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OCTOBER 2022 Working in DowntownFTL OFFICE MARKET REPORT

OFFICE MARKET REPORT 2022 Downtown Fort Lauderdale is evolving as a city ready for the future of work As a major employment hub for the South Florida region DowntownFTL now has a critical mass of talent that companies demand Whether working in the office or remotely DowntownFTL companies and employees seek high quality spaces These factors are making DowntownFTL a world class business hub for the post pandemic era

OFFICE MARKET REPORT 2022 DowntownFTL Urban Core 2 2 SQUARE MILES 24 400 TOTAL POPULATION 64 400 TOTAL EMPLOYEES 5 930 TOTAL BUSINESSES The DDA taxing district is highlighted in yellow The agency advocates for the Greater Downtown core stretching from Sunrise Boulevard to the north SE 17th Street to the south 7th 4th Avenue to the west and US1 to the east including the East Las Olas area

TABLE OF CONTENTS 01 02 03 DowntownFTL Growing Talent and Employment Base Post Pandenic Work Environment Office Market Indicators

01 New employers are attracted to the growing residential density of Downtown Fort Lauderdale The emergence of a young highly educated downtown talent base is sustaining existing industries and supporting the growth of new sectors DowntownFTL s Growing Talent and Employment Base

OFFICE MARKET REPORT 2022 DowntownFTL s Growing Talent Base Companies are lured to DowntownFTL due to the growing residential density and talent pool based downtown Share of Residents with a Bachelors Degree or Higher 5 Year Population Growth Between 2018 to 2022 Between 2000 to 2022 30 000 24 429 Residents 25 000 60 50 Current Year 20 000 15 000 10 000 40 30 20 5 000 0 70 10 2018 2019 2020 2021 80 Population increase since 2010 2022 0 2000 2010 2018 2020 2021 2022 58 of DowntownFTL residents have a bachelors or higher compared to 35 of Broward County residents

OFFICE MARKET REPORT 2022 DowntownFTL s Demographics are Shifting to Young Professionals and Families With over 6 000 new residents since the start of the pandemic Downtown Fort Lauderdale has attracted the talent base that leading employers want to hire Ages Population Growth 35 44 Between 2018 to 2022 55 15 24 45 54 45 54 25 34 55 0 14 KEY 10 6 26 18 12 25 35 44 Nearly half of Downtown Fort Lauderdale residents are between 25 and 44 signaling that the city has emerged as destination for young professionals 25 34 15 24 0 14 0 10 20 30 40 50 60 70 80 90 Since 2018 there has been a 70 increase in the number of kids living in DowntownFTL

OFFICE MARKET REPORT 2022 Talent is a huge part of our success and almost all of our creative team is based in Fort Lauderdale We can create industry leading products with the talent found here Chris Stegner Founder CEO Very Big Things The office of Very Big Things an award winning digital products and services agency based in Progresso Village

OFFICE MARKET REPORT 2022 Fort Lauderdale is Home to a Diverse Selection of Established and Emerging Industries Aviation Healthcare A soaring industry with more than 46 000 workers in South Florida as well as 10 airports including 3 international and 7 private Nationally recognized for its high quality medical health and wellness facilities Life Sciences An ideal ecosystem for life science companies seeking a location close to universities and research facilities Finance A high concentration of banking and investment services companies as well as a growing cluster of private equity firms Professional Services Leading professional services firms choose Fort Lauderdale for its access to a diverse and talented workforce as well as the global connectivity and friendly business climate Technology Film Production The Greater Fort Lauderdale region is home to Magic Leap Ultimate Software now Ultimate Kronos Group and pet e commerce giant Chewy FTL is also home to coworking clubs like General Provision and is home to numerous tech start ups like Ubicquia Xendoo ShipMonk and Boatsetter Often referred to as a theme park for entrepreneurs Fort Lauderdale is home to The Alan B Levan NSU Broward Center of Innovation a one stop shop for entrepreneurs focused on innovation technology and entrepreneurship The center recently received 1 94 million from the U S Congress to create an artificial intelligence lab The City of Fort Lauderdale has entered into an agreement with film production leaders to build a 350 000 square foot studio in Fort Lauderdale The complex would include up to 12 sound stages that combined with the new film incentive program introduced by Broward County will drive the growth of the film industry in Fort Lauderdale

OFFICE MARKET REPORT 2022 DowntownFTL s Evolving Industry Base 64K Notable Sectors 7 6 YoY Legal Professional Services 8 9 YoY Real Estate Construction 38 8 2 YoY Food Service Hospitality Information Services 3 5 YoY Arts Entertainment 11 7 YoY 0 200 9 400 of all DowntownFTL businesses are in the professional services legal finance management real estate and technology related sectors 3 8 YoY Government 5 9K Businesses 0 5 YoY Retail Downtown Employees 600 800 1000 TOTAL NUMBER OF BUSINESSES 1200 1400 1600 Jobs in high wage industries for every job in the Food Service and Hospitality sector

OFFICE MARKET REPORT 2022 Who s Here LOREM IPSUM DOLOR SIT AMET A Strong Base of Established and New To Market Companies Supporting New and Existing Talent HEADQUARTERS REGIONAL OFFICES MAJOR FIRMS NEW LEASES 2020 2022 MAGNET FOR OUT OF STATE TENANTS

02 Downtown Fort Lauderdale is having a robust post pandemic recovery due to its success blending living and working In the post pandemic future of work existing office spaces are competing with new Class A buildings coworking labs and the newest residential developments Post Pandemic Work Employment

OFFICE MARKET REPORT 2022 Flight to Quality Spaces Newest office buildings have adopted the best qualities pioneered by co working labs stateof the art indoor and outdoor amenity spaces The pandemic shifted the way that companies and employees are thinking about work This evolution has put Downtown Fort Lauderdale in a solid position to thrive in this new future of work Older buildings are now striving to upgrade their amenities to compete with the newest Class A spaces to remain viable and attractive to new tenants Traditional office buildings are working towards offering top notch amenities similar to coworking operators and new downtown residential buildings Common amenities being introduced and improved include lounges full service fitness centers kitchens and outdoor patios Many downtown office buildings have undergone extensive renovations to keep up with the flight to quality caused by the pandemic and the introduction of new world class spaces like The Main pictured below

OFFICE MARKET REPORT 2022 Return to Office DowntownFTL is Leading the Way on Return to Office Helping to Sustain Restaurants and Businesses The summer 2022 DowntownFTL Return to Work study found that about 55 to 60 of DowntownFTL office workers are back in the office placing Fort Lauderdale among the national leaders of cities returning to the office compared to the Kastle Systems Back to Work Barometer The strong return to office rate is helping sustain existing and new to market restaurants Share of Workers Back to Office May 2022 70 60 50 40 30 20 10 0 Austin Downtown FTL Houston Return to Office Dallas New York National Average San Francisco RESTAURANTS MOST FREQUENTLY VISITED BY DOWNTOWN OFFICE WORKERS

OFFICE MARKET REPORT 2022 DowntownFTL Has a Strong Remote Work Ecosystem DowntownFTL was an early adopter of remote work before the pandemic made it widely popular The pre pandemic rate of DowntownFTL residents working from home is triple the national average and about double that of other major cities Prior to the pandemic about 17 of DowntownFTL residents worked from home compared to a national average of about 6 The national work from home rate in 2021 was 18 highlighting that it took a once in a century pandemic for the country to catch up to DowntownFTL Pre pandemic work from home rates Remote work options Central Business Districts 18 17 16 14 13 12 12 11 10 10 8 6 8 9 9 9 Philadelphia Austin Tampa 8 7 4 2 0 NYC Midtown Washington Manhattan DC Miami Dallas Atlanta West Palm Beach Charlotte DowntownFTL As remote and hybrid work has become more popular coworking labs have emerged as a go to destination for companies considering entry into DowntownFTL In addition to serving start ups these offices have evolved to become temporary and in some cases permanent space for established companies DowntownFTL has a strong selection of coworking labs to choose from

OFFICE MARKET REPORT 2022 Our temporary headquarters is at General Provision in Downtown Fort Lauderdale We re running a close to 100 million asset bank out of a coworking space Drew Saito Co Founder and Chief Lending Officer Locality Bank Locality Bank is a digital first bank based in DowntownFTL serving local entrepreneurs and business owners

OFFICE MARKET REPORT 2022 Where DowntownFTL Employees Live DowntownFTL s central location makes it an attractive destination for employees throughout the Southeast Florida region 15 25 Downtown employees live in DowntownFTL Live within the City of Fort Lauderdale 43 30 Downtown employees commute from between 5 and 10 miles away Commute from between 10 and 30 miles away

03 Downtown Fort Lauderdale is experiencing robust demand for the newest and highest quality office spaces Vacancy rates are falling due to Fort Lauderdale s status as a more affordable destination for existing and emerging companies than peer downtowns throughout the United States Office Market Indicators

OFFICE MARKET REPORT 2022 DowntownFTL Has an Affordable Class A Office Market Average Office Rents in Peer Cities NYC Metro 81 44 PSF San Francisco Bay 81 19 PSF Boston 70 00 PSF Downtown Miami 67 93 PSF West Palm Beach 67 67 PSF Washington DC 60 10 PSF Downtown Fort Lauderdale 50 92 PSF Chicago 48 52 PSF

OFFICE MARKET REPORT 2022 Tri County Comparison DOWNTOWN WEST PALM BEACH DOWNTOWN FORT LAUDERDALE DOWNTOWN MIAMI 3 9 Million SF 8 0 Million SF 20 7 Million SF 487 000 SF 41 500 SF 1 6M SF Vacancy Rate Vacancy Rate Vacancy Rate Q2 2022 Q2 2022 Q2 2022 total inventory under construction 11 9 15 3 2021 total inventory under construction 16 4 19 1 2021 total inventory under construction 12 7 14 6 2021 0 SF 0 SF 48 000 SF 59 75 PSF 49 89 PSF 61 25 PSF 67 67 PSF 50 92 PSF 67 93 PSF new deliveries gross rental rate 57 5 Year Growth gross rental rate Class A 53 5 Year Growth Rate new deliveries gross rental rate 30 5 Year Growth gross rental rate Class A 35 5 Year Growth new deliveries gross rental rate 51 5 Year Growth gross rental rate Class A 46 5 Year Growth

OFFICE MARKET REPORT 2022 The Evolution of the DowntownFTL Office Market Gross Office Rents Between 2006 to 2022 Meanwhile gross rental rates continued on an upward path to 46 56 per square foot at the end of 2020 a 10 year over year increase Since then gross rental rates continued on the upward climb to 49 85 per square foot in the second quarter of 2022 a five year increase of 37 percent 30 0 25 0 20 0 15 0 10 0 Between 2006 to 2022 60 00 0 0 50 00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Class ABC 40 00 Office Vacancy Rates 30 00 20 00 10 00 0 00 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 Class ABC Class A Class A Q2 2022 Following the Great Recession office vacancy rates peaked at 18 2 in 2011 returning to a low of 10 0 in 2017 At the end of 2020 vacancy rates climbed to 19 6 as a result of the pandemic and the delivery of the first Class A office building in DowntownFTL in the past decade The Main As the mass influx of companies to South Florida continues in to 2022 the office vacancy rate is expected to remain stable Since the peak of the pandemic the vacancy rates have declined by 2 percentage points

OFFICE MARKET REPORT 2022 NEW Developments in DowntownFTL NOW OPEN 550 Building Seven story office retail buidling 86K SF Class A office space 12 5K SF floor plate 634 space parking garage NOW OPEN The Main Las Olas Contemporary 25 story office tower Close to 370K SF Class A office space 12 foot floor to ceiling vision glass LEED Gold certified

OFFICE MARKET REPORT 2022 NEW Developments in DowntownFTL COMING SOON Hines and Urban Street T3 FAT Village 5 6 acres 835K SF office retail and residential mixed use urban village in Fort Lauderdale s Flagler Village neighborhood 600 Mutifamily units in two residential towers 90K SF of curated food beverage offerings shopping entertainment and art studios galleries 350K SF of office space in two of Hines proprietary heavy timber T3 creative office buildings UNDER CONSTRUCTON 699 N Federal Building Delivering January 2023 Four Story building totaling 27K SF 7K SF office floor plate Ground floor retail

OFFICE MARKET REPORT 2022 DowntownFTL Office Skyline COLOR KEY No Availability Sublet Available Full Floor Sublet Available Direct Available Full Floor Direct Available Not for Occupancy

OFFICE MARKET REPORT 2022 About the DDA The Fort Lauderdale Downtown Development Authority DDA is a public private partnership agency that powers the experience growth and prosperity of Downtown Fort Lauderdale The DDA strives to grow DowntownFTL with major investments in real estate infrastructure and transportation improve public spaces like streets and parks for all to enjoy and connect the city through partnerships that celebrate community

OFFICE MARKET REPORT 2022 About Colliers Companies making their initial move to South Florida will realize over the long term that their employees will be clustered all over the region We ll benefit as the geographic center of South Florida if we continue to build the infrastructure Downtown Fort Lauderdale will be the long term beneficiary of the new tomarket activity Ken Krasnow Vice Chairman of Institutional Services Colliers International

OFFICE MARKET REPORT 2022 Credits Sources SOURCES CREDITS PHOTO CREDITS The following sources were used for this report Photo credits are listed by page indicated by images left to right Bureau of Labor Statistics CareerSource Broward Region City of Fort Lauderdale Colliers International Florida Inc CoStar Group ESRI ArcGIS Business Analyst 2022 Federal Reserve Economic Data FRED Fort Lauderdale DDA Greater Fort Lauderdale Alliance Hines InfoGroup Inc LinkedIn Workforce Report Nextdoor Placer ai Real Capital Analytics South Florida Business Journal U S Census Bureau Zippia Cover TOC Page 3 Page 4 Page 5 Page 8 Page 12 Page 13 Page 14 Page 16 Page 17 Page 18 Page 19 Page 20 Page 22 Page 23 Page 25 Page 26 Sublime Imagery DDA Sublime Imagery DDA Colliers Sublime Imagery DDA Sublime Imagery DDA Very Big Things Very Big Things BBX Capital Stiles BBX Capital Stiles General Provision armstrta11 Sublime Imagery DDA Sublime Imagery DDA Left right sides Sublime Imagery DDA Top Sublime Imagery DDA Colliers Sublime Imagery DDA Colliers CONTRIBUTORS Ken Krasnow Vice Chairmain Institution Investor Services Florida ken krasnow colliers com Verity Mosquera MBA Research Consulting Manager South Florida verity mosquera colliers com Maria Russo Senior Marketing Manager South Florida maria russo colliers com

OCTOBER 2022 Working in DowntownFTL OFFICE MARKET REPORT Contact Us 954 463 6574 201 East Las Olas Boulevard Suite 1150 Fort Lauderdale FL 33301 www ddaftl org Follow us ddaftl