The document discusses office leasing trends in South Florida from 2018 to 2020. It notes that leasing activity was on pace to match 2018-2019 levels through early 2020 but has since slowed due to the pandemic, with 2020 leasing volume 39% lower year-over-year. Specifically, leasing has totaled around 4.2 million square feet through October, compared to over 7.6 million square feet on average the prior two years. The slowdown has impacted large tenants in particular, though smaller tenants remain active. Renewal leases have also increased, representing 35.4% of leasing in 2020 versus a historical average of 28.0%.

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Despite a relatively strong start to 2020, leasing activity has slowed considerably due to the pandemic and subsequent pause in
economic activity. Between 2018 and 2019, South Florida’s leasing activity averaged approximately 7.6 million sq. ft. and was on
pace to match or surpass those levels through the first quarter. However, 2020 leasing volume is slightly below 4.2 million sq. ft.
through 10 months – 39% lower than last years pace through October, exactly in line with the national average.
LEASING OVERVIEW
November 2020
South Florida Office
Leasing Velocity – 2018 to YTD 2020
Office Leasing Volume
Source: CBREResearch, October 2020
Observations:
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20
LeasingActivity(SF)
New Lease Renewal Renewal/Contraction Renewal/Expansion Expansion
• COVID-19 has certainly had an impact on leasing activity in South Florida. Through October, tenants have leased nearly 4.2
million sq. ft. across South Florida, with 45.8% of that activity occurring in Miami (Miami is home to 48% of the markets total
inventory).
• With uncertainty in economic conditions and surrounding the virus many leasing decisions have been put on hold, particularly
for larger tenants. Although smaller tenants remain active, which is a positive sign for the market. Just over 30% of total leased
square footage so far this year has been in transactions below 5,000 sq. ft., compared to 27.7% last year).
• Additionally, renewals – especially short-term renewals – have increased this year amid the pandemic. Renewals* historically
comprise 28.0% of leasing activity, but this transaction type represents 35.4% of total leasing volume in 2020. From a lease
term perspective, the average length term is 59.6 months compared to 65.5 months in 2019 and 67.1 months in 2018.
*Includes renewals, renewal/expansions, and renewal/contractions