Archives for posts with tag: office

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July 25, 2017 (Miami, FL) – Prime office condominium located at 1000 Brickell Avenue has sold for about $900,000. Fabio Faerman from Fortune International Realty/FA Commercial Advisors was the broker representing both parts.

After being paying rent for, Faerman advised the buyer to about the benefits of purchasing instead of renting in a market where vacancy is as low as 9.4 percent in the second quarter of 2017. The office market in Miami-Dade has seen rental rates increased during 2017 which shows a continued demand for luxury office. Purchasing of the property made perfect sense for the client.

The building is in the heart of the financial district and offers deluxe office spaces. The proximity to major entertainment centers such as Mary Brickell Village and the new Brickell City Centre make of the subject property an exceptional asset. The unit features nice private offices and large space area. Plenty of sunlight from oversized windows and six assigned parking spaces.

“Investors interest is focused on the Great Miami Area, properties like the 1000 Brickell avenue offers a perfect opportunity to any investor to capitalized their money or for an end-user to settle their business in one of the most exclusive areas in Miami. In this case, we advised the clients on the purchasing of the property, based on the benefits of buying, amortization, depreciation, mortgages interest, deduction, etc.” Said Fabio Faerman, FIR Commercial Director.

About Fabio Faerman

CEO of FA Commercial Advisors and Commercial Division Director at Fortune International Realty. Also, a CCIM member, Commercial Real Estate Investment Advisor, Broker Associate, and for the last four consecutive years, he has been awarded as the #1 Nationwide Top Broker of Fortune International Realty.

 

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July 25, 2017 (Miami, FL)Fabio Faerman Fortune International Realty/Fa Commercial Advisors represented the landlord in the signing of a Multi-Year lease for a full-floor office space at one of the most prestigious downtown mixed-use building. 

Genius Plaza, New York based-company has signed a $1.5M lease deal for the entire 12,000-square-foot fourth floor at the 63-Story 900 Biscayne. The leading provider of high-performance education platform solutions is opening its first office in Miami and creating more than 50 new jobs in Miami-Dade County.

Key Facts:

  • Gross Lease deal with 3% annual increases.
  • Unique characteristics of the property which include private offices, conference rooms, open co-working space, kitchen, Meeting Rooms & Event/ Studio Space.
  • Exceptional well-located office space in downtown Miami
    • Almost across the street from Museum Park, PAMM, American Airlines Arena, Patricia and Phillip Frost Museum of Science, Adrienne Arsht Center for the Performing Arts.
    • Attractive Demographic Profile — Exceptionally well located in affluent, business, and densely populated downtown Miami Area
    • High Traffic Intersection — With an Annual Average Daily Traffic (AADT) 41,000 on Biscayne Boulevard.
    • Very Walkable – 87 Walk Score.
    • Adjacent to the New Development Miami Worldcenter.
    • 4 Blocks away from All Aboard Florida.
    • Just a few blocks from Brickell and Brickell City Centre.
    • Metro Mover Station behind the building.

 Key Quote:

Fabio Faerman, Commercial Director, Fortune International Realty, and CEO Fa Commercial Advisors.

“This deal represented a unique opportunity for Genius Plaza who was looking to establish their multicultural education platform in Miami. Downtown is the commercial heart of one of Florida’s largest population, purchasing, and employment market; which makes it the destination for global business and that is the reason companies strategically choose it to be a part of the city’s core.”

Genius Plaza was created by a diverse group of educators, programmers, designers, and leaders who believe that education is the only sustainable development vehicle that is available to all, with access as the only barrier.

About Fabio Faerman

CEO of FA Commercial Advisors and the Commercial Division at Fortune International Realty. Also, a CCIM member, Commercial Real Estate Investment Advisor, Broker Associate, and for the last four consecutive years, he has been awarded as the #1 Nationwide Top Broker of Fortune International Realty.

Fabio Photo

Mr. Faerman has been Fortune international Realty’s #1 Top Producer Broker for the last three years, and a member of the Platinum Circle of sales for more than 10 years now.

For the third year in a row, Fabio has achieved the recognition as Fortune International Realty’s # 1 Top Broker. Exceptional professional ethics, superior understanding and mastery knowledge of commercial real estate are the qualities that make Fabio F. Faerman a top producer broker with over $500 M in commercial properties sales.

Fabio received this honor on Monday, February 29, 2016, during the annual Fortune Awards Ceremony held at the exclusive Brickell Avenue’s Conrad Miami Hotel. The award was presented by Edgardo DeFortuna, president and CEO of Fortune International Realty, Miami’s leading brokerage firm with a global reach.ea

“This prestigious recognition is a very significant achievement, not only for me but also for my entire team. I am very excited to provide my clients with the most exceptional service, and guiding them through the commercial real estate process with absolutely personalized care” said Fabio F. Faerman.

Fabio is always seeking excellence and performing at the highest level. Being an exceptional leader in Miami’s commercial real estate industry; Mr. Faerman closed the highest overall transaction volumes in commercial property sales and leases becoming the number 1 top producer broker on Fortune International Realty.

2015 was a very active year in the commercial real estate market seeing office sales at their highest levels in years and a decline in the vacancy rate, as well as hotel and retail development increases.  Fabio has made the most of these market conditions leading the sales team of One Flagler, a condo office conversion in the heart of downtown Miami. One year after winning the exclusive sales assignment of One Flagler, the iconic building is 90 percent sold. Constantly a contributor to Miami’s commercial real estate growth, Fabio has brought new and exciting businesses to the city as the one located at Millicento retail spaces in Brickell & Icon Brickell retail spaces. 

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About the Awards
Fortune International Group held once a year the Fortune Awards Ceremony where President and CEO Edgardo Defortuna takes the stage to congratulate Fortune’s top producers. Top producers made 2015 a success with over 4 billion in general real estate and development sales combined.
About Fabio F. Faerman
Fabio F. Faerman is the President & Chief Executive Officer of FA Commercial Advisors – Fortune’s Commercial Division. FA Commercial provides a complete range of commercial real estate brokerage services – including owner and tenant leasing, acquisition and sales, marketing and consulting – to owners, investors and lessees of all property types. Fabio has acquired a degree in Architecture from the University of Buenos Aires, a Master’s degree in Construction and Real Estate from the University of Madrid. He is also a Certified Commercial Investment Member and a Commercial Real Estate Investment Advisor.

Lack of New Development, Rising Demand Cited As Main Reason for ‘Cautious Optimism’

By Randyl Drummer
June 22, 2011

Despite signs of slowing recovery that prompted Federal Reserve officials Wednesday to issue a guarded assessment of the U.S. economy’s performance, most commercial real estate investors surveyed by PricewaterhouseCoopers LLP remain upbeat and optimistic that improving market conditions will lead to higher rents, property values and returns.

Weaker-than-expected job creation numbers and downward revisions in domestic growth in recent months suggest that the recovery in commercial property markets could be more protracted than expected. However, investors cited the lack of new supply, stronger corporate earnings, continued low interest rates and the sense that most fundamentals have stabilized or are improving as reasons for actively pursuing deals in nearly all property types, according to the second-quarter PwC Real Estate Investor Survey released Wednesday.

Survey participants represent a cross section of major institutional equity real estate investors, including REITs, pension funds, insurers, private equity, developers, CRE services firms and others.

“The significant lack of new supply over the past several years serves as the catalyst of the ongoing recovery,” said Mitch Roschelle, partner, U.S. real estate advisory practice leader for PwC. “As tenant demand continues to grow, positive absorption has begun to drive rents up. The prospects of rent growth have driven much of the aggressive bidding by investors in certain top-performing markets.” 

“There are growing expectations of strong rent growth. Whether this occurs and especially whether it is sustainable will be a function of both the level of discipline exercised by developers and private sector hiring levels,” observed CoStar Group Senior Real Estate Strategist Chris Macke.

Rental rates remain below peak levels for institutional-grade assets in most property types and regions at present, although there’s a sense among respondents that they’ve stabilized. Average market rent changes reported by survey investors increased in 25 of the report’s 31 markets, further evidence of a slow but ongoing recovery.

Here’s a look at the sentiments expressed by investors in the PwC survey in the major CRE sectors.

OFFICE
The bullish sentiment expressed by investors has clearly moved beyond apartments into the office sphere, judging from the steep declines in office capitalization rates. Respondents said average overall office cap rates have fallen in 27 of the 31 surveyed markets during the second quarter, with the national cap rates for CBD and suburban office buildings falling 47 and 44 basis points, respectively.

The average overall cap rate for the national CBD office market declined for the fifth consecutive quarter moving below 7% for the first time since the second quarter of 2008. Among individual markets, Dallas saw the steepest decline at 51 basis points. One investor warned: “The worst thing to do now is overpay.”

Vacancy rate improvements are mainly occurring in the usual list of dominant downtown cores like San Francisco, Washington, D.C., and Midtown Manhattan. “Several cities in the Northeast are seeing positive events,” notes a participant, and even smaller cities like Baltimore and Philadelphia are reporting improvement. In fact, PwC’s Real Estate Barometer revealed that 10 of the 11 Northeast office markets will be in a recovery or expansion phase by year-end. Recovery will be slower in the Midwest and western markets, except for St. Louis and Minneapolis, which should see gain through 2014.

Investors are searching for both core and value-add deals as the CBD office market heals. “We are looking for Class-B assets in ‘A’ locations, where we see less cap rate compression occurring,” said one investor. 

In the suburbs, “tenant demand is spotty at best and does not support rent growth for quite a while,” said a participant. The average going-in market rent change is “barely positive” and remains well below the peak of the cycle. Some surveyed investors expected to see rents decline as much as 5% in the year ahead.

While some tech and start-up companies prefer to occupy flex and research and development space, most flex demand comes from average suburban office tenants that view it as a cheaper alternative to traditional office space. And rental rates for traditional suburban office space have declined, causing demand for flex/R&D space to diminish — and along with it, investor interest.

WAREHOUSE
According to the PwC Real Estate Barometer, 57.3% of the U.S. industrial real estate market will be in the recovery portion of the cycle by year-end. By the end of 2012, the percentage surges to 82.1%, and “the warehouse sector’s performance is really picking up steam,” claims an investor.

Despite the apparent rebound, most surveyed investors believe that developers planning new speculative warehouse projects should wait at least 12 to 24 months.

“This sector is still healing and needs to absorb more space before new buildings are added,” comments one participant.

Until then, there’s a growing desire by investors to own buildings, and improving fundamentals are slowly giving sellers more pricing power, despite relatively neutral market conditions.

RETAIL
Investor interest in the slowly recovering mall market is keen on stabilized, REIT-owned assets, which are showing steady or improving performance. But “quality malls are just not being put up for sale,” fretted an investor. On the other side, there’s a flood of lower-quality malls are being offered for sale by some of the top players, including Westfield Group, Simon Property Group, and General Growth Properties.

For power centers, survey participants reported that sale prices range from 60% to 110% of replacement cost, averaging 91.3%. A year ago, the average was 85%.

“Pricing has become more favorable for sellers of quality assets as signs of recovery have emerged,” notes an investor. Still, a bid-ask pricing gap exists in many instances as some buyers foresee continued angst in the retail sector. “This market continues to favor the buyer, but could shift to favor sellers quickly when consumer confidence gains momentum,” adds the investor.

While an investor said retail strip centers have become more stable” since last quarter, many markets still report weakness and high vacancies.

APARTMENTS
Investors continue to be hot for apartments, with roughly 64% of respondents viewing it as a seller’s market.

“Pricing is pretty frothy at this point, and some investors are willing to take a lower yield in year one simply to diversify their portfolio,” said a participant.

Surveyed investors anticipate an average 4.6% increase in apartment values over the next 12 months — a notable change from one year ago when participants expected an average value decline of 2.1%. Underwriting assumptions have grown optimistic, with average initial-year market rent change expectations increasing 261 basis points over the last five quarters.

At the same time, the market’s average overall cap rate has fallen due to investors’ preferences for well-leased apartment assets in strong locations.