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

COCONUT GROVE

COCONUT GROVE DIRECT VACANCY (%) 2013 - Q3 2023

25.0% Percent

20.0%

SUPPLY HIGHLIGHTS At 1.2 msf, Coconut Grove is one of Miami-Dade’s smaller office submarkets. The highly desirable neighborhoods and its central location putting it 10 minutes south of the CBD will continue to be one of Miami’s premier office corridors. Overall vacancy in Coconut Grove increased 130 bps YOY to 6.9% at the close of Q3. Despite the slight market correction, the submarket remained one of the tightest office sectors throughout the county. These tight conditions should hold as no office construction activity is currently underway, keeping new supply at bay.

15.0%

10.0%

5.0%

0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A

Class B

OFFICE MARKET STATISTICS | Q3 2023

COCONUT GROVE TOTAL NET ABSORPTION, 2013 - Q3 2023

YTD Net Absorption

Average Direct RR PSF Quoted

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

SF

Coconut Grove Class A Coconut Grove Class B

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

0

0

626,917

5.0%

5.0%

0

$70.19

0

0

602,953

4.5%

8.9%

-6,623

$42.19

Totals

0

0

1,229,870

4.7%

6.9%

-6,623

$54.41

DEMAND HIGHLIGHTS No leasing activity took place during Q3 as demand came to a standstill. However, over 74,000 sf of new deals were signed in the first half of 2023, bringing YTD transaction activity down by over 51.0% from the deals signed during the same time last year. PRICING HIGHLIGHTS The overall average asking rate rose by 14.4% YOY to $54.41 psf FSG from one year ago as landlords held asking rents level as more available class A space had more of an impact on quarterly average increases. Coconut Grove once boasted the highest Class A average asking rate, but now looks to be an affordable alternative to three of Miami’s submarkets including the Brickell Avenue corridor where asking rents have skyrocketed.

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Class A

Class B

Class A

Class B

COCONUT GROVE 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 $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. / 18