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

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

0

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%

8%

3%

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

4%

Tech

Business Services

Construction

3%

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