3Q 2017 - Miami Occupier and Pricing Trends

AVENTURA DIRECT VACANCY (%) 2007-3Q 2017

AVENTURA SUPPLY HIGHLIGHTS

Percent Percent

AVENTURA Direct Vacancy (%), 2007-3Q 2017

This upscale market is anchored by Aventura Mall, Florida’s largest, and the luxury, 300- Acre Turnberry Isle hotel and golf resort. Nearly all of its inventory is comprised of Class A product centered around these two iconic developments. Supply levels for both Class A and B buildings remained extremely low among this small, nine-building submarket. The current direct Class A vacancy stood at 6.4%. While this was the highest quarterly rate in two years, it was still an impressive decline from the peak rate of 26.4% during 2009.

10.0 15.0 20.0 25.0 30.0

0.0 5.0

OFFICE MARKET STATISTICS | 3Q 2017

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Class A

Class A Class B lass

Total Vacancy %

Average Direct RR PSF Quoted

Existing Inventory SF

Direct Vacancy %

YTD Net Absorption

YTD Completions

Under Construction

Aventura Class A Aventura Class B

AVENTURA TOTAL NET ABSORPTION, 2007-3Q 2017

0

74,336

762,524

6.4% 6.4% -2,446

$48.40

SF S

AVENTURA Total Net Absorption, 2007-3Q 2017

0

0

212,500

4.8% 4.8% -3,100

$40.55

-60,000 -40,000 -20,000 0 20,000 40,000 60,000 80,000

Totals

0

74,336

975,024

6.0% 6.0% -5,546

$46.21

Aventura’s largest contiguous Class A blocks continued to be sublet offerings. This included two separate 18,000 SF and 19,000 SF spaces at Harbour Centre. Located on the 2nd and 6th floors, the sublease terms extend through 2026 and 2020, respectively. The national retailer Fossil’s 11,000 SF, 8th floor space remained available for either sublet (2021 term) or direct in Aventura’s newest (2013) building, Aventura Optima Plaza. This submarket has only two Class B buildings. Aventura View maintained single digit vacancies since 2015. Only a few small spaces were available during 2017 with third quarter’s largest contiguous office totaling 2,800 SF.

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2017

Class A

Class B

Class A

Class B

Unchanged from 2016, Turnberry Plaza, the other Class B competitor remained at or near full occupancy since 2013. The building is situated next door to Aventura View.

AVENTURA AVERAGE DIRECT RENTAL RATES, 2007-3Q 2017

Quoted Rate PSF Qu d Rate PSF

AVENTURA Average Direct Rental Rates, 2007-3Q 2017

Under construction activity included one 74,000 SF competitive for lease office building, Canal Park. Completion was scheduled for year-end 2017. On the office condo front, the 96,000 SF Forum Aventura was also under construction with completion expected by mid-2018. Responding to a lack of available space from a growing healthcare presence and demand from this particular industry, was the proposed ICON Medical Tower, a 124,000 SF medical office condo building.

$50.00

$40.00

$30.00

$20.00

$10.00

$0.00

2007

2008

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2013

2014

2015

2016

2017

Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, Inc. / 26