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SUBURBAN
HIGHLIGHTS
SUBURBAN HIGHLIGHTS
Class A direct vacancy remained in the single digits since third quarter 2016. This was largely due to lower historical
construction levels and strong positive absorption performance from 2010, which exceeded 1.9 million SF to the present.
Peaking at 19.4% in 2010, current direct vacancy declined to 9.9%. Most of Miami’s office product currently under
construction at third quarter was located in Suburban submarkets. At less than 500,000 SF (with 40.0% pre-leased), this
is not a noteworthy amount of new inventory in a 12.0 million SF Suburban Class A market. Suburban Class B vacancy
continued to stay in the double digits and at 13.3%, was up by almost 1.0 percentage point from year-end 2016.
CLASS A & CLASS B Buildings
Executed transactions evenly
divided during 3Q
11.2%
3Q 2017 vacancy
40%
Pre-leased
451,717 SF
Under Construction | Class A
Year-to-date leasing
with nearly
Dominant existing
Class A tenant base:
Financial Services &
Law Firms
Class B marked
consistent annual
gains since 2013
1.5 MSF
42%
$29.50 PSF
YTD
Completions
Under
Construction
Existing
Inventory SF
Direct
Vacancy %
Total
Vacancy %
YTD Net
Absorption
Average Direct
RR PSF Quoted
Suburban Class A
246,085
451,717
11,826,588
9.6%
9.9%
241,787
$37.39
Suburban Class B
0
0
9,113,643
13.3%
13.4%
-75,713
$29.50
Totals
246,085
451,717
20,940,231
11.2%
11.4%
166,074
$33.35
MARKET STATISTICS
| 3Q 2017
SUBURBAN EXECUTED LEASING ACTIVITY
| SELECTED TRANSACTIONS, 3Q 2017
New Inventory
75% in Class A Deals
Record High Avg. Quote
Submarket
Building
Tenant
Total SF Leased
Business Sector
Airport West
Doral 107
FEMA (GSA)
94,000
Government
Airport West
Waterford
FirstBank (Puerto Rico)
26,000
Banking
Airport West
Downtown Doral
Dept. of Business Regulations
20,000
Government
Airport West
Downtown Doral
Xoffices
20,000
Real Estate
Coral Gables
150 Alhambra
Capital Bank
16,000
Banking
Coconut Grove
SBS Biscayne Bank Tower
Ritz-Carlton Yacht Collection
14,000
Leisure & Hospitality
Coral Gables
2800 Ponce
Perkins + Will
13,700
Real Estate
Coral Gables
BAC Colonnade
ALPS Alternative Investment
13,200
Financial Services
Coral Gables
Two Alhambra
Berk, Merchant & Sims Law Firm
12,000
Law Firm
Miami Lakes
Lakes Plaza
NSI Insurance
11,000
Financial Services
Airport West
Waterford
Cargill Inc.
10,300
Manufacturing
Coral Gables
2525 Ponce
Cargill Inc.
10,000
Manufacturing
Coral Gables
201 Alhambra
USIA
10,000
Government
Airport West
Waterford
Areas USA
9,900
Retail Trade
Coral Gables
201 Alhambra
Taylor & Espino Law Firm
9,800
Law Firm
Airport West
Waterford
Miami Children's Hospital
9,000
Healthcare