Statewide Trends

Net absorption in Floridas office markets recorded nearly 6.5 million sq. ft., significantly outpacing 2014 levels by over 3.8
million sq. ft. Four office occupier sectors that led 2015 leasing activity in Florida included: insurance carriers and
insurance-related activities, legal services, businesses support services and financial activities. Vacancy rates stood at 14.9%
at the close of the fourth quarter, tightening considerably year-over-year by 240 basis points (bps). Strong leasing activity
pushed the statewide average asking lease rate to $25.22 per sq. ft., up nearly 3% year-over-year.
Florida Net Absorption (Millions of SF)

Source: CBRE Research, Q4 2015.

Miami
Job growth in office-using sectors (i.e. professional and business services) has increased demand for space, while minimal
construction has limited the amount of new space available. As a result, vacancy has declined and asking lease rates have
increased for existing space. Vacancy declined to 12.7% in Q4 2015, a reduction of 190 (bps) year-over-year. Average
asking lease rates for Class A space increased year-over-year with a 5.1% improvement in the CBD and a 6.3% gain in the
suburban markets. Year-to-date net absorption totaled over 1 million sq. ft.
Miami Net Absorption -vs- Total Vacancy

Source: CBRE Research, Q4 2015.

Broward County

Broward Countys office market finished 2015 with net absorption of 763,691 sq. ft. The most active office occupier sectors
during the year included software publishers, insurance carriers, business support services and legal services, which
predominately occupied space in the suburban submarkets. Fourth quarter vacancy was 15.5%, a year-over-year decrease of
80 bps. Lease rates in the Downtown CBD increased 4.2% and suburban rates increased 1.0% year-over-year.

Palm Beach County

The office market gained traction in 2015, posting positive absorption for the seventh consecutive quarter. Healthy job
growth during the year aided absorption, which is expected to continue in 2016. The most active industries in the office
market included technology, legal and financial services. The year finished with net absorption of nearly 500,000 sq. ft.
with the majority of the positive activity in the Boca Raton submarket. At the close of the fourth quarter, total vacancy stood
at 18.9% representing an improvement of 220 bps year-over-year. 2015 is the first year since Q3 2008 that vacancy rates
have dipped below 20.0%. Average asking lease rates steadily increased for nine consecutive quarters, closing the year at
$18.14 per. sq. ft.
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