among international buyers is high,” Harvey Hernandez, chairman and managing director of Newgard Development Group, tells GlobeSt.com. “We recognized that these buyers—especially those from Latin America—are also used to owning office and commercial properties in their own countries but have not had many opportunities to own those types of properties in Miami.
The Morris Lapidus-designed building is located at the intersection of Flagler Street and Northeast 1st Avenue. The 143,000-square office building has been a Downtown Miami icon since opening in 1952.
One Flagler sits in the heart of Downtown Miami’s Central Business District and surrounded by the region’s top financial institutions, businesses, county/state/federal courthouses, and major government facilities. The building is literally minutes away from the Brickell Financial District and close to numerous hotel properties, as well as the planned major mixed-use development Miami Worldcenter.
“We felt there would be strong buyer demand for downtown Miami office space, and the sales activity we’ve seen over the past 90 days supports that,” says Hernandez. “Companies see value in locating their office along Miami’s ‘Main Street.’ And with significant streetscape upgrades set to come online over the next two years, that demand will only grow with time.”
In partnership with Midgard Management, the building’s owner and manager, Newgard converted the building to office condos in 2014. Since then more than 70,000 square feet of office space has been reserved by investors and end-users at prices ranging from $300-$375 per square foot.
“The Downtown Miami office market is growing tighter by the day, with absorption increasing and little coming online by way of new supply,” says Hernandez. “One Flagler offers investors an opportunity to generate immediate income from an irreplaceable asset—at a fraction of the price of many residential condos nearby.”
The office building’s amenities include shared conference rooms, a tenant lounge and a juice bar, valet parking, 24-hour security, front desk/reception, fiber optic connectivity for high-speed internet and communication. The building also offers views of the Downtown Miami skyline and Biscayne Bay.