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Class A
Class B
Class A
Class B
Class A
Class B
-300,000
-200,000
-100,000
0
100,000
200,000
300,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
CORAL GABLES Total Net Absorption, 2007-3Q 2017
Class A Class B
SF
YTD
Completions
Under
Construction
Existing
Inventory
SF
Direct
Vacancy
%
Total
Vacancy
%
YTD
Net
Average
Direct RR
PSF Quoted
Coral Gables
Class A
0
132,381
3,584,140 8.7% 8.9% 143,486
$40.54
Coral Gables
Class B
0
0
1,880,786 12.8% 12.8% -52,133
$35.73
Totals
0
132,381
5,464,926 10.1% 10.3%
91,353
$38.66
OFFICE MARKET STATISTICS
| 3Q 2017
CORAL GABLES SUPPLY
HIGHLIGHTS
Third quarter’s direct Class A vacancy made a dramatic descent from year-end’s near
13.0% to the current 8.7%. This was due to the capture of half of the entire metro area’s
positive absorption during 2017. In a reverse trend, vacancy among Class B assets rose as
negative absorption levels totaled 61,000 SF between 2016 to the present.
At 5.4 million SF, Coral Gables was third quarter’s second-largest Suburban submarket.
It is considered a premier location with two-thirds of its office stock comprised of Class
A assets. Known for its upscale shopping, dining and luxury residential neighborhoods,
the area is undergoing a significant streetscape revitalization. Located at the center of its
urban core (on and surrounding the famed Miracle Mile corridor), the improvements also
include new outdoor dining options. Third quarter had three existing Class A properties
with large (20,000+ SF) contiguous blocks of space: 121 Alhambra, Douglas Entrance and
2525 Ponce. The largest contiguous office at the Class A Two Alhambra building was
7,000 SF while the adjacent Class B 95 Merrick building had 5,700 SF as its largest space.
At the beginning of 2017, a noteworthy sublet hit the market: Bacardi’s three floors (9-11)
at the Bacardi Building totaling nearly 83,000 SF. This 2009 project was a build-to-suit
development for the Bacardi Headquarters and was not among the direct competitive set.
At 355 Alhambra, the largest contiguous direct space was on the 11th floor (13,826 SF). The
building remained at 85.0% leased. Also, an 11th floor, 5,300 SF sublet was available with
term through 2022. Sold in December 2015, the 224,000+ SF acquisition was The Prudential
Insurance Company of America’s most recent purchase in Coral Gables. An upcoming
22,000 SF office (first quarter 2018) was being marketed as the largest contiguous office
at the Class A 2525 Ponce building. The space was located on the eighth floor of the 96.0%
leased building. Also part of the complex is the 2555 Ponce building, a 108,000 SF Class
B asset. Although fully leased, a new 18,000 SF office on the fourth floor will be available
by fourth quarter 2018.
SF
Quoted Rate PSF
CORAL GABLES TOTAL NET ABSORPTION, 2007-3Q 2017
CORAL GABLES DIRECT VACANCY (%) 2007-3Q 2017
CORAL GABLES AVERAGE DIRECT RENTAL RATES, 2007-3Q 2017
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
CORAL GABLES Direct Vacancy (%), 2007-3Q 2017
Class A Class B
Percent
Percent
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
CORAL GABLES Average Direct Rental Rates, 2007-3Q 2017
Class A Class B
Quot Rate PSF