Why Florida - CW 2023 Q2 RFS

FLORIDA Why

DYNAMIC TRENDS DRIVING GROWTH Q2 2023

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.

Over the past decade, Florida became the 3rd most populated state and ranked #1 for net migration in the U.S. for the sixth consecutive year.

In the past five years, Florida's population increased by nearly 1.3 million people, growing over 6.0% to over 22.2 million residents.

Population growth coupled with 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.

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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

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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: $1.4T

ORLANDO

State Tree Sabal Palm

SPACE COAST

TAMPA

State Flower Orange Blossom

#1 Best Economy IN THE UNITED STATES #2 Largest Foreign Tradezone Network IN THE UNITED STATES #3 Largest Workforce IN THE UNITED STATES #4 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

22.2M

400

23M

319

22.8M

22M

300

22.5M

21M

200

215

20M

19.6M

22M

100

19M

21.6M

21.5M

0

18M

2020

2021

2022

2023

2024

2025

2026

2027

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

#1 IN THE NATION FOR NET MIGRATION 2021 – 2022 FOR A GAIN OF 318.9k OR 874 PEOPLE PER DAY

874

500

CA NY IL NJ MA LA MD PA VA MN OR HI CT OH MI IA KS AK MS RI NE NM WA DC ND WV VT WY IN MO CO NH WI SD KY DE ME UT MT AR NV OK ID AL AZ GA TN SC NC TX FL

0

−500

−940

Cushman & Wakefield | Why Florida

Net Migration Per Day – U.S. Census (2021 – 2022)

Education

OF THE 25+ YEAR OLD POPULATION

Florida Education Attainment Breakdown

Higher Ed Attainment 100% = All People with a Bachelor's Degree or Higher

89 32

% Have a High School Diploma or Higher

32%

3.0%

5.6%

19.6%

U.S. Census Bureau

47.6%

% Have a Bachelor's Degree or Higher

30%

U.S. Census Bureau

28%

24.2%

ACADEMIC YEAR 2021 – 2022

# 4 142 Four Year Colleges

98 Community Colleges

139 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

Most Schools & Largest Student Population

Univstats.com 1.1M Total Student Population

Univstats.com

Cushman & Wakefield | Why Florida

Competitive Advantage

Cost of Living Comparison

Labor Pool & Talent

Sum of Cost Index

FLORIDA RANKED #15 IN WORKFORCE

TAMPA BAY BUSINESS JOURNAL

193.3 HIGHEST COST OF LIVING

BY YEAR END 2022, FLORIDA BEAT OUT NEW YORK IN TOTAL EMPLOYMENT FOR THE FIRST TIME IN HISTORY. U.S. BUREAU OF LABOR STATISTICS

100.3

FLORIDA

83.3 LOWEST COST OF LIVING

Business Environment

#4 BEST BUSINESS TAX CLIMATE TAX FOUNDATION, 2021 EMPLOYMENT IS 10% ABOVE PRE PANDEMIC LEVEL MOODY'S ANALYTICS

#8 BEST STATE FOR BUSINESS CHIEF EXECUTIVE MAGAZINE, 2022 BIZ2CREDIT PRO-BUSINESS LOCAL & STATE GOVERNMENT NICHE 2020

% Change in Job Growth 2022 – 2023

6 %

5 %

4.9 %

Work/Life Balance

4 %

81° AVG HIGH 60° AVG LOW ENTERPRISE FLORIDA

NO STATE OR LOCAL PERSONAL INCOME TAX LOW PROPERTY TAXES COMPARED TO NORTH 11 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 2022, FLORIDA RECEIVED 137.6M Visitors LARGEST IN THE STATE'S HISTORY 12.9% FROM 2021 5.0% FROM 2019

825 Miles BEACHES STATEWIDE 8 9 MAJOR

Tourism's Impact on Florida's Economy

$ 101.9 B

$ 83.2 B

$ 100 B

$ 80 B

$ 60 B

$ 40 B

MAJOR THEME PARKS

LEAGUE SPORTS

$ 20 B

Q1 2023 VISITATION

$ 0 B

2016

2017

2018

2019

2020

2021

1.8M INTERNATIONAL 36.0% FROM Q1 2022

34.6M DOMESTIC 8 TH CONSECUTIVE QUARTER OF GROWTH

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

1.7M Jobs Supported By Vistor Spending

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

IN Q1 2023, FLORIDA HOTELS RECEIVED 3.9% Bookings COMPARED TO Q1 2022

70.5% STATEWIDE AVG HOTEL/MOTEL OCCUPANCY RATE IN 2022 – STR

9.4% INCREASE FROM 2021

483,431 HOTEL ROOMS

4,514 PROPERTIES

Cushman & Wakefield | Why Florida

Industry Diversity

1.1M Total Businesses

61.7% White Collar

20.1% 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 %

5.0 %

10.0 %

15.0 %

20.0 %

25.0 %

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10.0 %

12.0 %

Trade, Transportation, & Utilities

O ce/Admin Management Sales Transportation/Moving Health Practices Food Preparation Construction/Extraction Business/Financial Education/Library Building Maintenance Health Support Maintenance/Repair Production Computer/Mathematical Protective Service Personal Care Arts/Entertainment/Rec Social Service Architecture/Engineer Legal

Professional & Business Services

Education & Health Services

Top Five

Top Five SALES 11.1% 3 7.7% 4 6.7% 5 11.6% 2 12.1% 1

TRADE, TRANS & UTILITIES 20.3% Florida 18.8% United States PRO & BUSINESS SVCS 16.7% Florida 14.7% United States EDUCATION & HEALTH SVCS 14.9% Florida 16.2% United States GOVERNMENT 11.4% Florida 14.6% United States LEISURE & HOSPITALITY 13.5% Florida 10.2% United States

OFFICE/ADMIN

1 2 3 4 5

Government

Leisure & Hospitality

MANAGEMENT

Financial Activities

Manufacturing

Construction

Other Services

TRANS/MOVING

Information

Life/Social Sciences Farm/Fish/Forestry

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

TAMPA BAY FUTURE EXPANSION

ORLANDO MCO DELIVERING 3Q 2023

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

11.0M

11M

8.0 %

Stat� Ranking� '22

7.5 %

10.5M

6.0 %

Education Attainment +14.5%

Jobs +4.3%

10M

4.0 %

2.6 %

9.5M

9.4M

2.0 %

Skilled Jobs +12.2%

Skilled Job Openings per 1,000 20

9M

0.0 %

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2013

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 FIFTEEN LARGE COUNTIES IN THE TOP 50 FLORIDA'S TOP FIVE INCLUDE:

3.7% U.S. Unemployment Rate 9.7M Employed Workers

#8 Hillsborough

#10 Polk

#12 Lee

#18 St. Johns

#20 Pasco ESRI

Cushman & Wakefield | Why Florida

New-to-Market Tenant Demand

Redmond

PALM BEACH Goldman Sachs Millennium

Procaps Group West Marine

Camas

Management NewDay USA

Massachussets

JACKSONVILLE Consentino Group Dunn & Bradstreet IKO Industries NYMBUS

New York Connecticut

Olympus Insurance Paysafe

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 Q2 2023 188.8 MSF Statewide Inventory DIRECT VACANCY RATE 16.6 % 16.1 %

OVERALL NET ABSORPTION SF

17.4 %

341.6k

300k

14.9 %

14.6 %

15 %

200k

12.7 %

DIRECT VACANT SPACE 27.5 MSF

SUBLEASE VACANT SPACE 4.0 MSF

54.7k

54.1k

100k

9.7 %

9.6k

10 %

0k

−100k

−102.2k

5 %

−200k

−300k

−284.3k

−330.4k

5.9M Miami/Dade 4.3M Broward 2.3M Palm Beach County 5.0M Tampa/Hillsborough 1.6M Pinellas County 4.6M Orlando 3.8M Jacksonville

198.9k Miami/Dade 392.3k Broward 386.0k Palm Beach County 1.8M Tampa/Hillsborough 164.1k Pinellas County 634.6k Orlando 455.8k Jacksonville

0 %

OVERALL VACANCY RATE

LEASING ACTIVITY SF

21.7 %

1.2M

1.1M

19.5 %

20 %

18.1 %

923.9k

1000k

16.2 %

DIRECT WTD AVG RENTAL RATE $35.48 PSF

OVERALL WTD AVG RENTAL RATE $34.80 PSF

15.4 %

804.9k 779.4k

14.4 %

15 %

800k

11.4 %

600k

10 %

438.4k

400k

198.7k

5 %

200k

$50.61 Miami/Dade $38.35 Broward

$50.44 Miami/Dade $38.24 Broward

0 %

0k

$45.19 Palm Beach County $30.58 Tampa/Hillsborough $25.21 Pinellas County $26.46 Orlando $22.76 Jacksonville

$45.17 Palm Beach County $31.89 Tampa/Hillsborough $25.19 Pinellas County $26.29 Orlando $22.88 Jacksonville

Construction

Miami/Dade

Broward

190.4 KSF 3.0 MSF

Tampa/Hillsborough

Palm Beach County

UNDER CONSTRUCTION

CONSTRUCTION COMPLETIONS

Pinellas County

Orlando

Jacksonville

Cushman & Wakefield | Why Florida

Industrial Market Snapshot Q2 2023 710.4 MSF Statewide Inventory DIRECT VACANCY RATE 5 % 5.2 %

OVERALL NET ABSORPTION SF

2.8M

2.5M

4.1 %

3.8 %

4 %

2M

DIRECT VACANT SPACE 20.4 MSF

SUBLEASE VACANT SPACE 2.3 MSF

1.7M

3.3 %

1.5M

1.5M

2.7 %

1.3M

3 %

2.6 %

2.5 %

1M

2 %

1.6 %

511.6k

500k

195.0k

128.3k

1 %

0

−35.3k

2.7M

Miami/Dade

Miami/Dade

68.1k

0 %

DIRECT WTD AVG RENTAL RATE $10.72 PSF Palm Beach County 3.4M Tampa/Hillsborough 1.2M Pinellas County 3.5M Lakeland/Polk 2.8M Orlando 2.8M Jacksonville 2.4M Broward 1.5M

467.9k Broward 56.3k Palm Beach County 360.7k Tampa/Hillsborough 261.1k Pinellas County 11.1k Lakeland/Polk 557.4k Orlando 484.7k Jacksonville

OVERALL VACANCY RATE

LEASING ACTIVITY SF

5.2 %

3.5M

3.5M

5 %

4.5 %

3.0M

3.0M

4.0 %

3.9 %

OVERALL WTD AVG RENTAL RATE $10.61 PSF

2.5M

4 %

2.5M

2.2M

3.2 %

3.1 %

2.9 %

3 %

2.0M

1.5M

1.1M

2 %

1.6 %

833.4k

1.0M

514.9k

457.6k

1 %

0.5M

$14.18 Miami/Dade $15.31 Broward

$14.18 Miami/Dade $15.03 Broward

0 %

0.0M

$15.60 Palm Beach County $8.50 Tampa/Hillsborough $10.31 Pinellas County $7.07 Lakeland/Polk $10.90 Orlando $8.06 Jacksonville

$15.23 Palm Beach County $8.59 Tampa/Hillsborough $10.28 Pinellas County $7.07 Lakeland/Polk $10.73 Orlando $7.62 Jacksonville

Construction

Miami/Dade

Broward

Lakeland

9.3 MSF 25.8 MSF

Tampa/Hillsborough

Palm Beach County

UNDER CONSTRUCTION

CONSTRUCTION COMPLETIONS

Pinellas County

Orlando

Jacksonville

Cushman & Wakefield | Why Florida

Multifamily Market Snapshot Q2 2023 948,000 UNITS Across 3,500 Properties EFFECTIVE RENT VS STABILIZED OCCUPANCY RATE

ABSORPTION VS COMPLETIONS

93.7%

80k

$ 2.0k

100 %

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

$ 1.8k

60k

95 %

$ 1.6k

40k

90 %

Over $92.7 Billion In Sales Over The Past 5 Years

$ 1.4k

20k

85 %

$ 1.2k

0k

Sales Reached $32 Billion in 2021, representing 34.5% of Total Sales in The Past 5 Years

$ 1.0k

80 %

2018

2019

2020

2021

2022

2023 YTD

2018

2019

2020

2021

2022

2023 YTD

Effective Rent Per Unit

Stabilized Occupancy Rate

Construction Completions

Overall Net Absorption

Sales Volume Increased 135% From Year End 2018 – 2022

Over 144,000 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

Cam Sousa Research Analyst | Orlando +1 407 241 3088 cameron.sousa@cushwake.com

Tyler Petrich Design Lead | Tampa +1 813 465 7041 tyler.petrich@cushwake.com

©2023 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.