Survey of Emerging Market Conditions...been positive for consumer confidence. The UF Bureau of Economic and Business Research (BEBR) consumer sentiment index has increased dramatically

Survey of Emerging Market Conditions

© 2012-15 University of Florida Bergstrom Center for Real Estate Studies

May 2015

1


Warrington College of Business Administration


Quarter 1 2015

Published May 2015



May 2015

2

Lead Researcher

Dr. Wayne R. Archer, Executive DirectorUniversity of Florida Bergstrom Center for Real Estate Studies

Professor of Real EstateWarrington College of Business Administration

Researcher and Analyst

Timothy S. Becker, CCIM, DirectorUniversity of Florida Bergstrom Center for Real Estate Studies

Editorial Board

Mr. Lewis Goodkin, PresidentGoodkin Consulting, Miami, FL

Dr. Hank Fishkind, PresidentFishkind & Associates, Inc., Orlando, FL

Mr. Jeff Conn, PrincipalNAI Hallmark, Jacksonville, FL

The Survey of Emerging Market Conditions is provided to all invited survey respondents who completed the survey during

the July 2014 fielding. For more information about the survey or the Bergstrom Center for Real Estate Studies, visit our

website at realestate.ufl.edu



May 2015

3

Table of Contents

Executive Summary & Conclusions ............5Highlights ..................................................................................5The Survey.................................................................................6General Investment Outlook .................................................6Single Family & Condominium Development ...................6Apartments ................................................................................6Industrial ...................................................................................6Office .........................................................................................6Retail ...........................................................................................6Land Investment ......................................................................6Capital Availability ..................................................................6UF Commercial Real Estate Sentiment Index ..................7

Section 1: Investment Outlook ....................8

Section 2: Residential Development ...........8Expected Absorption Rates ..................................................8Expected Price Changes .......................................................9Investment Outlook ...............................................................9

Section 3: Apartments .................................. 9Expected Occupancy .............................................................9Expected Rental Rates ........................................................10Investment Outlook .............................................................10Cap Rates ............................................................................... 11Yields ...................................................................................... 11

Section 4: Industrial .................................... 12Expected Occupancy ...........................................................12Expected Rental Rates .......................................................12Investment Outlook .............................................................. 13Cap Rates ............................................................................... 13Yields ..................................................................................... 13

Section 5: Office ............................................ 14Expected Occupancy ...........................................................14Expected Rental Rates ........................................................14Investment Outlook .............................................................15Cap Rates ................................................................................15Yields .......................................................................................15

Section 6: Retail ............................................16Expected Occupancy ...........................................................16Expected Rental Rates ......................................................... 17Investment Outlook ............................................................. 17Cap Rates ...............................................................................18Yields ........................................................................................18

Section 7: Outlook for Investment in Undeveloped Land .......................................19

Land Without Entitlements or with Residential Entitlements ..........................................................................19Land with Office or Retail Entitlements .........................19Land with Hospitality Entitlements ................................19Land with Entitlements for Warehouse or R&D ........... 20Land for Urban Renewal ..................................................... 20

Section 8: Business and Capital Availability Outlook ................................... 20

Capital Availability ............................................................... 20UF Commercial Real Estate ...............................................21Sentiment Index .....................................................................21

Section 9: Dominant Investors .................22

Section 10: Characteristics of Survey Respondents ..................................................22

Profession of Respondents ................................................. 22Markets of Familiarity ......................................................... 23Property types of Familiarity ............................................. 23

Section 11: Details of Cap Rates, Yields and Expected Changes ............................... 24

Section 12: Local Markets ......................... 26

Regional Market Report for Dade ............27Multi-Family Properties ...................................................... 27Industrial Properties ............................................................ 28Office Properties ................................................................... 29Retail Properties ................................................................... 30



May 2015

4

Regional Market Report for Broward .... 31Multi-Family Properties ......................................................31Industrial Properties ........................................................... 32Office Properties .................................................................. 33Retail Properties ..................................................................34

Regional Market Report for Palm Beach .........................................................................35

Multi-Family Properties ..................................................... 35Industrial Properties ........................................................... 36Office Properties .................................................................. 37Retail Properties .................................................................. 38

Regional Market Report for Treasure Coast ............................................................ 39

Multi-Family Properties ..................................................... 39Industrial Properties ...........................................................40Office Properties .................................................................. 41Retail Properties ..................................................................42

Regional Market Report for Southwest Coast ............................................................ 43

Multi-Family Properties .....................................................43Industrial Properties ...........................................................44Office Properties ..................................................................45Retail Properties ..................................................................46

Regional Market Report for Daytona Beach ..............................................................47

Multi-Family Properties .....................................................47Industrial Properties ...........................................................48Office Properties ..................................................................49Retail Properties ..................................................................50

Regional Market Report for Orlando ..... 51Multi-Family Properties ......................................................51Industrial Properties ........................................................... 52Office Properties .................................................................. 53Retail Properties ..................................................................54

Regional Market Report for Lakeland....55Multi-Family Properties ..................................................... 55Industrial Properties ........................................................... 56Office Properties .................................................................. 57Retail Properties .................................................................. 58

Regional Market Report for Tampa ....... 59Multi-Family Properties ..................................................... 59Industrial Properties ...........................................................60Office Properties ...................................................................61Retail Properties ..................................................................62

Regional Market Report for Sarasota ... 63Multi-Family Properties ..................................................... 63Industrial Properties ...........................................................64Office Properties .................................................................. 65Retail Properties ..................................................................66

Regional Market Report for Jacksonville .........................................................................67

Multi-Family Properties ..................................................... 67Industrial Properties ...........................................................68Office Properties ..................................................................69Retail Properties ..................................................................70

Regional Market Report for Gainesville/Ocala .............................................................. 71

Multi-Family Properties ......................................................71Industrial Properties ........................................................... 72Office Properties .................................................................. 73Retail Properties .................................................................. 74

Regional Market Report for Tallahassee/Panhandle .....................................................75

Multi-Family Properties ..................................................... 75Industrial Properties ........................................................... 76Office Properties .................................................................. 77Retail Properties .................................................................. 78



May 2015

5

Executive Summary & Conclusions

Optimism for Florida real estate remains strong among practitioners as UF’s Commercial Real Estate Sen-timent Index, an outlook of our respondents’ own businesses, improved to its highest level since the third quarter of 2006.

Florida’s improving economy continues to drive real estate markets. Through the first quarter, Florida added over 57,000 jobs crossing the eight million mark for the first time since June 2007. Unemployment re-mained at its lowest level since June 2008 at 5.5%. The largest increase in employment has occurred in hospi-tality, construction, and education and health services.

The increase in employment for hospitality contin-ues to be driven by record tourism. According to Visit Florida, the state continues to see record setting levels of tourism with total visitation up 5.1% in 2014, reach-ing over 98 million visitors. We expect that trend to continue with Florida visitation surpassing 100 million visitors in 2015.

The continued improvement in the job market along with tremendous growth in the tourism industry has been positive for consumer confidence. The UF Bureau of Economic and Business Research (BEBR) consumer sentiment index has increased dramatically over the first quarter, reaching 96.8, its highest level in over 10 years.

These factors are having a positive impact on the com-mercial market in Florida, driving increasing devel-opment in multifamily and retail properties through-out the state. However, the outlook for single family residential development remains mixed. The NAHB/Wells Fargo Regional Housing Index for the south remains muted at 54 while single family housing starts in Florida remain steady but at almost half the average monthly average over the past 20 years.

While survey respondents are positive about the future, they remained concerned about the prospect of interest rate increases in the near term. The first quarter sluggishness of the U.S. economy may postpone rate increases, providing additional buoyancy to the real estate markets as capital continues to flow into real estate because of these historically low rates. A mea-sured increase by the Federal Reserve would allow real estate markets to absorb the increases through com-pression of the historically high spreads between cap rates and the 10 year yield. Additionally, the increased interest rates may be offset by improving rents and net operating incomes.

Despite the uncertainties, Florida’s economy and therefore the real estate markets continue to improve and that trend should continue.

HIGHLIGHTS

ɀ The UF Commercial Real Estate Sentiment Index increased this quarter to its highest level since the 3rd quarter of 2006.

ɀ The outlook for occupancy and rents remained positive across all property types with expectations that they will remain stable or increase.

ɀ Cap rates remained stable across most property types. Expectations for cap rates were mixed as un-certainty on interest rates had impacts on certain property types.

ɀ Yields have remained relatively stable across most property types.

ɀ The outlook for investment remained positive across all property types.

ɀ Respondents’ outlook for capital availability re-mained stable this quarter with most expecting it to increase in the future.



May 2015

6

THE SURVEY

Our quarterly survey, conducted by the Bergstrom Center for Real Estate Studies, Warrington College of Business Administration, University of Florida is in its thirty-seventh fielding. The total number of partici-pants, at 97, is the most extensive survey of Florida pro-fessional real estate analysts and investors conducted on an ongoing basis. It includes respondents represent-ing thirteen urban regions of the state and up to fifteen property types.

GENERAL INVESTMENT OUTLOOK

Our general index of real estate investment outlook, weighted 40 percent for single family and condo de-velopment, 40 percent for apartments and commercial rental property and 20 percent for developable land, improved this quarter to a survey high. Most respon-dents believe it is a good time to invest in Florida real estate. Land continues to improve as an investment alternative as development heats up across the state.

SINGLE FAMILY & CONDOMINIUM DEVELOPMENT

The outlook for new single family development re-mained positive. Florida continues to have positive population growth and employment growth which is driving demand for new homes. Extreme winter conditions prompt more people to consider Florida, particularly retirees or near retirees. However, higher interest rates, declining incomes and higher land prices will dampen optimism slightly in this sector.

APARTMENTS The outlook for multi-family properties continues to be positive. Occupancy has been increasing at a rapid pace over the past few years; however, because of increases to inventory from new construction along with current units near capacity, respondents believe that occupan-cy will level off. Respondents remain optimistic that rents will rise with inflation. Cap rates remained steady this quarter with more respondents believing they will increase in the next year.

INDUSTRIAL The outlook for investment in industrial properties increased dramatically this quarter to its highest level since the beginning of the survey. Rents and occupancy are expected to increase in coming quarters. Cap rates and yields remained relatively stable for both sectors, a trend that is expected to continue in future quarters.

OFFICE The outlook for the office remained positive this quar-ter, with a majority of respondents believing it is a good time to buy. Increasing occupancy and rent expecta-tions are driving the investment outlook. Cap rates and yields have remained relatively stable, and most respondents expect that trend to continue.

RETAIL The outlook for retail properties remained positive this quarter for all four sectors. Growth in rents and occu-pancy are driving the optimism. The positive funda-mentals continue to drive cap rates and yields lower across all sectors. Respondents remained mixed on the future direction of cap rates and yields across the four sectors with decreases expected in large retail centers.

LAND INVESTMENT The outlook for investment in land reached new survey highs across all land sectors. Improving fundamentals, job growth and population growth are driving devel-opment across the state. This is increasing the need for land to attract more development.

CAPITAL AVAILABILITY The low interest rate environment continues to drive capital to real estate. Improving fundamentals is driv-ing the need for more development and capital is fol-lowing the demand. Respondents believe these trends will continue in future quarters despite the threat of interest rate increases this year.



May 2015

7

UF COMMERCIAL REAL ESTATE SENTIMENT INDEX The Sentiment index increased this quarter to its high-est level since the 3rd quarter of 2006. Developers con-tinue to drive the index as development activity picks across the state. Appraisers continue to have the least optimistic view as regulation has driven fees lower. Lender expectations dropped this quarter, but remain positive about the next year.



May 2015

8

Section 1: Investment Outlook

The investment outlook for Florida improved to a survey high this quarter. Despite uncertainty in the national economic view, Florida’s economy continues to improve. Increased employment, record tourism and international investment have proven a catalyst for the real estate markets. These factors are leading respondents to believe that fundamentals will continue improving in future quarters across all sectors. These improving fundamentals along with a shortage of supply are increasing development activity across the state and therefore the outlook for investment in land, which reached a survey high.

Respondents remain concerned about the uncertainty in Washington D.C. and the effect on interest rates. Con-sensus among the respondents is that interest rates will increase but worry about the rate of increase and the timing.

This investment index is weighted 40 percent on single family and residential condominium development, 40 percent on rental property of all types, and 20 percent on undeveloped land. Thus, it is at least fifty percent driv-en by the residential development outlook.

Section 2: Residential Development

EXPECTED ABSORPTION RATES

The outlook for residential absorption improved this quarter with respondents continuing to believe that ab-sorption will increase. The improved Florida economy will help the housing market as we continue to see net population growth and job growth in the state.

Additionally, a robust winter selling season boosted ex-pectations and drove builders to expand lot inventories to drive growth. Banks are starting to lend more in this market which will help additional potential borrowers take advantage of the current interest rates before they go up again. However, there remains a credit crunch in the housing market that continues to hold down growth opportunities.

-‐2 -‐1.5 -‐1

-‐0.5 0

0.5 1

1.5 2

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Investment Outlook: Florida Real Estate

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

-‐1 -‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Residen0al Absorp0on Rates

Single Family Development

Condominium Development

Expecting Increase

Expecting Decrease

Expecting No Change

The condo market is primarily driven by South Flori-da. Foreign buyers and all cash transaction continue to dominate the marketplace.



May 2015

9

EXPECTED PRICE CHANGES

Expectations for price changes increased this quarter for both single family and condo developments after several quarters of decline. Continued improvement of Florida’s economy will continue to have a positive impact on pricing.

However, there are increasing headwinds as real em-ployee wages remain stagnant and expectations that in-terest rates will again start increasing. Continuation of these trends will have a significant impact on builders’ ability to increase pricing. In the meantime, builders are able to increase pricing to offset the increased cost of materials and labor.

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q3

07-‐Q1

07-‐Q3

08-‐Q1

08-‐Q3

09-‐Q1

09-‐Q3

10-‐Q1

10-‐Q3

11-‐Q1

11-‐Q3

12-‐Q1

12-‐Q3

13-‐Q1

13-‐Q3

14-‐Q1

14-‐Q3

Outlook for Prices of New Residences

Single Family Development Condominium Development

Rising Faster Than Inflation

Declining

Rising at the Rate of Inflation

Rising Slower than the rate of Inflation

-‐2

-‐1.5

-‐1

-‐0.5

0

0.5

1

1.5

2

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Investment: Residential Development

Single Family Development Condominium Development

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

INVESTMENT OUTLOOK

The outlook for investment in residential development increased again this quarter. Better fundamentals for new residential development are having a positive im-pact on the investment outlook. A strong selling season for our part-time winter residents boosted builder confidence. An improving economy continues to drive additional investment in the residential market. Con-tinued job growth and population growth will drive the need for additional housing in key markets which will spur investment. Investors will continue to keep a close eye on the interest rates as they make investment decisions in this sector. An increase in investment in land will drive land prices higher which could have a negative impact on this sector moving forward.

Section 3: Apartments

EXPECTED OCCUPANCY

The outlook for occupancy in market rate apartments improved slightly this quarter, with respondents expecting occupancy to stabilize. Their views reflect the additional inventory being delivered to the market as well as the already high levels of occupancy in the market. Respondents continue to believe that demo-graphics are favorable for this sector in the near future, which will have a positive impact on absorption of additional supply. Additionally, any increase in interest rates will prevent more buyers from purchasing and force them to remain renters.

-‐1

-‐0.8

-‐0.6

-‐0.4

-‐0.2

0

0.2

0.4

0.6

0.8

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Occupancy: Apartments

Apartments -‐ Market Rent

Apartments -‐ Condo Conversion

Expecting Increase

Expecting Decrease

Expecting No Change



May 2015

10

If developers remain disciplined and don’t overbuild, the apartment sector will remain a good investment.

EXPECTED RENTAL RATES

Expectations for rental rates improved slightly this quarter for market rent apartments as respondents continue to expect rental rates to increase with infla-tion. Demand continues to outweigh supply which has driven both occupancy and rents higher. This trend will continue as demographic preferences lean to-ward rental living in urban areas. However as the large number of new units under construction are delivered to the market there will be increased pressure on rents to maintain occupancy at older well located properties. This should continue over the near future.

INVESTMENT OUTLOOK

With strong occupancy and rent expectations, the investment outlook remains positive for apartments. Despite rising interest rates that may impact cap rates, investors still like this market. In part, they are buff-ered from rising cap rates because occupancy and rent has grown faster than inflation over the past couple years.

This sector continues to benefit from a tremendous amount of capital availability, however, rising interest rates will make core deals harder to underwrite. An-other potential risk, although more long term, is the ul-timate resolution of Fannie Mae and Freddie Mac. The GSAs provide a lot of the liquidity in the apartment market and winding them down will have a negative impact on the market.

Another factor in the investment outlook is the avail-ability of core deals. Fewer opportunities exist in this market which is driving capital to secondary markets. This movement is keeping cap rates stable as fewer of the very low cap rate deals get completed.

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Rental Rates -‐ Apartments

Apartments-‐-‐Market Rent

Apartments-‐For Condo Conversion


Declining


RisingSlower than the Rate of Inflation

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

Outlook for Investment: Apartments

Apartments-Market Rent

Apartments-For Condo Conversion

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy



May 2015

11

CAP RATES

Cap rates remained stable at 6.25% this quarter for market rent apartments. Despite the outlook for higher interest rates, rental growth continues at rates above inflation. Large amounts of capital continue to look for deals in this sector. However, with fewer core deals available capital has started pursuing secondary mar-ket deals or new development. These factors work to maintain cap rates at current levels. Increasing interest rates and the additional supply coming to the market may work together to slightly increase caps rates over the next year.

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Current Cap Rates -‐ Apartments


Apartments -‐ Condo Conversion

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Cap Rates -‐ Apartments


Apartments -‐ Condo conversion

Expecting Increase

Expecting Decrease

Expecting No Change

REQUIRED YIELDS

Required yields remained stable at 9% this quarter. De-spite the prospect of higher interest rates, apartment fundamentals provide assurance to investors that they are appropriately pricing risk in their yield require-ments. Demographics, population growth and prefer-ences will continue to drive investment in this sector and that competition for deals should insure that yields remain low in the coming quarters.

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Required Yields -‐ Apartments

Apartments -‐ Market Rent Apartments -‐ Condo Conversion

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Required Yields -‐ Apartments


Apartments -‐ Condo conversion

Expecting Increase

Expecting Decrease

Expecting No Change



May 2015

12

Section 4: Industrial

EXPECTED OCCUPANCY

The outlook for occupancy in the industrial sector declined this quarter but remains strong with most respondents believing that occupancy will increase. Continued improvement in the economy is generating more construction employment and small business starts which traditionally use flex space. Additionally, the continued strong trade with Latin America is hav-ing a positive impact on warehouse space.

Retailers continue to reinvent their business models in a race to provide next day or same day delivery. This is changing the face of industrial real estate as warehouse space is becoming a necessity to get closer to the end consumer. Amazon’s two distribution facilities in the Tampa/Lakeland markets are just the start of what will be a continuous expansion of warehouse space.

EXPECTED RENTAL RATES Industrial rents are expected to rise with inflation over the next year. Continued improvement in occupancy will put upward pressure on rents. New development is coming, especially in the single tenant space, which will also push rental rates higher.

Continued growth in construction employment is expected across Florida which will continue to push occupancy and therefore rents in the near term.

Locations with multimodal connections will continue to command the highest rents and rent growth along with technology parks.

-‐1

-‐0.8

-‐0.6

-‐0.4

-‐0.2

0

0.2

0.4

0.6

0.8

1

06-‐Q

1

06-‐Q

4

07-‐Q

3

08-‐Q

2

09-‐Q

1

09-‐Q

4

10-‐Q

3

11-‐Q

2

12-‐Q

1

12-‐Q

4

13-‐Q

3

14-‐Q

2

Outlook for Occupancy: Industrial

Warehouse and Distribu<on: Class A

Flex Space, R & D, Office-‐Warehouse: Class A

Expecting Increase

Expecting Decrease

Expecting No Change

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2 Outlook for Investment:

Industrial

Warehouse and Distribution: Class A

Flex Space, R & D, Office-Warehouse

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2

-‐1 -‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8

1

06-‐Q

1

06-‐Q

4

07-‐Q

3

08-‐Q

2

09-‐Q

1

09-‐Q

4

10-‐Q

3

11-‐Q

2

12-‐Q

1

12-‐Q

4

13-‐Q

3

14-‐Q

2

Outlook for Rental Rates -‐ Industrial

Warehouse and Distribu<on: Class A

Flex Space, R & D, Office-‐Warehouse: Class A


Declining


Rising Slower than the Rate of Inflation



May 2015

13

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Current Cap Rates -‐ Industrial

Warehouse and Distribu=on

Flex, R&D, Office-‐Warehouse

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Cap Rates -‐ Industrial

Warehouse and Distribu=on Flex, R&D, Office-‐warehouse

Expecting Increase

Expecting Decrease

Expecting No Change

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Required Yields -‐ Industrial

Warehouse and Distribu=on

Flex, R&D, Office-‐warehouse

Expecting Increase

Expecting Decrease

Expecting No Change

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

06-‐Q

1

06-‐Q

4

07-‐Q

3

08-‐Q

2

09-‐Q

1

09-‐Q

4

10-‐Q

3

11-‐Q

2

12-‐Q

1

12-‐Q

4

13-‐Q

3

14-‐Q

2

Required Yields -‐ Industrial

Warehouse and Distribu=on: Class A Flex Space, R & D, Office-‐Warehouse: Class A

INVESTMENT OUTLOOK

The outlook for investment in industrial real estate rebounded this quarter with Warehouse expectations reaching survey highs. The continued transformation of the retail supply trade and improved exports are influencing investor expectations for Warehouse and distribution space. The completion of the Panama Canal expansion and the increase in imports will also require more distribution space, particularly at multi-modal locations.

CAP RATES

Cap rates have increased slightly for both sectors with flex space at 8.5% and warehouse at 7.5%. Respon-dents expect that rates will remain stable in this sector. Continued fundamental growth appears to offset any uncertainty with interest rate increases this year.

YIELDS

Required yields for warehouse space increased to 9.7% while yields for flex space increased to 10.3%. Respon-dents expect yields to remain stable over the next year as improving fundaments offsets potential interest rate increases.



May 2015

14

Section 5: Office

EXPECTED OCCUPANCY

The outlook for occupancy in Class A office dropped significantly this quarter. While the outlook remains strong, fewer respondents believe that occupancy will increase over the coming year. The outlook for Class B increased slightly with almost 60% of respondents be-lieving occupancy will grow in this sector. The contin-ued recovery of jobs in Florida, particularly office space jobs is influencing respondents’ outlook. This segment is also benefitting from little new development which is allowing current buildings time to improve occupan-cies with a slowly improving economy.

Despite the improvement in office jobs, companies continue to be very cautious about the amount of space they need per worker. As these companies bring in new staff, they do so in existing office space. This trend will continue to regulate new development and continue to have a positive impact on occupancy. However, the continued reduction in office space per worker puts tremendous demands on current space that was not designed for the number of people using the space. Demands on plumbing, heating and air systems and parking will provide challenges to landlords and may drive new development that can plan for these trends. Given these competing trends, we should expect that occupancy will continue to improve in the short term but level off as development starts.

-‐1

-‐0.8

-‐0.6

-‐0.4

-‐0.2

0

0.2

0.4

0.6

0.8

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Occupancy: Office

Class A Office

Class B Office

Expecting Increase

Expecting Decrease

Expecting No Change

EXPECTED RENTAL RATES The outlook for rental rates increased for Class A space as more respondents believe that rents will increase slightly more than inflation. Class B space remains stable with stable rents over the next year. An improv-ing job market and little new development in the office sector is helping occupancy grow and allowing owners to raise rates and reduce concessions. Well located office properties in urban environments are benefiting from the shift of young employees to the urban core.

In the face of increasing demand from job growth and more companies moving to Florida, development of new office space should be needed over the next year. However current rents in most markets don’t justify the new development. In the short term this will posi-tively impact existing buildings with better rental rates.

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Rental Rates -‐ Office

Class A Office Class B Office


Declining





May 2015

15

INVESTMENT OUTLOOK

The outlook for investment remains strong for both office sectors. Limited development, improvement in office employment and growing rents are attracting investors to the office sector. Issues will remain with increasing stress on office infrastructure as companies continue to put more people in the same space. Newer buildings that can adapt to the new space per employee ratios and provide operating cost savings will benefit over other buildings.

CAP RATES

Cap rates increased slightly this quarter with Class A cap rates at 7.5% and Class B cap rates at 8.1%. Respon-dents expect the rates to remain stable over the next year. Improving fundamentals should offset any inter-est rate increase. Additionally, as this sector contin-ues to improve additional debt capital will enter the market and improve liquidity which will help maintain current cap rates.

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

Outlook for Investment: Office

Class A Office

Class B Office

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Cap Rates -‐ Office

Class A Office

Class B Office

Expecting Increase

Expecting Decrease

Expecting No Change

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Current Cap Rates -‐ Office


YIELDS Required yields increased slightly this quarter with Class A yields at 8.6% while Class B yields increased to 10.1%. Like cap rates, respondents believe that yields will continue to be stable at the current levels over the next year. Improving fundamentals will offset any interest rate increases over that period. Continued growth in office employment and limited development of new office space will limit any increases in the risk adjusted returns for this sector.



May 2015

16

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Required Yields -‐ Office


-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Required Yields -‐ Office


Expecting Increase

Expecting Decrease

Expecting No Change

Section 6: Retail

EXPECTED OCCUPANCY

The outlook for occupancy remains strong for retail occupancy across all sectors this quarter. Despite slight declines in free standing retail and strip centers, respondents expect increasing occupancy over the next year. This optimism is being driven by the improving economy, consumer confidence, and growth within Florida. Retailers continue to look for quality locations throughout Florida and have increased their store openings for the coming year. The University of Florida Bureau of Business and Economic Research’s consum-er sentiment index was 96.8 in June, the highest level in over ten years. Additionally, the state continues to set records with the number of visitors coming to Flor-ida which is also helping to boost retail sales. These factors should continue to drive occupancy in retail going forward.

-‐1

-‐0.8

-‐0.6

-‐0.4

-‐0.2

0

0.2

0.4

0.6

0.8

1 06

-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Occupancy: Retail

Large Centers

Neighborhood Centers

Strip Centers

Free Standing

Expecting Increase

Expecting Decrease

Expecting No Change



May 2015

17

EXPECTED RENTAL RATES

The outlook for rental rates remained positive this quarter with most respondents believing that rental rates will rise with inflation. A larger number of re-spondents this quarter think that large centers will drive rents higher than inflation. Given the strong out-look for occupancy, we would expect that rental rates will grow in the absence of new supply and reduction in available space. Continued growth in job production and an improving economy should maintain con-sumers’ confidence which will encourage continued spending. Retailer expansion and competition for the best locations will continue to have a positive effect on rental rates.

INVESTMENT OUTLOOK

The outlook for investment in retail remains positive across all sectors. Improving fundamentals continue to drive investment outlook. Florida’s economy and job growth are having a positive impact on consumers which will benefit retailers. As long as Washington does nothing to negatively impact consumers, this trend will continue. Online retailing continues to exert pressure on retailers particularly in the electronics

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Rental Rates -‐ Retail

Large Centers Neighborhood Centers Strip Centers Free Standing


Declining



-‐2

-‐1.5

-‐1

-‐0.5

0

0.5

1

1.5

2

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Investment: Retail


Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

and book sectors, however, retails have adapted to the online space with multichannel platforms of their own. They’ve also done a great job of integrating the online and in-store shopping experience. Grocery anchored centers continue to be the favored investment option for investors, who prefer best in class grocers in prima-ry locations.



May 2015

18

CAP RATES

Cap rates continue a slow decline in the retail sector with rates for large centers, neighborhood centers, strip centers and free standing retail at 6.8%, 6.8%, 8.1% and 6.5% respectively. Respondents currently be-lieve that cap rates will remain stable over the coming year as continued improvement in fundamentals will offset any increase in interest rates.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Current Cap Rates -‐ Retail

Larger Centers Neighborhood Centers

Strip Centers Free Standing

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Cap Rates -‐ Retail

Larger Centers


Strip Centers

Free Standing

Expecting Increase

Expecting Decrease

Expecting No Change

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Required Yields -‐ Retail

Larger Centers


Strip Centers

Free Standing

Expecting Increase

Expecting Decrease

Expecting No Change

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Required Yields -‐ Retail


YIELDS

Yields remained relatively stable this quarter. Yields for Large Centers, Neighborhood Centers, Strip Cen-ters and Free Standing retail reached 8.7%, 8.8%, 9.7% and 7.7%. Yields reflected improved fundamentals this quarter along with increased competition for invest-ment capital. Respondents believe that yields will re-main steady as improving fundamentals will offset any increase in interest rates over the next year.



May 2015

19

Section 7: Outlook for Investment in Undeveloped Land

LAND WITHOUT ENTITLEMENTS OR WITH RESIDENTIAL ENTITLEMENTS The outlook for investment in land continues to be positive in both sectors with both reaching survey highs. The improving housing sector is driving land pricing higher as they continue to buy entitled prop-erty to help maintain the current growth levels. This is driving investment in non-entitled land as investors look to entitle the land and capture the home builders’ attention. Additionally, land for apartment investment is in high demand and driving pricing significantly higher. Investors will continue to keep an eye on in-terest rates as that could have a negative impact on the housing market.

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

Outlook for Investment in Land:

No Entitlements, Residential, Commercial

Land Without Entitlements

With Residential Entitlements

With Office/Retail Entitlements

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

LAND WITH OFFICE OR RETAIL ENTITLEMENTS

The outlook for investment in land with office or retail entitlements increased this quarter reaching a new survey high. Respondents believe that office and retail fundamentals are improving to the point that new development is warranted. The retail sector is still the favored of the two sectors and new retail entitled land will be purchased for investment and development. However, with an improving office market and office job growth, investors will start buying land for future office development.

LAND WITH HOSPITALITY ENTITLEMENTS

The investment outlook for land with hospitality en-titlements declined slightly this quarter but remains positive. Tourism in Florida continues to set records and is driving resurgence in the hotel sector. This trend is having the most impact in Orlando and Miami which will see the bulk of the new hotel development. This trend should continue with a higher percentage of visi-tors from foreign markets.

-‐2

-‐1.5

-‐1

-‐0.5

0

0.5

1

1.5

2

06-‐Q

1

06-‐Q

4

07-‐Q

3

08-‐Q

2

09-‐Q

1

09-‐Q

4

10-‐Q

3

11-‐Q

2

12-‐Q

1

12-‐Q

4

13-‐Q

3

14-‐Q

2

Outlook for Investment in Land: Hospitality, Industrial,

Urban Renewal

Land With Hospitality En>tlements With Warehouse/R & D En>tlements For Urban Renewal

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy



May 2015

20

LAND WITH ENTITLEMENTS FOR WAREHOUSE OR R&D

The investment outlook for land with warehouse or R&D entitlements declined slightly this quarter but remains positive. Investment in warehouse projects is picking up in port areas, particularly Miami, where exports to South America are up and require additional warehouse space. Ports throughout Florida continue to focus on expansion in preparation for the expansion of the Panama Canal. Retail companies continue to refine their business models to compete with online shopping which is driving additional demand for warehouse space closer to the consumer. This trend will have a positive impact on areas connected with major roads and multi-modal sites.

LAND FOR URBAN RENEWAL

The outlook for investment in urban renewal improved this quarter. As more people move toward urban areas investment in land for urban renewal will continue to increase. This trend is not limited to the major markets as secondary and even tertiary markets like Gainesville are focused on urban design and development. The real question is how long the trend will continue as Gen-eration Y ages and starts having kids. Will urban areas continue to see a renaissance or will Gen. Y move to the burbs with better schools and more room for the kids to play?

Section 8: Business and Capital Availability Outlook

CAPITAL AVAILABILITY

The outlook for capital availability increased slightly this quarter for both acquisition and development cap-ital. Respondents continue to believe that capital will increase over the coming year. An increase in interest rates will not impact the capital flowing to real estate unless the risk adjusted returns decline in relation to other asset classes. Additionally, in an inflationary economy, more investors will look for hard assets to invest in, which will keep real estate in a favorable position.

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Capital Availability

Capital for Development Capital for AcquisiBons

Expecting Increase

Expecting Decrease

Expecting No Change

Debt capital is continuing to increase for all asset class-es as more banks get back into the lending business. Improving asset prices are improving bank balance sheets and allowing them to loan more. This should continue, albeit with higher rates as interest rates rise.



May 2015

21

UF COMMERCIAL REAL ESTATE SENTIMENT INDEX

The UF Commercial Real Estate Sentiment Index increased this quarter to its highest level since the 3rd quarter of 2006. Florida’s improved economy along with improved job growth and record tourism are hav-ing a positive impact on our respondents’ outlook.

The increase in the index was driven by growing optimism from developers, owners and brokers. Im-proved fundamentals are generating the need for new development across several sectors, which is boosting the outlook for developers and other service providers who generally focus on the development side of the business.

The least optimistic of the respondents are the apprais-ers, who continue to face tremendous pressure from the Dodd-Frank legislation which is pushing fees and quality lower. Our respondents believe there could be a growing crisis in the appraisal industry as the industry grows older with fewer young professionals entering the business.

4

4.5

5

5.5

6

6.5

7

7.5

8

8.5

06-‐

06-‐

07-‐

08-‐

09-‐

09-‐

10-‐

11-‐

12-‐

12-‐

13-‐

14-‐

UF Commercial Real Estate Sen3ment Index

2.5

3.5

4.5

5.5

6.5

7.5

8.5

06-‐Q4 07-‐Q3 08-‐Q2 09-‐Q1 09-‐Q4 10-‐Q3 11-‐Q2 12-‐Q1 12-‐Q4 13-‐Q3 14-‐Q2

UF Commercial Real Estate Sen3ment Index

(by profession)

Owner/investor/manager Lender

Broker Developer

Appraiser Other service provider, (consultant, legal other)



May 2015

22

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SF Development Condominiums

Apartments -‐ Low Inc. Apartments -‐ Mkt Rent

Condo Conversions Warehouse and Dist.

Flex Space, R&D Office -‐ Class A Office -‐ Class B

Large Retail Neighborhood Centers

Strip Retail Hospitality -‐ Business Hospitality -‐ Economy

Free-‐standing-‐net leased

Investors Q1-‐15

Private RE Co.s REITs InsYtuYon Foreign

Section 9: Dominant Investors

Respondents were asked to indicate which of five investor groups they perceived to be the most active for each type of property they analyze. Private owners

have returned as the dominant buyer across most prop-erty types. However, real estate companies and REITS remain strong buyers.

Section 10: Characteristics of Survey Respondents

PROFESSION OF RESPONDENTS Survey responses increased this quarter to 97 respon-dents. Approximately 57 % of the respondents reported being an appraiser; 78% with designations of MAI,

6

6

8

4

0

0

3

3

2

8

6

11

6

2

7

8

27

38

33

43

4

6

4

12

3

3

0

3

24

10

12

13

0 20 40 60 80 100 120

14-‐Q1

14-‐Q2

14-‐Q3

15-‐Q1

Owner/ Investor Lender Broker

Developer Appraiser: MAI, SREA, SRPA Appraiser: Other DesignaKon

Other Appraiser/ Consultant Other Service Provider

SREA or SRPA. The next largest groups were other ser-vice providers and brokers.



May 2015

23

MARKETS OF FAMILIARITY

Each respondent was asked to select up to four regional markets with which they are familiar. In the latest survey, these choices accumulated to 137 observations. The highest number of responses was for

PROPERTY TYPES OF FAMILIARITY

Each respondent was asked to select up to three property types with which they were familiar. Altogether, 206 selections were made in the latest survey round. Single family development was selected by 20 respondents while condominium

the Tampa-St. Pete and Orlando markets, which had 19 observations. The lowest respondent support came from the Treasure Coast with 2.

development was selected by 9. The largest response for commercial property was in Class B Office with 36 responses. The lowest response was for Low Income Apartments with 2.

9

9

10

17

8

8

9

15

7

9

12

12

4

3

4

2

4

6

5

10

2

8

3

5

9

15

10

19

2

5

1

6

10

18

14

19

5

10

5

7

7

9

9

8

9

2

7

9

5

5

4

8

14-‐Q1

14-‐Q2

14-‐Q3

15-‐Q1

Dade Broward Palm Beach Treasure Coast

Southwest coast Daytona Beach Orlando Lakeland -‐Winter Haven

Tampa -‐St Petersburg Sarasota -‐Bradenton Jacksonville Gainesville -‐ Ocala

Pensacola -‐ Tallahassee

14

15

16

20

9

8

9

9

1

3

5

2

10

11

18

31

0

0

2

3

8

13

9

8

7

7

7

4

11

10

8

14

16

20

19

36

7

7

6

9

11

10

6

14

14

21

18

19

0

6

3

9

2

5

3

6

8

9

7

14

4

7

8

8

0 50 100 150 200 250

14-‐Q1

14-‐Q2

14-‐Q3

15-‐Q1

Single Family Development

Condominium Development

Apartments -‐ Low Income


Condo Conversion

Warehouse & Dist.

Flex Space, R & D

Office: Class A

Office: Class B

Retail -‐ Large


Strip Centers

Hospitality-‐ Business

Hospitality -‐ Economy

Free Standing



May 2015

24

Section 11: Details of Cap Rates, Yields and Expected Changes

Table 1 summarizes estimates of cap rates and yields for twelve property types over the last four quarters of the survey. In addition, this table shows the distri-bution of expectations for changes in each reported cap rate and yield. In particular, the table reports the percent of respondents expecting each cap rate and yield to either rise or fall in the future. Excluded from

this table is the percentage of respondents whom are expecting no change. This third percentage can be computed as 100 less the two percentages reported. Since prior sections discuss the content of Table 1, further comment is not given here. The table is simply provided as a reference to facilitate application of the survey results.



May 2015

25



May 2015

26

Section 12: Local MarketsStarting with the 3rd quarter of 2011, we have changed the presentation of the local market data to a more graphical format. This makes it easier, at a glance, to get a sense of what is happening in each market. As part of the transition you will notice that each report is broken up into property types. Additionally, you will see a table with indicating the direction of our respon-dents’ expectations for the various indicators. Please use the following legend to interpret the results.

For future expectations you will see the following sym-bols. Please refer to their definition for interpretation:

increasing trend. An upward but diagonal pointing arrow indicates a slightly positive or increasing trend. A side pointing arrow indicates a neutral trend. A downward but diagonal pointing arrow indicates a slightly negative or slightly declining trend. A downward pointing arrow indicates a decreasing or negative trend.



May 2015

27

Regional Market Report for Dade

MULTI-FAMILY PROPERTIESSurvey of Emerging Market Conditions May 2015

Future ExpectationsApartments Condo Conversion

Cap RatesYieldsInvestment OutlookOccupancyRents


Mul

ti-F

amily

Pro

pert

ies

5.725.27

5.545.01

4.35

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend

Apartments ‐Market Condo Conversions

9.43

7.82 7.84

11.50

8.98

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Private Buyers, 100%

Investor Profile ‐ Condo Conversion

Private Buyers25%

R.E. Companies

25%REITs17%

Institutions25%

Foreign Buyers8%

Investor Profile ‐Apartments

© 2015 University of Florida Bergstrom Center for Real Estate Studies



May 2015

28

INDUSTRIAL PROPERTIES

Survey of Emerging Market Conditions May 2015


Future ExpectationsWarehouse Flex Space


Indu

stria

l Prope

rties

6.58

6.38

7.15

5.80

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend

Warehouse Flex Space

8.12

7.81

8.60

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Investor Profile ‐ Flex Space

Private Buyers67%

Institutions33%

Investor Profile ‐Warehouse




May 2015

29

OFFICE PROPERTIES



Future ExpectationsOffice: Class A Office: Class B


Office Prop

ertie

s

6.53

5.70

6.67

6.837.33

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend

Office:Class A Office:Class B

8.32

7.237.55

8.419.06

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Investor Profile ‐ Office: Class B

R.E. Companies100%

Investor Profile ‐ Office: Class A




May 2015

30

RETAIL PROPERTIES



Future Expectations

Retail‐Large Neighborhood Centers Strip Centers Free StandingCap RatesYieldsInvestment OutlookOccupancyRents

Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 5.85 5.94 6.38Neighborhood Retail 5.87 6.33Strip Centers 7.60 7.64 7.52Free Standing 5.87 5.88 5.93

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 7.68 7.38 8.00Neighborhood Retail 8.98 8.12Strip Centers 9.67 8.87 8.41Free Standing 7.92 6.92 6.67

5.005.506.006.507.007.508.008.509.009.5010.00

Yield Trend


REITs, 25%

Institutions, 50%

Investor Profile ‐Neighborhood Center

Private Buyers34%

R.E. Companies33%

REITs33%

Investor Profile ‐ Retail‐Large

Private Buyers50%

Foreign Buyers100%

Investor Profile ‐Strip Centers

Private Buyers100%

Investor Profile ‐Free Standing




May 2015

31

Regional Market Report for Broward





Mul

ti-F

amily

Pro

pert

ies

5.735.13

5.54

4.864.34

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.118.59 8.09

12.28

9.24

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




Private Buyers12%

R.E. Companies

25%

REITs25%

Institutions38%





May 2015

32






Indu

stria

l Prope

rties

6.59

6.24

7.14

5.60

5.80

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


7.80

8.59

8.86

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

9.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Private Buyers100%





May 2015

33

OFFICE PROPERTIES





Office Prop

ertie

s

6.54

5.56

6.66

7.72

6.69

7.32

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.00 8.00

7.80

9.13 9.199.31

7.00

7.50

8.00

8.50

9.00

9.50

Q3‐14 Q4‐14 Q1‐15

Yield Trend




R.E. Companies100%





May 2015

34

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 5.85 5.79 6.38Neighborhood Retail 5.88 5.68 6.32Strip Centers 7.61 7.50 7.51Free Standing 5.88 5.93

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Cap Rate Trend


5.005.506.006.507.007.508.008.509.009.5010.00

Yield Trend


REITs, 33%

Institutions, 33%


Private Buyers50%

REITs50%


Private Buyers67%

Foreign Buyers100%


Private Buyers100%





May 2015

35

Regional Market Report for Palm Beach





Mul

ti-F

amily

Pro

pert

ies

6.085.52 5.685.26

4.48

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.71

8.328.83

12.00

9.98

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Private Buyers, 50%

R.E. Companies,

50%


Private Buyers20%

R.E. Companies

40%

Institutions40%





May 2015

36






Indu

stria

l Prope

rties

6.94

7.28

8.29

7.72

8.21

6.00

6.50

7.00

7.50

8.00

8.50

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.40

9.60

9.99

9.47

9.98

7.50

8.00

8.50

9.00

9.50

10.00

10.50

Q3‐14 Q4‐14 Q1‐15

Yield Trend


R.E. Companies, 100%


Private Buyers100%





May 2015

37

OFFICE PROPERTIES





Office Prop

ertie

s

6.89

5.95

6.80

8.08

7.087.46

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.60

7.73

8.55

9.728.91

10.06

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




R.E. Companies100%





May 2015

38

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 6.21 6.52Neighborhood Retail 6.23 6.46Strip Centers 7.96 7.89 7.65Free Standing 6.23 6.13 6.07

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 7.96 9.00Neighborhood Retail 9.26 9.12Strip Centers 9.95 9.37 9.40Free Standing 8.20 7.42 7.66

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend



Private Buyers100%


Private Buyers100%


Private Buyers100%





May 2015

39

Regional Market Report for Treasure Coast

MULTI-FAMILY PROPERTIES





Mul

ti-F

amily

Pro

pert

ies

6.13

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.06

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend







May 2015

40






Indu

stria

l Prope

rties

7.977.35

9.32

8.33 8.28

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.08

8.59

9.67

9.21

8.97

7.00

7.50

8.00

8.50

9.00

9.50

10.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




Private Buyers100%





May 2015

41

OFFICE PROPERTIES





Office Prop

erties

9.11

7.70 7.53

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.40

8.66

9.04

8.20

8.40

8.60

8.80

9.00

9.20

9.40

9.60

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Investor Profile ‐ Office: Class BInvestor Profile ‐ Office: Class A




May 2015

42

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐LargeNeighborhood RetailStrip Centers 8.51 7.72Free Standing 7.26 6.74 6.14

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐LargeNeighborhood RetailStrip Centers 9.12 8.39Free Standing 7.88 7.16 6.65

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

Yield Trend



Private Buyers100%


Private Buyers100%





May 2015

43

Regional Market Report for Southwest Coast






Mul

ti-F

amily

Pro

pert

ies

5.13

6.02

4.87 4.83

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.54 8.74

12.22

9.89

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




Private Buyers33%

REITs50%

Institutions17%





May 2015

44






Indu

stria

l Prope

rties

7.04

8.39

7.33

8.55

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.26

9.859.69

9.89

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Investor Profile ‐ Flex SpaceInvestor Profile ‐Warehouse




May 2015

45

OFFICE PROPERTIES





Office Prop

ertie

s

6.99

5.56

7.156.70

7.81

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.457.95

8.45

9.13

9.96

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




REITs50%

Institutions50%





May 2015

46

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 6.30 5.80 6.86Neighborhood Retail 6.33 5.68 6.81Strip Centers 8.06 7.51 8.00Free Standing 6.41

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 7.82 8.10 8.91Neighborhood Retail 9.12 8.27 9.03Strip Centers 9.81 9.60 9.31Free Standing 7.57

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend

R.E. Companies,

100%


Institutions100%


Private Buyers100%


Private Buyers100%

R.E. Companies

50%





May 2015

47

Regional Market Report for Daytona Beach






Mul

ti-F

amily

Pro

pert

ies

6.47

6.11

5.90

6.00

6.10

6.20

6.30

6.40

6.50

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


13.79

7.95

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend







May 2015

48






Indu

stria

l Prope

rties

7.33

8.68

6.50

7.00

7.50

8.00

8.50

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


12.48

14.08

11.50

12.00

12.50

13.00

13.50

14.00

14.50

Q3‐14 Q4‐14 Q1‐15

Yield Trend






May 2015

49

OFFICE PROPERTIES





Office Prop

ertie

s

8.47

7.67

8.43

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


13.81

8.55

11.80

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Private Buyers, 80%

R.E. Companies, 20%





May 2015

50

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 6.60Neighborhood Retail 6.62 6.66 7.44Strip Centers 8.35 8.48 8.63Free Standing 6.62 6.71

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 12.04Neighborhood Retail 13.34 7.68 10.87Strip Centers 14.03 9.01 11.15Free Standing 12.29 7.05

5.006.007.008.009.0010.0011.0012.0013.0014.0015.00

Yield Trend


R.E. Companies,

50%



Private Buyers100%






May 2015

51

Regional Market Report for Orlando






Mul

ti-F

amily

Pro

pert

ies

6.18 6.05 5.925.79

4.73

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


11.18

9.07 9.43

12.75

10.58

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


R.E. Companies,

100%


R.E. Companies

29%

REITs43%

Institutions14%

Foreign Buyers14%





May 2015

52






Indu

stria

l Prope

rties

7.04 7.167.52

8.39 8.24 8.45

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.879.06

10.20

11.46

10.22 10.58

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




REITs50%

Institutions50%





May 2015

53

OFFICE PROPERTIES





Office Prop

ertie

s

6.996.48

7.05

8.187.70

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


10.07

8.489.14

11.1910.65

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




R.E. Companies34%

REITs33%

Institutions33%





May 2015

54

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s


5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

Yield Trend


REITs, 33%

Foreign Buyers, 33%


Private Buyers25%

REITs25%

Institutions50%


Private Buyers100%


Private Buyers100%





May 2015

55

Regional Market Report for Lakeland






Mul

ti-F

amily

Pro

pert

ies

6.37

6.09

5.90

5.95

6.00

6.05

6.10

6.15

6.20

6.25

6.30

6.35

6.40

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.84

8.89

8.40

8.60

8.80

9.00

9.20

9.40

9.60

9.80

10.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



REITs100%





May 2015

56






Indu

stria

l Prope

rties

7.23

6.38

8.58

7.47

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.537.81

10.13

8.97

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend






May 2015

57

OFFICE PROPERTIES





Office Prop

ertie

s

8.37

7.87

7.60

7.70

7.80

7.90

8.00

8.10

8.20

8.30

8.40

8.50

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.86

10.11

9.70

9.75

9.80

9.85

9.90

9.95

10.00

10.05

10.10

10.15

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Private Buyers, 33%

R.E. Companies, 33%

REITs, 33%





May 2015

58

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 6.50Neighborhood Retail 6.52 6.87Strip Centers 8.26Free Standing 6.53 6.48

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 8.09Neighborhood Retail 9.39 9.18Strip Centers 10.08Free Standing 8.34 7.72

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend

R.E. Companies,

100%




Private Buyers100%





May 2015

59

Regional Market Report for Tampa






Mul

ti-F

amily

Pro

pert

ies

6.34 6.26 6.226.00

5.02

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


10.43

8.73 8.63

12.41

9.77

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


R.E. Companies,

100%


Private Buyers18%

R.E. Companies

18%

REITs46%

Institutions9%

Foreign Buyers9%





May 2015

60






Indu

stria

l Prope

rties

7.20

7.37

7.10

7.15

7.20

7.25

7.30

7.35

7.40

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.13

8.72

8.50

8.60

8.70

8.80

8.90

9.00

9.10

9.20

Q3‐14 Q4‐14 Q1‐15

Yield Trend






May 2015

61

OFFICE PROPERTIES





Office Prop

ertie

s

7.156.69

7.34

8.347.83 8.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.32

8.14 8.34

10.45

9.339.85

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Private Buyers, 83%

R.E. Companies, 17%


R.E. Companies25%

REITs25%

Institutions50%





May 2015

62

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 6.47 6.93 7.06Neighborhood Retail 6.49 6.82 7.00Strip Centers 8.22 8.64 8.19Free Standing 6.49 6.87 6.61

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 8.68 8.29 8.79Neighborhood Retail 9.98 8.46 8.91Strip Centers 10.68 9.79 9.20Free Standing 8.93 7.83 7.45

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend

R.E. Companies,

67%

REITs, 33%


R.E. Companies34%

REITs33%

Institutions33%


Private Buyers100%


Private Buyers100%





May 2015

63

Regional Market Report for Sarasota





Mul

ti-F

amily

Pro

pert

ies

6.69

6.90

6.46

6.20

6.30

6.40

6.50

6.60

6.70

6.80

6.90

7.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


10.13

8.698.03

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



R.E. Companies

34%

REITs33%

Foreign Buyers33%





May 2015

64






Indu

stria

l Prope

rties

7.55

8.90 9.10

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.83

10.42

9.84

8.00

8.50

9.00

9.50

10.00

10.50

11.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend






May 2015

65

OFFICE PROPERTIES





Office Prop

ertie

s

7.51

8.69

8.46

8.24

6.80

7.00

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.02

10.15

9.29 9.25

8.40

8.60

8.80

9.00

9.20

9.40

9.60

9.80

10.00

10.20

10.40

Q3‐14 Q4‐14 Q1‐15

Yield Trend







May 2015

66

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 6.82 7.56Neighborhood Retail 6.84 7.45 7.24Strip Centers 8.57 9.27 8.43Free Standing 6.85

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 8.39 8.25Neighborhood Retail 9.69 8.42 8.32Strip Centers 10.38 9.75 8.60Free Standing 6.86

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend

R.E. Companies,

100%



Private Buyers100%


Private Buyers100%

R.E. Companies

50%





May 2015

67

Regional Market Report for Jacksonville





Mul

ti-F

amily

Pro

pert

ies

6.53

5.99

6.23

5.70

5.80

5.90

6.00

6.10

6.20

6.30

6.40

6.50

6.60

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.51

9.42

9.44

9.36

9.38

9.40

9.42

9.44

9.46

9.48

9.50

9.52

Q3‐14 Q4‐14 Q1‐15

Yield Trend



R.E. Companies

75%

REITs25%





May 2015

68






Indu

stria

l Prope

rties

7.397.10

8.748.19

8.76

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.20

9.41

9.8010.57 10.58

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend







May 2015

69

OFFICE PROPERTIES





Office Prop

ertie

s

7.34 7.35

8.52

7.56

8.01

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.409.15

9.5310.01

10.66

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


Private Buyers, 80%

R.E. Companies, 20%


REITs50%

Institutions50%





May 2015

70

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐LargeNeighborhood Retail 6.68 6.55 7.01Strip Centers 8.41 8.37 8.20Free Standing 6.68 6.60 6.62

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐LargeNeighborhood Retail 9.06 9.14 9.72Strip Centers 9.75 10.47 10.01Free Standing 8.01 8.51 8.26

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend




Private Buyers100%


Private Buyers100%





May 2015

71

Regional Market Report for Gainesville/Ocala





Mul

ti-F

amily

Pro

pert

ies

6.376.91

6.105.72

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.258.54

12.93

9.69

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


R.E. Companies,

100%


Private Buyers33%

R.E. Companies

33%

REITs17%

Institutions17%





May 2015

72






Indu

stria

l Prope

rties

8.52

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.31

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Private Buyers100%





May 2015

73

OFFICE PROPERTIES





Office Prop

ertie

s

7.92

6.79

8.04

9.10

7.93

8.70

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


8.32

8.66

8.25

9.44

9.849.76

7.00

7.50

8.00

8.50

9.00

9.50

10.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend




Private Buyers50%

R.E. Companies50%





May 2015

74

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐Large 7.03 7.76Neighborhood Retail 6.92Strip Centers 8.98 8.74 8.89Free Standing

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐Large 8.81 8.71Neighborhood Retail 8.98Strip Centers 9.67 10.30 9.11Free Standing

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend


R.E. Companies100%


Private Buyers100%






May 2015

75

Regional Market Report for Tallahassee/Panhandle





Mul

ti-F

amily

Pro

pert

ies

6.696.25

7.11

5.99 5.91

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


12.59

8.939.93

12.61

11.08

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend


R.E. Companies,

100%


Institutions100%





May 2015

76






Indu

stria

l Prope

rties

8.71

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


10.70

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Private Buyers100%





May 2015

77

OFFICE PROPERTIES





Office Prop

ertie

s

8.23

8.68

7.81

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

Q3‐14 Q4‐14 Q1‐15

Cap Rate Trend


9.64

12.61

9.52

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐14 Q4‐14 Q1‐15

Yield Trend



Private Buyers100%





May 2015

78

RETAIL PROPERTIES



Future Expectations


Retail Prop

ertie

s

Q3‐14 Q4‐14 Q1‐15Retail‐LargeNeighborhood Retail 6.83 7.89Strip Centers 8.57 8.62 9.08Free Standing 6.84

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

Cap Rate Trend

Q3‐14 Q4‐14 Q1‐15Retail‐LargeNeighborhood Retail 12.15 10.22Strip Centers 12.84 9.98 10.50Free Standing 11.09

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

Yield Trend

Foreign Buyers, 100%



Private Buyers100%




Documents

Survey of Emerging Market Conditions...been positive for consumer confidence. The UF Bureau of Economic and Business Research (BEBR) consumer sentiment index has increased dramatically