Related Group with partner plans to build new HQ in growing Miami office market

The Related Group with partner Terra Group has plans to build a new eight-story class A office building at 2850 Tigertail Ave. in Coconut Grove, a historic Miami neighborhood.

Related will relocate from its longtime home base in downtown Miami and take over the top two floors of the 105,000-square-foot building.

Construction is scheduled to be completed in late 2020.

The growing submarket also has two other development projects.

A joint venture between Terra and the boutique luxury brokerage firm Mayfair Advisors has plans to develop a five-story building, located at 3310 Mary St. And One CocoWalk, a five-story class A building that forms the office component of the redeveloped CocoWalk, is being developed in the submarket.

According to the Colliers International Miami-Dade County Office Forecast report for second quarter 2019, more class A office space was in Coconut Grove than was leased during the second quarter. But the surplus was only 4,398 square feet, which is modest compared to other areas such as Kendall, which had a surplus of 32,574 square feet.

Class A office rents in Coconut Grove are currently at an asking rate of $41.38 per square foot, according to Colliers. That is lower than nearby areas such Brickell ($51.38), downtown Miami ($45.72) and Coral Gables ($47.66).

“People are wanting to get out of the Brickell area, where it’s very congested,” said Tom Roth, principal of Grass River Property, which is developing One CocoWalk, told the Miami Herald. “Coconut Grove is much more manageable. It’s similar to Coral Gables. And the supply of total square footage is pretty limited. The three buildings you are looking at combined add up to half the size of one Brickell skyrise.”