3Q 2017 - Miami Occupier and Pricing Trends

SUBURBAN HIGHLIGHTS Class A direct vacancy remained in the single digits since third quarter 2016. This was largely due to lower historical construction levels and strong positive absorption performance from 2010, which exceeded 1.9 million SF to the present. Peaking at 19.4% in 2010, current direct vacancy declined to 9.9%. Most of Miami’s office product currently under construction at third quarter was located in Suburban submarkets. At less than 500,000 SF (with 40.0% pre-leased), this is not a noteworthy amount of new inventory in a 12.0 million SF Suburban Class A market. Suburban Class B vacancy continued to stay in the double digits and at 13.3%, was up by almost 1.0 percentage point from year-end 2016.

11.2% 3Q 2017 vacancy

MARKET STATISTICS | 3Q 2017

Average Direct RR PSF Quoted

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

451,717 SF Under Construction | Class A

$37.39

Suburban Class A

246,085

451,717

11,826,588

9.6%

9.9%

241,787

$29.50

Suburban Class B

0

0

9,113,643

13.3%

13.4%

-75,713

$33.35

Totals

246,085

451,717

20,940,231

11.2%

11.4%

166,074

40% Pre-leased New Inventory

SUBURBAN EXECUTED LEASING ACTIVITY | SELECTED TRANSACTIONS, 3Q 2017

SUBURBAN HIGHLIGHTS Submarket Building Airport West Doral 107 Airport West Waterford Airport West Downtown Doral Airport West Downtown Doral Coral Gables 150 Alhambra Coconut Grove SBS Biscayne Bank Tower Coral Gables 2800 Ponce Coral Gables BAC Colonnade Coral Gables Two Alhambra Miami Lakes Lakes Plaza Airport West Waterford Coral Gables 2525 Ponce Coral Gables 201 Alhambra Airport West Waterford Coral Gables 201 Alhambra Airport West Waterford

Tenant

Total SF Leased

Business Sector

FEMA (GSA)

94,000

Government

CLASS A & CLASS B Buildings Executed transactions evenly divided during 3Q

FirstBank (Puerto Rico)

26,000

Banking

Dept. of Business Regulations

20,000

Government

Xoffices

20,000

Real Estate

1.5 MSF

Year-to-date leasing with nearly

Capital Bank

16,000

Banking

75% in Class A Deals

Ritz-Carlton Yacht Collection

14,000

Leisure & Hospitality

Perkins + Will

13,700

Real Estate

ALPS Alternative Investment

13,200

Financial Services

Dominant existing Class A tenant base: Financial Services & Law Firms

42%

Berk, Merchant & Sims Law Firm

12,000

Law Firm

NSI Insurance

11,000

Financial Services

Cargill Inc.

10,300

Manufacturing

Cargill Inc.

10,000

Manufacturing

USIA

10,000

Government

Class B marked consistent annual gains since 2013

$29.50 PSF Record High Avg. Quote

Areas USA

9,900

Retail Trade

Taylor & Espino Law Firm

9,800

Law Firm

Miami Children's Hospital

9,000

Healthcare

Cushman & Wakefield of Florida, Inc. / 24