Coral Gables Emerges as Suburban Destination for Office Tenants

Colliers South Florida represents ownership in office leasing opportunities at 255 Alhambra.

As South Florida’s office landscape continues to evolve, there is a notable tenant shift from Central Business Districts (CBD) to suburban submarkets like Coral Gables. Several factors contribute to the migration, including rising rents in premium districts like Brickell and Downtown Miami, resulting in expensive lease renewals. The Class A rents in Brickell and Downtown Miami increased 69.1% and 37% over the last three years; meanwhile, suburban Class A rents increased 10.2%. In the next four years, around 1.9 million square feet of tenant leases in Brickell and Downtown Miami will expire, further fueling the migration. Additionally, new-to-market businesses continue to gravitate to Miami, drawn by its business-friendly environment. The influx of tenants and the market’s competitive rental rates is expected to drive demand in the area, notably in Class A properties like 255 Alhambra.

Colliers Vice Chairman Stephen Rutchik, Senior Vice President Kevin Gonzalez, and Associate Vice President Jake Freeman have been selected by the landlords, Terranova Corporation, Torose Equities, and Lndmrk Development, to spearhead office leasing at 255 Alhambra. The partnership acquired the building in August with plans to further upgrade its amenities and capitalize on the demand for Class A office space.

The 13-story mid-rise building is located on 1.3 acres at 255 Alhambra Circle in downtown Coral Gables. The 221,335-square foot Class A property features top-notch amenities, including floor-to-ceiling windows, a newly renovated lobby, and convenient access to the market’s elite lineup of restaurants and entertainment. The building offers 48,000 square feet of office space for lease among a tenant roster, including TD Bank, TD Ameritrade, Colson Hicks Eidson, Kraft Food, and Driftwood Acquisition.

“In light of the growing influx of tenants from surrounding submarkets into Coral Gables, our decision to partner with Colliers to lead office leasing at 255 Alhambra was driven by their extensive presence and expertise across these submarkets. With their guidance and the building’s unique position in the market, we’re excited about the next evolution of 255 Alhambra,” said Stephen Bittel, Chairman & Founder of Terranova Corporation.

The Terranova Corporation is a full-service commercial real estate advisory firm with over $1 billion in commercial real estate assets for its clients and its own portfolio. Led by CEO Stephen Bittel, the firm is the largest commercial property owner along Miracle Mile, accounting for about 120,000 square feet of retail and office space.

Torose Equities is a Miami-based real estate investment firm with several verticals, including a value-add urban retail, office, and mixed-use strategy along the Southeastern coast. Founded by Scott Sherman, the firm attributes its success to its macro and data-driven approach to investing paired with its ability to leverage the team’s experience and relationships to create off-market opportunities in strategic target markets.

Led by Alex Karakhanian, Lndmrk Development is a prominent real estate company specializing in sourcing, acquiring, and developing commercial, residential, and mixed-use projects throughout the Southeastern United States. The company is developing notable projects throughout South Florida, including 2600 Biscayne Boulevard in Edgewater and the NoMad Wynwood Residences in Wynwood, among many others.

Over the last three years, Colliers has tracked the migration of approximately 84 tenants across South Florida, totaling almost 250,000 square feet, opting for suburban office spaces. Notably, Downtown Miami and Brickell experienced the most significant shift to the suburbs, which accounted for more than half of South Florida’s tenants and 150,000 square feet. The migration to the suburbs has steadily grown each year between 2020-2022, partially offsetting the negative absorption in CBDs due to the influx of new-to-market tenants. Since 2020, there have been more than 200 expansions/new-to-market companies tracked to Miami’s CBD. Meanwhile, approximately 60% of tenants moving out of the Miami CBD are relocating to Coconut Grove and Coral Gables. “We’ve tracked 450,000 square feet of tenants migrating to Coral Gables, with half of them coming from Brickell,“ said Colliers’ Kevin Gonzalez.

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at, Twitter @Colliers or LinkedIn.