-Dade County Office Report 1Q 216 Real Capital Partners Real Estate Services
1Q 216 -Dade County Office Report Overview -Dade County s Vacancy Increases to 1.4% Net Negative (11,64) SF in the Quarter The -Dade County Office market ended the first quarter 216 with a vacancy rate of 1.4%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (11,64) square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 24,7 square feet. Rental rates ended the first quarter at $31.68, an increase over the previous quarter. A total of three buildings delivered to the market in the quarter totaling 39,228 square feet, with 1,92,713 square feet still under construction at the end of the quarter. Net absorption for the overall -Dade County office market was negative (11,64) square feet in the first quarter 216. That compares to positive 463,761 square feet in the fourth quarter 215, positive 443,841 square feet in the third quarter 215, and positive 433,357 square feet in the second quarter 215. The Class-A office market recorded net absorption of negative (1,491) square feet in the first quarter 216, compared to positive 245,513 square feet in the fourth quarter 215, positive 153,265 in the third quarter 215, and positive 277,888 in the second quarter 215. The Class-B office market recorded net absorption of positive 3,165 square feet in the first quarter 216, compared to positive 197,79 square feet in the fourth quarter 215, positive 179,849 in the third quarter 215, and positive 79,194 in the second quarter 215. The Class-C office market recorded net absorption of negative (13,314) square feet in the first quarter 216 compared to positive 2,539 square feet in the fourth quarter 215, positive 11,727 in the third quarter 215, and positive 76,275 in the second quarter 215. Net absorption for -Dade County s central business district was negative (1,112) square feet in the first quarter 216. That compares to positive 81,986 square feet in the fourth quarter 215, positive 33,792 in the third quarter 215, and positive 88,34 in the second quarter 215. Net absorption for the suburban markets was negative (19,528) square feet in the first quarter 216. That compares to positive 381,775 square feet in fourth quarter 215, positive 41,49 in the third quarter 215, and positive 345,53 in the second quarter 215. Vacancy The office vacancy rate in the -Dade County market area increased to 1.4% at the end of the first quarter 216. The vacancy rate was 1.% at the end of the fourth quarter 215, 1.5% at the end of the third quarter 215, and 1.9% at the end of the second quarter 215. Class-A projects reported a vacancy rate of 13.6% at the end of the first quarter 216, 1 a t the end of t he fourth quarter 215, 13.2% at the end of the third quarter 215, and 13.7% at the end of the second quarter 215. Class-B projects reported a vacancy rate of 11.2% at the end of the first quarter 216, 1 1.1% a t the end of t he fourth quarter 215, 11.7% at the end of the third quarter 215, and 12.% at the end of the second quarter 215. Class-C projects reported a vacancy rate of 5.6% at the end of the first quarter 216, 5.5% at the end of fourth quarter Off. 35.477.9748 Cel. 35.785.7325
1Q 216 -Dade County Office Report Overview 215, 5.6% at the end of the third quarter 215, and 6.% at the end of the second quarter 215. The overall vacancy rate in -Dade County s central business district at the end of the first quarter 216 increased to 15.9%. The vacancy rate was 14.8% at the end of the fourth quarter 215, 15.2% at the end of the third quarter 215, and 15.3% at the end of the second quarter 215. The vacancy rate in the suburban markets increased to 9.% in the first quarter 216. The vacancy rate was 8.8% at the end of the fourth quarter 215, 9.3% at the end of the third quarter 215, and 9.8% at the end of the second quarter 215. Sublease Vacancy Sublease vacancy in -Dade County s central busi- ness district stood at 1,865 square feet at the end of the first quarter 216. It was 43,413 square feet at the end of the fourth quarter 215, 36,315 square feet at the end of the third quarter 215, and 28,133 square feet at the end of the second quarter 215. Sublease vacancy in the suburban markets ended the first quarter 216 at 139,142 square feet. At the end of the fourth quarter 215 sublease vacancy was 112,138 square feet, was 134,534 square feet at the end of the third quarter 215, and was 18,52 square feet at the end of the second quarter 215. Rental The average quoted asking rental rate for available office space, all classes, was $31.68 per square foot per year at the end of the first quarter 216 in the -Dade County market area. This represented a 1.5% increase in quoted rental rates from the end of the fourth quarter 215, when rents were reported at $31.21 per square foot. The average quoted rate within the Class-A sector was $39.67 at the end of the first quarter 216, while Class-B rates stood at $27.77, and Class-C rates at $24.75. At the end of the fourth quarter 215, Class-A rates were $39.4 per square foot, Class-B rates were $27.29, and Class-C rates were $24.24. The average quoted asking rental rate in -Dade County s CBD was $38.1 at the end of the first quarter 216, and $29.8 in the suburban markets. In the fourth quarter 215, quoted rates were $37.75 in the CBD and $28.46 in the suburbs. and Construction During the first quarter 216, three buildings totaling 39,228 square feet were completed in the -Dade County market area. This compares to three buildings totaling 36,2 square feet that were completed in the fourth quarter 215, two buildings totaling 6, square feet completed in the third quarter 215, and 78,65 square feet in five buildings completed in the second quarter 215. Vacancy by Class 1999-216 Off. 35.477.9748 Cel. 35.785.7325
1Q 216 CLASS A MARKET STATISTICS Net 15 143,678 7,2 7,2 5.% $34.73 94 1,1,325 7.6% 9,6 $3.58 23 341,2 7,44 7,44 2.2% (81) $27.66 71 446,825 5.1% 6,995 $35.25 299 2,91,73 11,525 11,525 5.3% (6,128) $31.65 195 1,228,75 12,34 $23.65 Downtown 37 1,313,68 1.4% (3,644) $23.12 291 3,846,417 163,953 164,153 4.3% (3,453) $25.43 272 1,799,981 53,732 55,624 3.1% 517 $22.94 5 3,212,48 155,68 155,68 4.8% (8,212) $25.19 Airport 198 3,54,191 11,558 112,438 3.7% 17,246 $23.14 Beach 86 1,165,987 63,46 63,46 5.4% 9 $39.93 Lakes 4 469,945 48,43 48,43 1.2% 1,714 $18.1 -Dade Central County 53 259,114 19,92 19,92 7.7% 2,636 $21.58 427 3,733,82 9.7% (42,35) $2.63 Outlying -Dade Cnty 2 26,893.% $. 174 92,65 6.5% (1,765) $17.27 West 267 1,249,322 1,1 $24.15 3,44 26,43,242 1,465,442 1,469,414 5.6% (13,314) $24.75 CLASS B MARKET STATISTICS Net 27 1,81,351 1,81,351 27,859 2.6% 1,149 $38.97 27 1,63,139 1,63,139 18,716 1.2% (13,12) 8,643 $37.3 31 2,837,88 2,837,88 475,554 16.8% (54,22) 61,674 $34.47 26 1,13,963 1,13,963 121,831 11.% (37,644) 15,67 $34. 115 4,114,511 4,114,511 286,915 7.% 15,483 $33.46 32 1,72,344 1,72,344 43,164 4.% (2,587) $28.58 Downtown 36 5,172,976 5,172,976 923,299 17.8% 3,745 $29.69 222 6,26,28 6,26,28 486,317 7.8% 1,682 $25.43 67 1,842,678 1,842,678 186,596 1.1% (1,11) $22.62 48 2,165,581 2,165,581 129,427 6.% 676 49,365 $31.63 Airport 179 9,68,363 9,68,363 942,3 9.7% 14,351 45, $24.48 Beach 64 2,174,497 2,174,497 27,36 9.5% 17,327 $37.52 Lakes 93 2,647,17 2,647,17 6,75 22.7% (5,956) $22. -Dade Central County 8 176,484 176,484.% $. 75 2,332,344 2,332,344 43,899 17.3% (6,71) 111,555 $24.25 Outlying -Dade Cnty 5 167,421 167,421.% $. 46 1,382,913 1,382,913 165,822 12.% (17,41) 34,48 $22.11 West 41 66,58 66,58 3,18 5.% (3,166) $23.87 1,142 45,827,818 45,827,818 5,139,647 11.2% 3,165 45, 281,387 $27.77 Off. 35.477.9748 Cel. 35.785.7325
1Q 216 CLASS C MARKET STATISTICS Net 15 143,678 7,2 7,2 5.% $34.73 94 1,1,325 7.6% 9,6 $3.58 23 341,2 7,44 7,44 2.2% (81) $27.66 71 446,825 5.1% 6,995 $35.25 299 2,91,73 11,525 11,525 5.3% (6,128) $31.65 195 1,228,75 12,34 $23.65 Downtown 37 1,313,68 1.4% (3,644) $23.12 291 3,846,417 163,953 164,153 4.3% (3,453) $25.43 272 1,799,981 53,732 55,624 3.1% 517 $22.94 5 3,212,48 155,68 155,68 4.8% (8,212) $25.19 Airport 198 3,54,191 11,558 112,438 3.7% 17,246 $23.14 Beach 86 1,165,987 63,46 63,46 5.4% 9 $39.93 Lakes 4 469,945 48,43 48,43 1.2% 1,714 $18.1 -Dade Central County 53 259,114 19,92 19,92 7.7% 2,636 $21.58 427 3,733,82 9.7% (42,35) $2.63 Outlying -Dade Cnty 2 26,893.% $. 174 92,65 6.5% (1,765) $17.27 West 267 1,249,322 1,1 $24.15 3,44 26,43,242 1,465,442 1,469,414 5.6% (13,314) $24.75 TOTAL OFFICE MARKET STATISTICS Net 53 2,233,423 94,973 11,692 4.6% (5,232) 4, $43.1 124 2,862,464 398,66 398,66 13.9% (3,52) 8,643 $36.49 69 8,18,969 1,18,742 1,193,39 14.7% 69,99 264,228 161,674 $41.89 1 2,66,12 159,766 16,266 7.8% (26,624) 131,59 $37.57 445 1,735,888 944,998 962,482 9.% (33,288) 116,825 $37.3 228 2,385,297 69,876 72,726 3.% 9,753 $26.33 Downtown 83 11,72,75 1,943,99 1,959,316 16.7% (71,21) 312, $35.77 528 11,85,539 1,26,572 1,27,571 8.7% (23,597) $28.62 345 4,429,621 359,953 382,849 8.6% 5,616 $24.25 555 6,341,76 392,53 392,53 6.2% (7,536) 14,365 $27.82 Airport 412 18,2,75 1,396,42 1,444,843 8.% 89,837 45, 71,581 $26.15 Beach 157 4,183,712 33,625 319,599 7.6% 3,73 $39.75 Lakes 14 3,534,1 755,253 76,679 21.5% (5,761) $22.61 -Dade Central County 61 435,598 19,92 19,92 4.6% 2,636 $21.58 54 6,254,914 825,39 827,892 13.2% (48,671) 111,555 $23.13 Outlying -Dade Cnty 7 194,314.% $. 22 2,33,563 21,4 225,4 9.8% (19,166) 34,48 $2.43 West 39 1,91,498 59,745 59,745 3.1% (2,66) $24.2 4,34 99,5,235 1,69,4 1,39,11 1.4% (11,64) 39,228 1,92,713 $31.68 Off. 35.477.9748 Cel. 35.785.7325
1Q 216 HISTORICAL RENTAL RATES VACANCY BY AVAILABLE SPACE TYPE Percent of All Vacant Space in Direct vs. Sublet VACANCY BY AVAILABLE SPACE TYPE Percent of All Vacant Space by Class U.S. RENTAL RATE COMPARISON Based on Full-Service Equivalent Rental FUTURE SPACE AVAILABLE Space Scheduled to be Available for Occupancy* Off. 35.477.9748 Cel. 35.785.7325