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

CBD EXECUTED LEASING ACTIVITY SELECTED TRANSACTIONS, Q2-Q3 2023

CBD OVERVIEW

Submarket

Building Name

Tenant Name

Leased SF

NAICS Description

SUPPLY HIGHLIGHTS Supply barely outpaced demand during Q3 with just over 29,000 sf of negative net absorption experienced in Q3. This slight correction can be attributed to the 39,000 sf of supply returned within the Downtown Miami submarket during the quarter. However, the 39,000 sf of YTD negative absorption for the CBD can be attributed to the 109,000 sf of returned supply from the Brickell Avenue Submarket. Despite this slight correction, the Brickell Avenue corridor still boasts a low 7.5% vacancy rate as tight market conditions remained in Miami’s premier submarket.

Downtown

Wells Fargo Center

Greenberg Traurig, P.A.

128,450

Legal Services

Brickell Avenue 701 Brickell

Holland & Knight LLP

121,032

Legal Services

Downtown

Miami Tower

Quest Workspaces

26,113

Lessors of Real Estate

Downtown

One Biscayne Tower

Foley & Lardner

25,480

Legal Services

Temporary Help Services

Downtown

Miami Tower

TempMee Hygienists

21,126

OFFICE MARKET STATISTICS - Q3 2023

Brickell Avenue Brickell Bay Office Tower

Sidley Austin

18,622

Legal Services

Management, Scientific, and Technical Consulting Services

Average Direct RR PSF Quoted

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Brickell Avenue 1450 Brickell

Balyansy Asset Management

16,400

Downtown

Citigroup Center

15,214

CBD Class A CBD Class B

0

766,155

8,525,731

12.9% 13.2% -5,195

$71.29

Downtown

Museum Tower

LUKS AND SANTANIELLO, LLC

13,637

Legal Services

0

0

4,277,324

17.2% 17.4% -34,501

$47.09

Other Financial Investment Activities

Brickell Avenue 1450 Brickell

Jeffries LLC

12,650

Totals

0

638,355

12,803,055 14.4% 14.6% -39,696

$60.76

Suburban Executed Lease

CBD Executed Lease

Brickell Executed Lease

Downtown Executed Lease

5%

1% 3% 1% 4%

CBD LEASING ACTIVITY BY TENANT INDUSTRY YTD % OF TOTAL SF LEASED BY EMPLOYMENT INDUSTRY

DEMAND HIGHLIGHTS Demand has noticeably slowed as a result from the national economic headwinds experienced throughout the nation. Nearly 100,000 sf of new deals were signed during Q3, combining for more than 451,000 sf YTD of new leasing activity. This was down 58.1% from lease deals reported through Q3 one year ago. Class A space continued to dominate demand with over 82.0% of all deals done being reported in high end office space. PRICING HIGHLIGHTS The CBD’s overall average asking rate continued to climb upward, increasing by 12.3% YOY with both classes of space in the CBD experiencing consecutive growth over the past four quarters. Although market fundamentals have slowed, landlords have yet to concede on asking rents, especially in Class A product and particularly in the Brickell Avenue submarket where the overall average soared 26.5% above from the rate reported one year ago.

20%

Legal

Government

Manufacturing

F.I.R.E.

Business Services

Healthcare

53%

Tech

Construction

13%

Coral Gables Executed Lease Quoted Rate PSF CBD - AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023 Coconut Grove Executed Lease

Airport West Executed Lease

Kendall Executed Lease

$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. / 6