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

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

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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)

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SLIDE 1

R i f S th Fl id Review of South Florida Commercial Real Estate Markets

Scott Sime Managing Director CB Richard Ellis, Inc.

April 30th, 2008

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SLIDE 2

South Florida Office Market – 1Q2008

Market Inventory SF (000) Vac % Under Construction SF (000) 1Q08 Absorption SF (000) YTD 2007 Absorption SF (000) Average Asking Rate 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 21 652 4 16 4% 954 9 195 1 862 6 $28 61 FS Palm Beach 21,652.4 16.4% 954.9

  • 195.1
  • 862.6

$28.61 FS SOUTH FLORIDA 86,032.4 11.4% 5,472.9

  • 736.2
  • 689.9

FLORIDA 190,785.0 12.7% 8,204.9

  • 1,152.3
  • 886.6

Market Inventory SF (000) Vac% Under Construction SF (000) Absorption 1Q08 (000) 2007 Yearend Absorption (000) Asking 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

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SLIDE 3

South Florida Office Market

Tri-County Office

$35.00 25 $25 00 $30.00 20 $20.00 $25.00 er Sq. Ft. 15 ancy % $10.00 $15.00 Price P 10 Vaca $0.00 $5.00 5 1999 2000 2001 2002 2003 2004 2005 2006 2007 Broward Rental Rates Palm Beach Rental Rates Miami Rental Rates Broward Vacancy Rates Palm Beach Vacancy Rates Miami Dade Vacancy

CB Richard Ellis | Page 3

Sources: CB Richard Ellis | Research

Broward Vacancy Rates Palm Beach Vacancy Rates Miami-Dade Vacancy

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SLIDE 4

South Florida Office Market

Miami-Dade Population Verses Office Sale Price Per Sq. Ft. 2002-2007

2,600,000 $250 $300

t.

2,400,000

ation

$200 $250

ce Per Sq. F

$132 00 $247.00 $224.00 $161.00 $145 00 $184 00 2,200,000

Popula

$100 $150

ce Sale Pric

$132.00 $145.00 $184.00 2,000,000 2002 2003 2004 2005 2006 2007 $0 $50

Offic

2002 2003 2004 2005 2006 2007 Price Per Sq. Ft. Miami Population

CB Richard Ellis | Page 4

Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research

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SLIDE 5

South Florida Office Market Drivers

Multi-National Influence

U K 837 000

Foreign Based Companies and Square Foot Occupied

Germany, 629,000 All Others, 2,271,600 U.K., 837,000 France, 531,400 Belgium, 434,400 Spain, 433,600 Sweden, 245,400 Malaysia, 246,600

CB Richard Ellis | Page 5

Italy, 321,200 y , , Canada, 282,000Venezuela, 306,200

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SLIDE 6

South Florida Office Market Drivers

Number of I nt ernat ional Companies Est ablished Locally Over Time

Multi-National Influence

35 40

Height of dot.com boom F T d A t US

25 30

Free Trade Agreement, US Economic Recovery & Internet boom begins

15 20 25 5 10 15

Cuban Revolution

5 910 940 947 958 961 964 967 970 972 974 977 979 981 983 985 987 989 991 993 995 997 999 001 003 005 007

Response to September 11th

CB Richard Ellis | Page 6

Sources: Who Is Here Database, World City 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

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SLIDE 7

Inventory Vac Under 1Q08 YTD 2007 Average

South Florida Industrial Market – 1Q2008

Market y SF (000) % Construction SF (000) Absorption SF (000) Absorption SF (000) g Asking Rate 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 52 929 7 8 0% 1 063 3

  • 491 1
  • 1 090 8

$8 54 NNN Palm Beach 52,929.7 8.0% 1,063.3 491.1 1,090.8 $8.54 NNN SOUTH FLORIDA 406,717.4 6.3% 4,803.6

  • 3,124.7
  • 3,428

FLORIDA 770,886.6 6.3% 13,776.0

  • 3,322.4

1,937.8 Inventory Under 1Q08 YTD 2007 Average Market SF (000) Vac % Construction SF (000) Absorption SF (000) Absorption SF (000) Asking Rate Los Angeles 924,040.1 1.7% 3,300

  • 1,492.7

557.1 $8.28 FSG Angeles Boston 133,320.2 14.0% 570

  • 1288
  • 81.8

$7.15 NNN Philadelp hia 360,707.6 7.0% 6,451.2 704.4 3,898..8 $4.14 NNN

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SLIDE 8

South Florida Industrial Market

Tri-County Industrial

$10.00 9 $7 00 $8.00 $9.00 7 8 $5.00 $6.00 $7.00 Per Sq. Ft. 5 6 ancy % $2 00 $3.00 $4.00 Price P 2 3 4 Vaca $0.00 $1.00 $2.00 1 2 2002 2003 2004 2005 2006 2007 Broward Rental Rates Palm Beach Rental Rate Miami Rental Rates Broward Vacancy Rates Palm Beach Vacancy Rates Miami-Dade Vacancy

CB Richard Ellis | Page 8

Sources: CB Richard Ellis | Research

Broward Vacancy Rates Palm Beach Vacancy Rates Miami Dade Vacancy

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SLIDE 9

South Florida Industrial Market

Miami-Dade Population Verses Industrial Sale Price Per Sq. Ft. 2002-2007

2,600,000 $80 $90

. Ft.

2,400,000

ation

$50 $60 $70

rice Per Sq

$60 $76 $78 $66 $63 $48 2,200,000

Popula

$20 $30 $40

trial Sale Pr

2,000,000 2002 2003 2004 2005 2006 2007 $0 $10 $20

Indust

2002 2003 2004 2005 2006 2007 Price Per Sq. Ft. Miami Population

CB Richard Ellis | Page 9

Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research

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SLIDE 10

South Florida Retail Market – 4Q2007

Market Inventory SF (000) Vac % Under Construction SF (000) YTD 2007 Absorption SF (000) Average Asking Rate Miami 29 726 2 3 3% 3 303 6

  • 140 1

$29 71 NNN Miami 29,726.2 3.3% 3,303.6

  • 140.1

$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 97 419 2 3 9% 5 785 2 881 SOUTH FLORIDA 97,419.2 3.9% 5,785.2

  • 881

FLORIDA 233,910.6 4.8% 12,639.3 NA M k t I t SF V % U d YTD 2007 A A ki Market Inventory SF (000) Vac % Under Construction SF (000) YTD 2007 Absorption Average Asking Rate SF (000) Dallas/Fort Worth 247,791 9.80% 12 754 2,217 14.87 NNN Worth 12,754 Chicago 123,437 7.90% 9,700 NA 23.39 N Denver 72,675 6.70% 4,500

  • 57

17.11 NNN

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SLIDE 11

South Florida Retail Market

Tri-County Retail

$35.00 9.00% $25.00 $30.00 6 00% 7.00% 8.00% $15 00 $20.00 4.00% 5.00% 6.00% $10.00 $15.00 2.00% 3.00% $0.00 $5.00 2002 2003 2004 2005 2006 2007 0.00% 1.00% Broward Rental Rates Palm Beach Miami Broward Vacancy Rates Palm Beach Vacancy Rates Miami-Dade Vacancy

CB Richard Ellis | Page 11

Sources: CB Richard Ellis | Research

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SLIDE 12

Miami Population and the Retail Sector

Miami-Dade Population Verses Retail Sale Price Per Sq. Ft. 2002-2007

2,600,000 $250 $300

Ft.

$242.00 $231.00 2,400,000

ation

$150 $200 $250

ce Per Sq. F

$114.00 $121.00 $172.00 $168.00 2,200,000

Popula

$100 $150

il Sale Pric

2,000,000 2002 2003 2004 2005 2006 2007 $0 $50

Retai

2002 2003 2004 2005 2006 2007 Price Per Sq. Ft. Miami Population

CB Richard Ellis | Page 12

Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research

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SLIDE 13

South Florida Population Growth

All Counties Population 1997-2007

2 600 000 2,200,000 2,400,000 2,600,000 1,800,000 2,000,000 1 200 000 1,400,000 1,600,000 1,000,000 1,200,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Miami Broward Palm Beach

CB Richard Ellis | Page 13

Sources: Florida Office of Economic & Demographic Development

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SLIDE 14

Miami Population and the Retail Sector

Miami-Dade Population Verses Retail Inventory 2002-2007

2,600,000 23,000 2,400,000

lation

21 500 22,000 22,500

ntory sq. ft.

2,200,000

Popu

20,500 21,000 21,500

Retail Inven

2,000,000 2002 2003 2004 2005 2006 2007 20,000 , Miami Retail Inventory Miami Population

CB Richard Ellis | Page 14

Sources: Florida Office of Economic & Demographic Development & CB Richard Ellis | Research

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SLIDE 15

South Florida’s Strengths and Challenges

Strengths

  • International money

Challenges

  • Public Schools
  • Visitors resulting in

increased hotel

  • Skilled Workforce
  • Traffic and

t t ti

  • ccupancy
  • Tourist spending
  • Residential home

transportation

  • Scarcity of land
  • Cost of living

Residential home values

  • Life Science industries

Cost of living

  • Port capacity
  • Cultural infrastructure
  • Sustainable buildings

Import/Exports

  • Import/Exports

CB Richard Ellis | Page 15