R Review of South Florida i f S th Fl id Commercial Real Estate - PowerPoint PPT Presentation

R Review of South Florida i f S th Fl id Commercial Real Estate Markets Scott Sime Managing Director CB Richard Ellis, Inc. April 30 th , 2008

South Florida Office Market – 1Q2008 Inventory Under 1Q08 YTD 2007 Average SF (000) Construction Absorption Absorption Asking Market Vac % SF (000) Rate SF (000) SF (000) Miami 39,818.0 8.6% 4,131.6 -293.6 422.9 $30.88 FS Broward 24,561.9 12.6% 386.4 -247.5 -250.2 $27.43 FS P l Palm 21 652 4 21,652.4 16.4% 16 4% 954 9 954.9 -195.1 195 1 -862.6 862 6 $28 61 FS $28.61 FS Beach SOUTH 86,032.4 11.4% 5,472.9 -736.2 -689.9 FLORIDA FLORIDA 190,785.0 12.7% 8,204.9 -1,152.3 -886.6 Under 2007 Yearend Inventory Construction Absorption Absorption Asking Market SF (000) Vac% SF (000) 1Q08 (000) (000) Rate Boston 191,343 11.1% 700 893.0 1,029 $31.05 G Chicago 121,072 15.0% 4,354 -202.0 2,516 $32.42 FS LA 206,926 9.6% 3,566 -534.0 -490 $35.06 FS

South Florida Office Market Tri-County Office $35.00 25 $30.00 20 $25.00 $25 00 er Sq. Ft. 15 ancy % $20.00 Vaca Price P $15.00 10 $10.00 5 $5.00 $0.00 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Broward Rental Rates Palm Beach Rental Rates Miami Rental Rates Broward Vacancy Rates Broward Vacancy Rates Palm Beach Vacancy Rates Palm Beach Vacancy Rates Miami Dade Vacancy Miami-Dade Vacancy Sources: CB Richard Ellis | Research CB Richard Ellis | Page 3

South Florida Office Market Miami-Dade Population Verses Office Sale Price Per Sq. Ft. 2002-2007 2,600,000 $300 t. $250 $250 ce Per Sq. F 2,400,000 $200 ation Popula ce Sale Pric $150 $247.00 2,200,000 $224.00 $100 $161.00 $184.00 $184 00 $132.00 $132 00 $145 00 $145.00 Offic $50 2,000,000 $0 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 Price Per Sq. Ft. Miami Population Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research CB Richard Ellis | Page 4

South Florida Office Market Drivers � Multi-National Influence Foreign Based Companies and Square Foot Occupied U K 837 000 U.K., 837,000 All Others, Germany, 629,000 2,271,600 France, 531,400 Belgium, 434,400 Sweden, 245,400 Spain, 433,600 Malaysia, 246,600 y , , Italy, 321,200 Canada, 282,000Venezuela, 306,200 CB Richard Ellis | Page 5

South Florida Office Market Drivers � Multi-National Influence Number of I nt ernat ional Companies Est ablished Locally Over Time 40 Height of dot.com boom 35 F Free Trade Agreement, US T d A t US Economic Recovery & 30 Internet boom begins 25 25 20 15 15 Cuban Revolution 10 5 5 Response to September 11 th 0 910 940 947 958 961 964 967 970 972 974 977 979 981 983 985 987 989 991 993 995 997 999 001 003 005 007 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 Sources: Who Is Here Database, World City CB Richard Ellis | Page 6

South Florida Industrial Market – 1Q2008 Inventory y Vac Under 1Q08 YTD 2007 Average g SF (000) % Construction Absorption Absorption Asking Rate Market SF (000) SF (000) SF (000) Miami 228,542.4 6.3% 1,966.9 -1,873.1 -1,284.8 $8.55 IG Broward 125,245.3 5.4% 1,773.4 -760.5 -1,053.2 $8.90 NNN Palm Palm 52,929.7 52 929 7 8 0% 8.0% 1 063 3 1,063.3 -491 1 491.1 -1 090 8 1,090.8 $8 54 NNN $8.54 NNN Beach SOUTH 406,717.4 6.3% 4,803.6 -3,124.7 -3,428 FLORIDA FLORIDA 770,886.6 6.3% 13,776.0 -3,322.4 1,937.8 Inventory Under 1Q08 YTD 2007 Average SF (000) Construction Absorption Absorption Asking Rate Market Vac % SF (000) SF (000) SF (000) Los 924,040.1 1.7% 3,300 -1,492.7 557.1 $8.28 FSG Angeles Angeles Boston 133,320.2 14.0% 570 -1288 -81.8 $7.15 NNN Philadelp 360,707.6 7.0% 6,451.2 704.4 3,898..8 $4.14 NNN hia

South Florida Industrial Market Tri-County Industrial $10.00 9 $9.00 8 $8.00 7 $7 00 $7.00 6 Per Sq. Ft. $6.00 ancy % 5 $5.00 Vaca Price P 4 $4.00 3 $3.00 2 2 $2 00 $2.00 1 $1.00 $0.00 0 2002 2003 2004 2005 2006 2007 Broward Rental Rates Palm Beach Rental Rate Miami Rental Rates Broward Vacancy Rates Broward Vacancy Rates Palm Beach Vacancy Rates Palm Beach Vacancy Rates Miami-Dade Vacancy Miami Dade Vacancy Sources: CB Richard Ellis | Research CB Richard Ellis | Page 8

South Florida Industrial Market Miami-Dade Population Verses Industrial Sale Price Per Sq. Ft. 2002-2007 2,600,000 $90 . Ft. $80 rice Per Sq $70 2,400,000 $60 ation $50 Popula trial Sale Pr $60 $66 $76 $78 $40 $48 $63 2,200,000 $30 $20 $20 Indust $10 2,000,000 $0 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 Price Per Sq. Ft. Miami Population Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research CB Richard Ellis | Page 9

South Florida Retail Market – 4Q2007 Inventory SF Under YTD 2007 Average Asking (000) Construction Absorption Rate Market Vac % SF (000) SF (000) Miami Miami 29,726.2 29 726 2 3 3% 3.3% 3 303 6 3,303.6 -140 1 -140.1 $29.71 NNN $29 71 NNN Broward 37,692.3 4.4% 1,460.8 -414.8 $22.84 NNN Palm Beach 30,000.7 4.0% 1,028.8 -326.1 $22.78 NNN SOUTH SOUTH 97 419 2 97,419.2 3 9% 3.9% 5 785 2 5,785.2 -881 881 FLORIDA FLORIDA 233,910.6 4.8% 12,639.3 NA M Market k t I Inventory SF t SF V Vac % % U d Under YTD 2007 YTD 2007 Average Asking A A ki (000) Construction Absorption Rate SF (000) SF (000) Dallas/Fort 247,791 9.80% 2,217 14.87 NNN Worth Worth 12 754 12,754 Chicago 123,437 7.90% 9,700 NA 23.39 N Denver 72,675 6.70% 4,500 -57 17.11 NNN

South Florida Retail Market Tri-County Retail $35.00 9.00% 8.00% $30.00 7.00% $25.00 6.00% 6 00% $20.00 5.00% 4.00% $15.00 $15 00 3.00% $10.00 2.00% $5.00 1.00% $0.00 0.00% 2002 2003 2004 2005 2006 2007 Broward Rental Rates Palm Beach Miami Broward Vacancy Rates Palm Beach Vacancy Rates Miami-Dade Vacancy Sources: CB Richard Ellis | Research CB Richard Ellis | Page 11

Miami Population and the Retail Sector Miami-Dade Population Verses Retail Sale Price Per Sq. Ft. 2002-2007 2,600,000 $300 Ft. $250 $250 ce Per Sq. F 2,400,000 $200 $242.00 $231.00 ation Popula il Sale Pric $150 $150 $168.00 $172.00 2,200,000 $121.00 $100 $114.00 Retai $50 2,000,000 $0 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 Price Per Sq. Ft. Miami Population Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research CB Richard Ellis | Page 12

South Florida Population Growth All Counties Population 1997-2007 2 600 000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1 200 000 1,200,000 1,000,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Miami Broward Palm Beach Sources: Florida Office of Economic & Demographic Development CB Richard Ellis | Page 13

Miami Population and the Retail Sector Miami-Dade Population Verses Retail Inventory 2002-2007 2,600,000 23,000 22,500 ntory sq. ft. 2,400,000 22,000 lation 21,500 21 500 Retail Inven Popu 2,200,000 21,000 20,500 , 2,000,000 20,000 2002 2003 2004 2005 2006 2007 Miami Retail Inventory Miami Population Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research CB Richard Ellis | Page 14

South Florida’s Strengths and Challenges � Strengths � Challenges • International money • Public Schools • Visitors resulting in • Skilled Workforce increased hotel • Traffic and occupancy t transportation t ti • Tourist spending • Scarcity of land • Residential home Residential home • Cost of living Cost of living values • Port capacity • Life Science industries • Cultural infrastructure • Sustainable buildings • Import/Exports Import/Exports CB Richard Ellis | Page 15