Southeast Florida. Commercial Markets: Q Independent Valuations for a Variable World Q

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1 www. October 2016 In This Issue Current Statistics Retail Office Industrial Multifamily Cap Rates Commercial Sales Home Sale/Price Trends Building Permit Data SEFL Market Participant Survey Summary Data Sources CoStar Group, Inc. PWC/Korpacz. Real Estate Research Corp. SOCDS Florida Realtors Miami Association of Realtors is based in Naples, FL and is one of the largest commercial property valuation and advisory services firms in the U.S. Valbridge has 200 MAIs, 68 office locations and 675+ staff across the nation. Each Valbridge office is led by an appraiser who holds the MAI designation of the Appraisal Institute. Commercial Markets: Q Q RETAIL SNAPSHOT The Retail market experienced a light improvement in market conditions in the third quarter The vacancy rate went from 4.3% in the previous quarter to 4.0% in the current quarter. Net absorption was positive 1,155,008 square feet. Plantation, Hollywood, Fort Lauderdale markets had the largest absorption. The largest lease signings occurring in 2016 included: the 111,238 square foot lease signed by Lowe s at W State Road 84; the 50,500 square foot deal signed by Burlington Coat Factory at S Dixie Hwy. Average quoted rental rates in the Retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the third quarter 2016 at $24.69 per square foot per year. That compares to $24.09 per square foot in the second quarter Retail Data Commercial Blvd 97.0% 16,994 $16.74 Cypress Creek 94.2% 18,441 $19.79 Downtown Fort Lauderdale 92.4% 28,192 $31.55 Fort Lauderdale 95.5% 172,345 $21.39 Hallandale 96.9% 84,259 $22.00 Hollywood 94.2% 194,599 $20.10 NW Broward/Coral Springs 94.8% 59,650 $19.98 Outlying Broward County 96.4% 1,471 $24.80 Plantation 91.8% 269,892 $20.36 Pompano Beach 95.7% 164,368 $18.11 Sawgrass Park 96.7% 9,121 $25.09 Southwest Broward 96.3% 41,792 $23.61 Aventura 98.9% (10,890) $31.13 Biscayne Corridor 95.6% 18,747 $47.41 Brickell 98.3% (2,934) $ Coconut Grove 95.8% (14,816) $44.23 Coral Gables 98.9% 80,356 $40.65 Coral Way 98.1% 12,305 $32.58 Downtown Miami 94.8% 16,994 $26.92 Hialeah Gardens 97.0% 39,522 $16.18 Kendall 97.4% 151,295 $33.56 Medley/Hialeah 98.0% 75,454 $38.34 Miami 94.7% 57,130 $37.44 Miami Airport 98.2% 12,514 $31.14 Miami Beach 95.4% 553 $64.49 Miami Lakes 97.5% 26,576 $24.26 Northeast Dade 97.0% 145,981 $30.42 Outlying Miami-Dade Cnty 90.6% (20,928) $22.08 South Dade 97.3% 61,243 $18.88 West Miami 98.0% 24,381 $30.67 www.

2 Page 2 Armalavage Valuation provides real estate appraisals, business valuations, and consulting services ranging from within the South Florida area across the nation. Our experienced staff includes designated members of the Appraisal Institute, National Association of Valuators and s, NEBB Institute and Institute of Business Appraisers. Some figures are estimated due to variances between the reports. Appraisal Staff: Geri F. Armalavage, MAI Rick Armalavage, MAI Jason Bennett Chris DelPo Alex Garcia Gregory Lynch, MAI Tom McDonald Richard Pappalardo Lynn Stocki To add a colleague to the distribution list, send the name, address, phone number and address to Kane French at:. OFFICE SNAPSHOT The Office market ended the third quarter of 2016 with a vacancy rate of 10.3%. The vacancy rate was down over the previous quarter, with net absorption totalling positive 1,000,887 square feet in the third quarter. Southwest Broward, Plantation, Sawgrass Park and Downtown Fort Lauderdale markets had the largest absorption. The largest lease signing occurring in 2016 included; the 110,506 square foot lease signed by Akerman LLP at Three Brickell City Centre in the Brickell market; the 91,872 square foot deal signed by Comcast at SW25th St in the Southwest Broward market; and the 64,572 square foot lease signed by WeWork at Two Brickell City Centre in the Brickell market. The average quoted asking rental rate for available office space, was $29.19 per square foot year at the end of the third quarter 2016 in the market area. This represents a 1.8% increase in quoted rental rates from the end of the second quarter, when rents were reported at $28.66 per square foot. During the third quarter 2016, six buildings totalling 86,011 square feet were completed in the Southeast Florida market area compared to six buildings totalling 257,741 square feet in the second quarter of Office Data Commercial Blvd 82.9% (51,381) $19.62 Cypress Creek 85.0% (8,425) $23.48 Downtown Fort Lauderdale 91.1% 123,713 $37.18 Fort Lauderdale 89.4% 91,292 $22.63 Hallandale 92.8% 39,725 $24.72 Hollywood 93.1% 107,138 $25.22 NW Broward/Coral Springs 88.3% 18,453 $23.60 Outlying Broward County 90.1% (2,802) $33.46 Plantation 88.2% 235,716 $25.49 Pompano Beach 92.0% 69,871 $22.09 Sawgrass Park 91.2% 159,523 $28.42 Southwest Broward 93.1% 249,947 $28.81 Aventura 95.5% (7,677) $42.58 Biscayne Corridor 87.2% 29,266 $36.44 Brickell 85.5% 97,834 $43.63 Coconut Grove 93.5% (9,430) $37.03 Coral Gables 91.2% (29,705) $37.45 Coral Way 98.0% 34,907 $26.51 Downtown Miami 83.4% (44,516) $37.47 Hialeah Gardens 100% 22,538 $21.35 Kendall 91.2% (58,243) $30.14 Medley/Hialeah 91.9% 20,129 $25.29 Miami 94.3% 38,174 $29.65 Miami Airport 91.4% 23,909 $28.16 Miami Beach 94.8% 101,441 $39.46 Miami Lakes 80.9% 32,435 $23.13 Northeast Dade 88.5% 78,347 $23.41 South Dade 93.0% 29,696 $21.70 West Miami 98.4% 18,219 $22.40 www.

3 Page 3 INDUSTRIAL SNAPSHOT The Industrial market ended the third quarter 2016 with a vacancy rate of 4.2%. The vacancy rate was down over the previous quarter, with net absorption totalling positive 2,145,439 square feet in the third quarter. Medley, Southeast Broward, Pompano Beach and Miami Airport West markets had the largest absorption. The largest lease signings occurring during 2016 included: the 467,000 square foot lease signed by Telemundo Studios at Telemundo Building 1 in the Miami Airport market; the 175,000 square foot deal signed by Amazon at South Florida Logistics Center in the Miami Airport market; and the 152,400 sqyare foot lease signed by Kuehne + Nagel Inc. at DCT Building 3, NW 17 th St, in the Miami Airport market. Industrial-Flex Data Central Broward Ind 94.5% 3,118 $12.67 Coral Springs Ind 92.8% (10,927) $11.85 Northeast Broward Ind 95.9% 18,244 $12.99 Pompano Beach Ind 97.0% 90,898 $10.92 Southeast Broward Ind 97.0% 82,398 $14.45 Southwest Broward Ind 95.1% (294) $12.83 West Sunrise Ind 94.6% 176,500 $12.06 Central Miami Ind 100% 0 $21.33 East Miami Ind 79.2% 0 $22.77 Hialeah Ind 96.1% 5,577 $30.00 Medley Ind 97.6% (8,060) $13.04 Miami Airport East Ind 90.6% 18,838 $16.78 Miami Airport North Ind 97.9% (9,755) $12.98 Miami Airport West Ind 97.1% (26,121) $20.35 Miami Lakes Ind 93.2% 25,089 $9.73 North Miami Beach Ind 88.8% (4,742) $12.22 South Central Miami Ind 92.8% 10,416 $35.36 South Dixie Hwy Ind 98.4% 102,944 $13.30 Southwest Dade Ind 97.8% 33,724 $11.86 West Miami/Coral Ter Ind 93.9% 13,448 $14.88 www. Industrial-Warehouse Data Central Broward Ind 97.2% 67,694 $9.70 Coral Springs Ind 89.1% 66,178 $8.84 Northeast Broward Ind 96.9% 92,453 $8.36 Pompano Beach Ind 97.4% 446,903 $8.32 Southeast Broward Ind 94.6% 396,896 $9.70 Southwest Broward Ind 90.6% 195,833 $8.37 West Sunrise Ind 95.4% 221,491 $8.72 Central Miami Ind 97.1% 41,251 $8.58 East Miami Ind 93.8% (36,505) $15.40 Hialeah Ind 97.5% 346,968 $6.71 Medley Ind 96.2% 835,601 $8.45 Miami Airport East Ind 96.3% 262,031 $9.78 Miami Airport North Ind 92.8% (211,655) $8.88 Miami Airport West Ind 96.6% 518,547 $9.81 Miami Lakes Ind 94.1% 113,849 $7.69 North Miami Beach Ind 97.0% (491) $7.76 Outlying Miami-Dade Ind 100% 18,505 $7.78 South Central Miami Ind 91.8% 126,003 $19.26 South Dixie Hwy Ind 96.6% 71,673 $10.72 Southwest Dade Ind 98.4% 56,918 $9.70 West Miami/Coral Ter Ind 98.5% (1,258) $14.01

4 Page 4 In This Issue Current Statistics Retail Office Industrial Multifamily Cap Rates Commercial Sales Home Sale/Price Trends Building Permit Data SEFL Market Participant Survey Summary Data Sources CoStar Group, Inc. PWC/Korpacz. Real Estate Research Corp. SOCDS Florida Realtors Miami Association of Realtors is based in Naples, FL and is one of the largest commercial property valuation and advisory services firms in the U.S. Valbridge has 200 MAIs, 68 office locations and 675+ staff across the nation. Each Valbridge office is led by an appraiser who holds the MAI designation of the Appraisal Institute. MULTIFAMILY SNAPSHOT Occupancy for most markets remains relatively high. Rental rates show improvement for most submarkets, with Downtown Miami, Coconut Grove, Kendall and West Miami showing the greatest increases in average rent per month prices over a rolling 12 month period. Apartment Data Market Occupancy Avg Rent / Mo Avg Rent / SF Rent Change 12 Mo. Commercial Blvd 96.7% $1,105 $ % Cypress Creek 96.6% $1,199 $ % Downtown Fort Lauderdale 93.1% $1,817 $ % Fort Lauderdale 95.9% $1,123 $ % Hallandale 97.1% $1,032 $ % Hollywood 95.7% $1,182 $ % NW Broward/Coral Springs 95.6% $1,418 $ % Plantation 95.2% $1,430 $ % Pompano Beach 96.3% $1,272 $ % Sawgrass Park 93.9% $1,863 $ % Southwest Broward 93.2% $1,652 $ % Aventura 95.0% $1,807 $ % Biscayne Corridor 96.8% $1,568 $ % Brickell 97.7% $1,898 $ % Coconut Grove 93.5% $1,143 $ % Coral Gables 97.1% $2,002 $ % Coral Way 95.1% $1,706 $ % Downtown Miami 87.9% $1,584 $ % Kendall 95.8% $1,519 $ % Medey/Hialeah 98.9% $1,027 $ % Miami 97.0% $1,004 $ % Miami Airport 96.2% $1,604 $ % Miami Beach 92.8% $1,460 $ % Miami Lakes 98.3% $1,345 $ % Northeast Dade 96.3% $1,095 $ % South Dade 97.4% $959 $ % West Miami 95.8% $1,398 $ % Cap Rates National According to the Real Estate Research Corporation (RERC) Real Estate Report and PwC Real Estate Investor Survey, cap rates have shown increases in the Retail Strip Center, Suburban Office and Apartment category and decreased in the Flex Industrial and Warehouse category, when compared to the prior quarter on a national scale. The rates shown below apply to modern Class A properties with occupancy by creditworthy tenants, good to excellent locations and/or contractual rent growth. National Rates - RERC & PWC Property Cap Rates Low High Average Change from Prior Qtr. Retail Strip Center 5.00% 8.00% 6.00% Increase Suburban Office 5.50% 8.00% 6.70% Increase Flex Industrial 6.00% 8.50% 6.90% Decrease Warehouse 4.00% 7.30% 5.60% Decrease Apartment 4.00% 6.00% 4.90% Increase Average for All Properties 4.90% 7.56% 6.02% www.

5 Page 5 Armalavage Valuation provides real estate appraisals, business valuations, and consulting services ranging from within the South Florida area across the nation. Our experienced staff includes designated members of the Appraisal Institute, National Association of Valuators and s, NEBB Institute and Institute of Business Appraisers. Single Family Home Sales & Prices According to data gathered from Florida Realtors and the Miami Association of Realtors, a total of 2,897 single family homes were sold in Broward and Miami-Dade counties during August Median sales prices increased six percent in Broward County and over fourteen percent in Miami-Dade County compared to August of Single Family Home Sales & Median Sales Prices Broward County No. of Sales 1,526 1, % Median Price $307,000 $325, % Miami-Dade County No. of Sales 1,140 1, % Median Price $262,000 $300, % Single Family Building Permits long-term trends continue to be positive after a few years of stabilization according to data gathered from SOCDS. Broward County saw a significant increase of over 37%, while Miami-Dade County has increased over 4% from May 2015 to May Some figures are estimated due to variances between the reports. Appraisal Staff: Geri F. Armalavage, MAI Rick Armalavage, MAI Jason Bennett Chris DelPo Alex Garcia Gregory Lynch, MAI Tom McDonald Richard Pappalardo Lynn Stocki To add a colleague to the distribution list, send the name, address, phone number and address to Kane French at:. www. Single Family Building Permits Broward County % Miami-Dade County % Market Participants Survey conducts a quarterly survey involving a variety of market participants in the market including brokers, investors, bankers, property/leasing managers, etc. Market participants are surveyed on their opinions of current market conditions for Industrial, Office, Retail, and Multi-Family markets in Broward and Miami-Dade Counties. The most recent survey conducted in October 2016, indicated participants believe the market in Broward and Miami-Dade Counties to be Improving to Strong. Market Conditions Broward County Miami-Dade County Industrial Improving Improving Retail Improving Stagnant Sale Prices Broward County Miami-Dade County Industrial Improving Improving Retail Strong Improving Rental Rates Broward County Miami-Dade County Industrial Improving Stagnant to Improving Retail Improving Improving Copyright ALL information herein was obtained from third parties. The accuracy of the data is not verified, warranted or guaranteed. For the exclusive use of clients. Reproduction or distribution without consent is prohibited.