Citadel, a leading hedge fund, recently announced plans for a 54-story headquarters in Miami. Citadel founder Ken Griffin, the richest person in Florida, relocated the firm from Chicago to the 305 two years ago. The projected 1.7 million square foot tower, estimated to cost over $1 billion, is one of several large commercial real estate projects in Florida. Despite rising sea levels making some portions of the state untenable, many firms choose to purchase, build, or lease office space in the warm southeast state.
Citadel, for example, will be located near many major cruise lines in Miami, making it a great fit for coastal South Florida. According to the South Florida Business Journal, Royal Caribbean began construction on a $300 million Miami headquarters in 2019. Meanwhile, Carnival recently placed its Doral offices for sale, valued at $66 million (including land and building). Carnival apparently wants to remain in the Miami area but with a reduced footprint.
Miami’s tech scene, fuelled by the crypto sector, a tech-friendly mayor, and a virtual workforce, experienced significant growth during and after the pandemic. Although the situation has improved, there is still a substantial amount of silicon throughout the city. In 2021, Microsoft plans to open its Latin America headquarters near Citadel’s prospective office space. Earlier this year, Apple relocated to a nearby Coral Gables location after Amazon started seeking for a lease.
CP Group and other bidders paid $179 million for the former IBM site in Boca Raton, about 50 miles north. According to The New York Times, the property where early smartphones and personal computers were developed was 90% leased as of last October.
The rest of Florida has seen significant commercial real estate transactions.
The headquarters of grocery behemoth Publix are located in Lakeland, a city east of Tampa. According to The Ledger, a local USA TODAY affiliate, the business revealed intentions to invest $65 million in expanding its home base in 2019.
Spirit Airlines established a new headquarters at Dania Beach, located south of Fort Lauderdale, in April. The South Florida Sun Sentinel said that the corporation planned to invest $250 million in the move.
Architectural Digest ranked Tampa’s $1 billion Truist Place skyscraper, originally known as the SunTrust Financial Centre, as one of the top ten most costly structures in America.