Stiles Realty, a division of Fort Lauderdale-based full-service commercial real estate developer Stiles, announced today 119,868 square feet in new leases and early renewals at Bank of America Plaza at Las Olas City Centre (LOCC), which has brought the trophy office property to 100 percent leased.
According to Stiles Director of Leasing Norm Adams, early renewals accounted for 80 percent of the leases. He attributes the high rate of early renewals to dwindling market supply from lack of new construction, which has narrowed options for tenants and pushed rates higher especially in urban downtown areas. Stiles research shows that on Las Olas Blvd, vacancy has declined to 9.1 percent, and asking rates have increased to an average $30 NNN per square foot for Class A product.
“LOCC has found an effective market niche due to the building’s amenities and location on Las Olas Boulevard,” said Adams. “Tenants are opting not only to renew early to lock in a more a competitive rate, but also expand in anticipation of growth. We’re drawing major banks and financial service firms, law firms, trendy cafes, high-end restaurants and retailers. We are as focused on retaining our existing tenants as we are on attracting new ones, and our tenants enjoy the amenities and quality of the building.”
In the case of Patriot National, Inc., which recently renewed their 36,537-square foot lease at LOCC, the company also expanded by another 13,592 square feet. The expansion makes the technology and outsourcing provider to the insurance industry one of the largest tenants at the property. Other prominent early renewals include Guarantee Insurance Group, Inc. for 10,168 square feet and international law firm Greenberg Traurig, P.A. for 48,790 square feet. Adams says that on average tenants are renewing one year early and signing lease terms in the range of five to ten years.
In addition to Patriot National, Inc. and Guarantee Insurance Group, Inc., Adams secured other prominent tenants, including BBX Capital Corporation, which expanded to a full floor of 24,395 square feet, as well as popular Miami restaurant SuViche and Smoothie King on the ground floor. According to Adams, the activity in the Las Olas corridor represents a general demand to be located in a central business district.
“The downtown Fort Lauderdale market, similar to downtown Brickell, is in high demand,” said Adams. “A business on Las Olas or Brickell makes a comment on the quality and lifestyle of their business. It’s a recruiting and business development tool that the tenants utilize.”
The 408,079-square foot office tower at 401 East Las Olas Boulevard is an award-winning Class A 23-story office building with ground floor restaurant and retail space. The LEED-Certified project was developed by Stiles in 2001 and is owned by institutional investors. Stiles has provided leasing and property management services for LOCC since its development.
The building features Class A finishes and a five-story 1,042 space parking garage, as well as a pedestrian-friendly high volume plaza with direct frontage on Las Olas Boulevard. LOCC is also Energy Star rated, offers hurricane Glass protection, 24/7 security and won Building of the Year from the Building Owners and Managers Association, in addition to other numerous awards for its management, quality, and sustainability features.