I
n a recent development, Rothschild & Co has decided not to open its office at the 830 Brickell tower in Miami. This marks the third company to back out of its lease during South Florida's boom. The financial services firm had leased 5,000 square feet last year at the tower, which was set to become its first South Florida outpost. The decision was confirmed by a spokesperson for the tower's developers, who also revealed that another company has absorbed Rothschild's space, declining to identify the firm.

    The 55-story 830 Brickell tower is being developed by Vlad Doronin's OKO Group and Cain International, a London-based company led by CEO Jonathan Goldstein. The building is now fully leased, and tenants are currently in the process of building out their interior spaces. A final certificate of occupancy is expected by year-end.

    Rothschild's lease at 830 Brickell was part of a surge in demand for office space in late 2020 and early last year, which pushed up rents to record levels in prime areas. This trend earned South Florida a reputation as a haven for office markets. The tower was particularly popular among out-of-state companies, leading the way among South Florida office properties in securing leases at a record $100 per square foot.

    However, this year has seen a decline in new-to-market tenants and a slowdown in rent growth. At least two other firms have opted to back out of their South Florida leases. Venture capital firm Andreessen Horowitz closed its 8,300-square-foot outpost at 2340 Collins Avenue in Miami Beach, which was taken over by eye health products company Bausch + Lomb. Law firm Winston & Strawn also scrapped its planned office after leasing 35,000 square feet in 2022 at 830 Brickell. Law firm Kirkland & Ellis took over Winston's space.

    The recent decampments have raised questions about whether this marks a larger exodus from South Florida by firms that leased during the boom. Market optimists have pointed out that the vacated offices were absorbed by other firms, and the market's occupancy and rents remain high.

    Rothschild's exit from its lease came as Eric Hirschfield, a partner who led the South Florida office, retired to spend time with his family, according to Bloomberg. The company also plans to shut its Chicago office, according to Bloomberg. The company's executive chairman is Alexandre de Rothschild.

    Other tenants at 830 Brickell include Sidley Austin, Thoma Bravo, billionaire hedge funder Ken Griffin's Citadel, Santander Bank, and Corient, which was previously known as CI Financial.