The pandemic-induced wave of Wall Street relocations continues, as more financial firms choose to open offices throughout the Magic City. New York City-based hedge fund D1 Capital Partners has signed a 25,000-square-foot lease at Related Group’s recently completed 2850 Tigertail Ave. office building in Miami’s Coconut Grove neighborhood.
“We’ve been preparing for this type of influx for many years now. Not only does Miami have incredible year-round weather and substantial business benefits, but it is also experiencing a massive cultural boom—it was only a matter of time before firms based in the Northeast, and other regions, decided to make the move,” Nicholas Pérez, vice president of Related and the project’s lead developer told Commercial Property Executive.
The 10-year commitment brought the 109,000-square-foot Class A+ tower to full occupancy. Completed in March, the building will also house Related Group’s new corporate headquarters on the top two floors. According to Pérez, Related has a long history with the Grove, as Pérez and brother Jon Paul grew up in the neighborhood. “Hugging Biscayne Bay and a short distance from Brickell, Wynwood and the region’s many other hubs, Coconut Grove was an obvious choice for us,” he added.
D1 Capital’s headquarters reside at Manhattan’s Solow Building in the Financial District. According to CommercialEdge data, the firm has a long-term, 32,200-square-foot commitment on the 36th floor of Solow Building Cos.’ 50-story skyscraper.
Boutique Offices in the Sunshine State
2850 Tigertail rises eight stories on a 0.7-acre site just off U.S. Route 1 and less than 4 miles southwest of downtown Miami. Designed by local architecture studio Arquitectonica, the property has a rooftop sculpture garden, among other rotating artwork on display across common areas. The boutique offices offer floor-to-ceiling windows, above-standard ceiling heights and private terraces on select office floors. The LEED-certified property includes ground-level retail space, electric car charging stations and bike storage.
According to Pérez, companies are reevaluating the value of large-scale office towers. Smaller, boutique buildings offer more personalized services, allowing landlords to better curate the tenant mix. “While I can’t speak for the market as a whole, all of our boutique offices are leasing extremely well, with most already fully committed,” he added.
D1 Capital joins the list of companies that have shown interest in the Sunshine State, including private equity firm Thoma Bravo and Blackstone. In April, Chicago-based Thoma Bravo signed up for roughly 36,500 square feet at the 55-story 830 Brickell tower in Miami’s financial district. OKO Group and Cain International are behind the 640,000-square-foot skyscraper, slated for completion in 2022.
“All asset classes in Miami are having a proverbial moment in the sun. Whether it’s office space or a multimillion-dollar condo, we’re seeing massive levels of demand, unlike anything we’ve seen since 2014 or 2015,” Pérez concluded.