NEW-Miami Occupier and Pricing Trends_C&W Q3 2023 RFS
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
0
0
3,078,060 20.8% 20.9% -42,328 $54.16
37.2% 48,398
$73.43
SF
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
0
0
2,783,874 9.5% 10.0% 1,854
$45.28
2.0% -1,463
$49.61
Totals
0
0
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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