3Q 2017 - Miami Occupier and Pricing Trends

DOWNTOWN PRICING HIGHLIGHTS

The last three quarters saw small bumps in Class A asking rates, ending this quarter’s direct quote at $44.83 PSF. The average, however, was down from year-end 2016’s $45.80 PSF. For prime, high floor spaces, one of the highest asking rental rates was $59.00 PSF for the 43rd and 44th floors at Southeast Financial Center. One of only a few remaining CBD penthouse spaces (34th floor) was at Citigroup Center, quoted at $57.00-$67.00 PSF. Miami Tower’s top two floors (46th and 47th) were priced at $51.00-$54.00 PSF while quoted rates for mid-level floors ranged from $46.00 PSF-$49.00 PSF and for lower floors, asking rates ranged from $43.00-$46.00 PSF. Pricing for Wells Fargo Center ranged from $43.00-$48.00 PSF. Third quarter 2017 asking rates at One Biscayne Tower ranged from $38.00-$44.00 PSF while the rental rate range was lower at SunTrust International, with quotes of $36.00-$40.00 PSF for all of its direct spaces. Also experiencing rising vacancy, Class B average rates still reached an annual historic peak this quarter at $27.98 PSF. Average quarterly quotes have stayed above $27.00 PSF since the beginning of 2016. Mirroring their Brickell counterparts, these buildings were surrounded by on- going new and redevelopment activity with accompanying amenities. The renovated 200 Building, located at 200 S.E. 1st Street, had an increase in third quarter quoted rates from $28.00-$34.00 PSF to $30.00 PSF-$34.00 PSF. The 142,000 SF building was purchased last year by New York-based Brickman. New World Tower’s quotes ranged from $34.00-$40.00 PSF. Both of these buildings cater to smaller office users. The Omni’s 130,000 SF availability had their midyear asking rates lowered from $40.00-$44.00 PSF to the current quarter’s range of $30.00-$40.00 PSF. The under construction Two MiamiCentral increased its quotes by $1.00 PSF over the quarter to $43.10 PSF but left intact the $49.10 PSF asking rate at Three MiamiCentral.

Southeast Financial Center

INVESTMENT SALES DURING 3Q 2017

No buildings traded during the quarter.

Citigroup Center

SunTrust International

200 Building

New World Tower

Wells Fargo Center

Cushman & Wakefield of Florida, Inc. / 16