NEW-Miami Occupier and Pricing Trends_C&W Q3 2023 RFS

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An Overview of Miami CBD & Suburban Office Markets

Q3 2023 cushwakesouthfl.com

Copyright © 2023 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Licensed Real Estate Broker.

TABLE OF CONTENTS

MIAMI OCCUPIER & PRICING TRENDS Q3 2023 cushwakesouthfl.com

Q3 2023

Number of Buildings

Direct Vacant Space

Sublease Vacant Space

Direct Vacant Rate

Overall Vacancy Rate

Y-O-Y % PT. Change

Direct Wtd. Avg. Rental Rate

Overall Wtd. Avg. Rental Rates

Y-O-Y % Change

Y-O-Y Leasing Activity

Y-O-Y % Change

Quarter Overall Net Absorption

YTD Overall Net Absorption

YTD Construction Completions

Under Construction

Inventory

Miami-Dade OVERALL Brickell Avenue

6,351,603

455,974

19,465

7.2%

7.5%

-0.4%

$78.24

$78.02

16.6%

142,583

-81.6%

10,368

-109,415

638,355

Downtown

6,451,452

1,382,240

15,449 34,914 158,879

21.4%

21.7%

-2.7%

$54.62 $60.76 $45.04

$54.58

7.4%

308,679

2.6%

-39,525

69,719

0 0

127,800

Miami CBD

12,803,055 26,955,524

1,838,214

14.4% 15.4%

14.6% 16.0%

-1.7%

$60.68 $44.69

12.3%

451,262

-58.1%

(29,157)

(39,696)

766,155

Miami Non-CBD

256

4,163,462

0.1%

0.4%

1,252,401

-28.6% (26,389)

68,657

46,678

732,650

Wynwood | Midtown | Design District

2,351,957

436,968

7,759

18.6%

18.9%

-4.2%

$66.25

$66.03

0.4%

219,264

-24.5%

52,956

138,218

46,678

509,000

Coral Gables

5,861,934

903,398

18,384

15.4%

15.7%

-1.5%

$50.90

$50.84

2.0%

299,117

-9.6%

-85,659

-40,474

Coconut Grove

1,229,870

58,367

26,554

4.7%

6.9%

1.3%

$54.41

14.4%

74,464

-51.7%

-5,863

-6,623

Miami Beach

1,394,115

196,068

14.1%

-2.3%

$74.31

2.1%

25,479

-83.3%

11,827

14,727

110,000

Airport West

9,660,892

1,893,285

58,559

19.6%

20.2%

1.7%

$38.57

$38.52

4.0%

446,445

-20.5%

-10,689

-17,867

South Dade

2,734,008

337,377

5,853

12.3%

12.6%

3.8%

$41.22

$41.14

7.3%

69,807

-5.4%

-354

-31,700

Miami Lakes

1,445,544

226,988

33,248

15.7%

18.0%

-1.3%

$32.00

$30.15

-4.1%

59,257

170.5%

7,484

2,924

Northeast Dade

1,553,026

73,669

8,522

4.7%

5.3%

-0.2% -5.4%

$51.42

$50.83

0.0%

40,323

-65.3%

-7,707

-6,094

0 0 0

113,650

Coral Way

6 6

397,940

7,636

0 0

1.9%

$33.14

-7.0%

6,630

-75.1%

11,616

14,616

0 0

South Gables/South Miami

326,238

29,706

9.1%

-2.9%

$51.31

2.1%

11,615

-54.6%

930

Overall Totals

293

39,758,579

6,001,676

193,793

15.1%

15.6%

-0.5%

$50.20

$49.85

4.6%

1,703,663

-39.8%

-55,546

28,961

46,678

1,498,855

CLASS A Brickell Avenue

4,011,458

200,118

12,028

5.0%

5.3%

-1.4%

$98.28

26.5%

99,697

-83.6%

7,601

-22,274

638,355

Downtown

4,514,273

902,987

13,061

20.0%

20.3%

-3.4%

$64.94

$64.77

9.1%

271,459

25.7%

-37,068

17,079

127,800

Miami CBD

8,525,731

1,103,105

25,089

12.9%

13.2%

-1.8%

$71.29

$71.10

13.0%

371,156

-55.0%

-29,467

-5,195

766,155

Miami Non-CBD

13,463,508

2,398,187

69,535

17.8%

18.3%

-0.5%

$49.79

$49.45

2.5%

732,860

-29.5%

-64,361

64,063

46,678

403,650

Wynwood | Midtown | Design District

1,104,006

317,277

5,206

28.7%

29.2%

-4.3%

$77.62

15.1%

142,959

-37.5%

37,952

135,930

46,678

180,000

Coral Gables

3,078,060

640,272

3,963

20.8%

20.9%

-0.2%

$54.16

$53.96

0.8%

217,755

6.6%

-83,420

-42,328

26,852

-22.7%

$70.19

0.0%

Coconut Grove

626,917

31,294

5.0%

2.7%

$70.19

Miami Beach

788,933

124,283

15.8%

-3.7%

$76.64

2.2%

16,399

-76.5%

5,418

15,636

110,000

Airport West

5,535,407

1,003,184

50,491

18.1%

19.0%

-0.6%

$40.71

$40.54

6.4%

262,707

-36.5%

-22,581

-32,515

South Dade

863,687

168,427

5,853

19.5%

20.2%

11.8%

$46.63

$14.00

-68.9%

25,532

165.7%

-5,385

-18,524

Miami Lakes

386,785

84,296

21.8%

-4.0%

$33.41

5.9%

31,957

260.6%

5,647

13,967

Northeast Dade

983,595

29,154

4,022

3.0%

3.4%

0.3%

$57.31

$57.03

0.6%

8,699

-86.5%

-1,992

-8,103

113,650

Coral Way

N/A

0.0%

N/A

0.0%

South Gables/South Miami

96,118

0.0%

N/A

0.0%

-100.0%

Class A Totals

115

21,989,239

3,501,292

94,624

15.9%

16.4%

-1.0%

$57.24

$56.85

7.2%

1,104,016

-40.8%

-93,828

58,868

46,678

1,169,805

CLASS B Brickell Avenue

2,340,145

255,856

7,437

10.9%

11.3%

$64.07

$63.89

24.5%

42,886

-74.4%

2,767

-87,141

Downtown

1,937,179

479,253

2,388

24.7%

24.9%

$37.98

3.2%

37,220

-56.2%

-2,457

52,640

Miami CBD

4,277,324

735,109

9,825

17.2%

17.4%

$47.09

$47.11

18.1%

80,106

-68.3%

310

-34,501

Miami Non-CBD

159

13,492,016

1,765,275

89,344

13.1%

13.7%

$39.86

$39.53

3.1%

519,541

-27.3%

37,972

4,594

329,000

Wynwood | Midtown | Design District

1,247,951

119,691

2,553

9.6%

9.8%

$45.22 $45.28 $42.19

$45.04 $45.73 $42.19 $72.82 $36.19 $38.95 $28.74 $46.17 $33.14 $51.31 $41.82

8.6%

76,305 81,362 47,612

23.6%

15,004 -2,239 -5,863 6,409 11,892 5,031 1,837 -5,715 11,616

2,288

0 0 0 0 0 0 0 0 0 0 0

329,000

Coral Gables

2,783,874

263,126

14,421

9.5% 4.5% 11.9% 21.6% 9.0% 13.5%

10.0%

13.3% -0.6%

-35.6% -60.2%

1,854

0 0 0 0 0 0 0 0 0

Coconut Grove Miami Beach Airport West South Dade Miami Lakes Northeast Dade

8 9

602,953

27,073

26,554

8.9%

-6,623

605,182

71,785

11.9%

$72.82

2.3%

9,080

-89.1%

-909

4,125,485 1,870,321 1,058,759 569,431 397,940 230,120 17,769,340

890,101 168,950 142,692

8,068

21.8% 9.0% 16.6%

$36.19 $38.95 $31.24 $47.10 $33.14

3.0% 9.0% -8.4% -1.9% -7.0%

183,738 44,275 27,300 31,624 6,630

24.5% -31.1% 109.3% -39.1% -75.1% -44.2% -38.0%

14,648 -13,176 -11,043 2,009 14,616

27 22

33,248

9 6 4

44,515

4,500

7.8% 1.9%

8.6%

Coral Way

7,636

0 0

1.9%

South Gables/South Miami

29,706

12.9% 14.1%

12.9% 14.6%

$51.31

2.1% 7.6%

11,615

930

599,647

38,282

-29,907

329,000

Class B Totals

178

2,500,384

99,169

$42.09

Note: Cushman & Wakefield is continuously refining its database. Due to adjustments made to the inventory, vacancy & leasing activity which affects absorption, current figures may not match what was published previously. Historical data has been adjusted to take in account these changes. This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Copyright @ 2023 Cushman & Wakefield, Inc. All rights reserved.

Cushman & Wakefield of Florida, LLC. / 3

ECONOMIC INDICATORS 2023 Q3

1.8% 10.1% Miami Unemployment Rate Quarter following shutdown

August 2023 June 2020

HIGHLIGHTS Miami continued its healthy climb into a national player within the office sector as economic fundamentals improved. The county’s unemployment rate fell by 70 basis points year-over-year (YOY) to 1.8% at the close of Q3. Tenant, residential, and tourist retention and attraction is still tracking as Miami’s nonagricultural jobs increased by 37,900 from this time last year. From 2021-2022, Miami recorded the 8th highest net migration in the U.S. and is projected to have healthy net migration through 2027.

SOUTH FLORIDA Hottest Migration Destination Among Top Metros

4 10 of the in the Nation # Top

Current tenants touring for office space totaled nearly 2.7 million square feet (msf) and were led by the following industries:

2023-2026 Forecasted Net Migration

Dallas, TX

542,000 SF Business Services

277,500 SF Financial Services

213,500 SF Legal

Phoenix, AZ

Houston, TX

South Florida, FL

Atlanta, GA

400,000 SF Cruise

274,000 SF Healthcare

144,600 SF Real Estate

Orlando, FL

Austin, TX

Tampa, FL

Charlotte, NC

312,500 SF Tech

269,000 SF Education

100,000 SF Government

Seattle, WA

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Source: Redfin, Bloomberg; Wealthmanagement.com

Source: Cushman & Wakefield Research

Cushman & Wakefield of Florida, LLC. / 1

MARKET HIGHLIGHTS For the second consecutive quarter, the office market saw a slight correction as supply outpaced demand, posting negative absorption of more than 55,000 sf of returned office space to the market in Q3. Despite economic headwinds, year-to-date (YTD) absorption remained in the black with 29,000 sf of absorbed space so far in 2023. Occupancy gains were led by the suburban submarkets with over 68,000 sf of YTD net absorption gains, while Miami’s CBD recorded nearly 40,000 sf of negative net absorption through the close of Q3.

MIAMI CLASS A UNDER CONSTRUCTION ACTIVITY, Q3 2023 SF

700,000

600,000

500,000

400,000

300,000

200,000

100,000

Brickell (CBD)

NE Dade

Biscayne

Miami Beach

SUBURBAN CONSTRUCTION (SF)

CBD CONSTRUCTION (SF)

MIAMI HISTORICAL DELIVERIES, 2013-Q3 2023 SF

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000

MIAMI UNDER CONSTRUCTION HISTORICAL TRENDS, 2013 - Q3 2023

2,500,000

2,000,000

1,500,000

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

1,000,000

A B

500,000

CLASS B

CLASS A

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

CLASS B

CLASS A

Cushman & Wakefield of Florida, LLC. / 2

MARKET HIGHLIGHTS Leasing activity in Q3 remained level from the previous quarter with 471,000 sf of new deals signed, bringing over 1.7 msf of leases signed YTD. Demand has noticeably fallen from the 2.8 msf recorded this time one year ago, as companies ease back from the previous two years’ healthy demand. The flight to quality held with 64.8% of new deals signed in Class A product. The Airport West submarket led the market in deals signed, contributing 26.2% of new leases with Downtown following suit with 18.1% of activity. SUBMARKETS: “HONORABLE MENTIONS” Coral Gables rounded out the top three in leasing activity with nearly 300,000 sf of new deals signed. Although the submarket saw supply outpace demand during Q3, this should be made up in the near future as companies find the suburban submarket an affordable and close location alternative to Miami’s CBD. The Wynwood/Midtown & Design District corridor also appeared to benefit from its close proximity to the CBD as the only other submarket experiencing over 200,000 sf of new deals signed so far in 2023. Notably placing it above the Brickell Avenue Submarket’s 142,000 sf of new leasing activity.

MIAMI DIRECT VACANCY (%), 2013 - Q3 2023

Percent

10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

MIAMI TOTAL NET ABSORPTION, 2013 - Q3 2023

(600,000) (400,000) (200,000) 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

MIAMI LEASING ACTIVITY 2013 - Q3 2023

MIAMI AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

MIAMI LEASING ACTIVITY 2013 - 3Q 2023

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

Quoted Rate PSF

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

0 500,000

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD

Class A

Class B

Class A

Class B

Cushman & Wakefield of Florida, LLC. / 3

MARKET DEVELOPMENTS NEW OFFICE CONSTRUCTION

Cushman & Wakefield of Florida, LLC. / 4

Downtown 68% of CBD Leases

Direct Class A: $71.29 PSF Direct Class B: $47.09 PSF

Year-to-Date Leasing 451K SF

Largest Volume Executed YTD:

CLASS A & CLASS B BUILDINGS 82% % of SF Leased in Class A Buildings

YTD Overall Net Absorption -39,696 SF

14.4% Q3 2023 Direct Vacancy

638,355 SF Under Construction

CBD OVERVIEW

HIGHLIGHTS Most of Miami’s new inventory built since 2010 was in the CBD, increasing Class A product by nearly 2.6 msf over the past 13 years. No new buildings have been delivered since 2018, with only two projects currently under construction combining for over 766,000 sf. This was over 51.0% of the total office space underway throughout the county and over 72.0% preleased, with all of the deals signed taking place in the 638,000 sf at 830 Brickell Avenue project. Notably, Class A inventory’s overall vacancy rate of 12.9% recorded at the close of Q3 matched the previous record low rate recorded in 2020 prior to the impacts of the global pandemic. The affects from COVID-19 caused overall vacancy for trophy properties to peak at 16.6% at midyear 2021. Since then, Miami’s CBD Class A office segment rebounded in force, dropping 370 bps over the past two years and remained well below the 17.8% high recorded in 2013 after the Great Recession. The CBD is well positioned to absorb any increases in added Class A supply from current economic headwinds along with new developments.

Percent CBD - DIRECT VACANCY (%) 2013 - Q3 2023

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

CBD CONSTRUCTION PIPELINE

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Submarket

Address/Building Name

Construction Type Construction Status

Class

Office Sqft

Class A

Class B

Brickell Avenue 830 Brickell Plaza/830 Brickell

Speculative

Under Construction

638,355

Downtown

Offices @ 601

Speculative

Under Construction

127,800

One Brickell City Centre/ One Brickell City Centre

Brickell Avenue

Speculative

Proposed

1,170,000

Brickell Avenue 1201 Brickell Bay Drive/Citadel HQ

Build-To-Suit

Proposed

900,000

Brickell Avenue 848 Brickell Avenue/

Speculative

Proposed

704,000

Downtown

700 N Miami Ave/Miami Worldcenter

Speculative

Proposed

540,000

100 South Biscayne Boulevard/ One Bayfront Plaza ll

Downtown

Speculative

Proposed

537,200

312 S Miami Ave/ MRP Plat 6 Mixed Use Project

Downtown

Speculative

Proposed

462,492

Brickell Avenue 888 Brickell Ave/888 Brickell

Speculative

Proposed

304,950

Cushman & Wakefield of Florida, LLC. / 5

Brickell Avenue 1105-1133 SW 2nd Ave/ 1 Southside Park

Speculative

Proposed

200,000

CBD EXECUTED LEASING ACTIVITY SELECTED TRANSACTIONS, Q2-Q3 2023

CBD OVERVIEW

Submarket

Building Name

Tenant Name

Leased SF

NAICS Description

SUPPLY HIGHLIGHTS Supply barely outpaced demand during Q3 with just over 29,000 sf of negative net absorption experienced in Q3. This slight correction can be attributed to the 39,000 sf of supply returned within the Downtown Miami submarket during the quarter. However, the 39,000 sf of YTD negative absorption for the CBD can be attributed to the 109,000 sf of returned supply from the Brickell Avenue Submarket. Despite this slight correction, the Brickell Avenue corridor still boasts a low 7.5% vacancy rate as tight market conditions remained in Miami’s premier submarket.

Downtown

Wells Fargo Center

Greenberg Traurig, P.A.

128,450

Legal Services

Brickell Avenue 701 Brickell

Holland & Knight LLP

121,032

Legal Services

Downtown

Miami Tower

Quest Workspaces

26,113

Lessors of Real Estate

Downtown

One Biscayne Tower

Foley & Lardner

25,480

Legal Services

Temporary Help Services

Downtown

Miami Tower

TempMee Hygienists

21,126

OFFICE MARKET STATISTICS - Q3 2023

Brickell Avenue Brickell Bay Office Tower

Sidley Austin

18,622

Legal Services

Management, Scientific, and Technical Consulting Services

Average Direct RR PSF Quoted

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Brickell Avenue 1450 Brickell

Balyansy Asset Management

16,400

Downtown

Citigroup Center

15,214

CBD Class A CBD Class B

766,155

8,525,731

12.9% 13.2% -5,195

$71.29

Downtown

Museum Tower

LUKS AND SANTANIELLO, LLC

13,637

Legal Services

4,277,324

17.2% 17.4% -34,501

$47.09

Other Financial Investment Activities

Brickell Avenue 1450 Brickell

Jeffries LLC

12,650

Totals

638,355

12,803,055 14.4% 14.6% -39,696

$60.76

Suburban Executed Lease

CBD Executed Lease

Brickell Executed Lease

Downtown Executed Lease

1% 3% 1% 4%

CBD LEASING ACTIVITY BY TENANT INDUSTRY YTD % OF TOTAL SF LEASED BY EMPLOYMENT INDUSTRY

DEMAND HIGHLIGHTS Demand has noticeably slowed as a result from the national economic headwinds experienced throughout the nation. Nearly 100,000 sf of new deals were signed during Q3, combining for more than 451,000 sf YTD of new leasing activity. This was down 58.1% from lease deals reported through Q3 one year ago. Class A space continued to dominate demand with over 82.0% of all deals done being reported in high end office space. PRICING HIGHLIGHTS The CBD’s overall average asking rate continued to climb upward, increasing by 12.3% YOY with both classes of space in the CBD experiencing consecutive growth over the past four quarters. Although market fundamentals have slowed, landlords have yet to concede on asking rents, especially in Class A product and particularly in the Brickell Avenue submarket where the overall average soared 26.5% above from the rate reported one year ago.

20%

Legal

Government

Manufacturing

F.I.R.E.

Business Services

Healthcare

53%

Tech

Construction

13%

Coral Gables Executed Lease Quoted Rate PSF CBD - AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023 Coconut Grove Executed Lease

Airport West Executed Lease

Kendall Executed Lease

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, LLC. / 6

BRICKELL CBD

BRICKELL DIRECT VACANCY (%), 2013 - Q3 2023

Percent 20.0%

15.0%

SUPPLY HIGHLIGHTS Demand growth continued to ease back, barely outpacing supply during Q3, as year-to-date net absorption remained in the red by nearly 110,000 sf. This can be attributed to the slight reduction in office footprint from existing tenants while other smaller or midsize companies have opted for affordability by relocating to the downtown corridor or close by in nearby suburban submarkets.

10.0%

5.0%

0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

OFFICE MARKET STATISTICS | Q3 2023

Class A

Class B

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Average Direct RR PSF Quoted

BRICKELL TOTAL NET ABSORPTION, 2013 - Q3 2023

Brickell Class A Brickell Class B

638,355

4,011,458

5.0%

5.3%

-22,274

$98.28

300,000

2,340,145

10.9%

11.3%

-87,141

$64.07

200,000

Totals

638,355 6,351,603

7.2%

7.5% -109,415

$78.24

100,000

DEMAND HIGHLIGHTS The submarket experienced a healthy recovery beginning in 2021 with the overall vacancy rate falling well below the 10.0% threshold, signifying tight market conditions. At the close of Q3, the vacancy rate of 7.6% was one of the lowest throughout the state. Leasing activity totaled nearly 150,000 sf through the first three quarters of this year, a noticeable decrease by 81.6% from the new deals reported during the same time one year ago. PRICING HIGHLIGHTS Brickell Avenue’s allure to new companies from outside the market pushed pricing for office space to levels never once thought possible. Deals are being signed well over the $110 psf FSG market and asking rents for premier Class A space are ranging between $150 and $200 psf FSG.

(100,000)

(200,000)

(300,000)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A

Class B

BRICKELL AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

Quoted Rate PSF

Buildings commanding the highest FSG rents included: • 830 Brickell Avenue - $160.00-$200.00 psf • 701 Brickell - $120.00-$140.00 psf • Brickell World Plaza - $100.00-$115.00 psf • 801 Brickell - $90.00-$120.00 psf • Brickell Key Centre I & II - $85.00 - $115.00 psf • 1450 Brickell - $95.00-$110.00 psf

$120.00

$100.00

$80.00

$60.00

$40.00

$20.00

$0.00

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A Class B

Cushman & Wakefield of Florida, LLC. / 7

BRICKELL CBD SURROUNDING AREA OTHER DEVELOPMENT

Residential – Units begin at $2.8 Million 1809 Brickell Avenue ST. REGIS RESIDENCES – BRICKELL (PROPOSED)

VIRGIN HOTELS (UC / 2025 DELIVERY)

Luxury Residential with 80,000 SF of Amenities 1428 Brickell Avenue THE RESIDENCES AT 1428 BRICKELL (PROPOSED / 2027 DELIVERY)

Hotel, Co-Living Units, Music Venue, Spa & Library 1040 S. Miami Avenue

1001 BRICKELL BAY DR - AIMCO (PROPOSED)

$1.0 Billion, 4.0 MSF-Hotel, Office, Residential, Retail & Miami 401 SW 3rd Avenue THE RIVER DISTRICT – CHETRIT & GROOT HOSPITALITY (UC & PROPOSED / 5-7 YEAR BUILD OUT)

Residential – 2.6 MSF, 3 Towers 1420 S Miami Avenue CIPRIANI RESIDENCES MIAMI (PROPOSED)

Mixed-Use, 3 Towers – 3.0 MSF 1001 Brickell Bay Drive

Cushman & Wakefield of Florida, LLC. / 8

DOWNTOWN MIAMI

DOWNTOWN MIAMI DIRECT VACANCY (%) 2013 - Q3 2023

Percent

30.0%

SUPPLY HIGHLIGHTS Overall vacancy was 21.7% at the close of Q3, a 270-bp decrease YOY. This marks the lowest rate seen in the submarket since Q4 of 2020, as Class A space contributed to a 340-bp drop YOY to 20.3% at the close of Q3. New development is coming from mixed-use projects with notable office components. The completion of the Offices @ 601 at Miami World Center will add a 127,600-sf office component on three floors to Miami’s CBD supply.

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

OFFICE MARKET STATISTICS | Q3 2023

Class A

Class B

Class A

Class B

Average Direct RR PSF Quoted

Total Vacancy %

YTD Net Absorption

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Downtown Class A Downtown Class B

DOWNTOWN MIAMI TOTAL NET ABSORPTION, 2013 - Q3 2023

127,800

4,514,273

20.0%

20.3%

17,079

$64.94

SF 150,000

1,937,179

24.7%

24.9%

52,640

$37.98

100,000

Totals

6,451,452

21.4%

21.7%

69,719

$54.62

50,000

DEMAND HIGHLIGHTS The submarket has experienced a strong gentrification push over the past 15 years which has translated into substantial residential growth combined with increased office development and has become a more affordable location for companies wanting a CBD presence. Although supply just outpaced demand during Q3 in Downtown Miami, the submarket posted nearly 70,000 sf of positive net absorption YTD so far in 2023. Over 308,000 sf of new lease deals have taken place YTD Downtown, making it the only submarket to record YOY growth in transaction activity, with an increase by 2.6% from the same time last year. This can be attributed to the 25.7% YOY increase in Class A deals totaling over 271,000 sf. PRICING HIGHLIGHTS Direct rent grew by 7.4% YOY, inching closer to the $55.00 psf FSG mark and remaining an affordable alternative to the rising costs for office space in the Brickell Avenue Submarket. Downtown Miami average rates remained below three key suburban submarkets including Coconut Grove and Miami Beach.

(50,000)

(100,000)

(150,000)

(200,000)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A

Class B

DOWNTOWN MIAMI AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

Quoted Rate PSF

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

Buildings commanding the highest FSG rents included:

• Southeast Financial Center - $55.00 - $90.00 psf • Wells Fargo Center - $55.00 - $70.00 psf • Citigroup Center - $58.00 - $64.00 psf

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, LLC. / 9

DOWNTOWN SURROUNDING AREA OTHER DEVELOPMENTS

LEGACY TOWER HOTEL & RESIDENCES @ MIAMI WORLDCENTER (UC / 2024 DELIVERY)

Residential, Retail & Office 10-City Block, Master Planned Development NW Quadrant of NE 2nd Avenue and NE 10TH Street MIAMI WORLD CENTER (UC & PROPOSED / 2020 / PHASED DELIVERIES)

MANA TECH HUB & FLAGLER ST REDEVELOPMENT (UC & PROPOSED / PHASED DELIVERIES)

Tech Hub/Offices, Food Hall, Retail, Micro Units, Art & Design University & Park Flagler St, SE & SW 1 st Avenues, NW & SW 2 nd Streets & N. Miami Ave

Residential, Hotel, Medical Center, Offices (Adventis Health) & Diagnostic/Health Spa Facilities & Retail / 36 NE 10th Street

I-395 $802 MILLION RECONSTRUCTION PROJECT (UC 4Q 2019 / 2026 DELIVERY)

22 EAST FLAGLER-FORMER BURDINES SITE – AETNA REALTY (PROPOSED)

Residential, Hotel, Retail, Meeting/Convention Space, Co-working, Riverwalk & Public Space | 1.5 MSF | 400 SE 2nd Ave MIAMI RIVERBRIDGE – $1.7 BILLION HYATT & KNIGHT CENTER REDEVELOPMENT (PROPOSED)

Residential, Hotel, Office & Retail 22 East Flagler Street

Signature Bridge over Biscayne Blvd., rebuilding of the I-395 corridor & enhanced streetscape design | I-395 and Biscayne Blvd

Cushman & Wakefield of Florida, LLC. / 10

STRATEGIC MIAMI AREA RAPID TRANSIT (SMART) PLAN This Corridor runs from the Design District/Midtown Miami and Downtown Miami to the Miami Beach Convention Center area. This bold infrastructure program projects:

• Significantly improve transportation mobility

• Promote economic growth and job creation

• Increase region’s international competitiveness

ORLANDO

Connectivity to Fort Lauderdale, Boca Raton, West Palm Beach and Orlando

WEST PALM BEACH

BOCA RATON

FT. LAUDERDALE

AVENTURA

MIAMI

Cushman & Wakefield of Florida, LLC. / 11

Largest Volume Executed YTD: Airport & Coral Gables 72% of Total Leases

Direct Class A: $49.79 PSF Direct Class B: $39.86 PSF

Year-to-Date Leasing 1.0MSF

CLASS A & CLASS B BUILDINGS 71% of SF Leased in Class A Buiding Year-To-Date Leasing

Pre-leased 20% Under Construction Inventory

15.4% Q3 2023 Direct Vacancy

732,65 SF Under Construction

SUBURBAN OVERVIEW

HIGHLIGHTS Adding a breather to supply levels, no buildings have yet to be delivered this year and less than 360,000 SF were under construction at the close of third quarter - with approximately 40% pre-leased. The Suburbs accounted for the lion’s share of Miami’s positive Q3 2023 absorption.

Percent SUBURBAN DIRECT VACANCY (%) 2013 - Q3 2023 25.0%

20.0%

SUBURBAN CONSTRUCTION PIPELINE

15.0%

Construction Type

Construction Status

Submarket

Address/Building Name

Class

Office Sqft

10.0%

Biscayne/Wynwood/ Design District Biscayne/Wynwood/ Design District

95 NW 29th St /Wynwood Plaza

Speculative Under Construction

266,000

5.0%

30 NE 39th Street/The Ursa

Speculative Under Construction

180,000

0.0%

Northeast Dade

3050 Aventura Blvd/[Old Safra Bank]

Speculative Under Construction

113,650

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Miami Beach

944 5th St/The Fifth

Speculative Under Construction

70,000

Biscayne/Wynwood/ Design District

2150 N Miami Ave/WNWD 21

Speculative Under Construction

63,000

Class A

Class B

Class A

Class B

Miami Beach

1752 Bay Rd/Eighteen Sunset

Speculative Under Construction

40,000

Biscayne/Wynwood/ Design District Biscayne/Wynwood/ Design District Biscayne/Wynwood/ Design District Biscayne/Wynwood/ Design District Biscayne/Wynwood/ Design District Northeast Dade

6001 NE 2nd Ave/ Magic City Innovation District

Speculative

Proposed

585,000

4201 NE 2nd Ave/Parterre 42

Speculative

Proposed

320,000

2750 NE 199th Street/Two Turnberry

Speculative

Proposed

220,000

2701 NW 5th Ave/LYNQ Wynwood - South Building

Speculative

Proposed

209,000

2600 Biscayne Boulevard/ 2600 Biscayne Boulevard

Speculative

Proposed

160,000

2703 NW 5th Avenue/ LYNQ Wynwood-North Building 120 MacArthur Cswy Block-B/ One Island Park Block-B

Speculative

Proposed

153,964

Miami Beach

Speculative

Proposed

132,522

Biscayne/Wynwood/ Design District

390 NW 25th St/ CORE Wynwood

Speculative

Proposed

123,206

Miami Beach

1680 Alton Road/The Alton

Speculative

Proposed

89,610

Biscayne/Wynwood/ Design District

2400-2500 N Miami Ave /LIVWRK Wynwood Office

Speculative

Proposed

88,518

Miami Lakes

14800 Oak Ln/Bob Graham Office Building

Build-To-Suit

Proposed

82,903

Cushman & Wakefield of Florida, LLC. / 12

Coconut Grove

3120 Commodore Plaza/Urbin Coconut Grove Work

Speculative

Proposed

60,000

SUBURBAN EXECUTED LEASING ACTIVITY SELECTED TRANSACTIONS, Q2-Q3 2023

SUBURBAN OVERVIEW

Total SF Leased

Submarket

Building

Tenant

Business Sector

SUPPLY HIGHLIGHTS No major suburban office buildings have yet to deliver in 2023, with one small 46,000-sf completion in the Wynwood, Design District & Midtown submarket. This has limited any significant increases in vacancy, with the suburban office sector seeing a miniscule 10-bp YOY increase to 16.0%. For most suburban submarkets, supply and demand remained balanced throughout the year. Over 732,000 sf was under construction at the close of Q3 - with nearly 30.0% already spoken for. Approximately 70.0% of new office development in the suburban area fell within the Wynwood, Design District & Midtown submarket. Despite the slowdown in market fundamentals, projects expected to deliver over the next 24 months should not have a significant impact on increased vacancy.

Airport West

The Current

Simply Healthcare

54,755

Insurance Carriers

Biscayne/Wynwood/ Design District

Performing Arts Companies

545Wyn

Sony Music

44,742

Biscayne/Wynwood/ Design District

Other Financial Investment Activities

545Wyn

Miami Exchange

38,409

BIOTISSUE HOLDINGS INC., f/k/a Tissuetech, Inc.

Specialized Design Services

Airport West

The Landing - Bldg 8

34,831

Coral Gables

Colonnade Office Tower

Ryder System

33,798

General Freight Trucking

Architectural, Engineering, and Related Services

Airport West

6101 Waterford

Pike Engineering

23,357

OFFICE MARKET STATISTICS | Q3 2023

Coral Gables

Alhambra Towers

21,834

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Average Direct RR PSF Quoted

Coral Gables

The Plaza Coral Gables - North Tower Hinshaw & Culbertson LLP

21,376

Legal Services

Suburban Class A Suburban Class B

46,678

403,650 13,463,508

17.8% 18.3% 64,063

$49.79

Airport West

1000 Waterford

United Health

19,149

Insurance Carriers

329,000 13,492,016

13.1% 13.7% 4,594

$39.86

Advertising, Public Relations, and Related Services

Coconut Grove

First Citizens Bank Tower

Alma DDB

17,945

Totals

46,678

732,650 26,955,524 15.4% 16.0% 68,657

$45.04

Suburban Executed Lease

CBD Executed Lease

Brickell Executed Lease

Downtown Executed Lease

Aventura Executed Lease

3% 4%

SUBURBAN LEASING ACTIVITY BY TENANT INDUSTRY YTD % OF TOTAL SF LEASED BY EMPLOYMENT INDUSTRY

DEMAND HIGHLIGHTS 2023 marked a shift in demand from the CBD back to suburban submarkets where over 68,000 sf of net occupancy gains were recorded so far for the year. Over 93.0% of this came from Class A space as the flight to quality still held throughout the market. Class B inventory continued to see more of a balance between demand and supply with a modest 4,500 sf of positive net absorption. Nearly 375,000 sf of new deals were signed during Q3, combining for more than 1.2 msf YTD of new leasing activity through the first three quarters. This was down 28.6% from lease deals reported through Q3 one year ago. Class A space continued to dominate demand with over 58.5% of all deals done being reported in high-end suburban office space. Three submarkets surpassed the 200,000-sf mark with Airport West leading the charge with more than 35.6% of Miami market deals. PRICING HIGHLIGHTS The suburbs’ direct average asking rate growth has slowed, increasing by 40 bps YOY to $44.69 psf FSG with both classes of space experiencing modest growth over the past four quarters. Landlords have yet to concede on asking rents, but have lessened quarterly rate hikes in the suburban submarkets. Class A product increased 2.5% YOY to just under the $50.00 psf FSG mark while Class B space recorded a more improved 3.1% YOY increase to $39.53 psf FSG. Asking rents will likely see milder increases over the next 12 to 18 months. Coral Gables Executed Lease Coconut Grove Executed Lease

17%

22%

Hospitality & Leisure

F.I.R.E

Healthcare

Manufacturing

Legal

Government

Tech

Business Services

Construction

36%

Airport West Executed Lease Quoted Rate PSF SUBURBAN - AVERAGE DIRECT RENTAL RATES, 2013 - Q3 Miami Beach Executed Lease

Kendall Executed Lease

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

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A Class B

Cushman & Wakefield of Florida, LLC. / 13

WYNWOOD / BISCAYNE / DESIGN DISTRICT

WYNWOOD / BISCAYNE / DESIGN DISTRICT DIRECT VACANCY (%) 2019 - Q3 2023

Percent

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0%

SUPPLY HIGHLIGHTS Over 900,000 sf has delivered since 2019 with most of the new product developed within the Wynwood corridor. This was the contributing factor to the Class A segment’s overall vacancy peaking to nearly 50.0% during 2021. The submarket, once known as the Biscayne Submarket, covers an area just North of Downtown Miami up through NE 46th St. between Biscayne Blvd. and west to Interstate 95, making it easily accessible. It is considered Miami’s newest office submarket and is comprised of just over 2.3 msf of office inventory and another half-million sf under construction. The smaller inventory set is prone to significant fluctuations as it develops into a key suburban submarket.

0.0% 5.0%

2019

2020

2021

2022

2023

OFFICE MARKET STATISTICS | Q3 2023

Class A

Class B

Class A Class B

Average Direct RR PSF Quoted

Total Vacancy %

YTD Net Absorption

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

WYNWOOD / BISCAYNE / DESIGN DISTRICT TOTAL NET ABSORPTION, 2019 - Q3 2023

Wynwood / Biscayne Design District Class A Wynwood / Biscayne Design District Class B

46,678

180,000

1,104,006

28.7%

29.2% 135,930

$77.62

(100,000) (50,000) 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

329,000

1,247,951

9.6%

9.8%

2,288

$45.22

Totals

46,678

509,000 2,351,957

18.6%

18.9% 138,218

$66.25

PRICING HIGHLIGHTS Direct rent growth slowed significantly with a 40 bps YOY increase to $66.25 psf FSG. This can be attributed to slight increases in quarterly rates within newly built Class A space. Notably, the average rates come in higher than the CBD’s downtown Miami corridor and will likely remain so even as more space becomes leased in higher-end office buildings, asking rents in lower-tier Class B buildings should have more of an impact to weighted averages. DEMAND HIGHLIGHTS Since the majority of new office product came online during the peak of the pandemic, higher-end office space has steadily declined to just under the 30.0% threshold as companies look to the submarket as a trendy alternative to Miami’s CBD. Overall vacancy decreased 420 bps YOY to 18.9%, with Class A vacant space falling by 4.3% from the close of Q3 one year ago. This marked the steepest dip out of all Miami’s key office submarkets. Leasing activity totaled over 219,000 sf YTD, placing the submarket fourth in deal activity and just above the Brickell Avenue submarket.

2019

2020

2021

2022

2023

Class A

Class B

Class A Class B

WYNWOOD / BISCAYNE / DESIGN DISTRICTAVERAGE DIRECT RENTAL RATES, 2019 - Q3 2023

Quoted Rate PSF

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00

2019

2020

2021

2022

2023

Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, LLC. / 14

WYNWOOD / BISCAYNE / DESIGN DISTRICT SURROUNDING AREA OTHER DEVELOPMENTS

AMLI WYNWOOD (UC / 2024 DELIVERY)

PARTERRE 42 - HELM EQUITIES & GINDI (PROPOSED)

SOCIETY WYNWOOD - PMG (UC / 2023 DELIVERY)

Residential, Retail & Green Space 70 NW 25th Street

$300 Million Office, Private Terraces, Event Space & Retail 4201 NE 2nd Avenue

Residential & Retail 2431 NW 2nd Avenue

THE URSA - DACRA, L CATTERTON & BROOKFIELD (UC / 2024 DELIVERY)

DIESEL - WYNWOOD QUARTER (6-PHASED DEVELOPMENT PROPOSED)

Hotel, Residential & Retail 176 NW 28th Street KRYMWOOD HOTEL (PROPOSED)

Office, Retail, Rooftop Deck & Biscayne Bay Views 30 NE 39th Street

Residential & Retail - World's 1st Diesel-Branded Residential Building 115-139 NW 28th Street (plus multiple sites)

Cushman & Wakefield of Florida, LLC. / 15

CORAL GABLES

CORAL GABLES DIRECT VACANCY (%) 2013 - Q3 2023

Percent

25.0%

SUPPLY HIGHLIGHTS The submarket experienced a slight correction during Q3 with supply outpacing demand causing a net absorption loss of 85,659 sf. The majority of that space came from 1 Alhambra as the 6th, 7th and 8th floors were vacated respectively by Apple, Yahoo, and KIPU Health. Despite this, overall vacancy fell 30 bps from one year ago to land at 15.9%. Class A overall vacant space decreased YOY by 20 bps to 21.2% as occupations of new office inventory in the first half of the year helped keep occupancy in the black.

20.0%

15.0%

10.0%

5.0%

0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

OFFICE MARKET STATISTICS | Q3 2023

Class A

Class B

Class A

Class B

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

Direct Wtg. Avg. Rental Rates

Total Vacancy %

YTD Net Absorption

Average Direct RR PSF Quoted

YTD Completions

Under Construction

YTD Net

CORAL GABLES TOTAL NET ABSORPTION, 2013 - Q3 2023

Coral Gables Class A

3,078,060 20.8% 20.9% -42,328 $54.16

37.2% 48,398

$73.43

Coral Gables Class B

(250,000) (200,000) (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 200,000 250,000

2,783,874 9.5% 10.0% 1,854

$45.28

2.0% -1,463

$49.61

Totals

5,861,934 15.4% 15.7% -40,474 $50.90

28.4% 46,935

$72.91

DEMAND HIGHLIGHTS Although supply outpaced demand to the recorded negative net absorption of -42,238 sf YTD, Ryder’s move-in of 33,798-sf at 2333 Ponce at the close of 2023 should offset some of the Q3 losses. Nearly 300,000 sf of new deals were signed YTD, a 9.6% dip from leasing activity signed through Q3 one year ago but marking Coral Gables as one of three submarkets that experienced only a slight drop versus more than 25.0%. PRICING HIGHLIGHTS Asking rent average growth slowed from the previous YOY increases as no new deliveries came online to drive rents upward, allowing lower-tier Class A and Class B space to have more of an impact. The Class A direct weighted average rose a moderate 1.9% YOY to push past the $54.00 psf FSG mark, while the Class B segment saw a stronger increase of 13.3% to over $45.00 psf.

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A

Class B

CORAL GABLES AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

Quoted Rate PSF

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

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Class A

Class B

Class A Class B

Cushman & Wakefield of Florida, LLC. / 16

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