3Q 2017 - Miami Occupier and Pricing Trends

BRICKELL SUPPLY HIGHLIGHTS

BRICKELL DIRECT VACANCY (%) 2007-3Q 2017

Percent P ent

Robust demand fundamentals following new supply deliveries and the end of the Recession resulted in Brickell’s first Class A single-digit (reached this year) direct vacancy rate since 2009. Absorption of supply has been noteworthy with record high vacancy peaking at nearly 27.0% in 2011 and reduced to the current 9.2%. Premier product dominated this submarket on a square footage basis with four new buildings added to its inventory since 2010. In addition to new, modern and amenity-enhanced office product, many existing buildings implemented upgrades and renovations making Brickell one of Miami’s most desirable and competitive locations.

BRICKELL Direct Vacancy (%), 2007-3Q 2017

30.0

25.0

20.0

15.0

10.0

OFFICE MARKET STATISTICS | 3Q 2017

5.0

0.0

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Average Direct RR PSF Quoted

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Class A Class B

Class A

Class B

Brickell Class A Brickell Class B

0

0

4,662,867

9.2%

10.5% 119,184

$52.45

BRICKELL Total Net Absorption, 2007-3Q 2017 BRICKELL OTAL NET ABSORPTION, 2007-3Q 2017

SF

SF

0

0

1,921,991

16.8%

17.9% -10,487

$35.70

-150,000 -100,000 -50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Totals

0

0

6,584,748

11.4% 12.7% 108,697

$45.04

The four newest assets, which delivered a combined 1.5 million SF (2010-2016) boasted impressive occupancy at third quarter 2017: Brickell City Centre’s (2016) two buildings which approached the 90.0% leased mark, Brickell World Plaza (2011) was 90.0% leased and 1450 Brickell (2010) was 96.0% leased. These assets also commanded some of the highest asking rates in Miami. Current Class A vacant sublease space remained in the 48,000-62,000 SF range since 2016, somewhat under the levels posted at the end of the Recession. Factoring in sublets, Brickell’s overall Class A vacancy remained unchanged during 2017 at 10.5%. Only one large contiguous (20,000+ SF) sublet was being marketed at third quarter. Totaling 24,000 SF, the two top floors at Two Brickell City Centre were the last available spaces left. By quarter’s end, leases were out for the balance of the building’s space. Three Brickell City Centre has been fully leased since late 2016. At the trophy 701 Brickell asset, the largest contiguous sublet offering remained on AIG’s 19th floor for 15,000 SF with term through 2025. On a direct basis, 16,700 SF was vacant on the 12th floor while the 25th floor will have 16,570 SF available by first quarter 2018, when Bulltick vacates. The building was 97.0% leased at the end of the quarter. Brickell’s largest contiguous office was nearly 37,000 SF on two high floors at 801 Brickell. A sublease offering with term through 2024, it is the former space for the Royal Bank of Canada’s Swiss private bank. The Class A asset was 96.0% leased.

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Class A

Class B

Class A Class B

BRICKELL AVERAGE DIRECT RENTAL RATES, 2007-3Q 2017

BRICKELL Average Direct Rental Rates, 2007-2Q 2017

Quoted Rate PSF Quoted Rate PSF

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Class A Class B Clas A

Class B

Cushman & Wakefield of Florida, Inc. / 9