Market Overview
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MARKET OVERVIEW Market Overview MARKET OVERVIEW MARKET OVERVIEW Metropolitan ORLANDO #3 in Nation ORLANDO #1 in Nation Economics Projected Five Year Population Growth Projected Five Year Employment Growth Percentage Population Percentage Employment The Orlando-Kissimmee Metropolitan Rank Metropolitan Area Growth Growth Rank Metropolitan Area Growth Growth Statistical Area (“MSA” or “metro”), 1) Phoenix-Mesa-Scottsdale 12.7% 606,250 1) Orlando-Kissimmee-Sanford 11.9% 147,246 Florida’s third most-populated MSA 2) Las Vegas-Henderson-Paradise 12.5% 275,634 2) Austin-Round Rock 10.0% 100,635 3) Orlando-Kissimmee-Sanford 10.4% 257,463 3) Las Vegas-Henderson-Paradise 9.4% 90,569 and the 24th-largest in the nation, is 4) Tampa-St. Petersburg-Clearwater 10.4% 320,703 4) West Palm Beach-Boca Raton-Delray Beach 8.7% 53,385 home to 2.47 million people. Florida is 5) Jacksonville 10.4% 156,238 5) Dallas-Plano-Irving 8.6% 219,791 forecasted to be the fastest growing state 6) West Palm Beach-Boca Raton-Delray Beach 10.4% 153,314 6) Phoenix-Mesa-Scottsdale 8.6% 172,243 7) Fort Lauderdale-Pompano Beach-Deerfield Beach 10.4% 204,289 7) Fort Worth-Arlington 8.2% 84,776 in terms of population between 2017 8) Miami-Miami Beach-Kendall 10.4% 289,952 8) Jacksonville 7.5% 51,612 and 2027 adding 4.61 million people, 9) Austin-Round Rock 7.6% 157,030 9) Portland-Vancouver-Hillsboro 7.1% 82,627 and boasts Moody’s Aa2 credit rating. 10) Houston-The Woodlands-Sugar Land 7.6% 522,101 10) San Antonio-New Braunfels 6.8% 68,878 As an economic powerhouse, the MSA Source: Moody's Source: Moody's has a dynamic business climate that continues to diversify far beyond its CENTRAL FLORIDA AWARDS tourism roots; the area now benefits from AND RECOGNITION a highly-skilled workforce and a broad 160,000 Florida Metro Employment Trends Comparison industry base with nationally recognized Total Non-Farm Employment Projection 147,246 “#3 Travelers’ clusters of innovation in technology “Top Five 140,000 Choice Top 25 U.S. development, aerospace research, life Leading Metro in Destinations” science and biotechnology, and military Next 5 Years Job Creation” simulation. 120,000 – TripAdvisor, 2015 Last 2 Years – Gallup 2015 100,656 Key Indicators 100,000 88,923 State Population: 20,976,199 80,000 70,056 “No. 3 City State Population Rank: 3rd 67,491 “Top Ten American City of MSA Population: 2,469,957 60,000 54,643 53,385 for Jobs 50,922 51,612 48,104 the Future” National MSA Population Rank: 24th 44,567 2016” – FDI 2015/2016 MSA Projected Five Year Population 40,000 33,355 – Forbes 2016 Growth: 257,463 20,000 MSA Projected Five Year Job “Top 100 Best Growth: 147,246 “Top 100 Best 0 Places to Source: Moody's Orlando Tampa Miami Fort Lauderdale Jacksonville West Palm Beach Cities to Start a MSA Average Household Income: Live” $70,127 MSA - Metropolitan Statistical Area; Source: Moody’s, Census Bureau, ESR Business” – U.S. News and 4Q16 Unemployment Rate: 4.5% World Report 2016 – WalletHub 2016 MARKET OVERVIEW With neither state nor city income taxes, as well as boasting low costs of living Metro Employment and of doing business, Orlando has sound long-term growth fundamentals, % of Total Change in Jobs underpinned by continued expansion of medical and tourist related sectors, above average population and job growth, and affordable housing. Population Over/Under Last 12 Next 5 Sector Metro US Weight * Months Years** growth has been solid, as in-migration is attracted by growingMetro employment; Employment Construction 6.0% 4.7% 1.29 12.2% 29.4% over the last five years, the MSA% ofadded Total 255,972 people. In termsChange of population in Jobs Manufacturing 3.6% 8.4% 0.42 2.1% -1.4% percentage gains, the MSA ranks third amongOver the/Under 50 largestLast 12US metrosNext 5 Educ. and Health Services 12.5% 15.8% 0.79 5.8% 12.1% throughSector 2022 and is projectedMetro to add 257,463US individuals,Weight * orMonths 10.4 percent,Years** Financial Activities 5.9% 5.7% 1.03 1.7% 7.5% well Constructionover doubling the nation’s6.0% forecasted 4.7% growth of1.29 4.0 percent.12.2% 29.4% Manufacturing 3.6% 8.4% 0.42 2.1% -1.4% Information 1.9% 1.9% 1.00 -0.5% 3.8% In NovemberEduc. and Health 2016, Services Economy.com12.5% ranked 15.8% Orlando0.79 26th (of 4015.8% metros) 12.1% in Leisure and Hosp. Services 20.8% 10.8% 1.94 3.6% 14.0% termsFinancial of its overallActivities vitality—a5.9% measure 5.7%of the strength1.03 of the market’s1.7% income 7.5% Other Services 3.4% 3.9% 0.87 1.6% 7.2% growth,Information labor availability, and1.9% cost structure. 1.9% Since January1.00 2012,-0.5% the Orlando 3.8% Prof. and Bus. Services 17.1% 14.1% 1.21 5.7% 14.7% *weight versus U.S. MSALeisure added and over Hosp. 213,000 Services jobs20.8% with unemployment 10.8% 1.94 declining 3.6%to 4.5 percent. 14.0% Trade, Transportation, Utilities18.7% 18.9% 0.99 2.9% 11.1% ** cumulative NineOther of theServices ten metro employment3.4% sectors 3.9% are anticipated0.87 to1.6% expand over 7.2% Government 10.0% 15.3% 0.65 2.2% 4.0% source: Moody's the nextProf. andfive Bus. years, Services led by 17.1% Leisure and 14.1% Hospitality1.21 Services5.7% (36,173 jobs), 14.7% *weight versus U.S. ProfessionalTrade, Transportation, and Business Utilities Services18.7% (30,937 18.9% jobs), and0.99 Trade, Transportation,2.9% 11.1% ** cumulative and UtilitiesGovernment (25,772 jobs). 10.0% 15.3% 0.65 2.2% 4.0% source: Moody's The MSA’s Gross Metro Product, an indicator of overall vigor, is anticipated to grow from $117.2 billion in 2016 to $157.1 billion by 2021. In fact, forecasts put overall job growth at 11.9 percent or 147,246 new jobs through 2022—the top percentage growth rate among the 50 most populated metros and the strongest, in terms of raw number gains, amongst Florida’s Big 6 metros. Further, Orlando has a robust talent pipeline of over 500,000 students within a 100-mile radius, ensuring a strong and stable labor pool for an MSA that is anticipated to remain amongst the nation’s top growing metropolitan areas well into the future. 5,000,000 Top 5 States by Population Growth 70% Orlando MSA Quarterly Employment Growth Trends 4,607,917 2017-2027 4,444,416 16,000 14.0% 4,500,000 60% 3,940,712 4,000,000 14,000 Population Growth 12.0% 50% 3,500,000 Percentage Growth 12,000 10.0% 3,000,000 10,000 40% 2,500,000 1,894,028 8,000 8.0% 1,430,499 30% 2,000,000 6,000 26.6% 6.0% 1,500,000 22.0% 20% 4,000 1,000,000 15.8% 4.0% 13.9% 10% 2,000 500,000 9.9% 0 2.0% 0 0% 10' 11' 12' 13' 14' 15' 16' Florida Texas California Arizona North Carolina Source; Moody's Source: Moody's New Jobs Unemployment MARKET OVERVIEW Metro Drivers Medical City at Lake Nona: Major Projects Lake Nona Medical City Project Completion Date Details Located on 650 acres within Lake Nona and just 18 minutes University of Central Florida College of 2009 $65 million, 170,000 SF from the Property, this “Medical City” houses a cluster of Medicine life science companies and healthcare-related facilities. The Sanford-Burnham Institute for Medical 2009 $365 million, 175,000 SF 7,000-acre master-planned community includes two million square feet of research and institutional spaces, as well as Research five million square feet of commercial and retail space. In Nemours Children's Hospital 2012 $400 million, 600,000 SF 10 years, Lake Nona is projected to generate more than $7.6 University of Florida Academic and Research 2012 $44 million, 100,000 SF billion in economic impact and create 30,000 jobs, including 7,000 students and educators. Center Valencia College Lake Nona Campus 2012 $21.7 million, 83,000 SF United States Tennis Association Complex Veterans Affairs Medical Center 2015 $650 million, 1.2 MSF, 180 beds at Lake Nona Set for completion by 2Q17, the United States Tennis GuideWell Innovation Center 2016 $30 million, 92,000 SF Association broke ground on its state-of-the-art tennis facility in Lake Nona during 2Q15. Making it the largest *Occupies space at UCF College of Medicine tennis complex in the nation, the $60-million dollar project, situated on 63 acres, will feature 150,000 square feet of indoor facilities, and over 100 clay and hard courts. It will also serve as the primary playing facility for the University Florida Hospital's Health Village: Major Projects of Central Florida’s varsity team along with a 1,200-person Project Completion Date Details seating area. The venue will create over 150 jobs and offer Ginsburg Tower 2008 $255 million, 15 stories, 440 beds the latest in sports science technology. Ultimately, the facility FL Transplant Center, Digestive Health, and 2010 $47 million, 156,000 SF will anchor and expand into a 100-acre cluster of sports and Advanced Surgical Programs Translational Research Institute for Metabolism and 2012 54,000 SF, 3 stories human performance businesses.