NAI MIAMI MEMBER NAME Quarterly Office Report Report First Fourth Quarter Quarter 2007 202
Investment Cap Rate Sales Volume...... Miami mirrored the national landscape in having the most active quarter four since 2007. The market has seen an impressive surge, specifically in distressed assets- 62% of all distressed assets in Miami have been worked out over the past year. The swell can be explained by Not only did sellers try to close deals before the rise in tax rates but it seems as though global buyers are just as interested in purchasing those properties, obtaining the capital or financing necessary for to make those purchases. The revivification can be explained by multiple factors, not only was there a great motivation for sellers to close deals before the rise in tax rates, but there was a demand from buyers who had the depth of capital for commercial property. Annual Sales Volume & Pricing Trends* Dollar Volume* The investment market will be stagnant in quarter one due to the psychological impacts of new regulation and taxes. However because Miami is a desirable area due to global attention and our thriving economy, the demand for new space, will continue to grow thereby increasing the value of properties. - Jeremy Larkin President Year-Over-Year % Change* Charts from Real Capital Analytics, National Data NAI Miami 9655 S. Dixie Hwy, Suite 300 Miami, FL 3356 305.938.4000 www.naimiami.com
Office Vacancy Rate Net Absorption Construction The office market continued its success from quarter three. Most submarkets in Miami felt a gain in momentum this past quarter, with little to no new construction entering the market expanding companies drove an increase in demand. Overall vacancy rate decreased from 3.4% in the previous quarter to 3.2%. Net absorption was positive 28,826 square feet, and vacant sublease space increased by 275,790 square feet. Average rental rates increased by 0.2%. Overall Vacancy (%) 3.2% Average Asking Rental Rate $28.70 Asking Rents The office market has begin its upswing after struggling for the past five years. With the stabilization of the economy we have seen, and will continue to see companies expand. With this in mind, vacancies will continue to decrease and rents will increase, especially in Grade A properties. LEED certified green buildings will become popular and the most sought after in the market. - Edward Schmidt Chief Executive Officer Net Absorption (SF) 28,826 Data from CoStar Office Report Dollar Tree Sabina Plaza,726 SF Outlying Miami-Dade County NAI Miami 9655 S. Dixie Hwy, Suite 300 Miami, FL 3356 305.938.4000 www.naimiami.com
Retail Vacancy Rate Net Absorption Construction The retail market in Miami-Dade County experienced little change in quarter four of 202. This sector seems to be tightening due to lack of new space on the market- leading to higher rents across the board while more developers continue to build properties. Overall vacancy rate decreased from 4.0% in the previous quarter to 3.9%. Net absorption was positive 342,535 square feet, and vacant sublease space decreased by (5,39) square feet. Average rental rates increased by $0.58. Overall Vacancy (%) 3.9% Average Asking Rental Rate $28.57 Asking Rents The market will see an increase in sales for retail properties valued at or below $5 million over the next year, with a limited number of sales for properties valued above that amount, due to the increaser financing capability. Banks currently have large amounts of equity sitting on the sidelines available for those transactions. - Josh Rodstein Sales Manager Net Absorption (SF) 342,535 Data from CoStar Retail Report Dollar Tree Sabina Plaza,726 SF Outlying Miami-Dade County NAI Miami 9655 S. Dixie Hwy, Suite 300 Miami, FL 3356 305.938.4000 www.naimiami.com
Industrial Vacancy Rate Net Absorption Construction Quarter four of 202, saw the industrial sector improve across much of Miami-Dade County. There was a lot of activity in the market for smaller properties while most larger properties were stable. Overall vacancy rate decreased from 7.% in the previous quarter to 6.7%. Net absorption was positive 924,009 square feet, and vacant sublease space increased by 95,97 square feet. Rental rates increased by an average of.6% over the third quarter. Overall Vacancy (%) 6.7% Average Asking Rental Rate $7.54 Asking Rents Due to the influx of capital from Latin America and Europe; low interest rates; and the increases in Miami s infrastructure including the port, railway, and highway expansion- there will be an upswing in the industrial sector but not like 202. - Gabriel Garcia-Menocal Executive Director Net Absorption (SF) 924,009 Data from CoStar Industrial Report Flower Transfer 37,729 SF Miami Airport West Ind NAI Miami 9655 S. Dixie Hwy, Suite 300 Miami, FL 3356 305.938.4000 www.naimiami.com
Selected Deals Fourth Quarter 202 Major Lease Transactions, Miami-Dade Tenant: Portfolio Building: Size (SF): Submarket: Landlord Rep: Old Castle Glass Industrial Bunzi Southeast 74,735 SF North Miami Beach Ind N/A HeartWare International Industrial Miami Lakes Business Park 59,65 SF Miami Lakes Ind CBRE Not Disclosed Industrial Beacon Lakes- Building 6 35,60 SF Miami Lakes Ind State Street Realty Foley & Lardner LLP Office One Biscayne Tower 23,500 SF Downtown Miami Taylor & Mathis of Florida, LLC Not Disclosed Retail Badcock Furniture 23,000 SF Hialeah Gardens 82 SI Associates Of Fl Ferraro Law Firm Office Brickell World Plaza 2,363 SF Brickell Jones Lang LaSalle Not Disclosed Retail Nocturnal 20,000 SF Downtown Miami The Prakas Group Not Disclosed Office 29 Plaza- Building 2 6,900 SF Kendall Sovereign Real Estate Group Not Disclosed Retail Westland Promenade 2,400 SF Medley/Hialeah Sterling Organization Major Sale Transactions, Miami-Dade Address: Portfolio Price: Size (SF): Buyer Representation Seller Representation: 80-82 Lincoln Mall Retail $39,000,000 55,586 SF Terranova Corporation South Beach Tristar Capital Aventura Square Retail $ 55,500,000 3,450 SF Equity One, Inc. Turnberry Associates Waterford at Blue Lagoon Office $ 44,000,000 344,25 SF DRA Advisors LLC MetLife, Inc. U.S. D.E.A. Industrial $ 43,800,000 6,000 SF MDR Inversiones Cambridge Property Group LLC 50 Collins Ave Retail $ 30,000,000 22,857 SF JSRE Acquisitions, LLC Trans World Entertainment Group 0000 NW 5 Ter. Industrial $ 26,000,000 209,000 SF UBS W.P. Carey & Co. LLC NE 6 Ave Portfolio Industrial $ 7,264,000 36,584 SF Bristol Aventura LLC RREEF America LLC The 9000 Professional Ctr Office $ 2,500,000 33,000 SF Baptist Hospital of Miami Morton Ginsberg Bacardi Complex Office $ 0,000,000 47,756 SF National YoungArts Fdn. Bacardi USA, Inc. NAI Miami 9655 S. Dixie Hwy, Suite 300 Miami, FL 3356 305.938.4000 www.naimiami.com