Feds To Sell Office Building in Heart of Brickell

The U.S. government is preparing to sell a 53-year-old office building situated in Miami's Brickell Financial District. This decision is part of a larger initiative to reduce the federal real estate portfolio and cut costs.

Property Highlights 

Located at 909 SE First Ave., the Brickell Plaza Building was constructed in 1971 and occupies a 60,000-square-foot lot. Its prime location next to the Metromover rail system and close proximity to Brickell City Centre make it a valuable piece of real estate in one of Miami’s most desirable neighborhoods.

The nine-story building currently houses federal agencies such as the Department of Housing and Urban Development’s Office of Inspector General and Customs and Border Protection. The General Services Administration (GSA), which oversees federal real estate, purchased the building in 1986 for $13.9 million, despite its price exceeding the appraised value at the time.

Reasons for the Sale 

Initially earmarked for a $40 million renovation, the GSA decided that selling the property was a more cost-effective choice. The sale aligns with the GSA’s 2023 five-year capital investment plan and broader goals to eliminate underperforming assets. The Brickell Plaza Building is one of eight properties nationwide slated for sale, alongside properties in states such as Vermont, Indiana, and Washington, D.C.

Through these sales, the GSA aims to reduce its portfolio by 1.5 million square feet and save taxpayers over $475 million.

High Demand for Brickell Real Estate 

Brickell is among the most sought-after real estate markets in South Florida, attracting both investors and developers. The office vacancy rate in the area stands at 11.9%, significantly lower than the 15.2% average in Miami and the national rate of 19%. Class-A office rents in Brickell average $100 per square foot, with premium spaces commanding up to $200 per square foot.

The value of the Brickell Plaza Building lies primarily in its land, appraised at $48.4 million by Miami-Dade County. 

Recent Developments in the Neighborhood 

The Brickell area has seen numerous high-profile real estate deals, including Citadel CEO Ken Griffin’s $363 million purchase of a nearby 2.5-acre site in 2022 where he plans on building a supertall tower; the upcoming Dolce & Gabanna Residences and Mercedes Benz Residences by JDS Development Group; Related Group’s Baccarat Residences and more.