The luxury high-rise real estate boom experienced in South Florida over the past 10 years has undoubtedly been market-defining. The city of Miami currently has approximately 25 skyscrapers under construction and has grown by 66% in buildings over 100 meters tall in the last 10 years. However, if you look closer to the ground, you’ll find the most prized assets to date in the area — boutique office spaces.
Boutique offices are defined as buildings smaller than 150,000 square feet, less than 20 stories tall and with strategically designed floor plates. These offices are attractive to investors, developers and tenants for a variety of reasons, but most importantly, they are the most lucrative option in an economy where the need for thousands of square feet of office space has diminished year over year.
These boutique-scale buildings are much more cost-effective and can even rise on smaller lots, which allows developers and investors to be able to build them in highly sought-after markets like Miami Beach, Brickell, Fort Lauderdale, West Palm Beach and Palm Beach Gardens. These South Florida markets are also where today’s consumers and corporations are most drawn to as alternatives to big cities like New York, Chicago, Philadelphia and major metros in Texas, etc.
The average Class A/A+ boutique office space in South Florida is ultra-modern, highly amenitized and outfitted from the bottom floor up with best-in-class necessities and perks so that any small- or large-scale corporation can easily set up shop in a location most attractive to its employees.
Standard amenities and perks in today’s spaces often resemble that of a luxury high-rise condo or apartment building in South Florida, including fitness centers and full-scale locker rooms; various on-site restaurants and cafes’ multiple options for outdoor space via terraces, courtyards and rooftop grounds; valet parking; on-site car washing; easy access to public transit and Brightline stations and more.
These ultra-luxe and experiential office spaces make the live-work-play lifestyle easily attainable. With various corporations and wealthy executives continuing to flee the big cities in favor of South Florida, the need for this high-caliber office space is becoming inherent and the ability to create it is becoming even more lucrative.
There is also quite a lot to look forward to in South Florida’s pipeline of boutique office spaces with all these amenities and more. On the way is the first office development to be built in Miami Beach’s South of Fifth neighborhood in decades. BLG Capital, our joint venture partner Bizzi + Partners, along with Sumaida + Khurana, are delivering a 62,202-square-foot, five-story project at 944 Fifth St.
Located in the heart of the South of Fifth neighborhood, the project will be designed by Spanish architect Alberto Campo Baeza, his first commercial building in the U.S.
Prior to the announcement of this project, the South of Fifth neighborhood wasn’t an active office market. But increasing demand for elevated boutique office spaces and the availability of land perfect for them has created a unique opportunity for developers and investors, along with executives who would prefer not to have to commute into downtown Miami. These include power players, who see the office as part of their lifestyle, so convenience and wellness are top of mind in a new office space.
Planning for The Fifth Miami Beach was centered around creating a space emblematic of what boutique properties should look and feel like today. The façade of the building will incorporate white marble, glass and clean-cut concrete that exposes the structural elements of the building while complementing the neighborhood’s natural aesthetic. The building will feature a triple-height lobby atrium, several wrap-around terraces and even a rooftop deck complete with a bougainvillea garden and outdoor reflecting space.
While planning the office spaces, natural light, open floor plans and indoor-outdoor fluidity were top of mind. Some 390 linear feet of floor-to-ceiling glass will be implemented on each floor to create abundant natural light and offer views of the ocean and surrounding neighborhood.
Each floor will also feature full wrap-around private terrace space. The open concept layouts will be entirely adaptable for quarter-, half- or full-floor tenants.
In addition to the Class A+ office spaces, the building will feature various lifestyle-forward amenities like open-concept indoor/outdoor spaces; deep terraces on all four elevations; a suite of fitness and wellness offerings like a sauna, spa and gym and a selection of on-site dining venues offering healthy and convenient options.
A reputable dining establishment is also slotted for the ground floor and mezzanine spaces, another tactic being adopted by various projects to lure executives and employees.
In all, the South of Fifth neighborhood has remained an attractive destination for those looking to build high-caliber office space. In fact, Sumaida + Khurana recently announced another Class A+, five-story office building at 1100 Fifth St. Designed by Eduardo Souto de Moura, the new building will be located just two blocks from The Fifth Miami Beach and will also include various lifestyle-forward offerings.
As developers increasingly find the need to meet market demand and evolution, boutique office space will remain the most attractive option.
