3Q 2017 - Miami Occupier and Pricing Trends

AIRPORT WEST SUPPLY HIGHLIGHTS

AIRPORT WEST DIRECT VACANCY (%) 2007-3Q 2017

AIRPORT WEST Direct Vacancy (%), 2007- 3Q 2017

Airport West remained as Miami’s largest office submarket with 8.8 million SF located in 75 properties. The Class A segment, also Miami’s largest, remained in the single digits in terms of vacancy for over the last 2.0+ years. New delivery of 226,000 SF (800 Waterford) this quarter, however, contributed to a rise - but only to the 10.0% mark. Direct vacancy among Class B buildings historically stayed in the double digits. Third quarter’s 13.9% rate, however, was a much improved statistic over midyear 2012’s near 24.0% rate. The largest direct availability of contiguous office space at third quarter was the entire Doral 107 building for approximately 94,000 SF. The building became fully vacant with Atkins Engineering’s relocation into 26,000 SF at the recently completed 800 Waterford building. Occupancy for the building, however, will be pushed up in the first quarter 2018 as FEMA executed a short term lease this quarter for the entire building. Only one sublet in the submarket was available to accommodate a user of 20,000 SF or greater – a Class A space located at 6505 Waterford. Three of the region’s largest office parks are located here: Waterford, Downtown Doral and The Landing at MIA. The sheer size, leasing volumes and credit tenant base at these parks drove pricing fundamentals. Waterford remained as the largest office park which comprised nearly 3.2 million SF at the close of third quarter. With this quarter’s opening of 800 Waterford, the majority of space was located in 12 Class A buildings which comprised over 2.4 million SF. There were eight Class B building comprised of 751,000 SF. The park has multiple building owners. Seven Class A Waterford buildings, part of the TIAA-Allianz portfolio, comprised 1.6 million SF and were 92.0% leased. The largest contiguous office available at the close of the quarter was 52,000 SF (9th and 10th floors) located in the newly completed 800 Waterford asset. Additional large blocks were being marketed at 5200 Waterford (13,000 SF) and 1000 Waterford (nearly 11,000 SF).

Percent Percent

25.0

20.0

15.0

10.0

5.0

0.0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Class A

Class B Class A Class B

AIRPORT WEST TOTAL NET ABSORPTION, 2007-3Q 2017 AIRPORT WEST Total Net Absorption, 2007-3Q 2017

SF

SF 350,000

250,000

150,000

50,000

-50,000

-150,000

-250,000

-350,000

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Class A Class B

Class A

Class B

OFFICE MARKET STATISTICS | 3Q 2017

AIRPORT WEST AVERAGE DIRECT RENTAL RATES, 2007-3Q 2017

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

Quoted Rate PSF Quoted Rate PSF

YTD Completions

Under Construction

YTD Net Absorption

Average Direct RR PSF Quoted

AIRPORT WEST Average Direct Rental Rates, 2007-2Q 2017

$10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00

Airport West Class A

246,085

150,000 5,075,813 10.0% 10.6% 73,271

$34.11

Airport West Class B

0

0

3,736,733 13.9% 13.9% -14,993

$27.46

Totals

246,085

150,000 8,812,546 11.7% 12.0% 58,278

$30.64

$0.00 $5.00

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, Inc. / 46