Tenants Downsize Space
March 4, 2010
By Marilyn Bowden

Tenant representatives say downsizing continues among Miami’s office tenants, but others in the market see some indications of stabilization and even growth.

“Among the financial services, legal and technological firms that we predominantly work with,” said Tom Capocefalo, managing partner of Studley’s Miami office, “relocating or renewing a lease generally involves a reduction in premises. We’re sensing this will continue through 2010 and moving into 2011.”
 
For example, he said, Studley represents an international technology group looking for 100,000 square feet – a 50% reduction from its current 150,000-square-foot offices. ...

... Mr. Capocefalo said from what he hears among developers nationally, “there’s some sentiment of upcoming tenant demand, because several national landlords have accommodated requests to do short-term renewals in exchange for a little reduction of premises. ...

... In general, he said, it’s accounting and banking firms that seem to be adding space; legal firms are “not reducing anymore, but not adding, either.” Expansions would be good news for the new buildings vying for tenants, said Mr. Lowell, who is handling leasing at Met 2 for MDM
Development.
 
“As they start to grow, they don’t necessarily have great options, so we’ll get another look at them.”

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