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

MIAMI BEACH

MIAMI BEACH DIRECT VACANCY (%) 2013 - Q3 2023

Percent

20.0%

SUPPLY HIGHLIGHTS Miami Beach is one of the smaller submarkets in the county with 1.4 msf. Overall vacancy at the end of Q3 was 14.1%, a 130 bps decrease YOY. There are currently two projects underway totaling 110,000 sf in Miami Beach. Eighteen Sunset, a mixed-use property, featuring almost 40,000 sf of office space is slated for completion in Q4 2023 along with The Fifth at 944 5th St, a 70,000-sf class A office building which is set to complete at the end of 2024. Over 40.0% has been preleased and will not have a significant impact on vacancy when added to office supply.

15.0%

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

MIAMI BEACH TOTAL NET ABSORPTION, 2013 - Q3 2023

SF

Miami Beach Class A

110,000

0

788,933

15.8%

15.8%

15,636

$76.64

50,000

25,000

Miami Beach Class B

0

0

605,182

14.1%

14.6%

-909

$72.82

0

Totals

110,000

0

1,394,115

14.1%

14.1%

14,727

$74.31

(25,000)

(50,000)

DEMAND HIGHLIGHTS New leasing activity reached 25,479 sf YTD. This represents an 83.2% decrease in deal activity from the same point last year. Absorption in Q3 for the Miami Beach submarket remained positive at 11,827 sf, continuing the trend for the sixth consecutive quarter with most absorbed space taking place so far during 2023. MIAMI BEACH PRICING HIGHLIGHTS The direct weighted rent average rose slightly with a 0.8% YOY increase to $74.31 psf FSG at the close of Q3. Class A building rents grew YOY by 1.9% to $76.64 psf, while Class B rents remained level ending the quarter at $72.82 psf.

(75,000)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Class A Class B

Class A

Class B

MIAMI BEACH 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 $90.00

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Class A Class B

Class A

Class B

Cushman & Wakefield of Florida, LLC. / 20