Why Florida

CUSHMAN & WAKEFIELD FLORIDA Why DYNAMIC TRENDS DRIVING GROWTH Q1 2025

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.

1 2 3 4 5 Florida currently ranks as the nation's 3rd most populated state growing 8.2% since 2020. Florida ranked number nine as overall best state in the nation and was the only state in the Southeast to crack the Top 10. Over the past ten years, Florida's population increased by nearly 3.6 million people, growing nearly 18.1% to over 23.4 million residents. In 2024, Florida was named the "most fun" state in the U.S. by WalletHub, which assessed various entertainment and recreational metrics.

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

OFFICE Q4 2024 BROWARD

MARKET FUNDAMENTALS

ECONOMY The unemployment rate in Broward County was 3.2%, up 10 basis points (bps) year-over-year (YOY). Despite the slight uptick, Broward County was 100 bps below the national rate and boasted the second lowest unemployment rate among major Florida markets. SUPPLY Broward County’s overall vacancy was 15.2% at the end of Q4, down 20 bps YOY to the lowest rate since Q2 2022. Class A vacancy rose 110 bps over the past 12 months, with large tenant vacancies in suburban markets, including Citrix’s Q3 102,000-square-foot (sf) move out, driving the spike. Class A vacancy in the Central Business District (CBD) decreased 60 bps while the suburban submarkets rose 200 bps from the close of 2023. Overall CBD vacancy decreased 80 bps YOY to its lowest point since Q2 2020. Phase I of the T3 FAT Village project remained the only project under construction in Broward County. The office portion of the mixed-use project in Downtown Fort Lauderdale is slated to bring nearly 175,000 sf of new high-end space with a projected 2025 delivery. DEMAND

15.2% Vacancy Rate 27,974 YTD Net Absorption, SF $41.16 Asking Rent, PSF (Overall, All Property Classes)

YOY Chg

Outlook

SELECT A TOPIC TO NAVIGATE SECTIONS

SPACE DEMAND / DELIVERIES

800

600

400

ECONOMIC INDICATORS

0 200

-200

Thousands

YOY Chg

-400

1 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. $32 $34 $36 $38 $40 $42 2020 New leasing activity in Broward County totaled nearly 1.4 million square feet (msf) at year end, down 16.5% from one year ago. Despite the slight YOY decrease, new deals aligned with 2020 levels, continuing a two-year trend of market stabilization after the strong demand in 2021 and 2022. Although demand growth slowed, lease renewals in Broward County totaled 931,415 sf in 2024, up 33.4% YOY, marking the highest recorded total over the past five years. Overall absorption in the market was 69,614 sf in Q4, pushing the annual total positive to 27,974 sf and highlighting the market’s equilibrium over the past year. The largest tenant occupancies in Q4 included Seacor’s 31,216 sf at the DCOTA Office Center and Crystal Cruises taking its second full floor of 15,206 sf at The Onyx Tower in Hallandale Beach. PRICING The overall average asking rate in Broward County was $41.16 per square foot (psf), up 4.6% YOY. The Downtown Fort Lauderdale submarket averaged $53.50 psf, with top tier Class A space finishing the year at $55.14 psf, up 6.7%. Although Broward recorded a YOY increase, asking rental rates began leveling off in the second half of 2024. Despite the increase in operating and build-out costs, the decrease in deal activity and lack of new trophy product in the market points to continued rent stabilization heading into 2025. Outlook 932K Broward County Employment 3.2% Broward County Unemployment Rate 4.2% U.S. Unemployment Rate Source:BLS

-600

2020

2021

Net Absorption, SF Construction Completions, SF

2022

2023

2024

OVERALL VACANCY & ASKING RENT

17%

15%

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

13%

11%

2021

9%

2022

Asking Rent, $ PSF

7%

2023

2024

5%

Vacancy Rate

© 2025 Cushman & Wakefield © 2025 Cushman & Wakefield

Florida Snapshot

About Florida

Capital Tallahassee

JACKSONVILLE

OUTER JACKSONVILLE

Nickname Sunshine State

OCALA

GDP: $1.7T

ORLANDO

State Tree Sabal Palm

SPACE COAST

TAMPA

State Flower Orange Blossom

#1 Best Economy IN 2024 BY GDP GROWTH #2 Largest Foreign Tradezone Network IN THE UNITED STATES #3 Largest Workforce IN THE UNITED STATES #9 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

24M

500

26M

23.4M

25.4M

467

23M

400

25M

22M

300

24M

21M

264

23.4M

20.1M

200

23M

20M

100

19M

22M

18M

0

2024

2025

2026

2027

2028

2029

2030

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

636.4K

Texas

TOP STATES BY POPULATION GROWTH 2023 — 2024

466.1 K

Florida

213.2K

North Carolina

156.6K

Georgia

142.2K

Arizona

132.0K

New york

125.3K

New Jersey

122.1K 116.3K 110.0K

Pennsylvania

South Carolina

Virginia

Cushman & Wakefield | Why Florida

0K

100K

200K

300K

400K

500K

600K

Education

OF THE 25+ YEAR OLD POPULATION

Florida Education Attainment Breakdown

Largest Four Year Colleges in Florida by Student Enrollment

91 % Have a High School Diploma or Higher

36%

69,233

36

U.S. Census Bureau

% Have a Bachelor's Degree or Higher

54,814

28%

53,953

U.S. Census Bureau

27%

48,572

ACADEMIC YEAR 2023 – 2024

43,234

184 Four Year Colleges

86 Community Colleges

135 Trade/Vocational Schools

9%

University of Central Florida

University of South Florida

Bachelor's Degree or Higher

High School or GED

University of Florida

Univstats.com

Florida State University

Some College or Associate

Less Than High School

Florida International University

# 1

In Higher Education

FLORIDA

1.0M Total Students

RANKS

Univstats.com

Univstats.com

Cushman & Wakefield | Why Florida

Competitive Advantage

Cost of Living Comparison

Labor Pool & Talent

FLORIDA RANKED THIRD-LARGEST IN WORKFORCE

Sum of Cost Index

188.4 HIGHEST COST OF LIVING

BY YEAR END 2022, FLORIDA SURPASSED NEW YORK IN TOTAL EMPLOYMENT FOR THE FIRST TIME IN HISTORY, A LEAD IT MAINTAINED IN 2024

100.3

FLORIDA

84.9 LOWEST COST OF LIVING

Business Environment

#4 BEST BUSINESS TAX CLIMATE

#5 BEST STATE BUSINESS CLIMATE #1 BEST STATE TO START A BUSINESS IN THE U.S.

Total Employment 2023 – 2024 Total Employment 2023-2024

PRO-BUSINESS LOCAL & STATE GOVERNMENT

20

18

16

14

Work/Life Balance

12

10

81° AVG HIGH 60° AVG LOW

NO STATE OR LOCAL PERSONAL INCOME TAX LOW PROPERTY TAXES COMPARED TO NORTH

8

Millions

6

4

2

0

IL

IA

IN

ID

HI

RI

MI

FL

WI

NJ

AL

LA

AZ

VT

TX

TN

CT

UT

VA

KY

KS

AK

PA

SC

NV

AR

NE

DE

SD

CA

NY

MT

GA

NC

OK

NH

ND

OH

MA

CO

OR

MS

ME

MD

MN

NM

WA

MO

WV

WY

Cushman & Wakefield | Why Florida

U.S. Bureau of Labor Statistics

Leisure & Hospitality

IN 2024, FLORIDA RECEIVED 142.9M Visitors 1.6% INCREASE FROM RECORD-BREAKING 2023

825 Miles BEACHES STATEWIDE

Tourism's Impact on Florida's Economy

$ 131 B

$ 140 B

$ 120 B

$ 85.9 B

IN 2024, FLORIDA TOURISM GENERATED $131B in Visitor Spending

8 MAJOR THEME PARKS

12 MAJOR LEAGUE SPORTS

$ 100 B

$ 80 B

$ 60 B

$ 40 B

2024 VISITATION

$ 20 B

$ 0 B

2017

2018

2019

2020

2021

2022

2023

2024

HOME TO THE WORLD'S Top 3 Cruise Ports PORT OF MIAMI PORT CANAVERAL PORT EVERGLADES 20.9M PASSENGERS IN 2024

12.2M INTERNATIONAL

130.7M DOMESTIC

2.1M Jobs SUPPORTED BY VISITOR SPENDING

AVERAGE DAILY ROOM RATE $200.47 0.5% INCREASE FROM 2023

69.8% STATEWIDE AVG HOTEL/MOTEL OCCUPANCY RATE IN 2024 – STR

0.4% DECREASE FROM 2023

494,122 HOTEL/MOTEL ROOMS

4,659 PROPERTIES

Cushman & Wakefield | Why Florida

Industry Diversity

1.1M Total Businesses

62.6% White Collar

19.2% Blue Collar

18.2% 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 20.2% 1 15.3% 3 13.4% 4 11.6% 5 16.2% 2

Top Five 12.5% 1 SALES 10.4% 3 10.9% 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

7.3% 4 6.7% 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

RAIL

SKY

LAND

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.

+3.8k miles of railroad, including 2.7k mainline miles.

19 passenger service airports, including 16 international airports. 10.6% of the total U.S. air traffic comes from Florida airports.

+217B miles traveled on public roads per year.

Most fuel efficient way to move freight over land.

408 bridges and +3.6k miles of highway.

Brightline passenger rail operates intercity service.

#14 in Infrastructure

Closest U.S. seaports to the

Downtown Miami West Palm Beach Orlando MCO Tampa Bay Future Expansion

Panama Canal and at the crossroads of East-West & North South trade lanes.

Cushman & Wakefield | Why Florida

Skilled & Growing Workforce

#1 IN NET MIGRATION IN THE UNITED STATES - 2024

Labor Force

Unemployment Rate

11.0M

11M

8.0 %

'24 Stat�

Ranking� Education #1

10.5M

6.0 %

5.2 %

Graduation Rate #5

10M

3.4 %

4.0 %

9.7M

9.5M

2.0 %

Employment Growth +0.3%

Job Added #9

0.0 %

9M

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

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

#1 FOR ATTRACTING & DEVELOPING SKILLED WORKFORCE IN THE UNITED STATES - 2024

4.1% 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 Foot Locker

ID.me OPSWAT Pfizer Rapid7

Colombia

Cushman & Wakefield | Why Florida

Office Market Snapshot Q1 2025

188.3 MSF Statewide Inventory

Miami/Dade

Broward

Palm Beach County

Tampa/Hillsborough

Pinellas County

Orlando

Jacksonville

DIRECT VACANCY RATE

YTD OVERALL NET ABSORPTION SF

200k

20.1 %

INVENTORY

RENTAL RATE

20.0 % 20.0%

143.2k

17.7 %

150k

16.7 %

15.2 %

14.6 %

14.5 %

100k

15.0 %

188.3 MSF TOTAL

$39.28 DIRECT WTD AVG PSF

12.7 %

36.6k

50k

10.0 %

1.6k

0k

−5.8k

5.0 %

−50k

39.5M Miami/Dade 26.4M Broward

$63.06 Miami/Dade $42.19 Broward

−62.1k

−100k

0.0 %

−103.2k

−105.8k

23.7M Palm Beach County 31.0M Tampa/Hillsborough 9.5M Pinellas County 36.7M Orlando 21.5M Jacksonville

$50.98 Palm Beach County $33.07 Tampa/Hillsborough $27.11 Pinellas County $27.11 Orlando $22.94 Jacksonville

OVERALL VACANCY RATE

YTD LEASING ACTIVITY SF

1.0M

25.0%

22.0 %

1.0M

21.0 %

18.5 %

20.0 % 20.0%

0.8M

17.0 %

16.1 %

0.6M

VACANT SPACE

15.4 %

0.6M

13.6 %

15.0 %

0.6M

0.5M

6.0M Miami/Dade 3.8M Broward 3.0M Palm Beach County 5.5M Tampa/Hillsborough 1.6M Pinellas County 5.4M Orlando 4.3M Jacksonville 29.6 MSF DIRECT

3.2 MSF SUBLEASE

10.0 %

0.4M

0.3M

250.0k 0.3M

0.2M

0.2M

5.0 %

0.0M

0.0 %

Miami/Dade

71.4k

404.9k Broward 222.8k Palm Beach County 1.0M Tampa/Hillsborough 167.3k Pinellas County 870.5k Orlando 414.0k Jacksonville

265.8 KSF Construction Completions

1.3 MSF Under Construction

Cushman & Wakefield | Why Florida

Industrial Market Snapshot Q1 2025 754.7 MSF Statewide Inventory DIRECT VACANCY RATE Miami/Dade Broward Palm Beach County

Lakeland

Tampa/Hillsborough

Pinellas County

Orlando

Jacksonville

YTD OVERALL NET ABSORPTION SF

VACANT SPACE

9.5 %

10.0%

958.7k

1.0M

8.1 %

48.3 MSF DIRECT

2.6 MSF SUBLEASE

8.0 %

800k

6.7 %

6.5 %

587.3k

5.9 %

5.7 %

600k

6.0 %

5.0 %

400k

3.5 %

4.0 %

200k

75.3k 15.3k

64.6k

10.3M Miami/Dade 3.2M Broward 2.8M

635.5k Miami/Dade 442.0k Broward

0

2.0 %

−8.0k

−15.0k

−200k

60.0k Palm Beach County 585.9k Tampa/Hillsborough 33.9k Pinellas County 0.0k Lakeland/Polk 497.8k Orlando 359.5k Jacksonville

Palm Beach County Tampa/Hillsborough

−0.2M -206.3k

0.0 %

5.1M 1.8M 7.0M

Pinellas County Lakeland/Polk

OVERALL VACANCY RATE

YTD LEASING ACTIVITY SF

10.2M Orlando 7.9M

Jacksonville

2.5M

9.5 %

2.1M

10.0%

8.5 %

1.9M

2.0M

8.0 %

7.0 %

6.6 %

6.6 %

RENTAL RATE

6.1 %

1.5M

6.0 %

5.1 %

3.9 %

0.9M

$11.29 DIRECT WTD AVG PSF

$11.32 OVERALL WTD AVG PSF

1.0M

0.7M

4.0 %

0.6M

0.5M

0.5M

2.0 %

0.2M

0.2M

0.0 %

0.0M

$16.94 Miami/Dade $16.66 Broward

$16.91 Miami/Dade $16.63 Broward

$13.33 Palm Beach County $10.23 Tampa/Hillsborough $11.06 Pinellas County $7.63 Lakeland/Polk $9.09 Orlando $7.80 Jacksonville

$13.30 Palm Beach County $10.01 Tampa/Hillsborough $11.06 Pinellas County $7.63 Lakeland/Polk $9.08 Orlando $7.85 Jacksonville

3.8 MSF Construction Completions

16.1 MSF Under Construction

Cushman & Wakefield | Why Florida

Multifamily Market Snapshot Q1 2025

STABILIZED OCCUPANCY RATE Excludes Properties Still In Their Initial Lease-Up Period 93.0% 1,094,704 UNITS Across 4,004 Properties

EFFECTIVE RENT VS STABILIZED OCCUPANCY RATE

ABSORPTION VS COMPLETIONS

100k

$ 2.5k

97 %

80k

96 %

$ 2.0k

95 %

60k

$ 1.5k

94 %

OVER $86.5 BILLION IN SALES OVER THE PAST 5 YEARS

40k

$ 1.0k

93 %

20k

$ 0.5k

92 %

Market Asking Rent Per Unit by Bedroom 5-Year Increase Comparison: Studio 23.8% $1,665 1 Bedroom 26.8% $1,758 2 Bedroom 27.0% $2,093 3 Bedroom 25.9% $2,506

0k

$ 0.0k

91 %

2021

2022

2023

2024

2025 YTD

2021

2022

2023

2024

2025 YTD

Effective Rent Per Unit

Stabilized Occupancy Rate

Construction Completions

Overall Net Absorption

Nearly 90,723 Units Under Construction

Sources: CoStar, Cushman & Wakefield Research

Cushman & Wakefield | Why Florida

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

Easton Ricks Research Analyst | Orlando & Jacksonville +1 407 949 0803 easton.ricks@cushwake.com

©2025 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.