3Q 2017 - Miami Occupier and Pricing Trends
MIAMI SUPPLY HIGHLIGHTS One Suburban building was completed during third quarter (246,000 SF in Airport West) – the first significant new Suburban delivery since 2012. The new building pushed Miami’s total inventory above the 34.0 million SF mark, where nearly two- thirds comprised Class A product. Even with new supply, Class A vacancy stayed in the high 11.0% range during the year, still down by a full percentage point year- over-year. Class B buildings saw vacancy levels rise with the current 15.2% rate the highest posted since 2013’s 17.0%. This quarter’s under construction levels totaled 770,000 SF, of which 50% was pre- leased to date. The bulk or nearly 60.0% will be located in the Suburbs. Proposed competitive office product in the pipeline continued its upward trend, which totaled nearly 2.8 million SF at quarter’s end. The proposed space is almost evenly divided between the CBD and Suburbs, although most projects had no precise construction starts as of this writing.
MIAMI-CLASS A UNDER CONSTRUCTION ACTIVITY HISTORICAL TRENDS, 2007-3Q 2017
MIAMI - Class A Under Construction Activity Historical Trends 2007 - 3Q 2017
SF
SF
1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
Snapshot among prime competitive assets PEAK CONSTRUCTION ACTIVITY, LED BY THE CBD, COINCIDED WITH 2007 RECESSION
0 500,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
MIAMI-NEW CLASS A HISTORICAL DELIVERIES, 2007-3Q 2017
MIAMI-CLASS A UNDER CONSTRUCTION ACTIVITY, 2007-3Q 2017
SF
MIAMI - Class A Under Construction Activity, 3Q 2017 Total SF Under Construction
MIAMI - New Class A Historical Deliveries 2007 - 3Q 2017
SF
SF
SF
350,000
318,000
1,400,000
300,000
1,200,000
451,717
250,000
1,000,000
200,000
800,000
CBD SUBURBAN
150,000
600,000
100,000
400,000
200,000
50,000
0
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Downtown (CBD)
Aventura
Coconut Grove
Coral Gables
Miami Airport
CBD Completions (SF)
SUBURBAN Completions (SF)
Cushman & Wakefield of Florida, Inc. / 4
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