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