It will be the first large Class A office tower to be built in the central business district since 2010, developer says
By Katherine Kallergis | May 22, 2017 01:45PM
Rendering of 110 10th Street. Inset: Michael Harrison, Hines senior managing director.
Miami Worldcenter will now include a 45-story office tower.
Houston, Texas-based Hines plans to build 110 Tenth Street, a 600,000-square-foot office tower between Northeast First and Second avenues and between Northeast Ninth and Tenth streets in the Greater Downtown Miami area, the company announced on Monday.
The building will be the first new Class A office building of that size to be built in the central business district since 2010, according to the developers.
New Haven, Connecticut-based Pickard Chilton Associates is designing the office tower, which will include three indoor/outdoor terraces and high-street retail space. The developer plans to break ground on the building during the second quarter of next year and deliver it between the end of 2020 or the beginning of 2021.
Michael Harrison, senior managing director of Hines, said the project will be geared toward a wide range of tenants. Harrison cited the project’s proximity to Brightline’s new MiamiCentral station, as well as to Biscayne Boulevard and major highways.
When it opens this summer, MiamiCentral will offer high-speed train service to Fort Lauderdale, West Palm Beach and eventually Orlando. It will also add new office buildings and retail space to the area.
Hines has been looking for the right opportunity to develop a new office building in downtown for over a year,” Harrison said. “In talking with users, our customers, the tenants, as well as a lot of the key brokers that handle the large office tenants in the city of Miami, what we really heard loud and clear [is] that with all the development downtown, the biggest issue [is] traffic and how long it was taking their employees to get to work.”
Class A office rents, which have been rising in the central business district for the past three years as vacancy rates fall, are in the high $40s to $50s per square foot range, brokers have said.
In downtown Miami, Hines developed the Southeast Financial Center, once the tallest building in Miami at 55 stories.
Spanish billionaire Amancio Ortega recently purchased the 1.3-million-square-foot office tower for roughly $500 million.
“It’s pretty clear that there can’t be more growth south,” Harrison said.
“What’s effectively happening in downtown Miami is it’s being squeezed like a tube of toothpaste. Downtown is going to have to grow north. That’s really what led us to focus on Miami Worldcenter.”
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