3Q 2017 - Miami Occupier and Pricing Trends

CORAL GABLES PRICING HIGHLIGHTS

While peak Class A pricing was reached during 2016 ($40.98 PSF), third quarter’s rate was just slightly under at $40.54 PSF. Quarterly Class A rates have remained above the $40.00 PSF mark since 2016. Third quarter Class A quotes in the $42.00 PSF range included 396 Alhambra (for its sublease), 550 Biltmore and BAC Colonnade. 355 Alhambra continued to quote $43.00 PSF for all of its spaces. Higher pricing at the newest building, 2020 Salzedo, remained at $45.00 PSF while 121 Alhambra’s 14th full 23,000 SF floor had a quote of $47.76 PSF – the highest in the market and an increase from midyear’s $46.50 PSF. Also on the higher asking rate range were Two Alhambra ($44.50-$47.50 PSF), Columbus Center ($41.00-$45.00 PSF), 2525 Ponce ($45.03 PSF) and 220 Alhambra ($42.00-$44.00 PSF). Class A quoted rates for 4000 Ponce’s two remaining spaces were up from last quarter’s $37.00-$38.00 PSF to the current $38.00-$39.75 PSF. Unchanged over the quarter, Miami Green’s last space was quoted at $38.00 PSF. The asking rate for the 83,000 SF Bacardi Building sublet remained at $42.00 PSF. Class B buildings reached a decade high quoted average of $35.73 PSF. Direct pricing has increased annually since 2011. Among the highest full service asking rates were at 2121 Ponce ($39.50 PSF) and 95 Merrick ($38.50-$39.50 PSF), representing an increase from midyear. Unchanged during the year, 901 Ponce’s 11,400 SF penthouse remained priced at $37.50 PSF. An asking rate of $36.00 was quoted for 2555 Ponce’s upcoming (2018) full floor availability. Asking rates at the under construction Sunset Office Center ranged from $35.00-$38.00, triple net. Although operating expenses were not yet finalized, look to $15-$16.00 PSF as this will be the first LEED Platinum Class A office building in Coral Gables. On a full service basis, Giralda Place’s new West Tower building quoted $46.00-$48.00 PSF at the close of the quarter.

4000 Ponce

INVESTMENT SALES DURING 3Q 2017

355 Alhambra

No buildings traded during the quarter.

121 Alhambra

550 Biltmore

2020 Salzedo

Two Alhambra

Cushman & Wakefield of Florida, Inc. / 38