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New York hedge fund signs lease at Miami's priciest office - Crain's New York Business

Reported by Crainsnewyork
Feb 27, 2024· 2 min read
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Key Takeaways
  • • J. Goldman & Co., a New York-based hedge fund, signed the first lease at Fifth Miami Beach, committing to approximately 10,000 square feet in a newly constructed office building seeking among the highest rents in Miami's market.
  • • Fifth Miami Beach is asking rents of $170 per square foot—more than double the $80.35 average in Miami's Brickell neighborhood—marking the first new office development in Miami Beach's South of Fifth district in over 15 years.
  • • The hedge fund's expansion reflects post-pandemic migration trends among finance and tech firms relocating south to access talent drawn by favorable tax treatment and climate, with J. Goldman citing aggressive hiring plans to justify the Miami footprint expansion.
  • • Co-developed by Sumaida + Khurana and Bizzi & Partners with Eric Schmidt (former Google CEO) as a co-owner, the 60,000-square-foot property signals sustained institutional confidence in Miami as a financial hub despite national office market headwinds.
Summary
J. Goldman & Co., a New York-based hedge fund, has signed the inaugural lease at Fifth Miami Beach, a newly constructed office building competing for top-tier rental rates in one of South Florida's most prestigious submarkets. The fund committed to approximately 10,000 square feet of space at the property, which contains roughly 60,000 square feet of total rentable area, according to persons familiar with the transaction.

The building's asking rents of $170 per square foot represent among the highest ever sought in Miami's market, positioning Fifth Miami Beach at a significant premium to competing submarkets. By comparison, Brickell—Miami's established financial services hub—averaged $80.35 per square foot in the fourth quarter, reflecting a valuation gap of more than 110 percent. The development marks the first new office construction in Miami Beach's South of Fifth neighborhood in over 15 years, underscoring the scarcity value of Class-A space in the area.

Michael Juliano, chief operating officer at J. Goldman, characterized the expansion as part of the firm's broader growth strategy. "We have long maintained offices in New York City and South Florida, and we remain committed to both regions," Juliano stated. "As we grow our business and continue to aggressively add new investment talent, it will be necessary to expand our office footprint in South Florida." The hedge fund maintains its New York headquarters at Boston Properties' 510 Madison Avenue, a premier Manhattan address.

The lease underscores a structural shift in institutional real estate preferences since the pandemic. Finance and technology tenants have actively expanded Miami operations to recruit talent migrating south for lower state income tax rates and improved quality of life. Fifth Miami Beach is developed by Sumaida + Khurana and Bizzi & Partners, with former Google Chief Executive Eric Schmidt as a co-owner. Cushman & Wakefield handles office leasing for the site.

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Sources

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Crainsnewyork New York hedge fund signs lease at Miami's priciest office - Crain's New York Business