Why Florida

FLORIDA Why

DYNAMIC TRENDS DRIVING GROWTH Q1 2024

FLORIDA Why

AN INTERACTIVE LOOK AT DYNAMIC TRENDS DRIVING GROWTH

Its unique blend of a diverse economy, business-friendly policies, access to talent, and strategic location as a gateway to the Americas and Caribbean has proven Florida is a place where you can thrive both personally and professionally.

Florida is projected to surpass 23.0 million residents before the end of this decade.

Florida has led the country in new business formations with more than 1.7 million created since January 2020 – over one-third of those being launched in 2022.

In the past ten years, Florida's population increased by nearly 2.6 million people, growing nearly 14.0% to over 22.8 million residents.

Florida currently ranks as the nation's 3rd most populated state growing 6.4% since 2020.

The state's ports and strong ties to the Latin Americas and Caribbean have propelled Florida into a global player in the logistics and distribution, e-commerce and supply-chain industry segments.

Contents

MARKETBEAT

Office Q4 2022 Broward County

17.5% Vacancy Rate -42K YTD Net Absorption,SF $37.83 Asking Rent,PSF (Overall, All PropertyClasses) Absorption number is not reflective of U.S. MarketBeat YoY Chg

12-Mo. Forecast

ECONOMY The Broward County unemployment rate was 2.5% in November 2022, 100 basis points (bps) lower than one year ago. Nonagricultural employment totaled 905,200, an increase of 36,300 jobs year-over-year (YOY). Office-using employment including Professional & Business Services, Financial Activities, and Information had a combined increase of 8,800 jobs in the last 12 months. Broward County ranked third among all Florida markets in annual office-use job growth. SUPPLY Broward County’s overall vacancy rose 30 bps from the previous quarter and 50 bps YOY to 17.5%. This marks the third consecutive quarter of vacancy increases. Class A and B vacancies rose to 18.4% and 15.6% respectively, on par with each clas s’s peak vacancy rate during the pandemic. The increase in vacancy can be contributed to the completion of construction on the Optima Onyx Tower, which brought 277,000 square feet (sf) of available space to the market, and large tenant vacancies. Humana vacated over 120,000 sf of space in the Southwest Broward submarket during the second half of 2022 while MCNA Dental vacated 81,600 sf of space in Cypress Creek at year-end. DEMAND Year-to-date (YTD) leasing activity remained healthy for 2022 despite concerns of inflation and an economic recession, down just 1.9% from last year’s post -recession high. The Central Business District (CBD) continued to show positive market indicators with 136,298 sf of positive annual absorption, bringing the overall vacancy rate down 380 bps from one year ago. Solid activity in both the CBD and Plantation submarkets helped demand outweigh supply for much of 2022. However, negative absorption during the fourth quarter pushed the yearly number into the red by just over 42,000 square feet, a slight hiccup for the market but not at levels to raise concern. MARKET PRICING Overall asking rents began to show signs of leveling, ending the year at $37.83 per square foot (psf) full service, but a 4.1% YOY increase highlights rents continuing the trajectory upward to new record highs. Asking rates in the CBD continued to be the driving factor, finishing the year at $46.30 psf, on par with averages from the previous two quarters. The depletion of higher-tier Class A office availability impacted asking averages as lower-tier availability had more of an impact on overall rates. Uncertainty in the economy and growing sublease space could see rents continue to hold level through 2023, especially in the suburban submarkets.

SELECT A TOPIC TO NAVIGATE SECTIONS

ECONOMIC INDICATORS Q4 2022

905K Broward County Employment

YoY

Chg

12-Mo. Forecast

2.5% Broward County Unemployment Rate

3.7% Related Insights Cushman & Wakefield Research reports analyze economic and commercial real estate activity including supply, demand and pricing trends at the statewide, market and submarket levels. U.S. Unemployment Rate Source:BLS, FL Dept. Economic OPP -800 -600 -400 Thousands -200 0 200 400 600 800 2019 2020 2021 YTD 2022 Net Absorption, SF Construction Completions, SF $25 $27 $29 $31 $33 $35 $37 $39 2019 SPACE DEMAND /DELIVERIES

CLICKING THE HOME ICON WILL TAKE YOU BACK TO THE TABLE OF CONTENTS

OVERALL VACANCY & ASKINGRENT

20%

16%

12%

2020

8%

2021

Asking Rent, $ PSF

4%

2022

0%

Vacancy Rate

Florida Snapshot

About Florida

Capital Tallahassee

JACKSONVILLE

OUTER JACKSONVILLE

Nickname Sunshine State

OCALA

GDP: $1.6T

ORLANDO

State Tree Sabal Palm

SPACE COAST

TAMPA

State Flower Orange Blossom

#7 Best Economy IN 2023 BY GDP GROWTH #6 Largest Foreign Tradezone Network IN THE UNITED STATES #3 Largest Workforce IN THE UNITED STATES #8 Overall Job Growth IN THE UNITED STATES

SARASOTA

67 Counties

PALM BEACH BOCA RATON FT LAUDERDALE

FORT MYERS

NAPLES

27 th State ADMITTED MARCH 3, 1845

MIAMI

State Bird Mockingbird

EMERGING MARKETS MAJOR MARKETS

Cushman & Wakefield | Why Florida

Florida Migration

Historic Population

Net Migration PER THOUSAND

Projected Growth

23M

25M

22.6M

400

24.3M

22M

373

24M

300

21M

263

20.1M

200

23M

20M

22.6M

100

19M

22M

18M

0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2023

2024

2025

2026

2027

2028

2029

2030

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

TOP 10 STATES BY NUMERIC GROWTH 2022 — 2023

473.5k

Texas Florida North Carolina Georgia South Carolina Tennessee

373.1k

139.5k

116.1k

90.6k

77.5k

65.7k

Arizona Virginia Colorado Utah

36.6k 36.6k 36.5k

0

100k

200k

300k

400k

500k

Cushman & Wakefield | Why Florida

Education

OF THE 25+ YEAR OLD POPULATION

Florida Education Attainment Breakdown

Higher Ed Attainment 100% = All People with an Associate Degree or Higher

90 34

% Have a High School Diploma or Higher

34%

3%

6%

20%

U.S. Census Bureau

48%

% Have a Bachelor's Degree or Higher

28%

U.S. Census Bureau

28%

23%

ACADEMIC YEAR 2022 – 2023

180 Four Year Colleges

85 Community Colleges

134 Trade/Vocational Schools

9%

1%

Bachelor's Degree or Higher

Doctorate Degree

Bachelor's Degree

Less Than High School

Some College or Associate High School or GED

No Schooling

Professional School Degree

Associate Degree

Univstats.com

Master's Degree

# 1

In Higher Education

FLORIDA

Univstats.com 1.1M Total Student Population

RANKS

Univstats.com

Cushman & Wakefield | Why Florida

Competitive Advantage

Cost of Living Comparison

Labor Pool & Talent

Sum of Cost Index

FLORIDA RANKED THIRD-LARGEST IN WORKFORCE BY YEAR END 2022, FLORIDA BEAT OUT NEW YORK IN TOTAL EMPLOYMENT FOR THE FIRST TIME IN HISTORY.

193.3 HIGHEST COST OF LIVING

100.3

FLORIDA

83.3 LOWEST COST OF LIVING

Business Environment

#4 BEST BUSINESS TAX CLIMATE

#1 BEST STATE BUSINESS ENVIRONMENT

% Change in Job Growth 2022 – 2023

#2 BEST STATE TO START A BUSINESS IN THE U.S.

PRO-BUSINESS LOCAL & STATE GOVERNMENT

6 %

5 %

4.9 %

Work/Life Balance

4 %

81° AVG HIGH 60° AVG LOW

NO STATE OR LOCAL PERSONAL INCOME TAX LOW PROPERTY TAXES COMPARED TO NORTH 12 MAJOR LEAGUE SPORTS TEAMS

3 %

2 %

1 %

0 %

NEVADA

TEXAS

FLORIDA

WASHINGTON HAWAII

TENNESSEE

OREGON

NEW YORK

NORTH CAROLINA NEW JERSEY

CALIFORNIA KANSAS

GEORGIA

ARKANSAS

SOUTH CAROLINA

PENNSYLVANIA

MASSACHUSETTS ARIZONA

NEW MEXICO IDAHO

ALASKA

VIRGINIA

OKLAHOMA

MONTANA

MISSOURI UTAH

NEW HAMPSHIRE DELAWARE ILLINOIS

INDIANA

MINNESOTA

SOUTH DAKOTA MAINE

ALABAMA IOWA

NEBRASKA

MICHIGAN

KENTUCKY

NORTH DAKOTA

CONNECTICUT WYOMING

COLORADO

LOUISIANA

VERMONT

WISCONSIN

MISSISSIPPI

RHODE ISLAND

DISTRICT OF COLUMBIA OHIO MARYLAND WV

Cushman & Wakefield | Why Florida

U.S. Bureau of Labor Statistics

Leisure & Hospitality

IN 2023, FLORIDA RECEIVED 135M Visitors 1.7% DECREASE 3.0% INCREASE FROM 2019

825 Miles BEACHES STATEWIDE 8 12 MAJOR

Tourism's Impact on Florida's Economy

$ 124.9 B

$ 120 B

FROM RECORD BREAKING 2022

$ 83.2 B

$ 100 B

$ 80 B

$ 60 B

MAJOR THEME PARKS

$ 40 B

2023 VISITATION

LEAGUE SPORTS

$ 20 B

$ 0 B

2016

2017

2018

2019

2020

2021

2022

12.1M INTERNATIONAL

122.9M DOMESTIC

HOME TO THE WORLD'S Top 3 Cruise Ports PORT OF MIAMI

2.0M Jobs Supported By Visitor Spending

AVERAGE DAILY ROOM RATE $188.76 0.3% INCREASE FROM 2022

PORT CANAVERAL PORT EVERGLADES 11.0M PASSENGERS IN 2022 – THE CAPITOLIST

69.1% STATEWIDE AVG HOTEL/MOTEL OCCUPANCY RATE IN 2023 – STR

2.2% DECREASE FROM 2022

494,122 HOTEL/MOTEL ROOMS

4,569 PROPERTIES

Cushman & Wakefield | Why Florida

Industry Diversity

1.1M Total Businesses

62.1% White Collar

19.8% Blue Collar

18.1% Services

EMERGING INDUSTRIES Tech/FinTech • Manufacturing in North Florida • Aerospace in Space Coast

Business Summary by NAICS (%)

Labor Force by Occupation (%)

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10.0 %

12.0 %

0.0 %

5.0 %

10.0 %

15.0 %

20.0 %

25.0 %

Trade Transportation & Utilities

Management O ce/Admin Sales Transportation/Moving Health Practices Food Preparation Business/Financial Construction/Extraction Education/Library Building Maintenance Production Computer/Mathematical Maintenance/Repair

Professional & Business Services Educational & Health Services

Top Five 20.5% 1 15.4% 3 13.2% 4 11.4% 5 16.6% 2

Top Five 12.2% 1 SALES 10.4% 3 11.5% 2

TRADE, TRANS & UTILITIES

MANAGEMENT

Leisure & Hospitality

Government

PRO & BUSINESS SVCS

OFFICE/ADMIN

Financial Activities

Construction

EDUCATION & HEALTH SVCS

Health Support Personal Care Protective Service

Manufacturing

Arts/Entertainment/Rec Architecture/Engineer Social Service Legal

Other Services

LEISURE & HOSPITALITY

TRANS/MOVING

7.7% 4 6.4% 5

Information

Life/Social Sciences Farm/Fish/Forestry

GOVERNMENT

HEALTH PRACTICES

Mining & Logging

Cushman & Wakefield | Why Florida

Logistics & Transportation

Map Layer Options

Toggle to Enable Views

Rail & Intermodal

Ports

Highways

Metropolitan Areas

Major Airports

Map Legend

Sea 15 seaports generate ~900k jobs and $117.6B in economic value. Nation's most container ports & supply chain options for retailers, manufacturers, third-party logistics and ocean carriers. Closest U.S. seaports to the Panama Canal and at the crossroads of East West & North-South trade lanes. Sky 19 passenger service airports, including 16 international airports. 10.6% of the total USA air traffic comes from Florida airports.

Rail +3.8k miles of railroad, including 2.7k mainline miles. Most fuel efficient way to move freight over land. Brightline passenger rail operates intercity service.

DWTN MIAMI

WEST PALM BEACH

ORLANDO MCO

TAMPA BAY FUTURE EXPANSION

Land +217B miles traveled on public roads per year. 408 bridges and +3.6k miles of highway. #14 in Infrastructure

Cushman & Wakefield | Why Florida

Skilled & Growing Workforce

#1 For Attracting & Developing Skilled Workforce IN THE UNITED STATES

Labor Force

Unemployment Rate

11.2M

8.0 %

11M

Stat� Ranking� '23

6.4 %

6.0 %

10.5M

Education Attainment #14

Jobs +2.5%

10M

4.0 %

3.1 %

9.5M

9.5M

2.0 %

Skilled Job Growth #4

Migration #2

9M

0.0 %

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Over 37% of the total population is 25–54 year olds. ESRI

FLORIDA LED THE NATION IN TALENT ATTRACTION WITH SEVENTEEN LARGE COUNTIES IN THE TOP 50 FLORIDA'S TOP FIVE INCLUDE:

10.9M Employed Workers

#7 Hillsborough

#8 Lee

#9 Polk

#15 Pasco

#20 Sarasota

3.8% U.S. Unemployment Rate

ESRI

Cushman & Wakefield | Why Florida

New-to-Market Tenant Demand

FT LAUDERDALE/ PALM BEACH West Marine Innovation Health Orbis Goldman Sachs JACKSONVILLE Consentino Group Dunn & Bradstreet IKO Industries NYMBUS Olympus Insurance Paysafe

Redmond

NewDay USA Millennium Management

Camas

Massachussets

New York Connecticut

London

Chicago

New Jersey

Maryland

San Francisco

Colorado

Virginia

MIAMI Blackstone

Microsoft Millennium Management Subway

Citadel Kaseya Kirkland & Ellis

Glendale Irvine

ORLANDO Astronics Test Systems Checkr Dnata

Optivor Technologies Spartan Race Inc.

Dubai

Florida Continues to Draw a Wide Array of New-To-Market Companies Including: FINANCIAL SERVICES | TECH | HEALTHCARE | LAW

TAMPA DoubleLine Capital Fisher Investments

ID.me OPSWAT Pfizer Rapid7

Colombia

Cushman & Wakefield | Why Florida

Office Market Snapshot Q1 2024 188.7 MSF Statewide Inventory DIRECT VACANCY RATE 17.0 %

OVERALL NET ABSORPTION SF

18.0 %

114.1k

15.4 %

100k

15.2 %

81.1k

14.7 %

14.0 %

69.2k

15 %

DIRECT VACANT SPACE 28.3 MSF

SUBLEASE VACANT SPACE 3.6 MSF

51.0k

50k

36.2k

10.6 %

10 %

0k

5 %

−27.9k

−50k

−60.2k

6.0M Miami/Dade 4.1M Broward 2.4M Palm Beach County 5.2M Tampa/Hillsborough 1.5M Pinellas County 5.1M Orlando 3.9M Jacksonville

Miami/Dade

98.1k

0 %

360.5k Broward 261.0k Palm Beach County 1.6M Tampa/Hillsborough 184.9k Pinellas County 609.4k Orlando 483.6k Jacksonville

OVERALL VACANCY RATE

LEASING ACTIVITY SF

22.1 %

522.6k

20.2 %

500k 467.7k

20 %

16.8 %

16.4 %

379.9k

DIRECT WTD AVG RENTAL RATE $36.39 PSF

OVERALL WTD AVG RENTAL RATE $35.63 PSF

15.7 %

15.4 %

400k

15 %

299.6k

11.7 %

273.2k

300k

221.3k

10 %

200k

148.1k

5 %

100k

$53.57 Miami/Dade $40.16 Broward

$53.53 Miami/Dade $39.85 Broward

0 %

0k

$46.29 Palm Beach County $30.85 Tampa/Hillsborough $25.90 Pinellas County $26.89 Orlando $22.75 Jacksonville

$45.96 Palm Beach County $32.01 Tampa/Hillsborough $25.94 Pinellas County $26.70 Orlando $22.94 Jacksonville

Construction

Miami/Dade

Broward

127.8 KSF 2.4 MSF

Tampa/Hillsborough

Palm Beach County

CONSTRUCTION COMPLETIONS

UNDER CONSTRUCTION

Pinellas County

Orlando

Jacksonville

Cushman & Wakefield | Why Florida

Industrial Market Snapshot Q1 2024 736.7 MSF Statewide Inventory DIRECT VACANCY RATE 8 % 8.5 %

OVERALL NET ABSORPTION SF

639.6k

593.3k

600k 548.8k

6.4 %

DIRECT VACANT SPACE 35.6 MSF

SUBLEASE VACANT SPACE 2.2 MSF

400k

6 %

4.7 %

4.6 %

4.3 %

4.1 %

205.5k

178.3k

200k

4 %

3.2 %

126.5k

2.9 %

2 %

0

−73.7k

−105.2k

7.1M 2.7M 1.9M 3.8M

Miami/Dade

304.4k Miami/Dade 159.5k Broward <1.0k Palm Beach County 255.2k Tampa/Hillsborough 233.0k Pinellas County 11.1k Lakeland/Polk 529.8k Orlando 669.8k Jacksonville

0 %

Broward

Palm Beach County Tampa/Hillsborough

1.1M

Pinellas County Lakeland/Polk

OVERALL VACANCY RATE

LEASING ACTIVITY SF

6.2M 7.8M

Orlando 4.9M Jacksonville

1.6M

8.5 %

1.5M

8 %

6.8 %

1.2M

DIRECT WTD AVG RENTAL RATE $11.13 PSF

OVERALL WTD AVG RENTAL RATE $11.08 PSF

6 %

1.0M

4.9 %

4.9 %

1.0M

4.7 %

871.9k

4.2 %

3.8 %

4 %

593.5k

3.1 %

529.4k

0.5M

286.4k

267.0k

2 %

$16.97 Miami/Dade $15.12 Broward

$16.99 Miami/Dade $15.11 Broward

0 %

0.0M

$14.53 Palm Beach County $9.94 Tampa/Hillsborough $10.66 Pinellas County $7.08 Lakeland/Polk $9.09 Orlando $8.49 Jacksonville

$14.53 Palm Beach County $9.90 Tampa/Hillsborough $10.79 Pinellas County $7.08 Lakeland/Polk $9.10 Orlando $8.26 Jacksonville

Construction

Miami/Dade

Broward

Lakeland

10.2 MSF 15.6 MSF

Tampa/Hillsborough

Palm Beach County

CONSTRUCTION COMPLETIONS

UNDER CONSTRUCTION

Pinellas County

Orlando

Jacksonville

Cushman & Wakefield | Why Florida

Multifamily Market Snapshot Q1 2024 1,015,713 UNITS Across 3,725 Properties EFFECTIVE RENT VS STABILIZED OCCUPANCY RATE

ABSORPTION VS COMPLETIONS

93.1%

80k

$ 2.5k

97 %

STABILIZED OCCUPANCY RATE Excludes Properties Still In Their Initial Lease-Up Period

96 %

$ 2.0k

60k

95 %

$ 1.5k

40k

94 %

Over $90.1 Billion In Sales Over The Past 5 Years

$ 1.0k

93 %

20k

$ 0.5k

92 %

Market Asking Rent Per Unit by Bedroom 5-Year Increase Comparison: Studio 27.3% $1,606 1 Bedroom 29.1% $1,700 2 Bedroom 29.7% $2,033 3 Bedroom 28.5% $2,450

0k

2020

2021

2022

2023

2024 YTD

$ 0.0k

91 %

2020

2021

2022

2023

2024 YTD

Effective Rent Per Unit

Stabilized Occupancy Rate

Construction Completions

Overall Net Absorption

Over 1111,000 Units Under Construction

Cushman & Wakefield | Why Florida

CoStar Data Depicted

Market Leads

Authors

SOURCES

The Capitolist TownCharts univstats.com U.S. Census Bureau U.S. Bureau of Labor Statistics Visit Florida

Lightcast.io Moody's Analytics National Association of Realtors Niche 2020 STR Tampa Bay EDC Tax Foundation, 2021

aaroads.com Chief Executive Magazine, 2022 Biz2Credit CoStar Enterprise Florida ESRI flgov.com

Contributors

Josh Faircloth Research Manager | Tampa +1 813 424 3220 joshua.faircloth@cushwake.com

Connor Salzman Research Analyst | Ft. Lauderdale +1 954 377 0493 connor.salzman@cushwake.com

©2024 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representation as to its accuracy. Cushman & Wakefield does not claim any ownership rights to the corporate logos featured in Why Florida and their usage in this research report is strictly for illustrative and informative purposes. Why Florida is intended for limited distribution.