Study of Retail Market Conditions - April 2017 Acknowledgement Credit

Home , 1010 Brickell, Asia (Miami), Brickell Flatiron, Brickell Heights, Echo Brickell, Miami Center

Metro Renters

Highly mobile and educated market live alone or with roomates in the urban core of the city. Late twenties and thirties. Spend largest portion of their income on rent, clothes and technologies. Resident live close to their jobs and usually walk or take a taxi to get around the city. Socializing and social status very important.

GREATER DOWNTOWN MIAMI Study of Retail Market Conditions - April 2017 Acknowledgement Credit

Greater Downtown Miami Study of Retail Market Conditions – April 2017 Prepared for the Miami Downtown Development Authority (DDA) By Integra Realty Resources (IRR) As of June 2017

This market research report is the second annual publication of retail market conditions in downtown Miami published by IRR. The report was commissioned by the Miami Downtown Development Authority (Miami DDA) to provide an eective framework for understanding the retail conditions, critical mass of retail, and relative opportunities within each submarket with an emphasis on future study of what factors are contributing to the success of downtown Miami’s retailers. The report aggregates proprietary and non-proprietary sources to provide a market-by-market snapshot for landlords and tenants to identify new opportunities in the marketplace by providing useful maps and coding of major projects by submarket that will drive new retail opportunities.

To that end, IRR Miami would like to acknowledge and thank Metro 1 Commercial, and the Commercial Industrial Association of South Florida (CIASF) for leading the way in their annual publication of the Wynwood Market Report. We borrowed liberally in layout and form, reconfirmed and re-stated many of the findings from that report into this framework. The Metro 1 Commercial team has been a long- standing advocate and partner in the success of downtown Miami’s evolution, and they continue to provide actionable market intelligence to be shared with their peers. In addition to Metro 1, IRR Miami on behalf of the Miami DDA has been aided significantly by many other retail brokers and owners including Konover-Stern, Mana Holdings, the Comras Company, CBRE, HFF, Colliers International, Cushman Wakefield, JLL, Charitt, Goldman Properties, Avra Jain, Seth Gadinsky, and Fortis Development.

For more information on this and other reports, please contact

IRR-Miami | Palm Beach Dadeland Centre 9155 S Dadeland Blvd. Suite 1208 Miami, FL 33156 305-670-0001

Anthony M. Graziano, MAI, CRE Senior Managing Director Integra Realty Resources (IRR) – Miami | Palm Beach

Virginie Dorris Senior Market Research Analyst Integra Realty Resources (IRR) – Miami | Palm Beach [email protected]

2 Integra Realty Resources Table of Contents

Executive Summary ...... 4 Greater Downtown Miami Market Map ...... 5 Greater Downtown Miami Major Retail Properties ...... 6 Summary of Proposed Major Projects...... 8 Market Comparison Analysis ...... 9 Retail Sales ...... 10 Brickell ...... 12 Retail ...... 13 Primary Market Area ...... 14 Major Retail Destinations ...... 15 Recent Retail Deliveries, Under Construction and Transactions ...... 16 Downtown/CBD ...... 18 Retail ...... 19 Primary Market Area ...... 20 Major Retail Destinations ...... 21 Recent Deliveries, Under Construction and Transactions ...... 22 Art & Entertainment District ...... 24 Retail ...... 25 Primary Market Area ...... 26 Major Retail Destinations ...... 27 Recent Deliveries, Under Construction and Transactions ...... 28 Edgewater ...... 30 Retail ...... 31 Primary Market Area ...... 32 Major Retail Destinations ...... 33 Recent Deliveries, Under Construction and Transactions ...... 34 Midtown ...... 36 Retail ...... 37 Primary Market Area ...... 38 Major Retail Destinations ...... 38 Recent Deliveries, Under Construction and Transactions ...... 39 Wynwood ...... 40 Retail ...... 41 Primary Market Area ...... 42 Major Retail Destinations ...... 43 Recent Deliveries, Under Renovation and Transactions ...... 44 Sourcing ...... 46

Integra Realty Resources 3 Executive Summary

Florida is known for its rich tourism attracting more tourists annually than any other state. Florida is now the third most highly populated state in the nation surpassing New York. The South Florida region (Miami, Fort Lauderdale, and Palm Beach) is the most populous area in the state and Miami is Florida’s largest metropolitan center. In just 15 minutes, 1.3 million residents can reach downtown; and 2.1 million residents in 30 minutes. South Florida is a global tourist destination, especially for visitors from Latin America. The area is served by two major airports - Miami International Airport saw approximately 22.6 million deplaned passengers, while the Ft. Lauderdale International Airport saw another 14.5 million passengers. Miami is also the cruise capital of the world; PortMiami also hosted 5.1 million cruise passengers in 2016. Greater Downtown Miami is the heart of the South Florida region. Greater Downtown Miami has traditionally been a regional employment center with a strong concentration of finance, banking, legal, real estate and professional services firms. The area now has reached a critical density with residents, workers, tourists, students and visitors; over 235,000 people spend time in Greater Downtown Miami daily. The daytime population is complemented by an active nightlife with nightclubs, restaurants, and bars open until dawn. Together, Greater Downtown Miami is now a 24-hour urban center anchoring a dynamically growing metro area. Residents, visitors, and workers in Downtown Miami contribute to retail spending daily. Greater Downtown Miami is host to a unique array of neighborhoods that each have their own character. Brickell represents the modern financial hub of Greater Downtown Miami and sits at the intersection of Little Havana, Coconut Grove, and the Miami CBD. The CBD is the historic and tourism hub of downtown, with many of the city’s oldest buildings as well as the Bayside Marketplace and Bayfront Park. • Downtown Miami retail comprises retail growth. Downtown has become a larger approximately 9.2 Million square feet of retail part of the tourist experience, which will be space across all seven defined downtown DDA enhanced by new attractions such as Frost markets. This inventory includes 625,000 +/- Science Museum, cultural landmarks, and SF of flex/creative space in Wynwood, and diverse retail opportunities. nearly 900,000 SF of ground floor inventory • The growing population base, particularly the within existing condo/mixed use ground growth in the conventional rental segment floor retail marketwide. Rents vary widely by is creating opportunities for neighborhood submarket, and even within the submarkets convenience services and retail opportunities based on the quality of retail and its proximity that serve more localized neighborhoods within to retail concentrations. Rent levels on a NNN downtown. basis range from the mid-teens to over $150/ SF in the prime corridors. • There is no doubt that the current has shifted as retail is going urban, and consumer’s • The delivery of Brickell City Centre marks the behavior has altered the retail landscape. high point of retail deliveries, which has spiked Downtown presents the ideal mix of tourism, vacancy in the short-term in the submarket. employees, residents, and students who However, the project has delivered more critical all spend. Urban retail takes advantages mass and luxury retail to the breakout Brickell of walkability, transit connectivity, and submarket. The project is also lifting rents in convenience. Downtown Miami has emerged the area and sets a new high water mark for as an incredible urban destination due to its downtown retail rents. maturity as an employment center. • The downtown area’s improving retail • Further north is A&E, home to the city’s fundamentals are driven by several factors. flagship art and science museums as well as These include residential growth, organic the Adrienne Arsht Center as well as high- employment growth, increased visitation, rise condos such as One Thousand Museum. and increasing capture of county-wide retail Adjoining the A&E district is Overtown, an demand. urban neighborhood home to the historic • The majority of retail spending in Greater Lyric Theatre as well as county oªces at Downtown Miami comes from sources other the Overtown Transit Village. Further north, than local residents, reflecting its large Edgewater is an emerging residential corridor, employment base and tourist attractions. while Wynwood and Midtown are emerging as • IRR Miami’s analysis of retail conditions in Miami’s creative hubs. downtown indicate a robust trajectory of

4 Integra Realty Resources I2 I2

I2 I2

I2 Greater Downtown Neighborhood Map

Design District I2 UV112 [ ¨¦§195 JULIA TUTTLE CSWY NE 36th St NW 36th St

NW 35th St NE 35th St NW 35th St NW 34th Te NE 34th St I2 NW 34th St NW 34th St NE 33rd St NW 33rd St NW 33rd St NE 32nd St NW 32nd St Midtown NE 1st Ave

NW 32nd St Ave 2nd NE NE 31st St

NW 31st St NE 30th Te NE 30th St NW 30th St

NE 29th St

N N MIAMI AVE

NW 2nd Ave 2nd NW

NW 6th Ave 6th NW

NW 3rd Ave 3rd NW NW 5th Ave 5th NW NE 29th St NW 29th St Edgewater NE 28th St NE 27th Te Allapattah NW 28th St NE 27th St ¨¦§95 NW 27th St NE 26th Te NW 27th St NE 26th St NW 26th St NW 26th St NW 25th St Wynwood NE 25th St NE 24th St NW 24th St NW 24th St NE 24th St NW 23rd St NW 23rd St NW 23rd St NE 23rd St NE 22nd Te

NW 22nd St NE 22nd St

NW 22nd St Ave 2nd NE

I2 NE 21st St BISCAYNE BOULEVARD BISCAYNE

NE 20th St

NW 5th Pl 5th NW

N MIAMI AVE MIAMI N

NW Miami Ct Miami NW

NW 1st 1st Ave NW NE 19th Te

NW 2nd Ave 2nd NW NW 1st 1st Ct NW I2 NW 20th St 1st Pl NW

NE 19th St

NW 4th Ct 4th NW NW 19th St Health District NW 19th St NW 18th St

NE 17th Te NW 2ndCt NW

NW 17th St NE 17th St

NE 16th St OvertownNW 16th St A & E VENETIAN CSWY NE 15th St NW 15th St ¬

I2 I2 NE 14thI2 Ter NW 3rd Ave 3rd NW NE 14th St

NW 14th St HERALD PLZ HERALD

NE 13th St MACARTHUR CSWY NE 2nd Ave 2nd NE

NW 13th St AVE MIAMI N NE 1st Ct 1st NE

DOLPHIN EXPWY Ave 1st NE NE 12th St

NW 12th St ¨¦§395 I2

NW 1st Ave 1st NW NW 2nd Ave 2nd NW NW 1st Ct 1st NW NW 1st Pl 1st NW WATSON ISLAND NW 11th Ter NE 11th St I2 UV836 I2 NE 10th St

NW 10th St NE 9th St NW 9th St

BISCAYNEBLVD N MIAMI AVE MIAMI N I2 NW 3rd Ave 3rd NW NE 8th St NE 8th St NW 8th St I2 NE 7th St NW 7th St I2 PORT BLVD NE 6th St

NW 6th St

NE 1st 1st Ave NE

NW 1st Ct 1st NW

NW 2nd 2nd Ave NW

NW 3rd Ave 3rd NW NW 4th Ave 4th NW NW 5th Ave 5th NW ¨¦§95 NE 5th St CBD NW 5th St I2 ¬ I2

NW 4th St NE 4th St PORT OF MIAMI I2 BISCAYNE BLVD NE 3rd St NW 3rd St

NW 1st Ave 1st NW NE 2nd St NW 2nd St I2I2 I2

NW 1st St NE 1st St

NE 3rd Ave 3rd NE

NE 2nd Ave 2nd NE

NW 7th Ave NW 7th N MIAMI AVE MIAMI N

NW 12th Ave NW 12th E FLAGLER ST

W FLAGLER ST Ct Miami NW W FLAGLER ST SW 1st St I2 SE 1st St

SW 1st St Ave 3rd SE I2 SE 1st Ave 1st SE SW 1st St SE 2nd St CHOPIN PLZ SW 2nd St I2 I2 SE 3rd St SW 3rd St Biscayne SW 3rd St I2 BISCAYNE BLVD WAY

East Little Ave 2nd SW Bay

SW 4th Ave 4th SW SW 6th Ave 6th SW Havana SW 4th St I2 SE 5th St Miami River

SW 6th St SE 6th St BRICKELL KEY SW 7th St SW 7th St SW 7th St I2

4th SW 8th St SW 8th St SW 8th St AVE MIAMI S BRICKELL AVE SW 9th St SW 9th St SE 9th St I2 SW 10th St SE 10thBrickell St

SW 1st Ct 1st SW MetroRail Stations SW 1st Ave 1st SW 6th Ave 6th SW 10th St

SW 2nd Ave 2nd SW I2

SW 3rd Ave 3rd SW ¬ SW 5th Ave 5th SW SW SW I2SW 11th St SW 11th St SE 11th St MetroRail 95 West I2SW 12th St § SE 12th St SW 17th¨¦ Rd SW 5th Ave SW 18th Rd Brickell SW 13th St SE 12th Te I2 SW 15th Rd SW SW 4th 18th Ter Ave SE 13th St MetroMover Stations SW 14th St I2 SE 14th St

SE 14th Te MetroMover SW 2nd Ave

S MIAMI AVE SW 1st Ave

BRICKELL AVE SE 15th Rd SW 18th Rd Edgewater

SW 18th Te SW 12th Ave 12th SW

SW 19th Rd The Roads SW 3rd Ave S MIAMI AVE Miami DDA

SW 20th Rd

SW 21st Rd

SW 22nd Rd Arts/Ent BRICKELL AVE

SW 23rd Rd SW 24th Rd CBD SW 25th Rd South Brickell Brickell CORAL WAY I2 Wynwood

¤£1 Overtown

RICKENBACKER CSWY 0 0.5 1 Midtown Miles

Disclaimer: This product is for reference purposes only and is not Source: Miami-Dade County ITD, Miami DDA to be construed as a legal document or survey instrument. IntegraUpdated: April 20, 2017Realty Resources 5 Greater Downtown Miami

I2 Greater Downtown Miami Major Retail Properties - 2016

2017 Existing SF U/C SF % Growth Avg. Rents (NNN)

Brickell 1,585,639 50,000 6.5% $75-$125

CBD 2,430,494 400,000 36.4% $30-$40

A&E 818,578 [1] 15,000 1.8% $15-$30

Edgewater 733,511 12,075 [2] 1.6% $40-$60

Midtown 831,624 63,000 8.2% $40-$60

Wynwood 1,174,123 0 0.0% $50-$75

Overtown 176,146 0 0.0% $10-$25

Total (Unadjusted) Adjustments: 7,850,115 768,139 9.8% $45

Estimated Condo and Oªce-Retail 900,000 ------

Add'l Wynwood 627,000 ------(1/3 of oªce/ind space)

Total (Adjusted) 9,277,115 768,139 8.3% $45

2% 15% 21% Brickell

CBD

A&E

11% Edgewater

Midtown

Wynwood

9% Overtown 31% 10% Source: Integra Realty Resources

6 Integra Realty Resources Greater Downtown Miami Major Retail Properties - 2016

Pipeline 2015-2016 Existing Properties > 100,000 SF Properties Proposed Properties >100,000 SF Changes >100,000 SF

Brickell City Centre (505,000 SF) Miami River Walk (133,000 SF) Mary Brickell Village (277,983 SF) None 680,152 China City - Capital at Brickell (600,000 SF) Navy Federal Credit Union (204,108 SF)

22 E Flagler/ Miami Macy's Complex Worldcenter & (487,000 SF) Miami Central Station 56,509 [3] --- Bayside (213,438 SF leasable) (490,000 SF) Galeria Internacional (162,435 SF) Met Square Seybold Building (150,000 SF) (113,508 SF)

Omni (150,000 SF retail+ oªce) 129,985 Miami Innovation District (TBD)

Braman BMW (143,221 SF) None 55,834 ---

Midtown Miami (509,946 SF leasable) None 290,319 [4] Walmart (203,000 SF)

Salvation Army (123,816 SF) None 149,624 [5] Mana Wynwood (TBD)

None None -18,648 [6]

Total (Unadjusted) Adjustments: 1,343,775

[1] Size discrepancies reflect CoStar remeasurements of existing buildings (71 NW 14th St, for instance, grew from 16,133 SF to 40,000 SF based on a March 24, 2017 listing) and migration of properties to retail from oªce and industrial or vice versa depending on the highest and best use at the time. [2] Excludes 343,000 SF of oªce @3050 Biscayne classed by CoStar as retail do not appear in the pipeline. [3] Mainly composed of Whole Foods (+41,000 SF) and reclassified space at 777 Mall (+73,000 SF). [4] Reflects retail outside Midtown Miami development (mainly on NW 36th St) that was not previously included in IRR prior report. [5] Reflects conversions of flex/reclassification of retail from other uses. [6] Overtown submarket details are not subsequently provided because there is no defined node or critical mass of retail, and the size of the market did not lend itself to the submarket breakdown.

Greater Downtown Miami Demographics

AVERAGE HH MEDIAN MEDIAN AGGREGATE DAYTIME POPULATION INCOME AGE HOUSEHOLD HH INCOME POPULATION 88,540 $97,671 35 2 $4.2B 235,000

Source: Integra Realty Resources

Integra Realty Resources 7 Summary of Proposed Major Retail Projects

There are a number of potentially transformative • Midtown Miami has seen the delivery of developments in the pipeline for greater Eve (formerly District 36) as well as the downtown retail. Updates on these include: completion of Midtown 5 and vertical construction at Hyde Midtown, which will • Miami Worldcenter has seen groundbreaking include SBE-branded restaurants similar to on its residential component. Vertical those at SLS South Beach and SLS Brickell. construction is well underway at Paramount, Midtown 6 recently received development and the 7th Street Promenade rentals are approval with a ground-level grocery store. also under construction. Over 150,000 square feet of retail is currently under construction • SkyRise Miami is advancing, with the majority while another 150,000 square feet of high- of it approved. The final remaining piece street retail, involving Forbes and Taubman, of permitting is for the signature “Skyway” will begin construction this year.. attraction, a modified Ferris wheel running on the outer edges of the building. • Met Square is also now well under construction, comprising both a rental • Museum Park opened Frost Science Museum tower and retail anchored by a Silverspot in May 2017, joining the Perez Art Museum cinema. The mixed-use project is expected Miami next door. The museum includes two to be completed by 2018. Location: CBD retail spaces – a gift shop and a restaurant- Submarket on its ground floor.

In addition to the above, several other projects • Mana Wynwood formally unveiled plans for with possible retail components are currently in the “Americas-Asia Trade Center” in April the planning or approvals stage, although firm 2017. Mana expects the project to create square footages have not yet announced. These 20,000 jobs and to contain 75,000 square include: feet of retail, along with 3 million square feet of oªce and showroom space and a 400- • Miami River Walk, located in Northwest room hotel. Brickell, was revised in 2016 to include a hotel and a total of 266,000 square feet of retail • A number of projects along the Miami DDA’s and oªce space. A pre-development loan boundaries are continuing as well. River was secured in September. Landing will be moving forward after issues between the developer and their lender • MiamiCentral Station, straddling the CBD and were settled in 2016. Work is continuing on Overtown, is currently under construction, the final components of the Miami Design and train service is expected to begin by District’s third phase, and the first retail at year-end 2017. Plans show that the retail will Island Gardens – the Deck restaurant – had occupy most of the ground level frontage its preview opening last year and is expected as well as several mezzanine retail/oªce to reopen later this year. Two successful spaces. Publix has signed a deal to open at 3 hostings of the Miami International Boat MiamiCentral. Show have helped lead to a $45 million loan to restore it, which was authorized in 2016. • Miami Innovation District has begun site work, with the 4.8 acre Greyhound site at 1151 NW 1st Avenue being cleared in February 2017. Permitting for the project is currently in mediation under Florida’s Land Use and Environmental Dispute Resolution Act as a result of zoning changes.

8 Integra Realty Resources Market Comparison Analysis Market Comparison Snapshot

Market Tourism Downtown IRR Index Downtown Street High Downtown Retail in visitors per Oce Ranking Area Rents Street Population Inventory year Inventory 1 Los Angeles $60 $250 58,000 4,550,000 45,500,000 28,000,000 2 Miami $50 $150 85,000 9,200,000 15,000,000 21,500,000 3 Seattle $40 $75 75,000 3,775,000 19,200,000 40,000,000 4 Houston $35 $90 15,000 1,575,000 17,500,000 46,000,000 5 Orlando $25 $60 12,500 1,000,000 22,000,000 6,450,000 6 Ft. Lauderdale $35 $90 15,200 1,225,000 13,000,000 9,000,000 *The above submarket comparison was based on interviews with national Integra Realty Resources (IRR) oces, and proprietary and public data assembled by IRR for comparison.

IRR identified a list of comparable downtown areas, and has identified three distinct drivers to downtown retail sales. We selected five national comparative markets that are considered most analogous in the city’s scale, the size of the surrounding metro population, the level of tourism into the market as measured by visitation, and the size of the CBD oªce market oering daytime population drivers.

Miami is performing well on high street rents for premium locations where sales support new retail. What downtown Miami needs is the redevelopment of older street retail, with a continued emphasis on expanding new residential opportunities and drawing Miami-Dade residents and visitors to downtown for entertainment and recreation. New oªce supply is already underway, which will add to the daytime population base. The combination of these factors (visitors, workers, and residents) will continue to support rent levels and growth of the retail sectors downtown.

Miami is emerging as a 24-hour city, and it is drawing on an increasing downtown residential population when compared to Los Angeles, Seattle, Orlando, Ft. Lauderdale, and Houston. Miami leads in downtown resident population against these markets.

The rental ranges exhibited by each peer market are enhanced by the combination of downtown population (local spending); tourist visitors (discretionary vacation spending) and oªce inventory (downtown daytime spending).

Los Angeles tourism drivers support its high street rents, and overall street rents are supported by downtown oªce and relatively comparable population.

Miami is the second best performer in the peer set with a strengthening downtown population, and a fast- expanding market share of tourist spending. While lagging in downtown oªce inventory size, downtown Miami remains focused on experiential spaces, including art and cultural oerings that continue to draw tourists and local Miami-Dade residents alike. This is supporting a large retail inventory downtown, and registering the second highest rent ranges across downtown peers.

Seattle has comparable drivers as Miami and Los Angeles, but rent levels and overall retail inventory is lagging.

The balance of the markets all compete fairly on most metrics except downtown oªce inventory and downtown population, and as a result the street and high street rents are a fraction of Miami and Los Angeles.

Integra Realty Resources 9 Retail Sales

In terms of sales growth, Greater Downtown Miami has continued to outpace the rest of the county, driven by strong performance in the Wynwood/Edgewater submarkets. Core downtown submarkets of the CBD and Brickell have seen more mixed performance, however.

A total of $4.6 billion in retail sales were conducted in Greater Downtown and its environs, accounting for 5.36% of the county total vs. 5.25% in 2014.

Downtown Retail Spending by Category

Category 2015 Sales ($M) 2014-2015 Change General Merchandise, Mail Order $969.12 16% Restaurants, Caterers $783.40 7% Motor Vehicle Dealers, Camper Sales, Leasing, Repairs by Dealers $569.73 -22% Grocery Stores, Convenience Stores $459.41 10% Importing & Exporting $336.99 -17% Home Entertainment & Musical Instruments, Electronics Shops $255.29 -31% Clothing & Alterations $252.48 25% Furniture Stores $166.00 26% Rental Shops $143.45 7% Graphic Arts & Printing Publishing, Engraving $122.41 3% Insurance, Banking, Research, Income Tax Services, Information Services $82.25 54% Auto Parts & Accessories $78.98 1140% Interior Decorating, Painting, Paperhangers, Draperies $62.26 2% Transportation $60.82 274% Itinerant Vendors $43.73 -1% Other Personal Services $33.17 -7% Miscellaneous $30.52 -32% Barber & Beauty Shops, Cosmetics, Health Spas $29.38 0% Repair Shops $24.68 -21% Taverns & Clubs. Liquor Stores $19.70 383% Advertising $14.40 6% Garages & Repair Shops, Body Shops $13.16 -8% Second Hand Stores, Goodwill, Antique Dealers $7.83 45% Gift, Card & Novelty Shops, Toy Stores, Hobby Shops $5.26 15% Laundry & Cleaning Services $1.57 - Shoe Stores $0.00 -100% Grand Total $4,566 2.12%

The categorization of the type of sales reinforces that growth is occurring in both tourist and resident categories. General Merchandise growth, grocery and c-store sales growth, gift card, liquor and taverns/ bars, banking and income tax services are all fundamental resident-driven categories. Clothing, furnishing, restaurant, rental shop growth are tourist-driven sectors.

Miami retail continues to beneﬁt from the increased exposure of the downtown area to the broader Miami- Dade resident base and an expanding younger base of residents. Resident growth will continue to outpace the county-at-large due to housing expansion (rental and for-sale) in the market. Miami is delivering on the tourist experience, and new oªce developments are under construction to support continued job growth. The market demand for retail is essentially ﬁring on all cylinders.

10 Integra Realty Resources Retail Sales

According to IRR’s interpretation of sales tax reports, the zip codes that comprise the DDA area (33127/ Wynwood, 33137/Edgewater, 33136/Overtown, 33128/CBD, 33132/CBD, 33131/Brickell, 33130/Brickell, and 33129/Brickell from north to south) have outperformed Miami-Dade County as a whole in terms of spending growth between 2014 and 2015. The following table updates how DDA zip codes have performed in terms of sales growth as compared to Miami-Dade County as a whole: Downtown Retail Spending Performance

Zip Code DDA Submarkets Non-DDA Neighborhoods 2015 Total Sales Growth 33127 Wynwood, Midtown Allapattah $582 19.02% 33128 CBD North Little Havana $48 -12.73% 33129 Brickell The Roads $101 -1.94% 33130 Brickell South Little Havana $570 -17.99% 33131 Brickell None $1,118 -8.51% 33132 CBD, A&E, Edgewater None $801 3.09% 33136 CBD, Overtown Civic Center $88 7.32% 33137 Edgewater, Midtown Design District $1,258 19.92% DDA Total $4,566 2.12% Countywide $85,137 -5.46%

In terms of sales growth between 2014 – 2015, the downtown market expanded 2.12% while the county overall dropped 5.46%, indicating downtown outperformed on retail sales. The sales tax data used to estimate the $4.566 Billion in retail sales downtown does not include Brickell City Centre, which opened in late 2016.

While the sales tax data includes some over-lapping “non-DDA” zip codes, the overall magnitude of sales in 2015 remained an impressive $492 per SF on average.

Photo Credit: Nathan Gilbert

Integra Realty Resources 11 BRICKELL

12 Integra Realty Resources Photo Credit: fotoluminate © 123RF.COM 600,000 SF

500,000 SF BRICKELL 400,000 SF Deliveries Retail 300,000 SF Net Absorption SF Direct

Brickell Primary200,000 Market SF Area Brickell Submarket Existing Inventory 1,287,588 SF 1,585,639 SF 100,000 SF NNN Rent Per SF (Q1 2017) $127.54 $96.43 Vacancy (Q1 2017) 22.6% 0 SF 18.9% 12-month deliveries 505,000 SF 505,000 SF -100,000 SF 2012 2013 2014 2015 2016 12-month absorption 195,536 SF 198,863 SF

5-Year Historical Absorption and Deliveries 600,000 SF 600,000 SF 500,000 SF $120 500,000 SF 400,000 SF Deliveries $100 400,000 SF Deliveries 300,000 SF Net Absorption SF Direct $80 300,000 SF Net Absorption SF Direct 200,000 SF $60 200,000 SF $40 100,000 SF 100,000 SF $20 0 SF 0 SF $0 -100,000 SF 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 -100,000 SF 2012 2013 2014 2015 2016

Historical Retail Rents Historical Retail Vacancy

$120 25.0% $120 $100 20.0% $100 $80 15.0% $80 $60 $60 10.0% $40

$40 5.0% $20 $20 $0 0%

2011 $0 2008 2009 2010 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013*Short2014 vacancy2015 2016 as Q4-2016 reﬂects stabilization of Brickell City Centre.

25.0% Integra Realty Resources 13 25.0% 20.0% 20.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016

2008 2009 2010 2011 2012 2013 2014 2015 2016 Brickell Primary Market Area

Restaurants Entertainment/Bars Hospitality Food, Health & Wellness

MetroRail Stations MIAMI RIVER MetroRail MetroMover Stations CAPITAL GRILLE MetroMover W MIAMI BRICKELL RIVER 15TH CIPRIANI AND VINE YACHT CLUB BETTER DAYS BABY CANTINA AMERICAN JANE LA VEINTE

SOCIAL AVE. MIAMI S RIVER FARMER’S OYSTER BAR 38,500 AADT MARKET SE 7 TH PUBLIX AVE. BRICKELL BIG EASY PUBBELLY CITY CINEMEX SUSHI CENTRE EAST BLACKBIRD QUINTA CVS ORDINARY TACOLOGY LA HUELLA SE 8TH AVE. TRULUCKS SUGAR HOT YOGA BRICKELL MANDARIN TITLE BOXING ORIENTAL KOMODO BLUE TUCANDELA/BARU MARTINI STARBUCKS PUBLIX PERRICONE’S MARKETPLACE LA FITNESS FADO RED BAR VISA O1 BRICKELL AVE. COYA BISCAYNE MARION BATCH BAY GASTROPUB EL TUCAN COYO TACO STARBUCKS 26,500 AADT JW MARRIOTT

MORTON’S CVS SW 13TH AVE. GYU-KAKU SLS SEGAFREDO WALGREENS PUBLIX BAZAAR MAR FI’LIA BLUME BY JOSE ANDRES SW 15 TH RD.

PM BUENOS S MIAMI AVE. AIRES EQUINOX EDGE FOUR SEASONS Rents

$100 - $200+/sf NNN $50 - $100/sf NNN $35 - $50/sf NNN

14 Integra Realty Resources BRICKELL Brickell Major Retail Destinations Brickell City Centre

Brickell City Centre is a mixed-use, $1 billion+ development that includes a hotel, two oªce towers, two condo towers, serviced executive apartments, and a 505,000 SF mall anchored by Saks Fifth Avenue and containing a mix of upscale and luxury retail heavily oriented towards apparel and fashion. Brickell City Centre is managed by the same company as Bal Harbor Shops, Whitman Family Development, and aims to replicate that experience in a mixed-use urban setting. The retail had its grand opening in Q4 2016. A luxury CMX cinemas opened in May 2017. Leasing of the remaining space is being handled by the Simon Property Group.

Mary Brickell Village

Mary Brickell Village is a lifestyle retail center located along South Miami Avenue. With a retail mix heavily dominated by restaurants and bars, but also including an LA Fitness, an anchor Publix, and a number of boutiques, Mary Brickell Village has acted as the main neighborhood hub for Brickell and has stimulated retail and residential growth on the adjoining city blocks.

Demographics

AVERAGE HH MEDIAN MEDIAN AGGREGATE POPULATION INCOME AGE HOUSEHOLD HH INCOME 34,975 $102,130 34 1.73 $2.3B

Integra Realty Resources 15 Recent Retail Deliveries, Under ConstructionMIAMI RIVER and Transactions

MetroRail Stations MetroRail MetroMover Stations 15 MetroMover

SE 7 TH AVE. BRICKELL 13 1 SE 8TH AVE. 6 5

14 12

BRICKELL AVE. BISCAYNE 8 16 7 BAY 11 4

SW 13TH AVE. 2 SW 15 TH RD. 17

3 S MIAMI AVE.

9 Recently Delivered

1 2 3 4 Brickell City Centre SLS Brickell Le Parc The Bond at Brickell $1.05B Project $400M Project 128 Condos 328 Condos 505,000 SF Retail 453 condos, 270 Hotel Rooms 5,000 SF Retail 92% Leased 124 hotel rooms (Starbucks) $150 Median Lease Rate 2 restaurants (Fi’lia and Bazaar Mar) 16 Integra Realty Resources BRICKELL

Under Construction

5 6 7 8 Brickell Heights SLS Lux Panorama Brickell Flatiron 682 Condos 534 Condos, including 821 Apartments 549 Condos 35,000 SF Oªce 84 Hotel Rooms 208 Hotel Rooms 25,000 SF Retail 55,000 SF Retail (incl. 20,000 SF Retail 50,000 SF Retail Soul Cycle & Equinox) 44% pre-leased 100,000 SF Oªce

9 10 Echo Brickell 1010 Brickell 180 Condos 387 Condos 5,000 SF Retail 11,500 SF Retail Representative Retail Transactions

11 12 13 14 Brickell Flatiron Four Ambassadors Hotel Chevron 720 SW 2nd Ave Mary Brickell Village $22.5M $3.1M $8M 113.5M $907 PSF 801 Brickell Bay $378 PSF Land (2016) $581 PSF (2015) (2016 – under contract) $329 PSF (2016) 0.49-acre redevelopment 195,000 SF Retail 24,800 SF Retail Condo 9,495 SF (3) Retail Condos

15 16 17 Cipriani (Icon I) 1100 Milecento Jade Unit 1 $7.6M $10.5M $2.3M $738 PSF (2015) $628 PSF (2015) $740 PSF (2014) 10,305 SF Retail Condo 16,711 SF (3) Retail Condos 3,105 SF Retail Condo Integra Realty Resources 17 CBD CBD / DOWNTOWN DOWNTOWN

18 Integra Realty Resources Photo Credit: Marc Averette DOWNTOWN / CBD Retail

CBD Primary Market Area CBD Submarket Existing Inventory 2,430,494 SF 2,574,746 SF NNN Rent Per SF (Q1 2017) $37.32 $35.13 Vacancy (Q1 2017) 10.4% 12.3% 12-month deliveries 0 SF 60,000 SF 55,442 SF 12-month absorption -135,491 SF 40,000 SF -114,423 SF 20,000 SF 0 SF 2012 2013 2014 2015 2016 -20,000 SF 5-Year Historical Absorption-40,000 SFand Deliveries -60,000 SF -80,000 SF Deliveries SF 60,000 SF -100,000 SF Net Absorption SF Total 40,000 SF -120,000 SF 20,000 SF 60,000 SF 0 SF 2012 2013 2014 2015 2016 40,000 SF -20,000 SF 20,000 SF $40 -40,000 SF 0 SF 2012 2013 2014 2015 2016 $35 -20,000 SF -60,000 SF -40,000 SF -80,000 SF Deliveries SF $30 -60,000 SF -100,000 SF Net Absorption$25 SF Total -80,000 SF Deliveries SF -120,000 SF $20 -100,000 SF Net Absorption SF Total

-120,000 SF $15 2012 2013 2014 2015 2016 YTD Historical Retail Rents Historical Retail Vacancy

$40 14.0% $40 12.0% $35 $35 10.0%

$30 8.0% $30 6.0% $25 $25 4.0% $20 2.0% $20 $15 0% 2012 2013 2014 2015 2016 YTD 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD $15 2012 2013 2014 2015 2016 YTD

14.0%

12.0%

10.0% 14.0% 8.0% 12.0% 6.0%

4.0% 10.0%

2.0% 8.0%

0% Integra Realty Resources 19 6.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 4.0%

2.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Downtown/CBD Primary Market Area

Restaurants Bars/Entertainment & Attractions Fashion & Boutiques CBD CBD

/ Hospitality Food, Health & Wellness

MetroRail Stations CVS MetroRail NE 8TH ST. MetroMover Stations MetroMover AA ARENA

PORT BLVD.

STARBUCKS BAYSIDE 36,000 AADT VICTORIA’S MARKETPLACE SECRET BUBBA GUMP SHRIMP DISNEY MIAMARINA DOWNTOWN DOWNTOWN STORE FOOTLOCKER

AVE. GAP

AVE. ST

ND BISCAYNE BLVD.

NE 1 NE MDC NE 2 NE MUSEUM OF HARD

ART & DESIGN ROCK CAFE N MIAMI AVE. MIAMI N CVS ORANGE THEORY YVE HOTEL MIAMI CENTER BAYFRONT PARK FOR ARCHITECTURE CVICHE 105 & DESIGN BISCAYNE SOYA E BAY STARBUCKS WALGREENS POMODERO SEYBOLD E FLAGLER JEWELRY LOST BOY MARSHALLS CHILDREN’S PLACE OLYMPIA THEATER MACY’S PAWN BROKER NEUSHOP SUPPLY WALGREENS PUBBELLY STATION JUAN & ADVISE LANGFORD HOTEL VALDEZ CAFE ROSS

CVS INTERCONTINENTAL MARRIOTT STARBUCKS COURTYARD TORO TORO WHOLE FOODS STARBUCKS IL GABBIANO HOTEL WOLFGANG’S BEAUX ARTS STEAKHOUSE Rents JW MARQUIS EPIC EXHALE $25 - $35/sf NNN HYATT REGENCY 38,500 AADT AREA 31 ZUMA $35 - $45/sf NNN MIAMI RIVER $45 - $65/sf NNN $65 - $100/sf NNN

20 Integra Realty Resources DOWNTOWN / CBD Downtown/CBD Major Retail Destinations Bayside Marketplace & Bayfront Park

Bayfront Park and Bayside are the main tourist draws to the Miami CBD, the city’s historic downtown. Bayfront Park is a large waterfront city park that is frequently used for large events

Photo Credit: Songquan Deng © 123RF.COM such as the Ultra Music Festival each spring as well as portions of the Miami International Boat Show. It is bordered to the north by Bayside, an open-air shopping mall that includes souvenir shops, restaurants, and national chains like Bubba Gump, GameStop, Clarks, and Hard Rock Café as well as a marina and boat rentals. According to the Greater Miami Convention and Visitors Bureau, Bayside is among Miami- Dade County’s largest attractions, with 33.4% of visitors (2015) to the county spending at least one night downtown. Flagler Street

Flagler Street is Miami’s historic “Main Street”, the heart of the city’s jewelry district as well as a major concentration of historic architecture and chain retail anchored by a Marshalls store on the east end and a major Metrorail station and county oªce complex, as well as the soon- to-be-completed Brightline train station, to the west. The City of Miami and Miami-Dade County are currently undertaking a multimillion-dollar streetscape improvement aimed at making this street more attractive and pedestrian-friendly.

Demographics

AVERAGE HH MEDIAN MEDIAN AGGREGATE POPULATION INCOME AGE HOUSEHOLD HH INCOME 17,132 $68,953 34 1.64 $539.6M

Integra Realty Resources 21 Recent Deliveries, Under Construction and Transactions

MetroRail Stations CBD CBD

/ MetroRail 8 MetroMover Stations NE 8TH ST. MetroMover

2 7 PORT BLVD.

AVE.

AVE. ST

ND BISCAYNE BLVD. 12

NE 1 NE NE 2 NE

3 AVE. MIAMI N

DOWNTOWN DOWNTOWN 10 13

BISCAYNE BAY 9

E FLAGLER 4

11 5

MIAMI RIVER

Recently Delivered

1 East Coast Building 55,442 SF Retail

22 Integra Realty Resources DOWNTOWN / CBD

Under Construction

2 3 4 5 Miami World Center All Aboard Florida/ Flagler Street Silverspot Cinema at Mixed use $2B Brightline Redevelopment Met Square project including 563 OneMiamiCentral, Two The Flagler Street renovation 300 SE 3rd Ave condominium units; MiamiCentral, Three and beautiﬁcation is geared to modernize downtown 113,500 SF of retail, 1,291 rental units MiamiCentral Miami, and make it more including 80,000 SF 360,000 SF of ground 180,000 SF retail, pedestrian friendly. The $13M 17-screen Silverspot ﬂoor retail, 600,000 SF 800 residential units, project includes new bike Cinema racks, enhanced crosswalks, convention center, and 260,000 SF oªce, new street lighting, 1,800 room Marriott 250 hotel rooms, 280 upgraded sidewalks and Marquis. Hines just residences oak trees between the Dade announced a 600,000 County Courthouse east to SF oªce tower in MWC Biscayne Boulevard. complex. Representative Retail Transactions

6 7 8 9

501 N Miami Ave Miami World Center (partial) Marinablue Retail Condos 50 Biscayne Blvd CU8 $18.1M $45.25M $14.94M $600,000 $483 PSF for land (2017) 220$ PSF for land (2017) $1,570 PSF (2016) $1,140 PSF (2016) 37,500 SF Mixed-use 205,353 SF 9,500 SF (7) retail Ground Floor Retail redevelopment Conference Center condos Condo Unit

10 11 12 13 Vizcayne Retail Condo Whole Foods Bayside Marketplace 201 NW 1st Ave $27.2M 19.63M $196M $6.3M

$490 PSF (2015) $480 PSF (2015) $1,960 PSF (2015) Partial $481 PSF (2015) interest transferred (49%) 55,000 SF Ground 41,000 SF 13,090 SF Retail – the property is on a ﬂoor Retail Supermarket ground lease owned by the City of Miami 205,000 SF Lifestyle Center Integra Realty Resources 23 A&E

24 Integra Realty Resources Photo Credit: Preve Beatrice © 123RF.COM 40,000 SF

30,000 SF

20,000 SF

10,000 SF

0 SF A&E 2012 2013 2014 2015 2016 YTD -10,000 SF Retail-20,000 SF -30,000 SF Deliveries SF -40,000 SF 5-YearNet Absorption Historical SF Direct Absorption and Deliveries A&E Submarket -50,000 SF

40,000 SF Existing Inventory 1,268,575 SF 30,000 SF $60 NNN Rent Per SF $23.66 20,000 SF (Q1 2017) 10,000$50 SF 40,000 SF 0 SF 30,000 VacancySF (Q1 2017) 4.3% $40 2012 2013 2014 2015 2016 YTD -10,000 SF 20,000 SF 12-month deliveries -20,000 SF 10,000 SF 0 SF $30 -30,000 SF 0 SF Deliveries SF 12-month2012 absorption 2013 2014 2015 2016 YTD $20 -10,000 SF -49,500 SF -40,000 SF Net Absorption SF Direct -20,000 SF -50,000 SF $10 -30,000 SF Deliveries SF -40,000 SF Net Absorption SF Direct $0 -50,000Historical SF Retail Rents Historical$60 2012 2013 Retail 2014 2015 Vacancy 2016 YTD

$50

$60 $40 16.0% $50 14.0%$30

$40 12.0% $20 10.0% $30 8.0% $10 $20 6.0% $0 4.0% $10 2012 2013 2014 2015 2016 YTD 2.0% $0 0% 2012 2013 2014 2015 2016 YTD 2012 2013 2014 2015 2016 YTD

16.0%

14.0%

16.0% 12.0% 14.0% Demographics10.0% 12.0% 8.0% 10.0% 6.0% 8.0% 4.0% 6.0% 2.0% 4.0% 0% 2.0% 2012 2013 2014 2015 2016 YTD 0% AVERAGE HH MEDIAN MEDIAN AGGREGATE POPULATION2012 2013 2014 2015 2016 YTD INCOME AGE HOUSEHOLD HH INCOME 14,675 $79,394 35 1.73 $663.9M

Integra Realty Resources 25 A&E Primary Market Area

A&E Restaurants Bars/Entertainment & Attractions Fashion & Boutiques

Hospitality Food, Health & Wellness

MetroMover Stations

MetroMover CASABLANCA ON THE BAY BAYSHORE DESIGN CENTER ACME LOUNGE TONY CHAM’S WATER CLUB OMNI DOUBLETREE BY HILTON MIAMI HILTON BISCAYNE BAY DOWNTOWN MARRIOTT MIAMI SEA ISLE FREDERIC MIAMI INTERNATIONAL BISCAYNE BAY MARINA SWITZER TRINITY RX PHARMACY GALLERY UNIVERSITY OF TH ART & DESIGN CATHEDRAL NE 15 ST. BISCAYNE BLVD. MICRO THEATER N MIAMI AVE. MIAMI BISCAYNE BAY NE 14TH ST. BLIND VIACOM PIG INTL. STUDIOS AVE. KNIGHT

ND ADRIENNE CONCERT HALL ARSHT CENTER BRAVA BY MACARTHUR CSWY. BOOKS & BOOKS BRAD KILGORE

NE 2

VERDE 129,500 AADT WATSON TH ST. PEREZ ART MIAMI NE 12 MUSEUM MIAMI ISLAND YACHT CLUB 395 PARROT JUNGLE TR.

STK PHILLIP AND PATRICIA FROST JUNGLE ISLAND ME MIAMI MUSEUM OF SCIENCE CASABLANCA ON THE BAY E11EVEN NE 11TH ST. MIAMI BAYSHORE DESIGN CENTER CHILDREN’S ACME BISCAYNE MUSEUM LOUNGE TONY CHAM’S WATER CLUB OMNI MUSEUM PARK BAY FLOYD

DOUBLETREE BY FOOQ’S HILTON MIAMI HILTON BISCAYNE BAY THE DECK DOWNTOWN AT ISLAND CLUB SPACE CLUB MARRIOTT MIAMI SEA ISLE HANGAR THE FREDERIC MIAMI GARDEN ICHIMURA INTERNATIONAL BISCAYNE BAY MARINA SWITZER RX PHARMACY JAPANESE

TRINITY NIGHTCLUB HEART GALLERY UNIVERSITY OF TH ART & DESIGN CATHEDRAL BISCAYNE BLVD. NE 15 ST. BISCAYNE BLVD. MICRO THEATER N MIAMI AVE. MIAMI BISCAYNE BAY NE 14TH ST. BLIND VIACOM PIG Rents INTL. STUDIOS AVE. KNIGHT

ND ADRIENNE CONCERT HALL ARSHT CENTER BRAVA BY MACARTHUR CSWY. BOOKS & BOOKS BRAD KILGORE $25 - $35/sf NNN

NE 2 $35 - $45/sf NNN VERDE 129,500 AADT WATSON TH ST. PEREZ$45 ART - $65/sf NNN MIAMI NE 12 MUSEUM MIAMI ISLAND YACHT CLUB 395 PARROT JUNGLE TR. STK PHILLIP AND PATRICIA FROST MUSEUM OF SCIENCE JUNGLE ISLAND E11EVEN NE 11TH ST. ME MIAMI MIAMI CHILDREN’S BISCAYNE MUSEUM MUSEUM PARK BAY FLOYD FOOQ’S THE DECK AT ISLAND CLUB SPACE CLUB THE HANGAR THE GARDEN ICHIMURA JAPANESE HEART NIGHTCLUB HEART

BISCAYNE BLVD.

Watson Island

26 Integra Realty Resources A&E A&E Major Retail Destinations

Club Corridor

The Arts and Entertainment District is Greater Downtown’s main nightlife location. NE 11th Street and North Miami Avenue are lined with nightclubs, bars, and speakeasies, including the 24/7 E11even as well as Club Space, 1306, and Club Heart.

Watson Island/Jungle Island

This island o the coast of the Arts and Entertainment District contains a number of tourist draws, including a Japanese garden as well as the Miami Children’s Museum and Jungle Island, a theme water park that was recently sold for $60 million and is slated for millions in upgrades and expansions.

Museum Park

The former Bicentennial Park just south of I-395 contains the 2013 Perez Art Museum as well as the Frost Science Museum, completed in 2017. The Perez Art Museum has several retail spaces, including a gift shop as well as the popular Verde restaurant.

The Grand Retail Plaza

This hotel and condominium adjoining the Omni complex to the east contains a shopping mall on the ground ﬂoor, including boutiques as well as the restaurants Tony Chan’s Water Club and Casablanca.

Integra Realty Resources 27 Recent Deliveries, Under Construction and Transactions

A&E MetroMover Stations MetroMover

TH NE 15 ST. BISCAYNE BLVD.

N MIAMI AVE. BISCAYNE BAY NE 14TH ST.

AVE. ND MACARTHUR CSWY.

NE 2

WATSON NE 12TH ST. ISLAND

395 PARROT JUNGLE TR. 4 NE 11TH ST. BISCAYNE 1 BAY 2 3

TH BISCAYNE BLVD. NE 15 ST. BISCAYNE BLVD.

N MIAMI AVE. BISCAYNE BAY NE 14TH ST.

AVE. ND MACARTHUR CSWY.

NE 2

WATSON NE 12TH ST. ISLAND

395 PARROT JUNGLE TR. 4 NE 11TH ST. BISCAYNE 1 BAY 2 3

BISCAYNE BLVD.

Watson Island

28 Integra Realty Resources A&E Under Construction

1 2 Miami World Center “The Deck” Portions of Miami World Center Restaurant “the Deck” at Island extend into the A&E district. Gardens is currently under renovations.

Representative Retail Transactions

3 4 Miami World Center Parrot Jungle/Jungle Island $45.25M $60M 220$ PSF for land (2017) $218 PSF for leasehold 205,353 SF – Mixed-use transfer, expansion of site is redevelopment expected (2017) 275,300 SF of Retail

Integra Realty Resources 29 30

Integra Realty Resources EDGEWATER 70,000 SF

60,000 SF Deliveries SF 50,000 SF Net Absorption SF Direct 40,000 SF

30,000 SF

20,000 SF EDGEWATER

10,000 SF Retail 0 SF -10,000 SF 20125-Year 2013 Historical 2014 2015 2016 YTD -20,000Absorption SF and Deliveries

Edgewater 70,000 SF $6060,000 SF Deliveries SF Existing Inventory 733,511 SF 50,000 SF 70,000 SF Net Absorption SF Direct $5040,000 SF NNN60,000 Rent SF Per SF (Q1 2017) $53.09 Deliveries SF 30,000 SF 50,000 SF $40 Vacancy (Q1 2017)Net Absorption SF 3.9% Direct 20,000 SF 40,000 SF $3010,000 SF 30,000 SF12-month deliveries 63,000 SF 0 SF 20,000 SF 12-month absorption 3,090 SF $20-10,000 SF 2012 2013 2014 2015 2016 YTD 10,000 SF -20,000 SF 0 SF $10

-10,000 SF 2012 2013 2014 2015 2016 YTD $0 -20,000 SF Historical Retail Rents Historical$602012 2013 Retail 2014 2015 Vacancy 2016 YTD

$50

$60 9.0% $40

$50 8.0% $30 7.0% $40 6.0% $20

$30 5.0% $10 4.0%

$20 3.0% $0 2.0% 2012 2013 2014 2015 2016 YTD $10 1.0%

$0 0% 2012 2013 2014 2015 2016 YTD 2012 2013 2014 2015 2016 YTD 9.0%

8.0%

7.0%

9.0% 6.0%

8.0% 5.0%

7.0% 4.0%

6.0% 3.0%

5.0% 2.0%

4.0% 1.0%

3.0% 0% 2012 2013 2014 2015 2016 YTD 2.0%

1.0%

0% 2012 2013 2014 2015 2016 YTD

Integra Realty Resources 31 Edgewater Primary Market Area

Restaurants Bars/Entertainment & Attractions Shops/Retail

Hospitality Health, Lifestyle & Wellness

132,000 AADT 195

LA LATINA

31,500 AADT EDGEWATER HAMPTON INN LAGNIAPPE

VLADA LOUNGE

WALGREENS

STARBUCKS NE 29TH ST. ALL 4 ENRIQUETA’S CYCLING USA BISCAYNE BAY MODANI

FURNITURES BISCAYNE BLVD. BISCAYNE

CEVISHIRO CORE PERUVIAN SUSHI MATTHEW FITNESS KOM KENNY CUISINE JACK’S THE SACRED SPACE BUNNIE CAKES

BUNBURY MIAMI

AVE. STAPLES

37,000 AADT ND

NE 2 NE BRAMAN DEALERSHIP

FIGHT CLUB NE 20TH ST. THE DAILY LULU’S NITROGEN ICE CREAM LA BOTTEGA MIAMI ON THE BAY BICYCLE BIN NO. 18 PRICE CHOICE Rents FOODMARKET FITBOX MIGNONETTE METHOD $25 - $35/sf NNN

PUBLIX $35 - $45/sf NNN VICE CITY BEAN $45 - $65/sf NNN

32 Integra Realty Resources EDGEWATER Edgewater Major Retail Destinations

Publix Braman Miami

Edgewater contains one of Greater Downtown 2060 Biscayne Boulevard is the center of Braman Miami’s four operating Publix locations located at Miami’s auto dealership NE 18th St and Biscayne.

Demographics

AVERAGE HH MEDIAN MEDIAN AGGREGATE POPULATION INCOME AGE HOUSEHOLD HH INCOME 17,158 $65,992 35 1.79 $622M

Integra Realty Resources 33 Recent Deliveries, Under Construction and Transactions

132,000 AADT 195

31,500 AADT EDGEWATER

4 NE 29TH ST.

BISCAYNE BAY

BISCAYNE BLVD. BISCAYNE AVE.

37,000 AADT

ND 1 NE 2 NE

NE 20TH ST.

34 Integra Realty Resources EDGEWATER Recently Delivered National YoungArts The Sacred Space Foundation Opened in 2016-2017, the In 2014, this organization/ Sacred Space is an open arts school opened in the air complex that comprises former Bacardi campus the Plant restaurant, the on Biscayne. The property Matthew Kenney culinary includes an art gallery school, a wellness-oriented designed by Frank Gehry boutique, and event spaces. as well as several rentable event spaces and lounges. 1 2

Under Construction Paraiso Bay 1,347 condos with ground ﬂoor retail and restaurants including a beach club.

Representative Retail Transactions

4 5 6 2900 Biscayne 2501 Biscayne Blvd BDB Miami Site $4.8M $13M $64M $923/SF (2016) $2,502/SF (2016) $187 PSF for Land (2015) 5,200 SF Street retail 5,194 SF of retail with 320,082 SF potential redevelopment for high-rise (T6-36a-O)

Integra Realty Resources 35 MIDTOWN

36 Integra Realty Resources Photo Credit: Marc Averette MIDTOWN 80,000 SF Deliveries SF Retail60,000 SF Net Absorption SF Direct Midtown Primary Market Area Midtown Submarket 40,000 SF Existing Inventory 605,713 SF 919,368 SF NNN Rent Per SF (Q1 2017) $59.3020,000 SF $53.65 Vacancy (Q1 2017) 7.3% 14.3% 0 SF 2012 2013 2014 2015 2016 YTD 12-month deliveries 0 SF 63,000 SF 12-month absorption -13,394-20,000 SF SF 23,010 SF

-40,000 SF 5-Year Historical Absorption and Deliveries

$60 80,000 SF

Deliveries SF $50 60,000 SF 80,000 SF Net Absorption SF Direct

Deliveries SF 40,000 SF $40 60,000 SF Net Absorption SF Direct 20,000 SF 40,000 SF $30 0 SF 2012 2013 2014 2015 2016 YTD 20,000 SF $20 -20,000 SF 0 SF 2012 2013 2014 2015 2016 YTD $10 -40,000 SF -20,000 SF $0 -40,000 SF 2012 2013 2014 2015 2016 YTD Historical Retail$60 Rents Historical Retail Vacancy

$50 $60 16.0% $40 $50 14.0% $30 $40 12.0%

$20 10.0% $30 8.0% $10 $20 6.0%

$0 4.0% $10 2012 2013 2014 20152.0% 2016 YTD

$0 0% 2012 2013 2014 2015 2016 YTD 2012 2013 2014 2015 2016 YTD

16.0%

14.0%

12.0% 16.0% 10.0% 14.0% Demographics 8.0% 12.0% 6.0% 10.0% 4.0% 8.0% 2.0% 6.0% 0% 4.0% 2012 2013 2014 2015 2016 YTD 2.0% AVERAGE HH MEDIAN MEDIAN AGGREGATE POPULATION0% 2012 2013 2014 2015INCOME 2016 YTD AGE HOUSEHOLD HH INCOME 6,238 $55,467 34 2.5 $146M

Integra Realty Resources 37 Midtown Primary Market Area

Restaurants Bars/Entertainment & Attractions Shops/Retail

Health, Wellness & Food

MIDTOWN 132,000 AADT 195 OSCAR CARVALLO PARIS CYPRESS CLIMA TAVERN NE 36TH ST. OUTDOOR CVS MARSHALLS THE GANG ROSS STYLE HUNTERS TARGET STARBUCKS PARTY CITY BARDOT SAKAYA SALUMERIA 104 KITCHEN GIGI BLACKBRICK HOMEGOODS PROHIBITION DICK’S SPEAKEASY SPORTING GOODS BAR LOUIE GUESS BOCCE 95 PROOF SUGARCANE RAW BAR MIDTOWN CHEF LEON MIAMI OYSTER BAR AVE. WEST ELM BISTRO CASSIS THE BOX ND BARRY’S BOOTCAMP RIVIERA FOCACCERIA NORDSTROM RACK WORLD OF BEER BAKEHOUSE 2 NW ART COMPLEX NOVECENTO MIDTOWN

PETSMART N MIAMI AVE. MIAMI N PROPOSED WALMART

THE M TH Rents BUILDING NE 29 ST.

$25 - $35/sf NNN $35 - $45/sf NNN $45 - $65/sf NNN

Midtown Major Retail Destinations The Shops at Midtown Miami

The Shops at Midtown Miami is a major regional open-air mall that includes big box stores like Target, Marshalls, Ross, and Nordstrom Rack as well as street retail that includes boutiques and restaurants such as Sugarcane, Sakaya Kitchen, Bocce, and BlackBrick.

38 Integra Realty Resources MIDTOWN Recent Deliveries, Under Construction and Transactions Recently Delivered

Eve at the District Mixed-use high-rise 195 containing 195 apartments and 63,117 SF retail. 1 4 NE 36TH ST. 1 Under Construction 3 8

95 7

AVE.

ND NW 2 NW

2 3

N MIAMI AVE. MIAMI N 2 Midtown Walmart Hyde Midtown 5 +/-200,000 SF 410 condos 6 NE 29TH ST. 60 hotel rooms retail and restaurant

Representative Retail Transactions

4 5 6 7 Brown Jordan Murphy’s Truck Building 31-51 NW 29 St 3300-3326 N Miami Ave $13M $18M $7M $12.8M $1,774 (2016) $369 PSF (2016) $253 PSF (2016) $736 PSF (2015) 7,328 SF retail 48,790 SF land 27,600 SF of land 17,380 SF retail (redevelopment) 10,750 SF proposed retail

Prohibition Restaurant $3.25M $663 PSF (2015) 4,900 SF restaurant

Integra Realty Resources 39 WYNWOOD

40 Integra Realty Resources Photo Credit: Phillip Pessar 60,000 SF

50,000 SF

40,000 SF

30,000 SF

20,000 SF WYNWOOD

10,000 SF Retail 0 SF

-10,000 SF 2012 2013 2014 2015 2016 YTD -20,000 SF 5-Year Historical DeliveriesAbsorption SF -30,000 SF and DeliveriesNet Absorption SF Direct -40,000 SF Wynwood 60,000 SF Submarket 50,000 SF $70 Existing Inventory 1,174,123 SF 40,000 SF 60,000 SF $60 NNN Rent Per SF (Q1 2017) $64.20 30,000 SF 50,000 SF 20,000$50 SF 9.1% 40,000 SF Vacancy (Q1 2017) 10,000 SF $40 30,000 SF12-month deliveries 49,268 SF 0 SF 20,000 SF -10,000$30 SF 2012 2013 2014 2015 2016 YTD 10,000 SF12-month absorption 36,479 SF -20,000 SF $20 0 SF Deliveries SF -30,000 SF Net Absorption SF Direct -10,000 SF 2012 2013 2014 2015 2016 YTD -40,000$10 SF -20,000 SF Deliveries SF $0 -30,000 SF Net Absorption SF Direct $70 2012 2013 2014 2015 2016 YTD -40,000Historical SF Retail Rents Historical Retail Vacancy $60

$70 $50 12.0%

$60 $40 10.0% $50 $30 8.0% $40 $20 6.0% $30 $10 4.0% $20 $0 2012 2013 2014 2015 2016 YTD $10 2.0%

$0 0% 2012 2013 2014 2015 2016 YTD 2012 2013 2014 2015 2016 YTD 12.0%

10.0% 12.0% 8.0% 10.0% 6.0% 8.0% 4.0% 6.0% 2.0% 4.0% 0% 2.0% 2012 2013 2014 2015 2016 YTD

0% 2012 2013 2014 2015 2016 YTD

Integra Realty Resources 41 Wynwood Primary Market Area

RUBELL NW 29TH ST. MUSEUM WYNWOOD YARD NUNSHEN BROTHERS & BXLDR BEER MKT. FIREMAN DEREK’S BRAWLERS BRICK HOUSE PRIDE & JOY BBQ SUVICHE WYNCODE OLIVER COLE GALLERY R HOUSE JIMMY’Z KITCHEN MIAMI CAFE BEAKER & GRAY

WYNWOOD WYNWOOD MR BLOCK CABLE URBAN ZAK THE PARK MODERN BAKER WYNWOOD DINER BOOKS & BOOKS WOOD TAVERN JUGOFRESH WK&B L’APPARTEMENT KYUWYNWOOD WALLS THE BAR NEXTDOOR

TACO STAND WARBY PARKER JOEY’S PLANT THE FUTURE 32,000 AADT RED WYNWOOD 26 ASCASO GALLERY 95 WYNWOOD CONCRETE BEACH WYNWOOD 5TH AVE BREWERY GK GASTRONOMIE BREWING CO. AVE.

TH GALLERY 212 PANTHER COFFEE

219,000 AADT

7,200 AADT WYNWOOD ARCADE BARRIO J WAKEFIELD

NW 5 NW SALTY DONUT BREWING VISA 01 VONDOM

MANA DR SMOOD WYNWOOD BASE CONVENTIONS CENTER ELEMENTAL

ROBERT FONTAINE AVE. MIAMI N GALLERY MVM SOHO AVE. STUDIOS

ND TRES ART

DKONCEPT NW 2 NW

KUSH Rents NW 2OTH ST.

$35 - $45/sf NNN $45 - $65/sf NNN $65 - $100+/sf NNN

42 Integra Realty Resources WYNWOOD Wynwood Major Retail Destinations Wynwood Walls

Wynwood Walls, one of the core attractions of the submarket, is an open-air, free gallery of street art that includes restaurants, a gift shop, and several courtyards lined with graªti.

Northwest 2nd Aveue

Northwest 2nd Avenue is Wynwood’s retail Main Street. It includes restaurants and bars such as Wood Tavern and R House as well as numerous galleries and boutiques.

Wynwood Arcade

Wynwood Arcade is a boutique shopping mall that’s one of the major retail properties outside of the 2nd Avenue corridor. It is home to the popular Salty Donut shop as well as fashion and lifestyle shops.

Demographics

AVERAGE HH MEDIAN MEDIAN AGGREGATE POPULATION INCOME AGE HOUSEHOLD HH INCOME 2,325 $29,696 34 2.77 $21M

Integra Realty Resources 43 Recent Deliveries, Under Renovations and Transactions

NW 29TH ST.

NW 27TH ST. 12 13

WYNWOOD 2 AVE.

95 ND

AVE. ND

TH NW 24 ST.

NW 2 NW N MIAMI AVE. MIAMI N

NW 5 NW 1 7 8 9 5

11 6 NW 22ND ST.

10 3 4

NW 2OTH ST.

Recently Delivered

1 2 3 Wynwood Arcade Wynwood Block 2121 NW 2nd Ave 22,990 SF of retail 23,000 SF of retail 24,000 SF of retail

44 Integra Realty Resources WYNWOOD Under Renovation

4 5 6 7 Wynwood Showcase/ 143 NW 23rd St 2210 NW 1st Pl 310 NW 24th St Treehouse 5,000 SF Restaurant 17,000 SF of retail 8,300 SF divided in (4) 7,806 SF Retail/Oªce restaurants

Representative Retail Transactions

8 9 10 11 250 Wynwood CU1 & CU2 Wynwood Assemblage 2100 Block Wynwood Showcase $2.995M $35.35M $22M $3.85M

$882/SF (2017) $1,655/SF (2016) $820/SF (2016) $493/SF building 3,396 SF divided in 2 $290/SF land (2016) 21,358 SF of retail 24,763 SF of retail restaurants 7,806 SF Retail (Sold for adaptative re-use)

12 13 2700 NW 2nd Ave Wynwood Gates $30.75M $13M $563/SF Land (2016) $725/SF (2015) 54,560 SF of land 17,954 SF of retail

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Analytic Content Retail Rental Rates Retail Node/Corridor Identiﬁcation Proprietary SubmarketVacancy and Rent Analysis

Greater Downtown Miami Map Demographics Data (Brickell, CBD, A&E)

Greater Downtown Miami Major Retail Properties Submarket’s Market Area Rents Existing Retail Square footage Inventory Retail Rental Rates (current and historical) Historical retail data: absorption, deliveries, retail rental rates, and vacancy Recent deliveries, under construction, and representative transactions Under construction

Demographics Data Tapestry Segmentation Business Summaries

46 Integra Realty Resources Sourcing

Recent deliveries Properties under construction Representative transactions

Wynwood Temperature map credit: Metro 1 Wynwood Market Report 2017

Photography courtesy of Nathan Gilbert www.ngpaintings.com; Miami DDA Archives, IRR Image Library; 123RF.com; Alamy

Publication design by Netalia Shapse www.netaliashapse.com

Disclaimer & Acknowledgement

The information provided herein is for informational purposes. This publication does not render legal, accounting, appraisal, counseling, investment, or other professional advice. Should such services or other expert assistance be needed, it is recommended that the services of a competent person or ﬁrm, having access to the details of the situation, be employed.

Integra Realty Resources 47