Hines Adds 45-Story Tower To Miami’s $2B Worldcenter Development

Hines has announced plans to develop a 45-story office and mixed-use tower as part of the 27-acre Miami Worldcenter development.

Plans put the tower at 600K SF, and Hines said construction should begin in Q2 2018 and the first occupants could move in by late 2020, CoStar reports. Construction on the $2B Miami Worldcenter began in 2016 and, when complete, will include 10 blocks of premium retail, hotels, luxury apartments and Class-A office space.

Hines senior managing director Michael Harrison said the building will be the first of its kind in Miami in nearly a decade, as the last office building in Miami’s business district of this size was completed eight years ago. The Miami Herald reported that Hines’ tower will fill one of the last remaining pieces of vacant land in the Miami Worldcenter.

While the first occupants of Hines' new tower will not take space until 2020 at the earliest, the developer is banking on Brickell's recent healthy rent rate growth. As of the first quarter of 2017, Class A office in Brickell topped $50/SF, according to JLL. Harrison said rents could command as much as $65/SF at Miami Worldcenter.

That is a far cry from the way things were at the end of the Great Recession when 1.5M SF of new Class A space flooded a market with lackluster demand, creating a tenant's market, Harrison said.

“The tables have since turned, with landlords leasing premium office space for upwards of $60/SF in some buildings, and tenants hard-pressed to find large swaths of Class A space in the urban core,” he said.

Hines also is banking on corporate desires to locate near transit, especially in their quest to retail Millennial workforce talent. 110 10th Street is adjacent to the Brightline's Miami terminal, which provides direct rail service to Fort Lauderdale, West Palm Beach and Orlando, as well as access to TriRail, the Metromover and the Metrorail.

“The extensive new development that has occurred in the downtown core and throughout the Brickell submarket, together with the congestion caused by the Brickell Avenue Bridge, has increased commute times dramatically. Law firms, financial institutions, technology companies, and accounting and professional service firms are all focused on recruiting and retaining millennials, and accessibility and proximity to transit will drive decisions for tenants,” he said.

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