2019 Industrial Market Report - Broward County

20 19 Market Data Report BROWARD COUNTY INDUSTRIAL

Market experts

Chris Metzger, SIOR Executive Director +1 954 938 2608 chris.metzger@cushwake.com Cushman & Wakefield Tenure: 35 years

Rick Etner, SIOR Executive Director +1 954 938 2607 rick.etner@cushwake.com Cushman & Wakefield Tenure: 30 years

AT THE CENTEROF WHAT’S NEXT

Christopher Thomson, SIOR Executive Director +1 561 227 2020 christopher.thomson@cushwake.com Cushman & Wakefield Tenure: 20 years

Matthew McAllister Director +1 561 227 2018

matthew.mcallister@cushwake.com Cushman & Wakefield Tenure: 5 years Industry Experience: 14 years

Adam Talbot Associate +1 561 227 2065 adam.talbot@cushwake.com Cushman & Wakefield Tenure: 2 years

Alex VanDresser Associate +1 561 227 2067 alex.vandresser@cushwake.com

Team support

Julie Miller Senior Brokerage Coordinator +1 954 377 0461 julie.miller@cushwake.com Cushman & Wakefield Tenure: 7 years Industry Experience: 19 years

Uilani Kauhi Brokerage Coordinator +1 954 377 0484 uilani.kauhi@cushwake.com Cushman & Wakefield Tenure: 20 years

2 | BROWARD COUNTY

TABLE OF CONTENTS

5 9

KEY INDUSTRIAL DRIVERS

BROWARD COUNTY MARKET OVERVIEW

12 16

HISTORICAL ABSORPTION

INDUSTRIAL DEVELOPMENT

20 22

BUILDING SALES

LAND SALES

INDUSTRIAL MARKET REPORT | 3

TENANT CONFIDENCE in Broward County’s market fundamentals, including strong population and job growth, provide long-term confidence in the growth of the industrial market. Leasing activity and new construction should remain active well into 2020.

4 | BROWARD COUNTY

2019 KEY INDUSTRIAL DRIVERS

ECONOMICS Broward County continues to see solid job growth numbers, expansion by existing tenants and attract new tenants to the market.

eCOMMERCE Expectations are high that additional sites will be taken down by eCommerce companies looking for “Last Touch” facilities close to end customers.

QUALITY Demand by tenants for larger bay options and efficient options provides incentives for new construction.

LAND Available land in Broward is scarce, but when it does come on the market, sales are closed in short order.

DEMAND Tenants absorbed +/-300,000 SF in the first three quarters of 2019.

CAP RATES Cap rates have increased slightly in 2019 from historic lows recorded in 2018 on significant increases in new construction.

INDUSTRIAL MARKET REPORT | 5

Broward County Industrial Q3 2019 MARKETBEAT Q3 2019 CUSHMAN & WAKEFIELD MARKETBEAT

Economy Broward County’s unemployment rate in August 2019 was 3.3%, down 10 basis-points (bps) year-over-year (YOY). The County added 11,400 jobs over the year for an annual growth rate 1.3%. While job growth was positive overall in the County, industrial using sectors shed jobs over the last 12 months. The Trade, Transportation & utilities sector lost 2,100 jobs and the construction industry gave back over 1,300 jobs. Market Supply The overall industrial vacancy rate increased by 120 bps to 4.3% at the end of the third quarter. The North Broward submarkets of Pompano Beach, Deerfield Beach and Coral Springs/Margate recorded 140, 440 and 570 bps increases, respectively. Tenant demand in Hollywood/Hallandale and in the Southwest Broward submarkets drove vacancy rate decreases even as new construction delivered. Over 1.9 million square feet (msf) was under construction and expected to deliver within six months. Approximately 16% has been preleased with the expectation that more space will be taken by tenants as buildings deliver. The bulk of projects under construction consisted of big-box distribution centers in centrally located submarkets. Hollywood/Hallandale has three of the four largest projects under development. Prologis has recently completed the construction of a 222,145-sf and a 62,176-sf building at Prologis Seneca Park and has another two buildings of 190,494-sf each scheduled for 2020 delivery. Construction completions year-to-date (YTD) were running ahead of deliveries when compared to this point in 2018. New additions were spread throughout the county with most larger submarkets seeing some type of new space options. Pompano Beach and Coral Springs/Margate had the largest deliveries to date with projects still under construction in both submarkets. Several developers phased projects to increase flexibility and address shifting needs by tenants. Market Pricing Asking rental rates for all industrial types continued to rise due to the tight overall market, up 12.2% to $9.80 per square foot (psf). Broward County’s elevated rents were due to a large portion of industrial buildings that catered to tenants ranging in size from 15,000 to 40,000 sf. Spaces in these types of buildings remained tighter than the overall market which allowed building owners to be aggressive with pricing. Overall rental increases in Southwest Broward and Hollywood/Hallandale submarkets were most acute. For warehouse/distribution space, the Coral Springs/Margate submarket saw an impressive gain of 38.3% to $7.25 psf on new availabilities.

BROWARD COUNTY INDUSTRIAL

Economic Indicators

12-Month Forecast

Q3 18

Q3 19

Broward Employment

852k

863k

Broward Unemployment

3.4%

3.3%

U.S. Unemployment

3.8%

3.7%

Market Indicators (Overall, All Property Types) * Numbers above are monthly figures, August 2019, FL Dept. Economic OPP.

12-Month Forecast

Q3 18

Q3 19

Vacancy

3.1%

4.3%

YTD Net Absorption (sf)

463k

290k

Under Construction (sf)

1.6M

1.9M

Average Asking Rent*

$8.73

$9.80

*Rental rates reflect net asking $psf/year

Overall Net Absorption/Overall Asking Rent 4-QTR TRAILING AVERAGE

0 100,000 200,000 300,000 400,000 500,000 600,000

$10.00 $12.00

$0.00 $2.00 $4.00 $6.00 $8.00

2015 2016 2017 2018 2019 Net Absorption, SF Asking Rent, $ PSF

Overall Vacancy

10%

8%

6%

4%

5- Year Historical Average = 5.0%

2%

0%

2015

2016

2017

2018

2019

cushmanwakefield.com

6 | BROWARD COUNTY

BROWARD COUNTY MARKET OVERVIEW

MARKETBEAT Broward County Industrial Q3 2019

There were over 1.0 msf in user sales for Broward County YTD, with 75% occurring in the Pembroke Pines/Miramar/Weston submarket. Investment sales volume, for all industrial asset classes, totaled 4.6 msf in the first nine months, with approximately 3.3 msf traded in warehouse/distribution assets. Activity was especially high in Southwest Broward, which accounted for 65% of total sales volume, or just over 3.0 msf. Strong investor appetite for well- positioned warehouse/distribution assets, close to customers and logistic networks fueled demand which should continue into 2020.

New Supply (msf)

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019 MSF 10-Year Historic Average = 638,000 sf

Asking rental rates for increases by 12.2% YOY to $9.80 psf, triple net.

Warehouse/Distribution Asking Rents by Submarket (NNN)

Market Demand Leasing activity averaged 900,000 sf each quarter in 2019. The YTD leasing total was 2.8 msf, down almost 24% from the level recorded in the first nine months of 2018. Over 82% of all activity YTD was in warehouse/distribution space with every submarket seeing some level of tenant interest. The bulk of leasing activity occurred in the North Broward submarkets with 1.2 msf leased. Pompano Beach represented approximately 65% of all activity on interest by eCommerce and third-party logistics firms. Overall absorption YTD was positive on tenant move-ins in the Southwest Broward and Hollywood/Hallandale submarkets. Absorption figures through the third quarter were 43% less than levels at this time in 2018. Significant tenant moveouts in Deerfield Beach and in Coral Springs/Margate added almost 315,000 sf of negative absorption to the market. Absorption in office services and manufacturing assets were also negative YTD, with -10,067 and -40,370 sf, respectively.

$12.00

$10.00

$11.93

$8.00

$9.25

$9.24

$6.00

$8.34

$4.00

$2.00

$0.00

Central Broward

North Broward

Southwest Broward Hollywood/Hallandale

Availability by Size Segment OVERALL VACANCIES IN ONE SUITE

3

0-4.9K 5K-9.9K

Market Outlook

144

28 8

• Population and job growth fuels expansion by users looking for last mile options close to customers. • Overall occupancy levels should decrease slightly as new inventory comes online in the next six months. • Construction should slow as the market takes a breather and allow tenants to occupy new space.

10K-19.9K 20K-49.9K 50K-100K 100K+

34

56

cushmanwakefield.com INDUSTRIAL MARKET REPORT | 7

3,870,342 CRUISE PASSENGERS

1,108,465 CARGO TEU

$34B ECONOMIC IMPACT

231,579 JOB

Source: Porteverglades.net 2018 statisitics

2019 has been an outstanding year for the Industrial Market in South Florida. We have seen growth in the tile, marble, kitchen cabinets companies, driven by both commercial and residential development. As the economy remains strong, so shall the demand for the industries that support this growth, including manufacturing which is seeing a resurgence as well. With interest rates at historic lows and residential growth predicted to remain constant we are confident South Florida will charge into 2020 in a big way.

- Rick Etner

8 | BROWARD COUNTY

BROWARD COUNTY MARKET OVERVIEW

Port Everglades’ total value of economic activity at Port Everglades is nearly $34 billion . And, 231,579 Florida jobs are impacted by the Port, including 13,127 people who work for companies that provide direct services to the port.

PORT EVERGLADES Long recognized as the world’s second busiest cruise port, Port Everglades has rapidly established itself as one of the world’s premier cargo ports. It is a leading container port in Florida and among the most active cargo ports in the United States. And, Port Everglades is South Florida’s main seaport for receiving petroleum products including, gasoline and jet fuel. A foreign-trade zone and available office space inside the Port’s secure area make Port Everglades a highly desirable business center for world trade and the perfect hub and the point of entry for companies that conduct business in Central and South America, the Caribbean, Europe, and now, even the Far East. The Port Everglades Department is a self-supporting Enterprise Fund of Broward County government. It does not rely on local tax dollars for operations or capital improvements. The port is part of a thriving global transportation network that counts among its attributes: • A favorable location less that one mile from the Atlantic Shipping Lane • Direct access to multi-modal inland links through Florida’s interstate and highway systems • An FEC rail hub within two miles • A thriving international airport (FLL) within one mile • The Port’s location makes it extremely attractive for imports and exports – more than $18 billion annually Serving more than 150 ports and 70 countries, Port Everglades is the nation’s deepest commercial port south of Norfolk, Virginia. FORT LAUDERDALE/HOLLYWOOD INTERNATIONAL AIRPORT Over 741 international and domestic flights arrive and depart daily at the Fort Lauderdale/Hollywood International Airport (FLL) . It is one of the nation’s fastest-growing airports and offers nonstop service to more than 125 U.S. cities and flights to Canada, Bahamas, the Caribbean, Mexico, Latin America, and Europe. There are also 100 private flights. Each day over 73,000 travelers pass through the four terminals at FLL. Airports Council International data listed FLL as the fourth fastest- growing airport, with total traffic up 9.4 percent (behind Seattle, Washington Reagan, and Chicago O’Hare, respectively). Domestic traffic was up close to 7.3 percent and international traffic increased by 18 percent. The airport is conveniently located three miles from downtown Fort Lauderdale with easy access to I-95, I-595 and Port Everglades.

INDUSTRIAL MARKET REPORT | 9

Broward County’s Fort Lauderdale- Hollywood International Airport (FLL) is one of the fastest-growing airports in the U.S. In 2019 passenger traffic, FLL ranked 19th in the U.S.

35.9M DOMESTIC & INTERNATIONAL PASSENGERS

15,000 IN-AIRPORT JOBS

125,000 JOBS THROUGH ANCILLARY SERVICES

312,763 AIRCRAFT OPERATIONS

108,462 CARGO TONS

$13.2B ECONOMIC IMPACT

• In 2018, FLL carried more international passengers than LaGuardia, Baltimore, San Diego, Tampa, • Phoenix, and Washington National…combined • FLL has had 5 consecutive years of double digit growth in international traffic • In 2018, international traffic was 24% of total traffic compared to 19% in 2014 • Passenger traffic has increased by over 12M passengers since 2013, up 53% • Lowest average domestic base fare for 2018 among large hub airports

Source: broward.org

10 | BROWARD COUNTY

The south Florida industrial market still remains strong. Industrial zoned land is scarce and new development is minimal. This combination has raised lease rates upwards of about $1.50-$2.00 PSF over the past couple of years. There is no sign of this momentum slowing down. As a matter of fact, we have never been busier. In addition, the size of the tenants has increased. In Broward County, we used to see maybe 3 tenants over 100,000 SF each year. Today there are about 15 searching for space in Broward County. This all adds up to positive news in the industrial sector. - Chris Metzger

INDUSTRIAL MARKET REPORT | 11

HISTORICAL ABSORPTION

VACANCY & RATES • Industrial historical net absorption from 2010 to 2Q19 in Broward County totals 6.8 msf • YTD overall net absorption totals 175,500 sf • The overall vacancy rate for industrial space was down 30 bps to 3.4% at the end of the quarter and 210 bps below the 5-year historical average of 5.5% • Overall, all industrial asset classes witnessed a yearly increase in average asking rates, up 6.9% to $10.01 psf NNN, the second quarter in a row where that overall average rent has topped $10.00 psf, NNN.

END OF YEAR

TOTAL NET SF ABSORBED

2010

2,117,003 SF

2011

2,306,084 SF

2012

1,670,143 SF

2013

1,028,256 SF

2014

1,938,041 SF

2015

2,426,756 SF

2016

2,196,870 SF

2017

1,301,929 SF

2018

3,679,935 SF

12 | BROWARD COUNTY

HISTORICAL ABSORPTION

HISTORICAL ABSORPTION PAST 5 YEARS

INDUSTRIAL MARKET REPORT | 13

LAND USE MAP

k

PC15-6

1.4

Palm Beach County

2

7

7.4

7

5.5

HILLSBOROBLVD

MI L I T A R Y T R L

JOHNSONRD

11.3

4

HOLMBERGRD

SW10TH S T

6

SAWGRASSEXPY

5.21

4.5

4.2

C O R ALRI D GED R

7.5

E VA H T 9 W N

8 7

13

N

7

NW 48THST

8

BROWARD COUNTY LAND USE PLAN Adopted: June 4, 2019 LEGEND

WILESRD

7

ROC K I S L A ND RD

POWERLINERD

3.81

E VA

D R 3 E N

SAMPLERD

13

13

7

4.52

7

DIXIEHWY

COPANSRD

I95

ROYALPALMB L V D

UNI V ERSITY D R

B A N K S RD

5.77

7.74

CORALSP R I N G S D R

11.3

Activity Center

Palm Beach County Rural Residential-10

8.7

MARTINLUTHERKINGBLVD

COCONUTCREEKPKY

R AMBLE W OOD DR

4.2

Rural Ranches Rural Estates Estate (1) Residential

Commerce Agricultural Conservation - Natural Reservations Conservation - Reserve Water SupplyAreas Recreation and Open Space Commercial Recreation Community

29

L Y ONS R D

SR7

5.04

NW31ST AVE

7.6

ATLANTICBLVD

RI V ERSIDE D R

13

38

Low (2) Residential Low (3) Residential Low (5) Residential Low-Medium (10) Residential Medium (16) Residential Medium-High (25) Residential High (50) Residential

SOUTHGATEBLVD

SW 3RDST

N OB H ILLR D

7

KIMBERLYBLV D

16

CYPRESSRD

POMPANOPKY

S W1 2 TH AVE

E VA T S

7 R S

MCNAB RD

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Electrical Generation Facilities Tribal Lands Mining Transportation Water 2 2 2 2 2

1 8 W S

MCNABRD

A N D R E W S AVE

N E62NDST

NW 62NDST

BAILEYRD

E VA H

NW9TH A VE

NE56THST

T 8 1 E

PROSPECTRD

Irregular Residential Dashed-Line Area

0.0

COMMERCIALBLVD

13.33

N

0.0

COMMERCIALBLVD

NW50TH S T

Y W

E VA T S

NE 45THST

PROSPECTRD

k

PC19-2

E VA H

DIXI H E

1 3 W N

ROC K I SLANDRD

NW 44THST

T 6 E N

19.2

NW120T H WAY

H I A T US R D

IN V ER R ARYBLVD 9

E VA T S

20

12 14.6

1 2 W N

OAKLANDP

OAKLANDPARKBLVD

12.5

UNIVERSITYDR

13

NE

N W 1 3 6 TH AV E

W I L T ONDR

NE15T H AV E

2.5

SUNSETSTRIP

N W 19THST

k

PC06-27

9 17.3

19

NW23RD A VE

E VA H

2.94

7 R S

SUNRISEBLVD

P I N E I S L A N D R D

T 4

NW 13THST

FLAMINGORD

E N

NW56THAVE

SUNRISE BLVD

I75

NOBHILLRD

9

E VA H T 7 2 W N

CLEAR Y BL V D

E VA H T 7 W N

21

E VA

6.25

NW 6THST

25

HIATUSRD

D R 3 E

NW 5THST

G LADESP K Y

FEDERALHWY

6

20

28.44

N

BROWARDBLVD

BROWARDBLVD

LASOLASBLVD

UN I V E RSITYD R

5

8

E VA T S

SA D D L E CL UBRD

US27

E VA H T 6 3 1 W S

1 3 W S

SW4THAVE

D R 3 E S

HIATUS R D

8.5

DAVIEBLVD

20.1

PETERSRD

R O Y A L P A L MB L V D

I N DI A NTR C E

E VA

12.6

SE17THST

SW 14THST

E VA H T 9 W S

ANDREWSAVE

6.38

EISENHO W E B R LVD

SR84

SE 24THST

SR84

RIVERLANDR D

1.83

NOVADR

D R O G NI

B O NAV E N T U R E B LVD

SW154THAVE

22

I595

W E S TONRD

FEDERALHWY

SW 30THST

3.6

ELLERDR

M AL F

DAVIERD

RAVE N SWO O DR D

COLLEGEAVE

3.5

S W 30T H A V E

SR7

SW 39THST

SOUTHPOSTRD

SW 42NDST

11.8

PERIMETERRD

SW 45THST

GRIFFINRD

7

E VA S R E L

6

DANIABEACHBLV

13.5

G N A

SW160THAV E

23.74

SW 1 0 T0 HAVE

STIRLINGRD

8

P I N EI S LAN D R D

SW172NDAVE

D AVIE R OAD E XT

D R S U TAI H

3.663

2.85

3.8

2

3.3

SHERIDANST

E VA H T6 5 N

E VA M L AP

8

Y W H E I XI D

N46THAVE

TAFTST

SRA

8.9

NPARKRD

E VA H T 48 1 W N

3.1

JOHNSONST

D R O G NI

1.74

N W 1 6 0 THAVE

NUS27

12

DOUGLASRD

NW172NDAVE

M AL F

HOLLYWOODBLVD

N72NDAVE

R D Y TI S R E VI N U

PINESBLVD

Y W H L A R E D E F

12

7.9

SP A R K RD

12

WASHINGTONST

35

SR7

9

2.243

FLORIDAT P KE

9.67

11.5

5.3

SW 1 6 0 T H A V E

5.52

E VA H

S56THAVE

PEMBROKERD

E VA T S

T 4 8 1

10.8

1 0 1 W S

19.63

W S

28

SW172NDAVE

RED R D

HALLANDALEBEACHBLVD

I75

8

E VA D N 2 6 W S

12

MIRAMARPKY

D R O G NI

SW 41STST

HOMESTEADTPKEE X T

1.5

M AL F

3.06

k

PC18-2

Miami-Dade County *Pending BCLUPAmendment subject to satisfaction of voluntary commitments

4.33

4.95

ipal land use plansmust be consistentwith theBrowardCounty LandUsePlan. TheBrowardCountyPlanningCouncil reviews eachmunicipal land use plan pursuant to theBrowardCountyCharter and certifies thosemunicipal land use planswhich have been found to be in "substantial conformity"with theBroward LandUsePlan.When certified by theCouncil, themunicipal land use plan becomes the effective land use plan for themunicipal jurisdiction. The land use designations on theBrowardCounty LandUsePlan serve as the basis formunicipal jurisdiction.Themunicipal land use plansmay bemore restrictive than the rdCounty LandUsePlan andmay depict uses and categories other than those shown on theBrowardCounty LandUsePlan for specific parcels.Areas designated on theBrowardCounty LandUsePlanMap or particular uses are approximate.The exact boundaries for zoningwill be determined by themunicipality the reasonable limits of the designation on themap.For further information regarding identification of the effective land use plan for a specific area or for interpretation of the land use designation for a specific parcel, please contact theBrowardCountyPlanningCouncil at 954.357.6695. 14 | BROWARD COUNTY

SPECULATIVE DEVELOPMENT SNAPSHOT

k

PC18-8

37

SE10THST

48THST

36

12

HI L LSB O ROMILE

35.9

WAREHOUSE & DISTRIBUTION 5.3 MILLION TOTAL SF DELIVERED SINCE 2015

UNDER CONSTRUCTION 2 MILLION TOTAL SF TO BE DELIVERED THROUGH 2020

FEDERALHWY

NE 23RDST

NE14THST

SRA1A

NE10THST

ATLANTICBLVD

46

FEDERALHWY

.7

RKBLVD

6THST

BA Y VIEW D R

PROPOSED 3.3 MILLION TOTAL SF PROPOSED AND PLANNED TO BE DELIVERED AFTER 2019

S E A B R E EZE B LVD

Atlantic Ocean

With interest rates at historic lows and changes in federal tax laws, we are seeing both institutional and private capital driving prices of real estate in all sectors of the South Florida

A

market, in particular industrial assets. We believe this trend will continue into 2020 which will lead to strong rent growth, demand and ultimately new development. - MatthewMcAllister

INDUSTRIAL MARKET REPORT | 15

PRESENT - Q1 2021 INDUSTRIAL DEVELOPMENT

Project Name/ Development

Owner Name

Building Name

SF

Ceiling Heig

160,000

32'

221,000

32'

1

East Pompano Industrial Center

Black Creek Group

East Pompano Industrial Center - Building 1

221,000

32'

221,000

32'

Tamarac Business Center

BlackRock

Tamarac Business Park- Building 1

178,240

32'0"-32'0"

2

Tamarac Business Center

BlackRock

Tamarac Business Park- Building 2

180,412

32'0"-32'0"

Bridge Point 595

Bridge Development Partners

Bridge Point 595- Building 3 (Can be BTS)

96,724

32'0"-32'0"

3

Bridge Point 595

Bridge Development Partners

Bridge Point 595- Building 2

290,295

32'0"-32'0"

Bridge Point 595

Bridge Development Partners

Bridge Point 595- Building 1

290,295

32'0"-32'0"

Bridge Point FLL Logistic Center

Bridge Development Partners

Bridge Point FLL Logistics - Building B

81,964

32'0"-32'0"

4

Bridge Point FLL Logistic Center

Bridge Development Partners, LLC Bridge Point FLL Logistics - Building A

174,129

32'0"-32'0"

5 Hillsboro Technology Center

Bristol Group

Hillsboro Technology Center

200,000

30'0"-32'0"

Port Everglades International Logis

Broward County Government

Building 2

151,200

32'0"-32'0"

6

Port Everglades International Logis

Broward County Government

Building 1

145,007

32'

7 Pompano Center of Commerce II

Butters Realty & Management

Building #9

61,832

32'0"-32'0"

8 TBD

Cabot Properties, Inc.

75,800

32'0"-32'0"

Coral Spring Commerce Center II

Exeter Property Group

Coral Spring Commerce Center II- Building 3 78,377

32'

9

Coral Springs Commerce Center II

Exeter Property Group

Coral Spring Commerce Center II- Building 2 101,917

32'

Coral Springs Commerce Center II

Exeter Property Group

Coral Spring Commerce Center II- Building 4 194,441

32'

10 First Sawgrass Commerce Center

First Industrial Realty Trust, Inc.

6401

103,790

32'0"-32'0"

11

First 95 Distribution Center

First Industrial Realty Trust, Inc.

First 95 Distribution Center

141,450

32'0"-32'0"

First Cypress

First Industrial Realty Trust, Inc.

147,690

28'0"-32'0"

12

First Cypress

First Industrial Realty Trust, Inc.

86,920

28'0"-32'0"

13 Port Everglades Distribution Center

Gramercy Property Trust, Inc.

80,000

24'0"-32'0"

14 I-95 Distribution Center

Great Eastern Acquisition Corp

65,900

24'0"-28'0"

15 First Cypress

First Industrial Realty Trust, Inc.

139,320

32'0"-32'0"

16 IBB Industrial Center

IBB

IBB Industrial Center

52,500

32'0"-32'0"

Davie Business Center

IDI Logistics

Davie Business Center - Building E

227,625

32'0"-32'0"

17

Davie Business Center

IDI Logistics

Davie Business Center - Building F

170,000

32'0"-32'0"

Davie Business Center

IDI Logistics

Davie Business Center - Building G

115,740

32'

Rock Lake Business Center

IDI Logistics

Building A

88,286

32'0"-32'0"

Rock Lake Business Center

IDI Logistics

Building C

154,960

32'0"-32'0"

18

Rock Lake Business Center

IDI Logistics

Building D

143,100

32'0"-32'0"

Rock Lake Business Center

IDI Logistics

Building B

119,222

32'0"-32'0"

19

JB Management & Maintenance

400,000

32'

Liberty 595 Logistics Center

Liberty Property Trust

Building 1

208,800

36'

20

Liberty 595 Logistics Center

Liberty Property Trust

Building 2

112,320

36'

21 Cypress Pointe Distribution Center

Link Industrial

156,233

32'

22 Independence Industrial Park

Mancini Companies

Building 1

1,000,000 32'0"-32'0"

23 Miramar Megacenter Park

Megacenter Palmetto

Building A

61,000

30'0"-30'0"

24 I-595 Business Center

MSG Dania Beach, LLC

Building 3500

165,010

32'0"-32'0"

Prologis Seneca Park

Prologis

Building 3

190,494

32'0"-32'0"

25

Prologis Seneca Park

Prologis

Building 2

190,494

32'0"-32'0"

Prologis Seneca Park

Prologis

Bldg 800

222,145

32'0"-32'0"

South Florida Distribution Center

Vital Pharmaceuticals, Inc.

South Florida Distribution Center- Building C 270,767

32'0"-32'0"

26

South Florida Distribution Center

Vital Pharmaceuticals, Inc.

South Florida Distribution Center- Building B 249,005

32'0"-32'0"

27 North Broward Commcer Center

RS Associates of Florida

Building C, D & E

70,335

24'

16 | BROWARD COUNTY

MAP LOCATOR INDUSTRIAL DEVELOPMENT j South County Regional Park U V A1A £ ¤ 1 Palm Beach ¨ § ¦ 95

Boca Raton

t

Building Status Delivery

5

Proposed

1Q2021

Deerfield Beach

Proposed

1Q2021

10

Under Construct.

1Q2020

ekpT s'adi 22

Under Construct.

1Q2020

U V 869

1

9

Under Construct.

3Q2020

19

Under Construct.

3Q2020

27

18

U V 834

rolF

Coral Springs

Proposed

4Q2020

Coconut Creek

Proposed

4Q2020

78 14

Proposed

4Q2020

U V 869

11

Margate

Under Construct.

1Q2020

£ ¤ 441

Pompano Beach

Under Construct.

1Q2020

North Lauderdale

Proposed

2020

21 15

Tamarac

12

Proposed

2020

2

£ ¤ 27

Under Construct.

2Q20

Under Construct.

3Q2020

£ ¤ 27

Under Construct.

2019

Florida's Tpke

Under Construct.

2020

Oakland Park

Lauderdale Lakes

Sunrise

Under Construct.

2020

U V 817

Broward

Under Construct.

2020

Lauderhill

U V 838

Proposed

2020

16

¨ § ¦ 75

Proposed

2021

Atlantic Oce

Plantation

Proposed

2020

Fort Lauderdale

Proposed

2020

Proposed

4Q2020

Proposed

2Q2020

Proposed

2020

17

Ft Lauderdale/Hollywood Int'l Arpt 24 4 6 13

Weston

Proposed

2020

20

Proposed

2020

Davie

U V 818

Proposed

2020

£ ¤ 441

Under Construct.

2020

U V 817

U V 848

Proposed

2020

West Lake Park

26

j

Proposed

2020

Under Construct.

4Q2019

Under Construct.

4Q2019

I-95 Express Ln

Hollywood

Pembroke Pines

U V 820

¨ § ¦ 95

Proposed

2021

Proposed

3Q2020

25

Proposed

3Q2020

Miramar

Hallandale

Under Construct.

4Q2021

23

Proposed

2020

Under Construct.

2020

U V 821

Under Construct.

3Q2020

Carol City

Proposed

4Q2020

I-95 Express Ln

North Miami Beach

Proposed

4Q2020

Miami Gardens

U V 997

Oleta River State Recreation Area

Under Construct.

4Q2019

j

Proposed

2020

Miami-Dade

Opa-Locka Airport

U V 823

Under Construct.

2019

U V 826

Proposed

2021

North Miami

5 Express Ln

2018-2019 LEASE COMPARABLES

Signing Date Comments

Tenant/Landlord/ Location

Leased SF Rental Rate

Cambria Company / MSG I-595 LLC 3200 SW 30th Avenue Dania Beach Larsen’s Manufacturing Company / Pompano Industrial Ventures 1600 NW 18th Street, Bldg. 7, Pompano Beach Oxford Instruments / Quiet Waters Business Park, LLC 740 S Powerline Road Deerfield Beach ATI Electrical Supply / Pompano Industrial Ventures 1650 NW 18th Street, Bldg 8 Pompano Beach

Term: 86 months Escalations: 3% Free Rent: 2 months TI Allowance: TBD New Lease Term: 86 months Escalations: 3% Free Rent: 2 months TI Allowance: TBD New Lease Term: 63 months Escalations: 3% Free Rent: 3 months TI Allowance: None New Lease Term: 60 months Escalations: 3% Free Rent: None TI Allowance: None New Lease Term: 108 months Escalations: 3% Free Rent: 5 months TI Allowance: $1.00 PSF Renewal Term: 4 months Escalations: N/A Free Rent: None TI Allowance: None Renewal

1

27,379 SF

$9.75 NNN 3Q19

2

17,436 SF

$9.44 NNN 2Q19

3

23,910 SF

$9.00 NNN 2Q19

4

18,950 SF

$8.95 NNN 2Q19

5 GA Telesis / Seagis 3420-3460 NW 53rd Street Fort Lauderdale

56,820 SF

$7.33 NNN 2Q19

6 Hilti, Inc / Prologis 3201 SW 22nd Street, Pembroke Park Event Effects / Pompano Industrial Ventures 1650 NW 18th Street, Suite 805 Building 8, Pompano Beach 7

23,390 SF

$8.75 NNN 2Q19

Term: 120 months Escalations: 3% Free Rent: 2 months TI Allowance: TBD New

37,786 SF

$8.25 NNN 2Q19

Term: 60 months Escalations: 3% Free Rent: None TI Allowance: None New Term: 60 months Escalations: 3% Free Rent: None TI Allowance: None Renewal Term: 130 months Escalations: 2.5% Free Rent: 10 months TI Allowance: $7.00/ SF New

8 Cozzini Bros / OPIC, LLC 3611 NE 5th Avenue Oakland Park

5,520 SF

$9.25 NNN 2Q19

9 Toyota / DRA Advisors, LLC 2200 SW 45th Street Dania Beach

104,688 SF

$7.00 NNN 2Q19

10 UPS / Bridge Development Partners Bridge Point Commerce Center

305,750 SF

$7.05 NNN 2Q19

Empire Delivery / Pompano Industrial Ventures Pompano Center of Commerce II 1600 NW 18th Street, Bldg 7 Pompano Beach

Term: 65 months Escalations: 3% Free Rent: 5 months TI Allowance: TBD New

11

26,605 SF

$8.25 NNN 1Q19

Term: 72 months Escalations: 3% Free Rent: None TI Allowance: $1.00/SF Renewal

12 ThinkPrint / Duke Realty 140 Park Central Blvd S Pompano Beach

20,168 SF

$8.50 NNN 1Q19

Milestone MSP / Pompano Industrial Ventures Pompano Center of Commerce II 1550 NW 18th Street, Bldg 6 Pompano Beach Southern Carlson / MSG Dania Beach 3200 SW 30th Avenue Dania Beach Farco Plastics / Pompano Industrial Ventures Pompano Center of Commerce II 1660 NW 18th Street, Bldg 7 Pompano Beach

Term: 61 months Escalations: 3% Free Rent: 1 month TI Allowance: TBD New

13

14,640 SF

$9.65 NNN 1Q19

Term: 86 months Escalations: 3% Free Rent: 2 months TI Allowance: TBD New

14

27,379 SF

$9.63 NNN 1Q19

Term: 61 months Escalations: 3% Free Rent: 1 month TI Allowance: TBD New

15

17,381 SF

$8.50 NNN 1Q19

Term: 61 months, Escalations: 3% Free Rent: 1 month TI Allowance: $1.00/SF Renewal; space is highly specialized and 100% climate controlled

Propulsion Tech / Heitman Miramar Centre Business Park 15301 SW 29th Street Miramar

16

124,280 SF

$9.40 NNN 1Q19

18 | BROWARD COUNTY

2018-2019 LEASE COMPARABLES

Signing Date Comments

Tenant/Landlord/ Location

Leased SF Rental Rate

Term: 110 months Escalations: 3% Free Rent: 2 months TI Allowance: $4.00/SF Expansion

17 Woodfield / Prologis 750 NW 33rd Street Pompano Beach

25,307 SF

$7.50 NNN 1Q19

Alpha Logistics (MRC Express) / Prologis Seneca Park 900 2751 Commerce Center Way Pembroke Park

Term: 62 months Escalations: 3% Free Rent: 2 months TI Allowance: $19.35/SF New

18

23,250 SF

$8.65 NNN 1Q19

Term: 13 months Escalations: N/A Free Rent: None TI Allowance: None Sublease Term: 60 months Escalations: 2% Free Rent: 1 month TI Allowance: None Renewal Term: 132 months Escalations: 3% Free Rent: 10 months TI Allowance: $13.00/SF New Term: 84 months Escalations: 3% Free Rent: None TI Allowance: $1.00/SF Renewal Term: 62 months Escalations: 3% Free Rent: 2 months TI Allowance: TBD New

19 Southern Carlson / BPI Sports 4140 SW 30th Avenue Hollywood

21,880 SF

$5.00 NNN 1Q19

Coaster Company / Sunbeam Development Corp 10700 Enterprise Way Miramar Park Blue Dog Chemical / Bridge Development Partners 1951 N Powerline Road Pompano Beach

20

250,441 SF

$8.95 Gross 1Q19

21

121,978 SF

$7.75 NNN

1Q19

22 Fairn & Swanson / Prologis 701 NW 33rd Street Pompano Beach

95,940 SF

$6.95 NNN 4Q18

Addvantage Triton 2751 Commerce Center Way Pembroke Park

23

23,304 SF

$8.75 NNN 4Q18

151,000 SF: +/-80,000 of Office & +/-65,000 of Manufacturing

Term: 144 months Escalations: 3% Free Rent: TBD TI Allowance: TBD New

24 Stryker / UBS Realty Investors 3365 Enterprise Avenue Weston

TBD

4Q18

25 Febest Panamerica, LLC / Sills Family 1725 NW 33rd Street Pompano Beach Seal Aftermarket Products / Prologis 2301 SW 32nd Avenue Pembroke Park Pro Customer Solar / TREA Broward 6001 N Hiatus Road Tamarac 28 RMS-FL, LLC / Prologis 751 NE 33rd Street Pompano Beach Grupo Torres / Hudson Group 3313- 3315 SW 11th Ave Fort Lauderale 29 Baker Distributing Co / Prologis 751 NW 33rd St Pompano Beach Restaurant City Florida / Pompano Industrial Ventures 1660 NW 18th Street, Bldg 7 Pompano Beach Gourmet Innovations / Pompano Industrial Ventures 1550 18th Street, Bldg 6 Pompano Beach 32 33 26 27 30 Gemaire Distributors / Prologis 3205 SW 22nd Street Pembroke Park 31

$11.00 Gross

Term: 37 months Escalations: 3% Free Rent: None TI Allowance: None Renewal

12,800 SF

4Q18

Term: 60 months Escalations: 3% Free Rent: None TI Allowance: None Renewal

56,530 SF

$8.40 NNN 4Q18

Term: 74 months Escalations: 3% Free Rent: 2 months TI Allowance: TBD New Term: 60 months Escalations: 3% Free Rent: None TI Allowance: None Renewal Term: 66 months Escalations: 2.5% Free Rent: None TI Allowance: None New Term: 85 months Escalations: 3% Free Rent: 1 month TI Allowance: None Renewal Term: 60 months Escalations: 3% Free Rent: None TI Allowance: None Renewal

12,109 SF

$8.75 NNN 4Q18

11,997 SF

$8.25 NNN 4Q18

$10.00 Gross

10,000 SF

4Q18

25,400 SF

$8.16 NNN

4Q18

24,000 SF

$7.35 NNN

4Q18

Term: 60 months Escalations: 3% Free Rent: None TI Allowance: TBD New

26,099 SF

$9.00 NNN 4Q18

Term: 61 months Escalations: 3% Free Rent: 1 month TI Allowance: TBD New

21,219 SF

$9.50 NNN 4Q18

INDUSTRIAL MARKET REPORT | 19

2018-CURRENT BUILDING SALES BUILDING SALES

Bldg SF / Acrage Sales Price Closing Date

Buyer / Location

Location

City

$2,460,000 ($150.46PSF)

CR Newport Center LLC / MicrimUSA, LLC

1

1191-1199 W Newport Center Dr Deerfield Beach 16,350 SF

08/2019

15701 SW 29th Street 11600 Miramar Parkway 11650 Miramar Parkway 11740 Miramar Parkway 2501 SW 160th Avenue

263,057 SF 186,011 SF 62,008 SF 40,896 SF 55,574 SF

$116,500,000 ($191.75 PSF)

2 Stockbridge / IDI Logistics

Miramar

08/2019

Health Services Inc (HCA) / G&P Enterprises and Health Communications BJM, LLC / A.L. Garey & Associates, Inc. ASB Capital Management / Bridge Riverbend Cabot Properties / Clarion Partners Weston Park of Commerce Bridge Development Partners/ Sherm Realty Corp Brookfield Property Partners / Ivy Capital Partners Gateway Property Holdings / SCC Holdings, LLC Stockbridge Capital Group / Industrial Development Company Exeter Property Group / Unity Real Estate Investments First Industrial Realty Trust / HS-Pompano FL LLC Pompano Cold Storage / Twin Rose Cold Storage CenterPoint Properties / CF Grocery Distribution Prop Mindful Capital group / Deerfield Management Limited Partnership

3201 SW 15th Street 3131 SW 15th Street

84,351 SF 19,600 SF

$12,900,000 ($124.09 PSF) $4,900,000 ($129.06 PSF) $38,220,000 ($172.30 PSF) $63,050,000 ($143.00 PSF) $38,000,000 ($124.82 PSF) $6,030,000 ($124.79 PSF) $36,300,000 ($146.96 PSF) $3,110,000 ($68.40 PSF) $62,250,000 ($140.00 PSF) $15,750,000 ($136.00 PSF) $8,700,000 ($185.00 PSF) $2,850,000 ($132.00 PSF) $95,000,000 ($121.98 PSF)

3

Deerfield Beach

07/2019

4

2640 N Powerline Road

Pompano Beach 37,965 SF on 2 AC

06/2019

5

201 NW 22nd Avenue

Fort Lauderdale 221,815 SF

05/2019

3245 Meridian Parkway 3225 Meridian Parkway

230,976 SF 207,335 SF

6

Weston

03/2019

7

15501 SW 29th Street

Miramar

304,428 SF

02/2019

8

312-384 S Military Trail

Deerfield Beach 48,318 SF

02/2019

9

712 S Military Trail

Deerfield Beach 247,000 SF

01/2019

45,460 SF / 1.93 AC

10

3001 SW 10th Street

Pompano Beach

01/2019

Powerline Business Park 4100 Powerline Road

443,720 SF / 26.4 AC

11

Pompano Beach

01/2019

12

1655 NW 136th Avenue

Sunrise

115,600 SF

12/2018

47,000 SF 8.4 AC 21,535 SF / 2.93 AC

13

1200 NW 15th Street

Pompano Beach

11/2018

14

1258 Hammondville Road

Pompano Beach

10/2018

15

1141 SW 12th Avenue

Pompano Beach 778,816 SF / 51 AC

10/2018

20 | BROWARD COUNTY

£ ¤ 1

South County Regional Park

U V A1A

j

Boca Raton MAP LOCATOR BUILDING SALES ¨ § ¦ 95

Palm Beach

8

Deerfield Beach

9

1

3

e k p T s'

U V 869

11 1

a d ir o lF

U V 834

Coral Springs

Coconut Creek

U V 869

13

Margate

14

£ ¤ 441

Pompano Beach

North Lauderdale

15 10

Tamarac

£ ¤ 27

£ ¤ 27

Florida's Tpke

Oakland Park

Lauderdale Lakes

Sunrise

U V 817

Broward

12

Lauderhill

U V 838

¨ § ¦ 75

5

Atlantic Ocean

Plantation

Fort Lauderdale

6

Weston

Ft Lauderdale/Hollywood Int'l Arpt

Davie

U V 818

£ ¤ 441

U V 817

U V 848

West Lake Park

j

I-95 Express Ln

Hollywood

Pembroke Pines

U V 820

¨ § ¦ 95

2

7

Miramar

Hallandale

U V 821

Carol City

I-95 Express Ln

North Miami Beach

Miami Gardens

U V 997

Oleta River State Recreation Area

j

Miami-Dade

Opa-Locka Airport

U V 823

826

ss Ln

2018 - CURRENT LAND SALES

Buyer / Location

Acreage Sale Price Sale

Date Comments

Link Industrial 1800 SW 13th Court Pompano Beach Bridge Development Partners 5600 Reese Road Davie Exclusive Trim, Inc / Biggie Investments NW 39th Street & NW 126th Avenue Coral Springs

$9,551,000 ($23.83 PSF)

150,00 SF of industrial product to be developed by 2Q20 Zoned RAC-RTE Site plan approved for 677,314 SF for 3 buildings

1

9.2 AC

07/2019

$36,900,000 ($25.47 PSF)

2

33.26 AC

07/2019

$4,595,600 ($14.98 PSF)

117,000 SF user buliding to be developed by 2Q20

3

7.04 AC

06/2019

Zoned B-4 Site plan approved for 55,000 SF small bay warehouse

$2,100,000 ($11.06 PSF)

4 Maher Hanna

06/2019

1200 NW 31st Avenue Pompano Beach 4.36 AC

$3,200,000 ($20.69 PSF) $7,501,000 ($19.70 PSF)

5 Pedowitz Machinery Movers 1951 N Powerline Road Pompano Beach

3.55 AC

06/2019

Zoned I-1

165,000 SF industrial product to be developed in 2020 Zoned BP Has to be de-mucked and filled Sawgrass Expressway visibility Zoned AG; planned for development of a shopping center site

6 Premier Asset Management 3490 SW 26th Terrace Dania Beach

8.74 AC

01/2019

$15,000,000 ($15.41 PSF)

7 Tamarac Industrial Ventures Hiatus & McNab Roads Tamarac

22.35 AC

12/2018

$15,300,000 ($15.64 PSF) $1,200,000 ($27.55 PSF)

8 The Ferber Company

12/2018

NWC Flamingo Rd & Miramar Parkway 22.46 AC

9 Paul Blanchet

1 AC

11/2018

Zoned I-G

2325 SW 66th Terrace Davie

Zoned B-3 Investment sale to be developed into residential

10 Stellar Homes Group 18550 Pines Boulevard Pembroke Pines

6.77 AC

$2,125,000

11/2018

Zoned I-1 Included a 46,690 SF building

First Industrial Realty Trust 1200 NW 15th Street Pompano Beach Scott Daiagi Ansin Boulevard at NW 3rd Street Hallandale Beach

$8,700,000 ($24.00 PSF)

11

8.4 AC

10/2018

$3,100,000 ($25.97 PSF)

12

2.74 AC

07/2018

Zoned B-I

22 | BROWARD COUNTY

Parkland

Deerfield Beach

U V 810

West Dixie Bend

£ ¤ 1

£ ¤ 441

Lakeview MAP LOCATOR LAND SALES

U V 869

Lighthouse Po

3 3

U V 834

Coral Springs

Cresthaven

5

Coconut Creek

4

U V 869

Margate

Harbor Village

11 11

U V 814

Pompano Beach

North Lauderdale

1

7 7

Tamarac

North Andrews Gardens

Florida's Tpke

Oakland Park

Lauderdale Lakes

Sunrise

U V 817

Wilton Manors

Lauderhill

Broward

U V 838

£ ¤ 1

Plantation

Fort Lauderdale

Atlantic Ocean

¨ § ¦ 95

Harbor Beach Harbor Beach

nL s serpx

Weston

U V 823 U V 823

E 59-I

Florida's Tpke

Ft Lauderdale/Hollywood Int'l Arpt

2

9 9

Davie

U V 818

Cooper City

£ ¤ 441

6 6

Dania Beach

U V 817

U V 848

West Lake Park

Southwest Ranches

j

Driftwood Acres

¨ § ¦ 95

10 10

Hollywood

Pembroke Pines

U V 820

¨ § ¦ 75

West Park

8 8

12 12

Miramar

Hallandale

Golden Isles

I-95 Express Ln

Sun Swept Isles

U V 821

Aventura

Prepared by: CHRIS METZGER, SIOR Executive Director +1 954 938 2608 chris.metzger@cushwake.com RICK ETNER, SIOR Executive Director +1 954 938 2607 rick.etner@cushwake.com

CUSHMAN & WAKEFIELD

CHRISTOPHER THOMSON, SIOR Executive Director +1 561 227 2020 christopher.thomson@cushwake.com MATTHEW MCALLISTER Director +1 561 227 2018 matthew.mcallister@cushwake.com

515 E. Las Olas Blvd., Suite 900 Ft. Lauderdale, FL 33301 | USA

225 NE Mizner Boulevard, Suite 300 Boca Raton, FL 33432 | USA

303 Banyan Boulevard, Suite 301 West PalmBeach, FL 33401 | USA

About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

cushmanwakefield.com

©2019 Cushman & Wakefield. The material in this presentation has been prepared solely for information purposes, and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Cushman & Wakefield’s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Cushman & Wakefield. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE INFORMATION CONTAINED WITHIN THIS PRESENTATION, AND CUSHMAN & WAKEFIELD IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS.