3Q 2017 - Miami Occupier and Pricing Trends

MIAMI BEACH PRICING HIGHLIGHTS

An island off of the mainland of Miami, this submarket has scarce and extremely expensive land for development. It is a top global tourist, shopping and entertainment destination and one of the most dynamic hotel and housing markets in the country. Most of the development is upscale with luxury waterfront condominiums and residential neighborhoods. As such, the office market has some of the highest average rental rates in the market. Both classes of space continued to register peak direct rates at third quarter. For the Class A set, this figure reached $48.65 PSF full service. Not only was this the highest quoted in the entire Suburban market, but the figure represented an 8.9% gain over the end of 2016. As for Class B average rates, this quarter’s $39.76 PSF full service was second-highest in the Suburbs, after Aventura. At the 1111 Building (1111 Lincoln Road), the first quarter 2017 asking rate for the penthouse space was quoted at $51.00 PSF, full service. The rate increased to $55.00 PSF at midyear and remained unchanged during third quarter. This is a small 2,700 SF office. Class A asking rates at 555 Washington were quoted at $45.50 PSF while at Lincoln Place’s only remaining (2,500 SF) space, rates were $42.00 PSF at the end of the quarter. Third quarter rates at 1688 Meridian were increased over the last two quarters on the lower end of the quoting spectrum from $43.00 PSF to the current $44.00 PSF and ranged up to $46.00 PSF.

1674 Meridian

INVESTMENT SALES DURING 3Q 2017

No buildings traded during the quarter.

1688 Meridian

Lincoln Road

Cushman & Wakefield of Florida, Inc. / 54