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Cushman & Wakefield of Florida, Inc.
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SUBURBAN HIGHLIGHTS
(CONTINUED)
Executed transactions during 2017 has so far topped 1.5 million SF where 75.0%
occurred in Class A buildings. Over 448,000 SF were executed during third quarter
where the greater part of leasing activity stemmed from government, finance/banking
and real estate tenants.
Among existing Class A users (2,500 SF+), government, finance/banking and real
estate-related Suburban tenants occupied nearly 1.2 million SF at third quarter. Most or
70.0% were users in financial services.
As for upcoming demand (including Amazon’s 500,000 SF requirement), tenants
touring totaled 1.5 million SF in the Suburbs at third quarter. The bulk of tours consisted
of large, 20,000+ SF requirements. This will present a near-term challenge as large
blocks of contiguous Class A and Class B Suburban space remained scarce. The largest
tours by square footage were led by industries in Retail (500,000 SF represented by
the Amazon requirement), Finance (290,000 SF), Media & and Entertainment and
healthcare (131,500 SF).
SUBURBAN EXECUTED LEASES
3Q 2017
% Of Total By Employment Industry
Business Services
Real Estate
Manufacturing
Lesiure & Hospitality
Law Firm
Healthcare
Financial Services
Government
SUBURBAN Executed Leases, 3Q 2017
% of Total By Employment Industry
Government
Financial Services
Real Estate
Manufacturing
Law Firm
Healthcare
Leisure & Hospitality
Business Services
6%
5% 4%
17%
31%
16%
12%
10%
SUBURBAN DIRECT VACANCY (%) 2007-3Q 2017
Percent
0.0
5.0
10.0
15.0
20.0
25.0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
SUBURBAN Direct Vacancy (%), 2007-3Q 2017
Class A Class B
Quoted Rate PSF
SUBURBAN AVERAGE DIRECT RENTAL RATES, 2007-3Q 2017
Average asking rates for both classes of space continued to post record highs. For the Class
A set, the annual trend continued from 2015 to the present ($35.51 PF to $37.39 PSF), while
Class B assets posted peak average quotes both currently ($29.50 PSF) and at year-end 2016
($28.98 PSF).
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
SUBURBAN Average Direct Rental Rates, 2007-3Q 2017
Class A Class B
Quoted Rate PSF
Class A
Class B
Class A
Class B