Thoma Bravo of Chicago has leased space in Miami’s biggest upcoming office project, as a wave of interest from financial and tech companies offers hope for the city’s struggling office market.
The private equity firm has signed up for roughly 36,500 square feet on two floors at 830 Brickell, a 55-story skyscraper under development in the Brickell financial district. OKO Group and Cain International are developing the prime, 640,000-square-foot property, which is slated for completion next year. Cushman & Wakefield represented the developers in the transaction, while CBRE negotiated on behalf of Thoma Bravo.
The lease follows Thoma Bravo’s announcement in February that it would open a Miami office, establishing an East Coast presence for the company, which currently has offices in Chicago and San Francisco. Founder Orlando Bravo relocated to Miami late last year, according to a statement by the firm. Partner Chip Virnig and other existing members of the team have also moved to the Miami region to grow the company’s business there.
Thoma Bravo, which focuses on software and technology investments, had more than $76 billion in assets under management at the end of 2020. The company will set up a state-of-the-art, flexible workspace at 830 Brickell and expects to open the office in the fourth quarter of 2022. The firm’s Miami-based employees have already started working from a temporary office space.
Under construction since 2019, the tower designed by Adrian Smith + Gordon Gill sits at the corner of Brickell Plaza and SE 9th St, blocks away from Biscayne Bay. The property will feature interiors designed by Iosa Ghini Associati and a range of amenities including a health and wellness center, a restaurant and rooftop lounge and a private conference facility for tenants.
Tenant rightsizing and delayed commencements on new leases continued to weigh on absorption in Miami’s office market during the first quarter, according to a recent JLL report. The first three months of 2021 marked the fourth consecutive quarter of negative absorption, but the brokerage firm added that recent leasing activity suggests that occupancy gains could return before the end of the year.
JLL noted that major hedge funds and tech firms including Citadel, Facebook and Microsoft are seeking multi-floor leases in trophy buildings, as Miami continues to spark interest in possible relocations and expansions. The Business Insider reported in January that Microsoft, Citadel and law firm Baker McKenzie were all in talks for space at 830 Brickell.
CBRE also flagged a flurry of touring activity from finance and tech users in the first quarter, reporting that dozens of companies are seeking to either move to or expand in the South Florida economic hub. Interest in Miami’s central business district has far outstripped the available inventory, with new-to-market firms hunting for a total of 700,000 square feet of space.