3Q 2017 - Miami Occupier and Pricing Trends

EXECUTED LEASES 3Q 2017 % Of Total By Employment Industry

AIRPORT WEST DEMAND HIGHLIGHTS

Average quarterly leasing levels for the three months of 2017 (697,000 SF) were on par with last year’s pace of activity, when just under 1.0 million SF of new, renewal and expansion activity was executed. The bulk of square footage (237,000) signed during the current quarter was for large (20,000+ SF) office users in government, manufacturing and real estate. This included Miami’s largest transaction during all of 2017: 94,000 SF for FEMA, a GSA entity. This submarket offers free and ample parking (3.0 to 5.0 spaces per 1,000 SF), which remains essential to larger office occupiers with a significant daily commuting employee base. As such, 434,000 SF of office tenants are or will be touring here (does not include Amazon’s 500,000 SF requirement). Similar to Coral Gables, requirement sizes were typically larger (20,000+ SF). The total tour pipeline for Airport West was led by occupiers in the media & entertainment, tech and finance sectors. Third quarter leasing at Downtown Doral totaled nearly 50,000 SF, the majority of which were large occupiers. Leases of 20,000 SF each were executed by Florida’s Department of Business Regulations and executive suites provider, Xoffices. Both were renewal and expansion transactions. Two tenants signed third quarter leases at 800 Waterford, TIAA-Allianz’s newest Class A asset. They included FirstBank’s 26,000 SF relocation (from 701 Waterford) and a 10,300 SF lease for Cargil (relocation from Coral Gables). The 246,000 SF building opened this quarter with 41.0% of its space pre-leased. Another 28,000 SF were also executed at the TIAA-Allianz Waterford portfolio. Tenants that renewed included Areas USA (9,900 SF) and TEKsystems (6,000 SF) while one of the largest users, Miami Children's Hospital, expanded by another 9,000 SF. The hospital now occupies 129,000 SF or 8.0% of the entire TIAA-Allianz portfolio’s space. Additional leasing included LEAD Engineering Contractors, a sublease tenant (in Sony space) at the park, who executed a new direct lease for 3,400 SF. Among Waterford’s (MetLife) Class B assets, the 6101 Building renewed Pescatlantic Group (1,000 SF) while the 6303 Building welcomed new user, Conarina Group. Both firms service the maritime industry. At Prudential’s three-building, 364,000 SF Westside Plaza office park, 13,000 SF were executed during the quarter. The largest were International Hotel Group’s 4,400 SF renewal and BenQ Latin America’s 3,500 SF sublease. Flagler Corporate Center, a six-story, 635,000 SF multi-tenant office building is located on 26 acres. The building was originally designed and constructed for Florida Power & Light, who remains as the largest tenant in the building. It is also home to Simply Healthcare, who relocated to Flagler Corporate Center in 2015. At midyear 2017, Simply Healthcare expanded its corporate headquarters by another 24,000 SF – increasing its total occupancy to 107,000 SF. The building’s largest contiguous space available was 17,000 SF on the 5th floor.

AIRPORT WEST Executed Leases, 3Q 2017 % of Total by Employment Industry

4% 3

4%

Government Manufacturing

5%

Real Estate Retail Trade Healthcare Business Services Transportation & Utili Tech

7%

50%

12%

16%

Government

Retail Trade

Transportation & Utilities

Manufacturing

Healthcare Business Services

Technology

Real Estate

Cushman & Wakefield of Florida, Inc. / 48