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

SOUTH DADE

SOUTH DADE DIRECT VACANCY (%), 2013 - Q3 2023

Percent 25.0%

20.0%

SUPPLY HIGHLIGHTS The South Dade/Kendall office region consists of 33 buildings totaling over 2.7 msf, dominated by lower-tier Class B space and five Class A buildings making up 864,000 sf of the overall market. The core of office product falls within the Dadeland area near the Palmetto Expressway and US1 totaling 1.4 msf. Overall vacancy rose 380 bps up to 12.6% YOY, showing that South Dade recorded the largest percentage growth increase in vacancy compared to inventory. This can be attributed to the downsizing and office closures of insurance companies in Class A space, as vacancy in higher-end space jumped from 7.4% in 2021 to over 20.0% at the close of Q3.

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

SOUTH DADE TOTAL NET ABSORPTION, 2013 - Q3 2023

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Direct Wtg. Avg. Rental Rates

SF 25,000 50,000 75,000 100,000 (100,000) (75,000) (50,000) (25,000) 0

South Dade Class A

0

0

863,687

19.5% 20.2% -18,524

$46.63

South Dade Class B

0

0

1,870,321

9.0%

9.0%

-13,176

$38.95

Totals

0

0

2,734,008 12.3% 12.6% -31,700

$41.22

DEMAND HIGHLIGHTS South Dade usually experiences slight quarterly fluctuations between supply and demand, with 31,700 sf of YTD negative net absorption. However, smaller move-ins combined with Allied Inspection occupying 6,000 sf in Palmetto Bay during Q3 gave a more balanced approach to the move-outs which occurred. Nearly 70,000 sf of new deals were signed so far in 2023, only a 5.4% decrease from the demand reported one year. PRICING HIGHLIGHTS Despite market corrections over the past two years, South Dade’s direct asking average rates rose 4.1% YOY, increasing to $41.22 psf. While class A product only inched up 3.7% YOY, class B product rose 4.0% YOY because there were increased options available in lower-tier space.

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Class A

Class B

Class A

Class B

SOUTH DADE AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

Quoted Rate PSF

$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Class A

Class B

Class A Class B

Cushman & Wakefield of Florida, LLC. / 26