3Q 2017 - Miami Occupier and Pricing Trends

AIRPORT WEST PRICING HIGHLIGHTS

Demand and tour activity fundamentals remained strong as new Class A supply did not put a damper on pricing. The last two quarters remained above $34.00 PSF which was another decade high average. Following suit and on the rise since 2010, Class B quotes also closed out third quarter at a record high average of $27.46 PSF – marking a 22.0% increase. Some of the highest priced Class A offices included One Park Square ($37.25- $37.50 PSF) and 8333 Downtown, Downtown Doral’s newest building ($37.00 PSF – unchanged over the quarter but up from 2016’s average of $34.00 PSF). The park’s four legacy buildings had quotes in the $31.00 PSF range. Quoted rates at Waterford’s 5200 and 703 Buildings remained unchanged over the quarter ($36.00-$37.00 PSF). Also among top tiered pricing was Doral Concourse ($35.50 PSF). Pricing at The Landing at MIA’s was $35.50 PSF for Class A space and $30.50 PSF for the Class B buildings. Third quarter quoted rates were unchanged from midyear but up from first quarter’s $32.00- $35.00 PSF to the current $34.00-$35.00 PSF at Doral Corporate Center. The 800 Waterford project increased its quotes during first quarter 2017 by approximately $0.50 PSF ($34.00 to $38.50 PSF). Opened at third quarter 2017, full service rates (which included an estimated $10.00 PSF for operating expenses) ranged from $35.00-$38.00 PSF. Among the quarter’s highest asking Class B rates were the three MetLife Waterford buildings, where quotes remained unchanged over the quarter at $32.51-$33.41 PSF. Doral Court’s asking rate remained at $31.00 PSF for all of its spaces. All of the Class B offices at The Landing at MIA had quotes of $30.50 PSF. Lennar Corporate Center maintained an average $27.00 PSF asking rate for all of its spaces. 9250 Doral quoted $30.00-$33.00 PSF for its last two remaining spaces. At Flagler Corporate Center, all of the remaining office space was quoted at $29.00 PSF at the close of the quarter.

800 Waterford

Doral Concourse

INVESTMENT SALES DURING 3Q 2017

One Park Square Sale Price: $96,100,000 ($341 PSF)

5040 NW 7th Street On the market for sale Sale Price: $10,900,000 ($132 PSF) Size: 82,763 SF - Class B Class B Seller: Netz USA LLC (Israel based firm)

5835 Blue Lagoon Drive (Waterford Office Park) Sale Price: $10,550,000 ($183 PSF) Size: 57,565 SF - Class B Class B Buyer: Blue Lagoon Investments, LLC. (New York based firm)

Size: 281,785 SF - Class A Class A Buyer: TA Realty

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