Tag Archive for: george sacks

Downtown Fort Lauderdale Broward’s Best Performing Market

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Commercial Florida Realty Services’ George Sacks has recently completed year-end office market studies for Broward and Palm Beach office market studies.

Among the studies’ highlights:

  • Downtown Fort Lauderdale showed Broward’s best performance, gaining 175,520 square feet through year-end 2013 – a rapid change from the submarket’s slight negative absorption at mid-2013. Although Cypress Creek’s approximately 7.2 million square feet of office submarket ended the year with an overall 20.32% vacancy rate, its Class A component lost just 4115 SF and had a relatively healthy 15.34% vacancy rate.  The Cypress Creek Class B market was harder hit.

 

CLICK HERE FOR THE COMPLETE BROWARD OFFICE MARKET STUDY

  • Boca Raton was Palm Beach County’s top leasing market for the year, with a gain of 272,132 SF for the year and asking direct lease rates of $18.72 per SF by year-end 2013, compared with $17.47 at the end of 2012.  Re investment sales, per the study, “The investment sales activity in Boca Raton and Palm Beach County in general, is representative of a national trend for investors’ and owner/users’ increasing interest in seeking properties outside of the traditional major metro markets such as Miami.  This trend is likely to continue throughout 2014.”

 

CLICK HERE FOR THE COMPLETE PALM BEACH OFFICE MARKET STUDY

 

 

George Sacks, S&K Worldwide Team Up On Broward Project

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Commercial Florida Realty Services and real estate investment group S&K Worldwide Realty see demand for Broward corporate relocation and expansion office space turning upward faster than expected.

“The re-energized economy has more companies looking to relocate or expand in Broward, but their need for ample office space is colliding with market realities, especially along the I-95 corridor,” said George Sacks, Commercial Florida Realty managing partner.

Southlake PlazaTo offer users seeking signage and space along I-95 expanded options, S&K Worldwide Realty has partnered with Sacks’ firm to bring to market several contiguous spaces of 10,000 to 20,000 square feet at Southlake Plaza in Newport Center business park, Deerfield Beach.  Prospective tenants can choose to lease just the space they need, or buy either of two multi-tenant buildings, occupy a portion and gain built-in cash flow from existing credit tenants such as JPMorgan Chase and AT&T.

At one of Southlake Plaza’s two-story buildings, 1400 Newport Center Drive, for example, the partnership is marketing a 20,000-square-foot full floor in the same building where JPMorgan Chase signed a 12-year lease in 2013.  “Broward’s suburban office rents along I-95 have stabilized and begun rising,” Sacks explained.  “Companies see higher space costs ahead, whether they lease or buy.  A business that occupies its own building with credit tenants carrying some of the load, can substantially limit risk, lock in costs and locate in higher profile space,” he said.

“Growing companies need to look at the balance sheet impact of leasing, buying or constructing a single-user building,” Sacks added.  “Broward’s office inventory is not yet low enough to trigger new construction, and developable land along I-95 is rare and costly.”  More relocating and expanding firms, he said, are considering buying a multi-tenant building.

Southlake Plaza weathered the recession with strong tenancy, thanks in part to its location within the 119-acre Newport Center business park, Sacks said.  Most of the park’s buildings are owned, not leased, and corporate neighbors in the park include the University of Miami Sylvester at Deerfield Beach cancer center, MAPEI Americas, Staples’ back office operations, as well as two hotels.

According to S&K Worldwide Realty President Dirk Kuczurba, “We purchased Southlake Plaza many years ago, recognizing the opportunity to build long-term value in a property with an ideal location.”  S&K and its related companies and partnerships own, develop and manage commercial and industrial real estate throughout Europe and the U.S., and have invested more than $650 million in Florida land, office, industrial and retail facilities.

 

 

George Sacks Seals 15,500 SF In Exchange Deals

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The Exchange six-building office complex in Fort Lauderdale has closed multiple recent transactions

At the office park located at 3303-3363 West Commercial Boulevard, call center and contact management services provider Talk2Rep has leased 9,228 square feet for its corporate offices, and the law firm of PeytonBolin, PL purchased a 6,240-square-foot office condo suite.  Asset manager and broker George Sacks, managing principal of Commercial Florida Realty Services, represented owner The Exchange of Fort Lauderdale LLC in the transactions.

“As Broward’s office market slowly strengthens, we’re seeing higher demand for small blocks of space in suburban locations,” Sacks said.  “We have activity from professional firms and marketing-related companies that need 10,000 square feet of corporate space or less and are anxious to lock in costs before economic conditions shift,” Sacks said. “They’re keenly aware of the market’s signals, with Broward property values recovering and lease rates starting to increase in some of the county’s Class A complexes.  They know interest rates will inevitably rise.”

The deals at The Exchange, which totals 174,473 square feet, bring the complex to 83 percent occupied.

Companies are running the numbers for lease vs. buy, based on their business models, Sacks said.  Tenants are securing today’s favorable leasing rates, and owner-buyers who anticipate stable space needs are moving quickly on low interest rates and the availability of up to 90 percent Small Business Administration (SBA) financing.

 

George Sacks Finds Renewed Interest In Condo Office Space

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Finding a “sweet spot” in South Florida’s shifting market, Sanctuary Centre’s  recent sales have brought the 180,442-square-foot business center’s available condo office space close to sell-out.

“As local market inventory steadily shrinks, we’ve found renewed interest in condo office space from professional firms and regional companies that want an east Boca Raton presence, without top-tier pricing,” said Commercial Florida Realty Services Managing Principal George Sacks.  Closing five sales since December, with two additional sales under contract, has reduced available Sanctuary Centre condo office space to under 10,000 square feet.

Sanctuary CentreSanctuary Centre, located at North Federal Highway and Yamato Road, was built in the mid-1980s, and its previous owner later converted the complex to condominium.  GS Sanctuary Financial Investors Principal George Sacks purchased the 80,000 square feet that remained unsold in 2007, shortly before the weak economy and zoning changes dramatically impacted Boca Raton’s office absorption trends.

“It’s been a wild ride,” Sacks said. “We knew we had a great asset in a prime location, and by staying agile, we’ve kept Sanctuary Centre successful. When the economy turned in 2008 – and as relaxed zoning shifted momentum away from Federal Highway to Boca’s northwest section — we converted the remaining space to a lease program,” he added.  “Now, with resurgence of Federal Highway’s business corridor well underway, we’ve reverted back to a sales focused campaign.

“We’re seeing demand from buyers with stable office space needs, who recognize that timing is everything,” Sacks said. “They compare buying vs. leasing, and look to lock in space costs at today’s low interest rates, before area rents start climbing.”  Availability of 90 percent SBA financing limits the up-front investment companies need to make.  The Sanctuary Centre office suites range from 850 to 8,500 square feet.

Recent sales at Sanctuary Centre have included:

  • ProTech, a Florida and New York IT staffing and professional services firm, which expanded its existing space at Sanctuary Centre by 2,000 square feet.
  • Florida PIP Law Firm, purchasing a 3,852 square-foot office suite.
  • Oxford Investments, a financial services company, purchased a 1500-square-foot office suite.
  • US Mortgage of Florida bought a 5,839 square-foot office suite.

As office property values gradually recover, Sanctuary Centre is drawing condo sales based on its unique position, Sacks said.  “Our space’s property values are up 25 to 30 percent from the lows of the economic downturn.  Companies see the advantages of investing on the upswing, while controlling future costs.  Office condo space is rare in the Boca market, though,” he added.

“New buildings’ construction costs were too high to be practical for condo development, and there were very few condo conversions of existing buildings.  As an older but beautifully maintained complex, we’ve found ourselves in a sweet spot for small space users who want East Boca’s business environment, plus proximity to I-95, the waterfront neighborhoods and western country club communities.”

For US Mortgage of Florida, a licensed lender with offices along the nation’s East Coast, Sanctuary Centre was a timely opportunity.  “Purchasing our suite gave me more strategic control over my space than would be possible with leasing,” said Tony Acquaviva, US Mortgage of Florida owner.  “It’s just minutes from my home to our office, and that’s a major advantage.”

Silberling Rejoins Sacks And Reed

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Ken Silberling has joined Commercial Florida Realty Services, LLC as a Principal, focusing on office leasing and investment sales.

Silberling had been Vice President of Leasing and Acquisitions and Director of Business Development at Danburg Management Corporation since 1999.  At Danburg, a Boca Raton based commercial real estate investment and development firm, Silberling was instrumental in growing the portfolio from 150,000 to over 1 million square feet and completed well over 500 office and industrial lease transactions.  Ken holds a Master of Business Administration from Georgetown University.

At Commercial Florida, Silberling rejoins George Sacks and Peter D. Reed, Principals of Commercial Florida Realty Services, with whom he had worked at the original Commercial Florida in the late 1990s. Sacks sold the assets of the original Commercial Florida to Grubb and Ellis in 1999, but re-formed the company in 2005.  At Commercial Florida, Silberling will be looking to grow the company’s third party leasing and management business and source investment opportunities.

“I’m really excited to be back with George and Pete.” said Silberling “There is certainly a level of comfort and mutual respect. I feel our skills complement each other and that together we can provide a range of services that is unique to the market.”

“What I like about Commercial Florida 2.0 is that our platform now combines leasing, management and sales. We have an a-la-carte menu of services that we can tailor to a client’s need. In addition, we have all been involved from the ownership side, so we have a true understanding of what today’s real estate owner needs. And while we’re all a bit older and wiser, I’ve learned a few new tricks, so we’re at the cutting edge as far as marketing and technology.”

Commercial Florida has also resumed production of its semi-annual office market reports. “Our market information is what differentiated us and helped establish our brand back in the 90s” said Sacks. “While Co-Star and others have changed the landscape for data collection, the need for intuitive interpretation of the data is more important than ever. While Ken won’t be writing the reports like he did previously, he will certainly add his own unique and often entertaining perspective.”  “It’s a lot easier to compile the data and create pretty graphics these days,” added Silberling, “but our real job is to translate the data into actions that will help owners maximize their property values. I believe we have the talent to do that as well as anyone in the market.”

Sacks And Reed Close15,000 SF Expansion

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George Sacks and Peter D. Reed, principals of Commercial Florida Realty Services, announced a 15,298sf lease expansion transaction.

Before the Atlanta-based law firm of McCalla Raymer, LLC had an opportunity occupy its new 15,298sf office at 110 Tower in Downtown Fort Lauderdale, the firm exercised its pre-negotiated option to lease an additional floor.

McCalla Raymer has now leased the 24th and 25th floor or 30,596sf at the recently renovated 110 Tower.

The landlord, Genesis Capital Partners XI, Ltd., was represented by Transwestern. 110 Tower is now over 70% leased. The lease value is in excess of $5,000,000.

Source:  FREJ