MIAMI | One Brickell CityCentre | 977 FT | 60 FLOORS

[UrbanImpact]

Miamivanche

[BrickellBased]

'Ret-tagged' after incident. Demolition halted. As of 10/11/23 walking by the site it appears to still be halted. Not sure how many weeks/months this will take.

See statement by city of Miami below.

https://www.thenextmiami.com/one-bri...falls-on-road/

Miami, FL September 25, 2023) – Today, an emergency meeting was held at the Building Department’s office in reference to the September 23, 2023 incident that occurred at 700 Brickell Avenue. In attendance were the demolition contractor, the property owner, the project engineer, and members of the Department of Resilience and Public Works, Miami Fire-Rescue, and the Florida Department of Transportation (FDOT). Discussed at the meeting were the next steps and requirements for the Building Department to remove the red tag and allow the demolition work to proceed. The demolition contractor and threshold engineer have been given limited access to the site to repair scaffolding protection located at the south side sidewalk of 7 Street and evaluate the remaining structure to assure that the building remains stable. Upon completion, FDOT will open the traffic flow at 7 Street. The south sidewalk on SW 7 Street will remain closed.

In order to resume demolition, the contractor is required to provide a detailed report into what transpired, what safety measures were overlooked that contributed to the incident, as well as what policies, procedures, site conditions, and activities will be that amended to prevent reoccurrence. Additionally, the contractor is required to provide proof of OSHA notification, list all additional safety measures being implemented and adjust site work conditions to adhere to the Building Department’s requirements that future demolition work be conducted ONLY at night with full lane closures, police presence to ensure enforcement and the full-time presence of the threshold inspector. The red tag will be removed once the plan is reviewed and approved by Building Department personnel.

[Zapatan]

Man, this and Okan.

I hope Waldorf Astoria isn't next when it comes to Miami's new failed tallests. Unless it can be resolved which sounds like a maybe according to the article.

[Charmy2]

I'm sure demo will be back in full swing in no time!

[BrickellBased]

Whoa, why so glum chum?

I think failed is a way too exaggerated word to use to describe any 3 of these projects - and this one is probably the least of the concern of the three.

Originally Posted by Zapatan

Man, this and Okan.

I hope Waldorf Astoria isn't next when it comes to Miami's new failed tallests. Unless it can be resolved which sounds like a maybe according to the article.

[UrbanImpact]

Originally Posted by Zapatan

Man, this and Okan.

I hope Waldorf Astoria isn't next when it comes to Miami's new failed tallests. Unless it can be resolved which sounds like a maybe according to the article.

All projects above are still commencing slowly despite us Forumers frustrations.

I’ve been in Plan Review/Zoning/waiver/HistoricalReview forever myself with one of my projects with the City of Miami for a year now and still haven’t been able to submit for formal review.

[Zapatan]

Originally Posted by BrickellBased

Whoa, why so glum chum?

Not sure about "glum", but I'm disappointed that all of these projects were supposedly underway, even U/C, only to find out that they're not.

Hope for the best though.

[BrickellBased]

https://www.thenextmiami.com/red-tag...l-city-centre/

Red tag removed and demolition permit now pending review.

[Altoic]

Demolition Still In Progress At One Brickell City Centre
https://www.thenextmiami.com/demolit...l-city-centre/

A total demolition permit had been approved in July, but was red-tagged by the city following September incident. The permit is now showing as active.

A second demolition permit for another office building is still in process as of this morning, and not yet approved.
There is also a construction permit for the new tower, which was first applied for in June 2023. It is currently under review.

[NYguy]

I’m sure Related can pull it off…


https://www.wsj.com/real-estate/miam...space-b43b42ea

Miami’s Office Market Was Red-Hot. Now Its Tallest Planned Tower Can’t Fill Its Space.
The 1,000-foot project under construction is still searching for an anchor tenant


By Deborah Acosta
March 11, 2024

The challenges swirling around a skyscraper known as One Brickell City Centre, which at around 1,000-feet high would be Miami’s tallest corporate tower, show how the city’s once-sizzling office market is starting to cool.

New York developer Related Cos. and Swire Properties, an international development firm founded by the British Swire family, are struggling to find an anchor tenant roughly a year after the groundbreaking. Related is restructuring its agreement with Swire, which owns the land, according to people familiar with the matter.

Swire even has considered selling the 1.55-acre site in Miami’s downtown, according to a document viewed by The Wall Street Journal.


…Swire said it “continuously evaluates different options for its development sites” and that the one for One Brickell City Centre “is currently not for sale.” Related said it was continuing to work with Swire.

Rising interest rates and hybrid work have punished the U.S. office market. Miami for years weathered such headwinds better than most cities, thanks in part to a steady stream of corporate relocations and limited supply of office buildings.

Now, Miami’s exceptionalism appears to be fading. Leasing activity in the Miami office market was down 25% last year from 2022, according to commercial real-estate services firm JLL. Sublease vacancy increased by 66% through the end of the year, a sign that existing tenants want to cut back on space.

“There’s a slowdown of new-to-market activity,” said Steven Hurwitz of JLL. “We’re sort of at a new inflection point.”

Miami office-construction starts have slowed down after a recent peak in the second quarter of 2023, according to Juan Arias, director of market analytics for CoStar in South Florida. He said that new construction was being affected by higher interest rates, elevated costs for construction material and labor, and a slowdown in leasing activity amid a softer economic environment.

…Related chairman Stephen Ross is among those whose interest in new South Florida projects has intensified. One Brickell City Centre, the 1.5 million-square-foot tower with 68 floors, is one of his more ambitious efforts. At the groundbreaking, Ross called it “the most important project in Miami,” while Swire president Henry Bott said the building would be “a beacon” for the city, with outdoor terraces on almost every floor.

Ross had pledged to bring in big-name tenants to the tower, which is scheduled for completion in 2028. He spoke with Ken Griffin about moving his hedge-fund firm Citadel to the site, according to people familiar with the matter.

In November, the two moguls seemed to deepen their relationship over a mutual interest in football. Griffin was in negotiations to buy a minority stake in the Miami Dolphins, in which Ross is the majority owner, according to people familiar with the matter.

Now the Citadel chief executive is no longer in discussions for a Dolphins stake. His company also passed on becoming the anchor tenant at One Brickell City Centre in favor of developing the waterfront site Griffin bought in 2022, where his plans include a luxury hotel for the top of the office tower.

“I’m not doing anything with Ken Griffin,” Ross told the Journal last month.

Still, the two billionaires indicated they could work together in the future. In a joint statement, Griffin and Ross said they “look forward to partnering together on initiatives that will benefit the community.”

[ChiND]

This site will probably be mostly residential. Since Miami is not a big corporate center, there simply is not demand. I doubted that Citadel would build a tower that consisted purely of office space, and my doubts were confirmed.

The mere fact that a few 70 year old+ hedge fund managers might want to spend their remaining winters in Miami doesn’t mean that Miami is suddenly a corporate center. Those bosses each might need 5k sf of office space at most.

As for the actual workers in the finance industry, New York is the only place to be. Atlanta has a tiny role in the film industry, but if you’re an actor, you want to live in LA — not Atlanta.

[Altoic]

That's a bummer, hopefully they find a tenant soon enough. But this was expected, Miami is not immune to the office market affecting the entire U.S. Also, the notion that Miami is a corporate center is false and was never mentioned by anyone here. But even if the market is reaching it's end for now, it'll be unfair to not mention the amount of companies who decided to create small to even large offices here. Or the fact that 830 Brickell is fully leased and about to end construction or that Citadel has moved here.

It isn't fully doomsday though, here's a snippet from the article:

"Even with the recent choppiness, Miami’s office market remains one of the country’s strongest. It finished last year with the highest annual office rent growth of all major U.S. markets. The city’s annual net absorption, which looks at how many tenants moved in versus moved out, was the nation’s third highest, netting more than 500,000 square feet of occupied space. The office vacancy rate of 8.4% is among the lowest in the U.S."

[BuildThemTaller]

Wow, I guess people actually have jobs in Miami after all.

[wanderer34]

A question, but was the abrupt reduction in height the decision of the FAA or the developers themselves? It seems all the other supertalls in Downtown Miami are either U/C in the case of the Waldorf Astoria or in demo mode such as the One Bayfront Plaza.

[Dale]

Ah well, assuming they don’t radically change the design, it’s a fat tower with lots of office space to add to the other office towers u/c or proposed and the mixed-use towers that contain lots of office space.

[BrickellBased]

Also via https://www.thenextmiami.com/one-of-...81m-financing/

‘One Of Most Pre-Leased Office Buildings In Miami’s History’ Gets $181M Financing

'Only' 187,000 sqft vs 1M+ sqft of One Brickell - but still positive.

Finding major anchor tenants in Miami seems to be the issue. But the smaller sq footage leases are still hot.

Miami needs home grown expansion for more major office development.

[NYguy]

Originally Posted by BrickellBased

Also via https://www.thenextmiami.com/one-of-...81m-financing/



'Only' 187,000 sqft vs 1M+ sqft of One Brickell - but still positive.

Finding major anchor tenants in Miami seems to be the issue. But the smaller sq footage leases are still hot.

Miami needs home grown expansion for more major office development.

I don’t know how it works in Miami, but they could probably do mixed use.

[BrickellBased]

Mixed use was actually the previous plan:

via wikipedia https://en.wikipedia.org/wiki/One_Brickell_City_Centre

The plans were for a mixed use building with 67,000 square feet (6,225 m2) of retail, 677,000 square feet (62,895 m2) of Class A office space, 256 condominiums, and 120 hotel rooms. It is part of the mixed-use nine-acre Brickell City Centre development.[9] The tower would also include a lounge on the 80th floor and a restaurant on the 79th floor.

The tower was redesigned in 2022 to be all office space. In 2023, demolition permits for the existing building were granted, and as of January 2024, demolition is still underway.[4] As of March 2024, the building's developers have yet to secure an anchor tenant.[10]

Originally Posted by NYguy

I don’t know how it works in Miami, but they could probably do mixed use.

I suppose they could try to go back to that. Considering that Swire has tried to sell the site as well it seems like everything is up in the air.

[NYguy]

Originally Posted by BrickellBased

I suppose they could try to go back to that. Considering that Swire has tried to sell the site as well it seems like everything is up in the air.

That they should. It would probably get a boost in height.

[BrickellBased]

disregard