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YTD
Completions
Under
Construction
Existing
Inventory
SF
Direct
Vacancy
%
Total
Vacancy
%
YTD Net
Absorption
Average Direct RR
PSF Quoted
Airport West
Class A
246,085
150,000 5,075,813 10.0% 10.6% 73,271
$34.11
Airport West
Class B
0
0
3,736,733 13.9% 13.9% -14,993
$27.46
Totals
246,085
150,000 8,812,546 11.7% 12.0% 58,278
$30.64
OFFICE MARKET STATISTICS
| 3Q 2017
AIRPORT WEST SUPPLY
HIGHLIGHTS
Airport West remained as Miami’s largest office submarket with 8.8 million SF located in
75 properties. The Class A segment, also Miami’s largest, remained in the single digits in
terms of vacancy for over the last 2.0+ years. New delivery of 226,000 SF (800 Waterford)
this quarter, however, contributed to a rise - but only to the 10.0% mark. Direct vacancy
among Class B buildings historically stayed in the double digits. Third quarter’s 13.9% rate,
however, was a much improved statistic over midyear 2012’s near 24.0% rate.
The largest direct availability of contiguous office space at third quarter was the entire
Doral 107 building for approximately 94,000 SF. The building became fully vacant with
Atkins Engineering’s relocation into 26,000 SF at the recently completed 800 Waterford
building. Occupancy for the building, however, will be pushed up in the first quarter 2018
as FEMA executed a short term lease this quarter for the entire building. Only one sublet
in the submarket was available to accommodate a user of 20,000 SF or greater – a Class
A space located at 6505 Waterford.
Three of the region’s largest office parks are located here: Waterford, Downtown Doral and
The Landing at MIA. The sheer size, leasing volumes and credit tenant base at these parks
drove pricing fundamentals.
Waterford remained as the largest office park which comprised nearly 3.2 million SF at the
close of third quarter. With this quarter’s opening of 800 Waterford, the majority of space
was located in 12 Class A buildings which comprised over 2.4 million SF. There were eight
Class B building comprised of 751,000 SF. The park has multiple building owners.
Seven Class A Waterford buildings, part of the TIAA-Allianz portfolio, comprised 1.6 million
SF and were 92.0% leased. The largest contiguous office available at the close of the quarter
was 52,000 SF (9th and 10th floors) located in the newly completed 800 Waterford asset.
Additional large blocks were being marketed at 5200 Waterford (13,000 SF) and 1000
Waterford (nearly 11,000 SF).
SF
Quoted Rate PSF
AIRPORT WEST TOTAL NET ABSORPTION, 2007-3Q 2017
AIRPORT WEST DIRECT VACANCY (%) 2007-3Q 2017
AIRPORT WEST AVERAGE DIRECT RENTAL RATES, 2007-3Q 2017
Percent
$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
AIRPORT WEST Average Direct Rental Rates, 2007-2Q 2017
Class A Class B
Quoted Rate PSF
Class A
Class B
Class A
Class B
Class A
Class B
-350,000
-250,000
-150,000
-50,000
50,000
150,000
250,000
350,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
AIRPORT WEST Total Net Absorption, 2007-3Q 2017
Class A Class B
SF
0.0
5.0
10.0
15.0
20.0
25.0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
AIRPORT WEST Direct Vacancy (%), 2007- 3Q 2017
Class A Class B
Percent