Market Intel

South Florida Industrial Market Report Q1 2026

South Florida’s economy continues to support industrial demand through its role in trade, logistics, tourism, and financial services. PortMiami, Port Everglades, and Miami International Airport anchor freight movement and regional distribution activity. While job and population growth have moderated, labor conditions remain healthy, and continued household formation supports demand for warehouse and consumer-oriented industrial space. Overall, the region’s diversified economy and global connectivity continue to support steady industrial fundamentals. Key Findings South Florida’s industrial market continued to normalize in Q1 2026 as new supply outpaced tenant demand, resulting in negative absorption and higher vacancy across major logistics corridors. Despite softer leasing fundamentals, asking rents remained near record highs, supported by limited land availability and continued trade-driven demand. Construction activity is tapering, but the existing supply wave will keep vacancy elevated and rent growth under pressure in the near term. South Florida Industrial Supply & Demand Dynamics Source: CoStar Group, Inc. | Miami & Fort Lauderdale South Florida Demographics Source: CoStar Group, Inc. | Miami & Fort Lauderdale Unemployment Rate: 3.5% Current Population: 4,868,820 Households: 1,765,613 Median Household Income: $81,861 South Florida’s industrial market continued to normalize in Q1 2026 as elevated supply additions outpaced tenant demand across several major logistics corridors. Vacancy increased to 5.8%, while annual net absorption remained negative at 1.1 million square feet, reflecting softer leasing activity among large-format warehouse users. Despite these headwinds, market fundamentals remain healthy by historical standards, with vacancy still below many major U.S. industrial markets. Asking rents increased 1.2% year-over-year to $18.64 per square foot, demonstrating the continued pricing power of well-located industrial assets. Leasing activity remained driven by logistics, distribution, e-commerce, and trade-related occupiers, while smaller-bay industrial properties continued to outperform larger warehouse facilities due to limited availability. As construction activity slows and recently delivered space is absorbed, market conditions are expected to stabilize, supporting steady performance through the balance of 2026. Top South Florida Tenants Source: CoStar Group, Inc. | Miami & Fort Lauderdale PepsiCo Ryder System, Inc Owens & Minor JELD-WEN Population, Labor Force, & Income Growth Source: CoStar Group, Inc. | Miami & Fort Lauderdale South Florida Industrial Construction Development remained active in Q1 2026, though the pace of new construction continued to slow from recent peak levels. Approximately 895,000 square feet of industrial space was under construction across South Florida as developers responded to softer leasing conditions and higher financing costs. Recent deliveries have contributed to rising vacancy, particularly among large-format logistics facilities, where lease-up timelines have lengthened. As a result, developers have become more selective with new starts, focusing on projects near major transportation corridors and population centers. As construction activity moderates and recently delivered space is absorbed, market conditions are expected to stabilize through the remainder of 2026. SF Construction Starts Source: CoStar Group, Inc. | Miami & Fort Lauderdale SF Under Construction Source: CoStar Group, Inc. | Miami & Fort Lauderdale South Florida Industrial Sales Investment activity remained resilient in Q1 2026 despite a higher interest rate environment and softer leasing fundamentals. South Florida recorded approximately $345 million in sales volume during the quarter, with assets trading at an average price of $279 per square foot and a market cap rate of 5.4%. Investor demand remained strongest for well-located industrial properties with access to major transportation infrastructure and population centers. While buyers have become more selective in their underwriting, the region’s long-term growth prospects, limited land availability, and importance as a logistics gateway continue to support capital market activity. As market conditions stabilize, investor interest is expected to remain concentrated on high-quality industrial assets throughout 2026. Sales Volume Source: CoStar Group, Inc. | Miami & Fort Lauderdale By the Numbers Source: CoStar Group, Inc. | Miami & Fort Lauderdale Sales Volume: $345M Price Per SF: $279 Cap Rate: 5.4% Vacancy Rate: 5.8% Rent Growth: 1.2% Asking Rent Per SF: $18.64 Under Construction: 895K SF Delivered: – Absorbed: (1.1M) SF

Sean Annan

Associate

6/2/26

Fort Lauderdale, FL Retail Q1 2026

Fort Lauderdale’s retail market in Q1 2026 remains tight and fundamentally sound, supported by steady tenant demand and limited new supply. Leasing activity has improved modestly but remains below historical averages due to constrained availability, with vacancy holding near 4.0%. Negative net absorption persists but has moderated, reflecting ongoing competition for space rather than weakening demand. Development remains subdued, with a limited pipeline unlikely to significantly impact supply. Rent growth has slowed from prior peaks but remains positive, maintaining elevated pricing levels relative to national averages. Investment activity has rebounded, signaling renewed investor confidence. Overall, strong demographics, tourism, and supply constraints continue to support stable near-term performance and positive long-term outlook. Key Findings Fort Lauderdale’s retail market remains tight, with vacancy near historic lows around 4% as limited new construction and steady tenant demand continue to constrain availability and support stability. Leasing activity has modestly improved but remains below pre-pandemic levels, as expansion is limited; however, essential and service-oriented tenants drive consistent demand across smaller formats. Investment activity rebounded, while rent growth has normalized but remains positive, reflecting resilient fundamentals despite moderating consumer spending and broader economic pressures. Fort Lauderdale Retail Supply & Demand Dynamics Source: CoStar Group, Inc. Fort Lauderdale Demographics Source: CoStar Group, Inc. Unemployment Rate: 4.1% Current Population: 2,036,762 Households: 759,546 Median Household Income: $84,482 Fort Lauderdale’s economy in Q1 2026 remains supported by in-migration, a favorable tax environment, and its role as a key South Florida business hub. Core industries, including tourism, professional services, finance, and logistics, continue to drive stability. Employment is largely flat year over year, though long-term growth remains positive, with total jobs near 930,000. Office-using sectors show modest gains, supporting consumer spending. The region’s population of over 2.0 million and median household income slightly above the national average provide a solid retail base. With unemployment near 4% and steady projected growth, fundamentals remain stable, though affordability pressures may moderate near-term expansion. Population, Labor Force, & Income Growth Source: CoStar Group, Inc. Fort Lauderdale Retail Cconstruction Fort Lauderdale’s retail construction pipeline remains limited, with development constrained by elevated costs and financing challenges. Less than 100K SF broke ground in 2025, well below historical averages, keeping total space under construction near 690K SF. Recent deliveries remain modest, and future completions are expected to stay below long-term norms. Activity is largely concentrated in a few projects, most notably the Miramar Cove mixed-use development, alongside smaller-scale additions in Pompano Beach and Fort Lauderdale. Outside of these, new supply is primarily tied to mixed-use projects and renovations. As a result, limited construction will continue to support occupancy levels and enhance the competitiveness of existing retail space. SF Construction Starts Source: CoStar Group, Inc. SF Under Construction Source: CoStar Group, Inc. Fort Lauderdale Retail Sales Fort Lauderdale’s retail investment market strengthened in Q1 2026, with transaction volume reaching about $1.5 billion over the past year, up notably from prior levels and above the five-year average. Activity has been driven primarily by private investors targeting stabilized, income-producing assets, particularly neighborhood and grocery-anchored centers. Deal flow remains focused on single-asset transactions, with limited portfolio sales. Pricing remains firm across asset types, reflecting strong investor demand and limited supply, while cap rates in the low-6% range indicate continued confidence in the market. Overall, resilient fundamentals, steady population growth, and consistent tenant demand continue to support active investment conditions. Fort Lauderdale Retail Sales Volume Source: CoStar Group, Inc. By the Numbers Q1 2026 | Source: CoStar Group, Inc. Sales Volume: $227M Price Per SF: $341 Cap Rate: 6.1% Vacancy Rate: 4.0% Rent Growth: 1.6% Asking Rent Per SF: $36.47 SF Under Construction: 691K SF Delivered: 99.8K SF Absorbed: (94.3K)

Fort Lauderdale, FL Retail Market Report Q4 2025

Fort Lauderdale’s retail market posted resilient but moderating performance entering Q4 2025, as leasing activity slowed amid limited space availability rather than weakened fundamentals. Net absorption has turned slightly negative, constrained by a tight 4.0% availability rate that remains below both historical and national averages. Leasing continues to favor smaller formats, with most transactions concentrated in spaces under 5,000 SF and driven by fitness, grocery, and entertainment users. Rent growth has cooled following prior surges, though asking rents remain among the highest in Florida, reflecting scarce supply and strong location-driven demand. Construction activity remains muted, supporting historically tight vacancies. While consumer spending has softened and transaction pricing adjusted to higher interest rates, the return of international tourism and stable employment trends should support continued long-term strength across Fort Lauderdale’s retail market. Key Findings Fort Lauderdale retail fundamentals remain tight despite slowing leasing, with vacancy at 3.8%, limited new construction, and absorption constrained more by scarce space than weakened tenant demand. Rent growth has cooled following post-pandemic surges, yet asking rents remain among Florida’s highest as muted supply and international tourism continue to support long-term pricing power. Investment activity stayed healthy with $493M in sales, as grocery-anchored centers and infill assets drew buyers, even as elevated interest rates pushed cap rates to the 6% range Fort Lauderdale Retail Supply & Demand Dynamics Source: CoStar Group, Inc. Fort Lauderdale Demographics Source: CoStar Group, Inc. Unemployment Rate: 3.6% Current Population:2,051,765 Households: 785,296 Median Household Income: $80,168 Fort Lauderdale’s retail market entered Q4 2025 supported by a high-income employment base, with finance and professional services concentrations driving household incomes above Miami’s and sustaining consumer spending despite slower job growth. A tight labor market and income growth exceeding national trends continue to underpin retail demand, even as elevated living costs pressure discretionary budgets. Housing-driven inflation is beginning to cool as apartment deliveries rise and home price growth stabilizes, easing some affordability strain on residents. Looking ahead, job gains skewing toward lower-wage sectors are expected to increase demand for value-oriented retail and essential services. Despite near-term softness in interest-rate-sensitive industries, Fort Lauderdale remains well positioned due to its skilled workforce, business-friendly environment, and location between Miami and Palm Beach, supporting long-term stability. Population, Labor, & Income Growth Source: CoStar Group, Inc. Fort Lauderdale Retail Construction Fort Lauderdale’s retail construction pipeline remains constrained, with starts well below historical norms despite tight market conditions. Approximately 272K SF is currently under construction, while recent deliveries have been minimal, keeping inventory growth below the 10-year average. Most activity is concentrated in Pompano Beach, Southwest Broward, and the Fort Lauderdale submarkets, led by a small number of well-preleased projects scheduled to deliver in 2025. Elevated land values, financing costs, and construction expenses continue to limit new development across South Florida. As a result, new supply is largely confined to small-format, mixed-use projects, reinforcing competition for existing space and supporting rent growth in Fort Lauderdale. SF Construction Starts Source: CoStar Group, Inc. SF Under Construction Source: CoStar Group, Inc. Fort Lauderdale Retail Sales Investment activity in Fort Lauderdale’s retail market remained solid over the past year, with roughly $1.3B in transactions, though momentum has eased from peak levels. Buyer interest continues to favor grocery-anchored and neighborhood centers, as well as infill assets offering redevelopment potential, supporting above-average pricing on well-located properties. After strong appreciation of roughly 30% since 2019, pricing gains have moderated as higher interest rates push cap rates modestly higher into the low-6% range. While near-term pricing upside appears limited, durable fundamentals, scarce supply, and long-term demographic strength should sustain liquidity and keep Fort Lauderdale retail assets competitive relative to national peers. Fort Lauderdale Retail Sales Volume Source: CoStar Group, Inc. By the Numbers Source: CoStar Group, Inc. Sales Volume: $493M Price Per SF: $338 Cap Rate: 6.0% Vacancy Rate: 3.8% Rent Growth: -0.8% Asking Rent Per SF: $35.29 Under Construction: 272K SF Delivered: 19.5K SF Absorbed: 211K SF

Fort Lauderdale, FL Industrial Market Report Q3 2025

The strong concentration of ﬁnance, professional, business, and information sector jobs in Fort Lauderdale ranks the metro as one of the top-performing economies in Florida. This supported a median household income slightly higher than Miami’s and sustained a tight labor market with an unemployment rate below 4%. Since 2020, incomes have surged more than 25%, outpacing the national growth rate of 21%. Yet, Fort Lauderdale notes a rise in living costs, but new efforts like the Live Local Act are ongoing to combat this concern. Fort Lauderdale Demographics Source: CoStar Group, Inc. Unemployment Rate: 3.6% Current Population: 2,051,439 Households: 784,601 Median Household Income: $79,862 Population, Labor, and Income Growth Source: CoStar Group, Inc. Key Findings Although Fort Lauderdale recorded a slowdown in leases, the vacancy rate remains below the national average of 7.5%, underscoring the region’s ongoing resilience. After a period of subdued development, construction activity reaccelerated to about 1.6 million square feet underway by late 2025, led by projects in Southwest Broward and Pompano Beach. Institutional investors, including Ares Industrial REIT and Tishman Speyer, have made major acquisitions, reﬂecting conﬁdence in the region’s long-term fundamentals. Market Performance Industrial activity has softened across Fort Lauderdale over the past year, with net absorption totaling -467,165 square feet and vacancy rising to 5.9%, up from a low of 3.2% in 2022. Tenant move-outs from transportation and warehousing ﬁrms have contributed to this trend, though vacancy remains below the U.S. average of 7.5%. Despite slower leasing and moderating demand, the metro’s position within South Florida keeps it a vital logistics hub anchored by Port Everglades, Florida’s third-largest container port. Construction activity has rebounded, with over 1.6 million square feet underway, while rent growth has eased to 2% annually following strong post-2019 gains. Investment remains robust, with $1.6 billion in annual sales and pricing up 18% since 2021. Fort Lauderdale Industrial Supply & Demand Dynamics Source: CoStar Group, Inc. Fort Lauderdale Construction Fort Lauderdale’s industrial construction has picked up since late 2024, with about 1.6 million square feet underway in Q3 2025. Elevated ﬁnancing costs and softer economic conditions are expected to keep new development subdued, with annual deliveries projected to stay under 900,000 square feet. Most large-scale projects are concentrated in Pompano Beach and Southwest Broward, where the 281,000-square-foot 20421 Sheridan St Building C leads current activity. Although availability for new construction remains around 60%, tight vacancy levels near 6% for existing large assets indicate limited competitive supply and stable long-term leasing prospects. SF Construction Starts Source: CoStar Group, Inc. SF Under Construction Source: CoStar Group, Inc. Sales Industrial sales across Fort Lauderdale remain active, with Q3 2025 sales reaching $469 million and a total $1.6 billion in deals over the past year. Institutional investors continue to show strong interest, highlighted by Ares Industrial Real Estate Income Trust’s $120 million acquisition from Blackstone in early 2025 and Tishman Speyer’s $100 million purchase of Rock Lake Business Center in 2024. Large portfolio deals, such as Elion Partners’ $205 million purchase from Link Logistics, further underscore investor conﬁdence. Although cap rates have risen about 100 basis points to around 6.5%, sustained institutional demand reﬂects long-term conﬁdence in the region’s industrial fundamentals. Sales Volume Source: CoStar Group, Inc.

Fort Lauderdale, FL Multifamily Market Report Q3 2025

Fort Lauderdale’s multifamily market is recalibrating after the unsustainable surge in 2021–22, with rent growth slowing to 0.1% as a large luxury supply wave expands vacancies and pushes concessions higher. Despite this cooldown, rents remain more than 25% above early-2021 levels and over 34% above the U.S. average, while demand has rebounded, averaging over 1,000 units of absorption per quarter since late 2023. Vacancy has risen to 7.6% amid one of Florida’s largest pipelines, though it remains tighter than most major metros, with pressure concentrated in Class A units. Lower-rent submarkets, including Oakland Park/Lauderhill, Hollywood/Dania Beach, and Pompano Beach/Deerfield Beach, are posting some of the strongest annual rent gains as renters shift toward more cost-effective geographies. These areas are benefiting from heightened demand for attainable housing amid elevated metro-wide rents. Key Findings After years of double-digit growth, asking rents slowed to 0.1% in Q3 2025, with luxury units softening, while Class C and affordable submarkets outperform amid limited workforce housing and strong renter demand. Fort Lauderdale has 8,760 units under construction, mostly Class A luxury near I-95 and Las Olas Boulevard, driving the vacancy up to 7.6%. Annual multifamily sales total $1.8 billion, with multiple $100M+ trades. Cap rates rose to 5.6% as rising interest rates and softening fundamentals pressure pricing, particularly for higher-vacancy properties. Supply & Demand Dynamics Source: CoStar Group, Inc. Fort Lauderdale Demographics Source: CoStar Group, Inc. Unemployment Rate: 3.6% Current Population: 2,051,516 Households: 784,759 Median Household Income: $79,938 Fort Lauderdale’s strong base of finance, professional services, and information-sector jobs, paired with sub-4% unemployment and more than 25% income growth since 2020, continues to support multifamily demand, even as job growth cools. Rapid housing cost increases over the past few years are now beginning to level off, with new apartment deliveries helping moderate rent growth and rising home inventory stabilizing prices. While slower office-using job expansion and a shift toward lower-wage employment will intensify demand for more affordable options, the metro’s skilled workforce, business-friendly climate, and strategic position between Miami and Palm Beach keep long-term fundamentals solid for the multifamily market. Population, Labor Force, & Income Growth Source: CoStar Group, Inc. Fort Lauderdale Multifamily Construction Construction in Fort Lauderdale accelerated in early 2025, with over 3,200 units breaking ground, contrasting national trends of slowing starts. Multifamily development has surged since the pandemic, following record starts of 5,300 units in 2021 and 6,900 in 2022. Approximately 8,700 units are currently under construction, the fourth-largest pipeline in Florida, with 80% targeting Class A luxury apartments. Development is concentrated between I-95 and the Atlantic, particularly in Central Fort Lauderdale, Hollywood/Dania Beach, and Pompano Beach/Deerfield Beach, with many near Las Olas Boulevard. High homeownership costs and limited single-family construction continue to drive demand toward new rental product, with 4,100 units expected to deliver in 2025. Units Construction Starts Source: CoStar Group, Inc. Units Under Construction Source: CoStar Group, Inc. Fort Lauderdale Multifamily Sales Fort Lauderdale’s multifamily investment market recorded $554M in sales just this quarter and $1.8B in annual sales, in line with pre-pandemic levels, though activity has slowed from recent highs. Several transactions exceeded $100 million, including PonteGadea’s $165 million purchase of the 259-unit Veneto Las Olas, TA Realty’s $118 million acquisition of Bell Pembroke Pines, and Journey Capital’s $102 million purchase of The Rise Central at Plantation Walk. Newly built 4 & 5 Star properties, like The Ellsworth, continue to command premiums, while older or higher-vacancy assets trade at discounts. Rising interest rates and softening fundamentals have pushed average cap rates to 5.6%, placing pressure on pricing. Sales Volume Source: CoStar Group, Inc. By the Numbers Q3 2025 | Source: CoStar Group, Inc. Sales Volume: $554B Price Per Unit: $283K Cap Rate: 5.6% Vacancy Rate: 7.6% Rent Growth: 0.1% Asking Rent Per Unit: $2330 Under Construction: 8,760 units Delivered: 914 units Absorbed: 397 units

Fort Lauderdale, FL Hospitality Report Q3 2025

Fort Lauderdale’s hospitality market softened through Q3 amid ongoing convention center construction and reduced airlift. Occupancy averaged 55.5%, while ADR measured $129.45 and RevPAR reached $71.81, reflecting continued pressure from lower group and contract demand. Weekend leisure travel remained a stabilizing force, helping offset weekday softness. Development activity stayed active, with 140 rooms delivered and 1,233 rooms under construction, led by the 801-room Omni Fort Lauderdale. Transaction volume reached $78.9 million in Q3, at an average sale price of $273,831 per room and a 7.8% cap rate, underscoring steady investor confidence despite market headwinds. With the Broward County Convention Center expansion nearing completion, Fort Lauderdale is positioned for improved group demand and moderate performance recovery in 2026. Key Findings Weekend occupancy held near 80% through Q3, supported by steady leisure travel that helped offset slower group and contract segments. Clearwater posted the highest RevPAR at $155, driven by its strong concentration of luxury and upper-upscale hotels that continue to anchor regional performance. Transaction volume reached $78.9 million in Q3, reflecting steady investor activity despite softening market fundamentals. 12-Month Occupancy, ADR, & RevPAR Source: CoStar Group, Inc. Fort Lauderdale Demographics The Fort Lauderdale metro remains one of South Florida’s premier hospitality and tourism destinations, anchored by its renowned beaches, thriving cruise industry, and year-round leisure appeal. Supported by Fort Lauderdale-Hollywood International Airport and Port Everglades, one of the world’s busiest cruise ports, the market serves as a key gateway for both domestic and international travelers. Major developments such as the $1.3 billion Broward County Convention Center expansion, the 801-room Omni Fort Lauderdale headquarters hotel, and the transformative Bahia Mar redevelopment are set to elevate the city’s hospitality profile and strengthen long-term demand across leisure, group, and business segments. Travel Accolades Q3 2025 | Source: FLL Airport Passenger growth YOY: 0.3% Domestic Passengers: 19.2M Busiest Airport in U.S.: 19th International Passengers: 4.7M Upcoming Tourism Anchors Las Olas Art Festival Tortuga Music Festival Fort Lauderdale Air Show Visit Lauderdale Food & Wine Festival Population, Labor Force, & Income Growth Source: CoStar Group, Inc. Fort Lauderdale Hospitality Construction Development activity across Fort Lauderdale remains strong, with 1,300 rooms under construction and nearly 3,000 in final planning. Despite higher costs and insurance challenges, developer confidence endures, supported by the market’s strong leisure base, growing cruise traffic, and the Broward County Convention Center expansion. Projects are concentrated in the Fort Lauderdale/Beach and Hollywood/Airport submarkets, driven by tourism, port activity, and group demand. Notable developments include the 801-room Omni Fort Lauderdale, Home2 Suites by Hilton Weston, and Whitfield Las Olas Hotel & Spa, highlighting continued investment in upper-upscale and luxury segments. Pipeline by Scale Source: CoStar Group, Inc. Rooms Delivered Source: CoStar Group, Inc. Fort Lauderdale Hospitality Sales Investment activity in Fort Lauderdale’s hospitality market remained steady through Q3 2025, reflecting sustained investor interest despite softer operating fundamentals. Sales volume totaled $78.9 million across 14 transactions, averaging $273,831 per key with an average cap rate of 7.8%. Trading was primarily driven by private buyers and regional owner-operators targeting select-service and upper-midscale assets in coastal and suburban submarkets. Notable transactions included the Plunge Beach Resort and the Holiday Inn Fort Lauderdale Airport, underscoring continued appetite for well-located assets positioned to benefit from the market’s long-term leisure and convention demand. Sales Volume Source: CoStar Group, Inc.

Fort Lauderdale, FL Retail Market Report Q3 2025

Fort Lauderdale’s retail market in Q3 2025 remains tight and resilient, supported by strong tenant demand and minimal space availability. Average asking rents hold near $36 per SF, among the highest in Florida, though rent growth has slowed to roughly 1% annually after sharp gains in previous years. Leasing activity reached about 1.8 million SF over the past 12 months, moderating from 2022 peaks mainly due to limited supply rather than reduced demand. Fitness, grocery, and entertainment users, including Crunch Fitness, Publix, and Paragon Theaters, were among the most active tenants securing prime space. With vacancies below 4% and few new deliveries, landlords maintain firm pricing power and steady rent performance across Fort Lauderdale’s top retail corridors. Key Findings Retail investment is active, led by grocery-anchored and neighborhood centers. Sales volume reached roughly $292 million as buyers targeted well-located, income-producing assets. Asking rents average around $36 per SF, holding firm as limited space and strong demand in areas like Downtown and Las Olas kept pricing power with landlords. With only about 280,000 SF underway, new development remains minimal, helping vacancy stay low at 3.9% and sustaining tight conditions across established retail corridors. Fort Lauderdale Retail Supply & Demand Dynamics Source: CoStar Group, Inc. Fort Lauderdale Demographics Source: CoStar Group, Inc. Unemployment Rate: 3.6% Current Population: 2,051,372 Households: 784,464 Median Household Income: $79,795 Fort Lauderdale’s economy in Q3 2025 remains resilient despite a moderation in growth. The metro’s strong base in finance, professional services, and information sectors supports a median household income above Miami’s, with unemployment below 4% and incomes up more than 25% since 2020. While job growth has slowed, employment remains 5% higher than pre-pandemic levels. Rising housing costs have been a key challenge, with home prices up over 70% and rents nearly 30% since 2020, though new supply is helping stabilize the market. Affordability concerns persist as future job gains are expected in lower-wage sectors, but Fort Lauderdale’s skilled workforce, business-friendly climate, and prime location between Miami and Palm Beach continue to bolster its long-term economic stability. Population, Labor, & Income Growth Source: CoStar Group, Inc. Fort Lauderdale Retail Construction Fort Lauderdale’s retail construction pipeline remains modest, with about 281,000 SF underway and just 36,000 SF delivered in the past year. Construction activity has slowed sharply since 2018 due to high land and financing costs, keeping new supply well below the 10-year average. Most projects are concentrated in Pompano Beach, Southwest Broward, and Fort Lauderdale, including major developments like the 777 Isle of Capri Blvd. retail center and a new Publix site. With limited ground-up construction and most additions occurring as mixed-use or renovation projects, constrained supply is expected to sustain tight market conditions and support steady rent growth across the region. SF Construction Starts Source: CoStar Group, Inc. SF Under Construction Source: CoStar Group, Inc. Fort Lauderdale Retail Sales Fort Lauderdale’s retail investment market remains active, recording about $903 million in sales over the past year, slightly below the five-year average. Activity is driven by grocery-anchored and neighborhood centers, including EDENS’ $51 million purchase of a Weston center and Longpoint Realty Partners’ $34 million acquisition of Miramar Parkway Plaza. Publix continues to buy and occupy its own centers, while mixed-use and redevelopment sites like The Quay attract investor interest. Although pricing growth has slowed amid higher interest rates and expanding cap rates near the 6% range, investor demand remains strong for well-located, income-producing retail assets across Broward County. Fort Lauderdale Retail Sales Volume Source: CoStar Group, Inc. By the Numbers Source: CoStar Group, Inc. Sales Volume: $292M Price Per SF: $337 Cap Rate: 6.0% Vacancy Rate: 3.9% Rent Growth: 1.1% Asking Rent Per SF: $36.02 Under Construction: 281K SF Delivered: 41.8K SF Absorbed: 18.5K SF

Top National Hospitality Markets

The Southeast’s Shining Hospitality Activity Events and new deliveries make the Southeast a standout region nationally. In just the first quarter, the Southeast added over 6,000 rooms, a large jump compared to the 3,600 rooms that opened in Q1 2024. Of these new additions, more than half opened in Florida, with around a quarter opening in Georgia. Combined, both states are looking forward to hosting a variety of events. Florida Boasts Full Event Slate Although Florida led the region in new deliveries for the first quarter, it recorded a decline in sales. Associate Vice President Mabelle Perez stated transactions in Florida have fluctuated for the past few years. “Sales activity went parabolic in Florida from 2021 through 2023,” Perez stated. “In 2024, concerns around interest rates, insurance, and the presidential election all created a perfect storm to decrease sales activity coming into Q1 2025.” The state recorded a total $9.7 billion in transactions for the first quarter, led by the Full Service segment, but this volume is still a decrease from the $13.5 billion achieved in Q1 2024. Despite this slowdown, Florida added 3,226 rooms that opened in the first quarter of this year. About two-thirds of the new additions are in the Full Service segment, with two 750-room hotels delivering in Orlando. Florida’s Hotspots As the state adjusts to the deliveries, it is also preparing for new events that will drive room bookings. One of the most notable events on the way is the 2026 FIFA World Cup, which will feature Miami as a host city next year. The events will begin in June and July, but Miami officials are already preparing for visitations. The city is expected to see hundreds of thousands of visitors arrive for the events, and is forecast to have a total $1.3 billion economic impact on Miami-Dade County. Hard Rock Stadium will welcome visitors, and nearby areas like Wynwood, Downtown, and Miami Beach will also become hotspots. Spillover benefits are also expected to aid Fort Lauderdale and West Palm Beach, thanks to the Brightline high-speed rail system. With service connecting to these metros, as well as Orlando, hoteliers can capitalize on increased visitations for the World Cup. Other metros across the state are recording increased activity, according to Perez. “Places like Tampa, Sarasota, and Fort Myers are heating up,” Perez said. “People are drawn to better cap rates, infrastructure growth, and population migration in these areas.” Tampa, specifically, is notable for its job growth, cruise traffic, and airport expansion, which are all enticing factors for investors. “Florida as a whole will remain a top target,” Perez emphasized. “We’ve got population growth, no state income tax, and a tourism economy that keeps evolving. I don’t see that slowing down anytime soon.” Demand Gains in the Southeast Similar to Florida, Georgia also noted ongoing hotel construction in the first quarter with the addition of 1,463 rooms. Atlanta consistently benefits from an influx of travelers, due to the presence of Hartsfield-Jackson International Airport. In 2024, the airport served 58.8 million passengers, which is a 10% increase over the previous year. Corporate travelers greatly contribute to the airport’s activity, with corporate demand rising in the second half of 2024. Atlanta is also set to host World Cup events next year with eight matches, as well as one semifinal. The matches are expected to total an economic impact of $1 billion, and the metro estimates more than 300,000 visitors arriving for the tournament. There is a $120 million initiative in the works to prepare the city for its guests, and hoteliers are already preparing to accommodate the visitor influx. The Carolinas Charlotte North and South Carolina are noting increased visitations, due to their strength as popular destinations for both corporate and leisure travel. In Charlotte, the metro’s prominence as a financial center allowed for an increase in group travel, with group business accounting for about a quarter of its performance in 2024. This comes as the metro hosted about 45 events at the Charlotte Convention Center. Now, Charlotte is expected to note RevPAR growth of more than 5% for the rest of 2025. Charlotte’s construction pipeline will continue increasing to meet demand, according to Associate Lane McCool. “Though particularly for business and convention-related travel, Charlotte is seeing steady demand growth,” McCool said. As more visitors arrive in the metro, there are about 1,800 rooms underway, and more than 3,600 rooms are planned with openings in 2026 and after. McCool added that Raleigh-Durham is another key metro that benefits from constant business travel. “Raleigh-Durham stands out due to its thriving technology, life sciences, and academic sectors,” McCool stated. “With proximity to major universities and 29 hotels planned or under construction in Wake County, this indicates strong developer confidence in long-term demand.” The Research Triangle in the metro is a prominent area to watch, due to its economic strength and business travel. Its successful performance led Raleigh-Durham to record an occupancy rate of 66.9% at the end of Q1 2025. Charleston While Charlotte and Raleigh-Durham are frequently visited as corporate travel destinations, Charleston is a standout market for leisure travel. The metro is home to several historical sites, and is also appealing for its beaches and golf courses. Despite its enticing location and variety of leisure opportunities, Charleston has a high barrier to entry, due to limited developable land and zoning regulations. This difficulty led to only 72 rooms opening in 2024, but now there are more than 3,000 rooms in the planning phase, with the upscale segment accounting for 56% of the inventory. Vice President Mitchell Glasson stated that strategic timing is key when it comes to Charleston’s construction pipeline. “Investors should focus on upscale and upper midscale properties, which maintain strong occupancy at 72% and offer stable returns,” Glasson emphasized. One new development that leisure travelers can look forward to is The Cooper, which will open on the eastern side of Charleston in June 2025. The upper upscale hotel consists of 209 rooms, five dining locations, a meeting center, a rooftop pool, and more. The Cooper will deliver in the Charleston/West Ashley submarket, which Glasson noted as a high-performing area in the metro. “Despite flat RevPAR growth in 2024 at $120.27, Charleston/West Ashley’s dominance with a $183.52 RevPAR highlights its premium positioning,” Glasson said. California Begins Hospitality Recovery Across the state, California recorded struggles in visitations since COVID-19. The Bay Area was one of the hardest-hit markets, noting decreases in international and domestic travelers. This slowdown is one factor that led to one of the metro’s most difficult periods in transaction volume, according to Associate Ryan Sanchez. “In the two years leading up to 2025, we saw a significant downturn in overall transaction volume, with 2024 being the fourth-lowest year in the last 15 years,” Sanchez said. Now, the Bay Area is forecast to slowly start noting a recuperation in its hospitality sector as higher-end hotels are outperforming lower-tier hotels. “Room rate increases for non-luxury hotels are lagging behind inflation, compressing profit margins as operational costs continue to climb,” Sanchez stated. “In essence, luxury hotels are regaining the ability to command higher prices, whereas budget hotels struggle to achieve meaningful rate increases in real terms,” Sanchez explained. Several events are on the way in the Bay Area, which will increase both international and domestic visitations. Expectations for convention room night bookings are forecast to be greater than 600,000 this year, which will be approximately 40% above 2024 levels. San Francisco will continue to see an uptick in visits moving forward as it is hosting the 2026 Super Bowl and is a host city for the World Cup. Midwest Demand Shifts New opportunities in the technology industry increased performance in Midwest markets. Specifically, Columbus is gaining attention for its Intel semiconductor investment, according to Associate Luke Whittaker. “The market is evolving into a tech-centric, innovation-driven place, which is creating a ripple effect on corporate travel and extended-stay demand,” Whittaker stated. Across the region, Whittaker noted that Indianapolis is benefiting from its strong calendar of conventions and sports tourism, while suburban areas in Chicago are seeing renewed interest because of industrial growth and regional business travel. As the Midwest records an uptick in visitors, it is also noting a change in activity within its hospitality segments. Visitors are now most attracted to select-service and extended-stay hotels, which led to these sectors outperforming in the Midwest. “These properties tend to be more cost-efficient to operate and cater to a mix of transient, corporate, and long-term guests—especially construction crews, healthcare travelers, and government-related stays,” Whittaker said. The increase in demand for these hotels will also benefit smaller Midwest cities. “Affordability, infrastructure investment, and population shifts to lower-cost regions will continue to attract both institutional and private capital,” Whittaker stated. These trends are expected to stay moving forward, which will aid the entire region. National Trends and Forward Expectations Extended-stay hotels are not only recording increased demand in the Midwest, but also across the country. “Extended-stay is leading the pack in terms of developer and investor demand,” Perez expressed. “They’re operationally efficient, have stable occupancy, and appeal to workforce and long-term guests.” Due to their popularity, the extended-stay sector recorded stable performance in the first quarter of 2025. Occupancy averaged 70% in this timeframe, with March noting the greatest occupancy rate at 75%. New rooms in this segment are also expected to rise, with 42,000 rooms under construction expected for delivery this year and in 2026. Other trends that will benefit the hospitality sector include the addition of technology efficiency in business models. “Automation is picking up with mobile check-in, AI-enhanced operations, and leaner teams,” Perez stated. “Cap rates will stay tight in core markets, but value-add and conversion opportunities will offer great upside in less saturated areas.” New activity also includes how rising insurance premiums are pushing buyers to look at newer builds or inland assets that are better prepared for storms. “Buyers are asking deeper questions about flood zones, roofs, and insurance, which will matter more in underwriting,” Perez said. Overall, these new changes in the hospitality industry will set the stage for top performance in the years to come.

Mitchell Glasson

First Vice President

9/16/25

2Q25 | Hospitality Market Report | Fort Lauderdale, FL

2Q 2025 Fort Lauderdale Hospitality Market Report Key Findings New supply is made up of the 801-room Omni Fort Lauderdale Hotel that will be attached to the Broward County Convention Center. Leisure travel boosts occupancy across the metro with weekend occupancy at 84% in the second quarter. A new terminal at Fort Lauderdale-Hollywood International Airport is set to be completed in 2026 and will feature ﬁve new domestic gates. Fort Lauderdale Airport Travel Total Passengers: 2,468,170 Fort Lauderdale-Hollywood International Airport served 35.2 million passengers in 2024, up from 2023. Additionally, the airport ranked as the 13th-busiest airport for international traﬃc last year, supporting its tourism and lodging segments. Demographics Unemployment Rate: 3.5% Current Population: 2,053,728 Households: 796,448 Median Household Income: $78,029 Market Focus: Fort Lauderdale While Fort Lauderdale boasts many attractions, hotel activity has begun to decrease since 2024. This was driven by a drop in occupied rooms as leisure and corporate demand have both decreased. For the rest of the year, the metro is expected to resume a slowdown in activity. The continued occupancy declines are forecast to drive RevPAR down by -2.4% by year-end. Group demand across the metro is expected to improve once the Broward County Convention Center is ﬁnalized. It is currently undergoing a $1.3 billion expansion and is expected for completion at the end of 2025. Fort Lauderdale is also hosting more than 150 events this year, which will aid leisure travel throughout the second half. Occupancy, ADR, and RevPAR Source: CoStar Group, Inc. By the Numbers Occupancy: 68.3% ADR: $157.34 RevPAR: $107.51 12-Month Sales Volume: $101M Under Construction: 1,089 rooms Sale Price/Room: $273,225 Under Construction Hotel construction has decreased compared to prior levels, with 1,089 rooms underway. Most hotels on the way are in the higher-tier sector, including the Whitﬁeld Las Olas Hotel & Spa and the Auberge Resorts Collection Shell Bay Club & Resort. Moving forward, construction could begin to pick up as around 2,900 rooms are in the ﬁnal planning phase. Sales Transactions across Fort Lauderdale have begun to slow, due to high interest rates, with year-to-date sales volume of $40 million at the end of the second quarter. The largest sale this quarter was for the Manhattan Tower All Suites hotel in the Fort Lauderdale/Beach submarket. It is a 13-room Upscale property that sold for a total $11 million, or $846,154 per room. The metro may also see a rise in sales as 15 hotels will reach debt maturity by year-end. Sales Volume and Market Sale Price per Room Source: CoStar Group, Inc. Fort Lauderdale Submarket Highlights

H125 | Multifamily Market Report | Broward County, FL

H1 2025 Broward County Multifamily Market Report Key Highlights Broward County recorded the fourth-lowest vacancy rate across the state at 6.9%. The Arcadian is the largest property scheduled for delivery this year, adding 502 units to the Progresso Village submarket upon delivery in November. Income growth across the metro has grown by more than 25% since 2020, outpacing the 21% national rate. By the Numbers Units Under Construction: 8,831 Units Delivered: 733 Vacancy Rate: 6.9% Rent Growth: 0.4% Average Price per Unit: $282K Asking Rent per Unit: $2,344 | Q2 2025 | Source: CoStar Group, Inc. Market Overview Multifamily performance across Broward County has been positive since 2022. This can be attributed to increased demand from new residents, with the metro adding more than 7,000 people since 2019. Absorption levels have grown by about 5,400 units year-over-year, above the ﬁve-year annual average of 3,900 units. Demand is highest for upper-tier units, with demand for Class A units growing by more than 8% annually so far this year. Renters have also been drawn to this sector as Class A properties have begun to oﬀer concessions to compete with newly-added buildings. Looking ahead, demand may begin to slow down as new supply continues to be added across the metro. Rents | Vacancy | Construction Rent growth across the metro has decreased since the second half of 2023, reaching 0.4% in Q2 2025—lower than the U.S. rent gain of 0.9%. Despite the drop in rent growth, absorption remains high across the metro, leading to a vacancy rate of 6.9%. This metric is also lower than the national level. Despite strong absorption, vacancy rates are high among most submarkets. The Coral Springs, Plantation/Sunrise, and Hollywood/Dania Beach submarkets saw some of the greatest vacancy increases as over 2,100 combined units have been delivered here since 2023. Since the start of 2025, construction levels have been on the rise. At the end of the second quarter, there were 8,831 units on the way. This is one of the highest construction levels across Florida, and it represents 6.1% of existing inventory. New developments are growing the most in areas with neighborhood amenities, with the majority of construction underway in the Central Fort Lauderdale, Hollywood/Dania Beach, and Pompano Beach/Deerﬁeld Beach submarkets. Vacancy Rate Source: CoStar Group, Inc. Market Asking Rent per Unit & Rent Growth Source: CoStar Group, Inc. Broward County Sales Annual transaction volume totaled $1.5 million over the past 12 months, which is in line with pre-pandemic levels. Throughout the second quarter, the metro recorded a total $284 million in sales. The largest deal this quarter was for Veneto Las Olas, located in the Downtown Fort Lauderdale submarket. The 259-unit property sold for $165 million, or $637,066 per unit. While sales remain stable, higher interest rates have impacted pricing this year. Cap rates recorded a three-year low of 5.3%, but rose to 5.5% at the end of the second quarter. The rise in cap rates, together with lower fundamentals, will most likely continue to drop pricing gains. 1H 2025 Sales Volume: $284M Sales Volume & Market Sale Price per Unit Source: CoStar Group, Inc. Submarket Highlights

Erik Leon

Associate

8/15/25

Q225 | Industrial Market Report | Fort Lauderdale, FL

Q2 2025 Fort Lauderdale Industrial Market Report Key Highlights Properties between 10,000 to 50,000 square feet make up more than 80% of leasing activity across Fort Lauderdale. The metro’s rents have increased by over 57% since 2019. Large portfolio deals are aiding sales metrics, with institutional investors accounting for a majority of these transactions. By the Numbers Sales Volume: $453M Average Sale Price Per SF: $244 Vacancy Rate: 5.5% Rent Growth: 2.6% Average Market Asking Rent Per SF: $20.69 SF Under Construction: 1.5M SF Delivered: 5K | Q2 2025 | Source: CoStar Group, Inc. Market Overview Fort Lauderdale is a standout for industrial activity, due to its large population and convenient location. Port Everglades is particularly notable for the metro’s industrial sector as it ranked as the third-largest port in Florida based on total import and export of TEUs in 2022. However, absorption across the metro recently noted decreased levels. Tenant move-outs from transportation and warehousing ﬁrms attributed to this slowdown, causing vacancy to increase. New construction is likely to drive up vacancy even more, with four properties over 100,000 square feet underway at the end of 2024. These larger facilities will likely take longer to lease, as demand is now shifting towards smaller properties under 50,000 square feet. Rents | Vacancy | Construction Due to the slowdown in demand, vacancy rose each quarter since the start of 2024, with a 5.5% vacancy rate at the end of Q2 2025. Most recent absorption has been driven by newer product, with a focus on properties built since 2015. Smaller properties are recording the greatest demand levels, but they remain undersupplied. Despite decreased absorption levels, rents are around $20 per square foot—one of the highest rents in the state. Due to increased demand for smaller facilities, properties from 10,000 to 100,000 square feet record rents at $18 per square foot; meanwhile, larger assets over 100,000 square feet note rents at $14 per square foot. The bulk of new construction for properties over 100,000 square feet is located in the Southwest Broward submarket. The largest property underway here is greater than 280,000 square feet, and is set to deliver in September. Due to new supply for these larger facilities, they record an availability rate of 60%, which accounts for over 1.5 million square feet of available space. Moving forward, elevated ﬁnancing prices are likely to keep construction activity slow, aiding fundamentals. Vacancy Rate Source: CoStar Group, Inc. Market Asking Rent per SF & Rent Growth Source: CoStar Group, Inc. Fort Lauderdale Sales An increase in cap rates led to a stabilization in pricing, with lower-end cap rates in the 5% range. This is an uptick from the low-end 3% cap rates recorded two years ago. Sales volume also notes stabilization from the prior boom in 2021-2022, with a total $1.5 billion in deals over the past 12 months. A majority of this activity is driven by institutional investors, which returned to the market in 2023. One of the most notable deals by an institutional investor this quarter included Ares Industrial Real Estate Income Trust’s purchase of a three-property portfolio. It was purchased from Blackstone for over $120 million, or over $263 per square foot. The deal involved around 450,000 square feet of space, with the largest building totaling over 290,000 square feet. Q2 2025 Sales Volume: $453M Sales Volume & Market Sale Price per SF Source: CoStar Group, Inc. Submarket Highlights

Q225 | Retail Market Report | Denver, CO

Q2 2025 Denver Retail Market Report Highlights With the availability rate at just 4.8%, one of the lowest rates in the past decade, demand is healthy as supply remains limited. In this cycle, QSRs and local operators are leading tenant activity, accounting for the majority of recent move-ins. Retail rents aren’t keeping pace with the strong move-in activity, especially for landlords working with local tenants who face tighter budgets and less pricing flexibility By the Numbers Sales Volume: $221M Cap Rate: 6.6% Market Sale Price Per SF: $271 Vacancy Rate: 4.3% Rent Growth: 2.6% Market Asking Rent Per SF: $26.53 SF Under Construction: 546K SF Absorbed: (81.5K) SF Delivered: (384K) | Q2 2025 | Source: CoStar Group Demographics Unemployment: 4.4% Current Population: 3,072,491 Households: 1,276,199 Median Household Income: $106,400 Market Performance Anchored by fundamentals such as sustained tenant and consumer demand, a tight supply pipeline, and evolving tenant preferences, the retail market continues to emulate efficiency throughout Q2. Big-box retailers are moving out, creating room for an experimental period. However, spaces with larger footprints are more complex to backfill. Leasing activity is peaking, specifically in strip and neighborhood centers. However, absorption trends signal landlords hold leverage backed by sought-after locations, particularly in prime suburban submarkets. The outskirts of the Denver metro are drawing increased attention from national retailers competing aggressively for pad sites, often outbidding local operators with tighter margins. This dynamic is at the forefront of retail modernization, as newer, freestanding formats become more desirable and tenants move away from aging, second-generation spaces. Denver’s retail sector is operating at near-full capacity, supported by minimal new development and robust pre-leasing activity. As existing space becomes increasingly scarce, future leasing gains may slow, not because of weaker demand but due to a lack of available inventory. Market Asking Rent Per SF and Vacancy Rate Source: CoStar Group Under Construction As the e-commerce landscape evolves, investor sentiment is shifting in tandem, prompting developers to proceed with caution and redirect their focus toward industrial and multifamily project. A large share of the 0.3% of total inventory currently under construction consists of small, freestanding build-to-suits and ground-floor retail in mixed-use projects, often pre-leased to national QSR tenants like Raising Cane’s and Dutch Bros. Projects like the former LowDown Brewery site and Belcaro Shopping Center reflect a broader shift, with new retail development increasingly focused on repositioning aging assets rather than expanding overall inventory. Sales Retail investment in Denver totaled $1.2 billion over the past year, just below the 10-year average. Roughly $221 million of that volume occurred in Q2, reflecting a slower pace of deal flow amid continued caution in the debt markets. Activity was led by private buyers pursuing STNL deals under $5 million, often using all-cash or 1031 exchanges. Larger trades were limited and skewed toward value-add opportunities, typically at higher cap rates to account for added risk. Major deals include: Sonic Drive-In in Commerce City sold for $2.53M ($1,524/SF) at a 6.0% cap, due to short lease, older build. Summer Valley Shopping Center in Aurora sold for $20.4M at a 7.25% cap, 99% leased, Hawkeye INVSCO financed $13M. New Dutch Bros in Broomfield sold for $2.98M ($3,922/SF) at 5.2% cap, secured by 15-year absolute NNN lease. Sales Volume and Market Sale Price Per SF Source: CoStar Group 12-Month Market Leaders: Top 10 Performing Submarkets

Q225 | Multifamily Market Report | Houston, TX

Q2 2025 Houston Multifamily Market Report Highlights Houston multifamily is finding its footing as renter demand closes in on a surplus of absorbed units. Asking rents have taken a hit, with rent growth falling to -0.4%, the first negative figure in 15 years. Class A and B assets now account for 60% of all multifamily transactions, marking a 34% increase from pre-pandemic levels as investor focus continues to shift toward stabilized, higher-quality product. By the Numbers Sales Volume: $358M Cap Rate: 6.5% Market Sale Price Per Unit: $149K Vacancy Rate: 11.2% Rent Growth: -0.4% Market Asking Rent Per Unit: $1,379 Units Under Construction: 12,324 Units Absorbed: 5.2K Units Delivered: 2.7K | Q2 2025 | Source: CoStar Group Demographics Unemployment: 4.4% Current Population: 7,868,919 Households: 2,881,053 Median Household Income: $81,539 Market Performance At first glance, the multifamily sector may appear sluggish and stale, with an overall vacancy rate of 11.3% and year-over-year rent growth teetering into negative territory at -0.4%. While the supply pipeline works to balance itself out in Q2, on the other end of the spectrum, suburban corridors are gaining traction. Standouts such as Bear Creek, Copperfield, and Northwest Houston lead the sector in absorption volume, fueled by job expansion and expanding retail corridors. Class B assets have become the underdogs of the multifamily market. After a supply-heavy influx in 2023 to 2024, mid-tier properties are turning a corner, as affordability drives a resurgence of renter demand. As tenants are priced out of luxury apartments, rents have stabilized and even outperformed, with both high-end buildings weighed down by concessions and lower-tier properties experiencing elevated turnover. With limited developments breaking ground, the competitive field is reshaping, and properly managed properties must follow suit, resetting their occupancy targets to a new benchmark of 93%. Market Asking Rent Per Unit and Vacancy Rate Source: CoStar Group Under Construction With a mere 11,000 units under construction, the lowest level since 2012, Houston’s multifamily pipeline is not just thinning, it’s being constrained by underlying financial pressures. High borrowing costs, soaring construction expenses, and scarce equity are pulling the puppet strings, stalling projects before they ever reach the ground. Developers are not hitting pause because of weak demand, but because the math no longer works. Capital is now in control, steering the pace of growth. New projects are largely concentrated in two directions. In the urban core, high-rise developments like The RO in River Oaks are reshaping the skyline. In the suburbs, builders are leaning into lower-density, build-to-rent communities aimed at renters priced out of homeownership. These trends reflect a market still full of demand but constrained by a new financial reality. Sales Sales activity is gaining momentum in Houston as pricing adjusts and capital shifts toward stabilized, higher-quality assets. In Q2 , transaction volume totaled $358 million, and deal counts rose 24% year-over-year, signaling renewed confidence in the market. Cap rates have continued to expand, with most recent trades closing around 6.5%, reflecting ongoing repricing from previous cycle lows. Private capital continues to lead activity, with institutional buyers beginning to reenter select opportunities as fundamentals improve. Major deals include: Praedium Group acquired the 312-unit Pearl Woodlake in West Houston for $67.7 million at a 5.4% cap rate. Berkshire Residential purchased The Ivy, a 297-unit Class A asset in River Oaks, in an off-market deal. Tilden Properties closed on The Lennox, a 236-unit community in Spring Branch, for $41.3 million. GVA Management added to its portfolio with the acquisition of The Ella, a 210-unit 3-Star asset in Northwest Houston. Sales Volume and Market Sale Price Per Unit Source: CoStar Group 12-Month Market Leaders: Top 10 Performing Submarkets

Q225 | Industrial Market Report | Columbus, OH

Q2 2025 Columbus Industrial Market Report Highlights Following major move-outs totaling nearly seven million SF, the industrial sector reported a record-breaking vacancy rate of 7.7%, just 0.2% above the national average. Tenants with smaller footprints under 100,000 SF dropped 35% year-over-year, but larger tenant activity has kept leasing activity well-above pre-pandemic levels. Columbus remains in the top 10 U.S. markets for industrial growth, with rent growth sitting at 5.9%, reflecting pre-pandemic averages. By the Numbers Sales Volume: $410M Cap Rate: 7.1% Market Sale Price Per SF: $92 Vacancy Rate: 8.7% Rent Growth: 5.9% Market Asking Rent Per SF: $8.35 SF Under Construction: 4.7M SF Absorbed: 675K SF Delivered: (744K) | Q2 2025 | Source: CoStar Group Demographics Unemployment: 4.1% Current Population: 2,247,677 Households: 909,533 Median Household Income: $81,409 Market Performance Performance throughout the sector shows early signs of stabilization, taking into account tenant size and submarket. Larger tenants, such as JBS Logistics and Anduril, are leading the growing demand among defense and tech manufacturers. The slowdown in small-tenant demand, driven by economic uncertainties and high absorption in small-bay properties, is affecting submarkets differently. Licking County is a leading performer among submarkets, with a 3.9% vacancy rate in Q2, while Downtown West and Morrow County are tackling inflated vacancies exceeding 25% due to an influx of vacated subleased space. Newer mid-size distribution builds in prime, high-demand locations totaling between 100K and 250K SF are reaching above-average rents with some transactions nearing $9/SF. More outdated, oversized products are seeing a downward trend with lease rates hitting as low as $4.25/SF. As tenants become more particular, market performance is increasingly influenced by asset-specific characteristics, such as building size, age, functionality, and proximity to key consumer demographics. Market Asking Rent Per SF and Vacancy Rate Source: CoStar Group Under Construction Approximately 4.7M SF has broken ground, and Columbus has one of its smallest pipelines since 2019. Roughly 69% of the units are pre-leased, with Licking and Pickaway counties accounting for over half, driven by build-to-suit demand. Major projects include the one million SF Intel Plant and 750,000 SF chip facility in New Albany, an 864,000 SF ODW Logistics center in Licking County, and several mid-size facilities by Tenby Partners and Trident Capital Group. Sales The Columbus industrial investment market is showing signs of renewed momentum, with property sales totaling $337 million in Q1 2025, the strongest quarterly total in two years. While the annual transaction volume remains below pre-pandemic levels at $1.1 billion, buyer interest is picking up, particularly from institutional investors drawn to the area’s robust rent growth, supply constraints, and strategic, ideal location. Major deals include: 11555 Briscoe Parkway sold for $136M, the largest 2025 industrial deal, fully leased at 1.2M SF. 4448 Rickenbacker Parkway East sold for $67.4M at a 5.5% cap, demonstrating strong demand for logistics corridors. Ares acquired three fully leased Grove City assets for $70.8M, with tenants like FST, Vertiv, and Home Depot. Sales Volume and Market Sale Price Per SF Source: CoStar Group 12-Month Market Leaders: Top 10 Performing Submarkets

Q225 | Retail Market Report | Orange County, CA

Q2 2025 Orange County Retail Market Report Highlights Driven by the Q4 leasing boom and early 2025 demand, Orange County’s retail sector margins are incredibly slim, at 4.1%, just 0.8% below the national average. Discount and experiential retailers are forging a demand-driven market for big-box retailers. While rents have increased by 2.9% year-over-year, following a 4% gain in 2024, rent growth has stalled throughout the sector, as demolitions have exceeded new construction over the past three years. By the Numbers Sales Volume: $479M Cap Rate: 5.3% Market Sale Price Per SF: $446 Vacancy Rate: 4.0% Rent Growth: 2.9% Market Asking Rent Per SF: $39.08 SF Under Construction: 217K SF Absorbed: (163K) SF Delivered: (169K) | Q2 2025 | Source: CoStar Group Demographics Unemployment: 3.9% Current Population: 3,177,806 Households:1,110,142 Median Household Income:$116,845 Market Performance The retail sector is red-hot, consistently outperforming national benchmarks. Tenant retention is strong across the corridor, with especially low turnover rates in core trade areas. North County and inland areas lead rent growth, fueled by strong demographics, competitive pricing, and growing tenant demand. Coastal submarkets face fewer new tenants due to high space costs and complex approvals. With 217,000 SF underway, the region focuses on long-term stability through tenant turnover and adaptive reuse. This strategy supports a landlord-driven market with strong pricing and stable occupancy. Competitive pressure will continue supporting core fundamentals Market Asking Rent Per SF and Vacancy Rate Source: CoStar Group Under Construction Orange County’s construction pipeline is minimal, with just 217,000 SF, or 0.1% of total retail inventory. Current projects are small and pre-leased, including Amazon Fresh in Laguna Hills and retail at Dana Point Harbor. Additional sites include drive-thrus and single-tenant builds in Garden Grove, Costa Mesa, and Anaheim. No major speculative or big-box builds are planned, showing a cautious, demand-led strategy. Sales The Orange County retail investment market is incredibly robust, with 250 deals closed year-to-date totaling more than $1.1 billion, outpacing the annual totals of the past two years. The majority of buyer activity is driven by private capital, but in recent quarters, REITs, particularly through portfolio acquisitions of credit-backed retail assets, have also entered the market. Major deals included: Terreno Realty acquired a 134,400 SF Home Depot in Santa Ana for $49.5 million at a 5.7% cap rate, secured by a long-term lease with renewal options. A 117,300 SF portion of Mercantile East in Rancho Santa Margarita sold for $47.2 million as part of a larger portfolio transaction. The 155,949 SF Fullerton MetroCenter was sold for $45.4 million, with minimal vacancy and a mix of national tenants. A single-tenant Target in Placentia, totaling 154,739 SF, changed hands for $38.2 million, securing one of the highest-profile big-box trades of the year. Sales Volume and Market Sale Price Per SF Source: CoStar Group 12-Month Market Leaders: Top 10 Performing Submarkets

Q225 | Retail Market Report | Cleveland, OH

Q2 2025 Cleveland Retail Market Report Highlights Performance is strong in the sector, as rental space availability is nearing an all-time low, at just 5.2%, and service-oriented and experimental tenants are absorbing backfilled spaces. Rent growth remains healthy and location-driven, with submarkets such as the Chagrin Corridor and Lyndhurst posting rent gains of nearly 2%, and the Rockside Corridor saw a 1.5% increase. Private buyers and REITs primarily drive larger sales transactions, while smaller deals are attracting interest towards service-anchored and grocery-anchored centers. By the Numbers Sales Volume: $102M Cap Rate: 8.6% Market Sale Price Per SF: $114 Vacancy Rate: 4.7% Rent Growth: 4.0% Market Asking Rent Per SF: $16.35 SF Under Construction: 192K SF Absorbed: 432K SF Delivered: 123K | Q2 2025 | Source: CoStar Group Demographics Unemployment: 3.8% Current Population: 2,074,423 Households: 901,548 Median Household Income: $71,602 Market Performance Minimal construction, robust leasing activity, and increasing investor demand are key drivers of Cleveland’s success within the retail market. Tenant absorption is undergoing quick turnarounds, especially in busy suburban corridors. Leasing volumes have skyrocketed within the first half of the year as fitness centers, entertainment venues, and discount retailers reoccupy second-generation space, particularly in spaces under 10,000 SF. Submarkets such as Medina County, the Northeast corridor, and select areas in the Southwest are top producers in Q2 based on their affordability, accessibility, and tenant mix. With just 192,000 SF currently under construction, much of the space already pre-leased, this is driving a landlord-driven market, allowing firmer rent holds and price pushes, particularly in well-positioned retail corridors with strong daytime demand. Overall, Cleveland’s market performance is defined not by rapid expansion, but by a disciplined equilibrium—characterized by low vacancy, selective tenant growth, and stable investment that reflects confidence in the region’s long-term retail resilience. Market Asking Rent Per SF and Vacancy Rate Source: CoStar Group Under Construction A few larger retail projects are moving forward despite the region’s limited construction pipeline. The most significant is a 56,000-square-foot Acme store in Medina County, which is fully pre-leased and is expected to deliver by mid-2027. In Lorain County, a 47,582-square-foot building at 4415 Leavitt Road is currently underway, with a target completion date of late 2025. Brecksville’s Valor Acres is adding two more retail pads, 35,280 and 10,980 square feet, both integrated into a broader mixed-use setting. These projects, while limited in number, reflect targeted investment in suburban growth areas with firm pre-lease commitments. Sales The Cleveland retail investment market is showing steady growth, with Q2 2025 property sales totaling approximately $75.4 million, marking a 5.3% increase over Q2 2024. Investor appetite remains strong, particularly among private buyers, who continue to dominate the landscape, drawn by low availability rates, limited new construction, and the relative stability of the region’s retail fundamentals. Single-tenant assets and grocery-anchored shopping centers remain top targets, accounting for 70% of total sales activity. Major deals included: The $51.5 million sale of Westgate Mall in Fairview Park to Phillips Edison & Company, a Cincinnati-based public REIT, marked the most significant retail transaction of the year; the property is anchored by Target, Lowe’s, Kohl’s, and Petco and ranks among the most visited shopping centers in Ohio. Kruse Commons in Solon was acquired for $7.2 million at a 6.8% cap rate, with the property approximately 80% occupied at the time of sale. Sales Volume and Market Sale Price Per SF Source: CoStar Group 12-Month Market Leaders: Top 10 Performing Submarkets

Q225 | Retail Market Report | Columbus, OH

Q2 2025 Columbus Retail Market Report Highlights The retail sector continues to operate under historically tight margins, with the availability rate marking its third consecutive record low year. Outpacing national statistics, Columbus ranks among the top 15 major markets nationwide, as rents remain consistently strong, with rent growth at 2.2%. As construction starts have trended downward over the past six quarters, the construction pipeline is at a near standstill, with just 0.2% of total inventory currently under construction. By the Numbers Sales Volume: $101M Cap Rate: 8.2% Market Sale Price Per SF: $155 Vacancy Rate: 3.9% Rent Growth: 2.2% Market Asking Rent Per SF: $19.66 SF Under Construction: 252K SF Absorbed: 33.1K SF Delivered: (61K) | Q2 2025 | Source: CoStar Group Demographics Unemployment: 4.1% Current Population: 2,247,548 Households: 909,475 Median Household Income: $81,398 Market Performance The retail performance of the Midwest metro varies across specific demographics, including asset class, tenant profile, and submarket dynamics. Big-box retailer bankruptcies have driven two consecutive quarters of negative net absorption. With national chains like Big Lots, Joann’s, and Party City vacating spaces well over 10,000 SF. Despite this, smaller service-based and food-service tenants have backfilled smaller spaces under 5,000 SF, with over 500,000 SF leased in Q2, maintaining overall leasing activity. Demand remains high amid Class A and Class B asset types. Space is limited and competition is high. Class C properties, accounting for approximately 40% of available space, have experienced a slower leasing velocity due to outdated layouts and a lack of appeal. Submarkets such as Westerville, Hilliard, and Upper Arlington are outperforming core metros, as daytime populations increase and sustain household growth. Specifically, Polaris and Bethel Road availability rates both sit below 2.5% accounting for some of the tightest availability rates across the Midwest. Market Asking Rent Per SF and Vacancy Rate Source: CoStar Group Under Construction The dramatic pullback in retail construction reflects an overarching theme of speculatively high interest rates and tighter capital markets. The construction pipeline is one of the lowest Columbus has seen in over a decade, totaling around 243,000 SF, with around 60% of pre-leased space. New supply projects are mainly build-to-suit and integrated mixed-use developments in suburban growth submarkets from retailers such as Lucky’s Market, Aldi, and Camping World. The largest delivery in recent months is a 123,000 SF Kroger, located in Plain City and part of a 1,900-acre multi-community development called Jerome Village. Sales The market is steadily growing. Q2 property sales reached $75.4 million, up 5.3% from Q2 2024. Private investors are dominating the market, drawn to low availability rates and minimal construction costs. Making up 70% of all sales activity across the market, single-tenant properties, such as QSRs or pharmacies, and shopping centers with below-market rents are of key interest due to their stability. Most sales are priced with healthy cap rates in the mid-6% range. Major deals included: Hillard Square, a Kroger-anchored shopping center, that sold for $8.7 million ($164.30/SF) at a 7.3% cap rate. Cincinnati-based Phillips Edison & Company bought Oak Creek Center near Polaris for $20.4 million ($194.32/SF), and local developer, Castro sold the property, which was over 95% leased at the time of sale to tenants such as Sherwin Williams, Fleet Feet Sports, Pulp Juice and Smoothie Bar, and Fit Body Boot Camp. Florida-based American Commercial Realty Corporation purchased seven retail centers across the Columbus market, totaling $21.3 million. Two of the centers, Village Center and Beechcroft Center, are located in the Northland area, while the remaining (James Livingston Center, Main Hamilton Center, 5156 E. Main St. Center, Wyandotte Center, McNaughten Center) are in East Columbus. Sales Volume and Market Sale Price Per SF Source: CoStar Group 12-Month Market Leaders: Top 10 Performing Submarkets

Q225 | Retail Market Report | Fort Lauderdale, FL

Q2 2025 Fort Lauderdale Retail Market Report Highlights Leased space now accounts for over 13% of total retail inventory, up from a historical average of around 11%. That tighter supply is giving landlords pricing power, especially as quality space gets harder to come by. The construction pipeline is at a record low, with just 42,000 square feet set to deliver in 2025. With little new supply coming online, expect space to stay tight and competition to stay high. Sales are still happening, but things are slowly plateauing as investors aren’t willing to pay what they used to. High interest rates have pushed cap rates up to 6.1%, cooling off pricing momentum even in a strong leasing environment. By the Numbers Sales Volume: $200M Cap Rate: 5.9% Market Sale Price Per SF: $343 Vacancy Rate: 3.9% Rent Growth: 2.4% Market Asking Rent Per SF: $36.31 SF Under Construction: 314K SF Absorbed: (76.3K) SF Delivered: (313K) | Q2 2025 | Source: CoStar Group Demographics Unemployment: 3.3% Current Population: 2,053,389 Households: 796,285 Median Household Income: $77,952 Market Performance The Fort Lauderdale retail sector has entered a healthy slowdown. While leasing and sales volumes are no longer reaching the peak levels of 2022, the underlying market fundamentals remain strong. Low vacancy rates, stable rent growth, and consistent tenant demand continue to support market stability. Rather than signaling weakness, the recent moderation reflects a return to balance. Vacancy sits at 3.9 percent, in line with the 10-year average and outperforming national benchmarks. Move-outs remain limited, particularly among essential retail categories such as fitness centers, grocers, discount home goods, and entertainment users. Rent growth has normalized, easing from the double-digit highs of 2022 to a more sustainable 2.4 percent year-over-year. Prime submarkets such as Downtown Fort Lauderdale and Las Olas continue to see asking rents between $50 and $75 per square foot, especially for spaces under 10,000 square feet. Overall, the market is rebalancing rather than retreating, with solid fundamentals providing long-term support despite a more measured pace of activity. Market Asking Rent Per SF and Vacancy Rate Source: CoStar Group Under Construction The construction pipeline is taking cues from the state of the market, with only 284,750 square feet currently underway and activity expected to stay below the 10-year average of 370,000 square feet. Pompano Beach, Southwest Broward County, and Fort Lauderdale account for over 70% of active development. Key projects include 777 Isle of Capri Blvd. (140,000 SF), Victory Say Plaza (63,000 SF), and a Publix-anchored site (28,000 SF) — all set to deliver in 2025 and already showing strong pre-leasing momentum. Across South Florida, most new retail is limited to ground-floor space in mixed-use properties or renovations of existing centers, reinforcing tight availability and upward rent pressure. Sales The market feels predictable right now. But that’s not a bad thing. Activity has calmed down from the record-high frenzy of the past few years, but there’s no volatility, panic, or dramatic shakeups. It’s a calm, steady environment. Tenants are sticking around, allowing investors to plan ahead and pursue new opportunities as the market settles into a rhythm. The focus has shifted toward stabilized centers, grocery-anchored assets, and redevelopment plays. Major deals included: A neighborhood center in Weston, sold by Barings to EDENS for $51 million ($471/SF), despite being only 63% occupied at the time of sale. The Miramar Parkway Plaza, anchored by Presidente Supermarket, traded for $34 million ($302/SF) with occupancy over 90%. Publix Super Markets continued acquiring their own centers, including a $58 million purchase of the renovated Ramblewood Square. The Quay, a retail site near downtown Fort Lauderdale, sold for $48 million ($577/SF) and came with entitlements for 361 residential units, signaling investor interest in mixed-use repositioning. Sales Volume and Market Sale Price Per SF Source: CoStar Group Submarket Performance Rankings

Q225 | Office Market Report | South Florida

Q2 2025 South Florida Office Market Report Executive Summary The South Florida office and medical office markets are navigating a dynamic environment in 2025, with varied trends across submarkets. Palm Beach County’s office sector is showing stability, underpinned by sustained demand for Class A properties and limited new supply, helping to moderate vacancy and support rent growth. In contrast, Broward County’s office market faces short-term absorption challenges due to recent tenant departures but maintains strong rent growth and robust investor interest in premier assets. Both counties’ medical office sectors demonstrate resilience, characterized by high occupancy rates, increasing rents, and cautious but ongoing development reflecting growing healthcare demand. Collectively, these factors highlight a cautiously optimistic outlook for South Florida’s commercial real estate markets. Market Overview This report analyzes current market conditions and trends in the office and medical office sectors within Palm Beach and Broward Counties. These regions represent South Florida’s largest commercial hubs, with diverse tenant bases ranging from corporate headquarters to healthcare providers. Data herein covers activity through the first half of 2025, incorporating vacancy, rental rates, absorption, sales, and development insights. Vacancy Rates Palm Beach County The vacancy rate has stabilized at roughly 9%, with Class A buildings particularly benefiting from increased leasing activity. Newer, well-located properties in CBD submarkets have experienced leasing momentum, reducing available inventory and improving overall market balance. Broward County Vacancy remains elevated near 9.5%, a slight improvement from earlier in the year but still above historic averages. This is driven in part by recent tenant relocations and consolidations, particularly in older or less competitive properties. However, leasing activity is picking up in key corridors such as Las Olas Boulevard and Sawgrass International Corporate Park. Medical Office Occupancy rates remain strong, exceeding 90% in both counties. The medical office market continues to benefit from an aging population and expanded healthcare service demand, leading to limited vacancy and steady tenant demand for modern, well-equipped medical facilities. Rental Rates Office Palm Beach County Class A office rents are averaging between $40 and $43 per square foot on a gross basis. Rent growth has been moderate but steady, supported by tenant preferences for modern, amenity-rich spaces. Broward County office rents have seen stronger upward momentum, averaging around $44-$47 per square foot gross. This is driven by competition for limited high-quality office inventory and increased investor activity in trophy assets. Medical Office Palm Beach County medical office rents average $26-$27 per square foot on a triple net basis, reflecting incremental annual increases as demand outpaces new supply. Broward County medical office rents are higher, typically in the $34-$36 per square foot range gross, with some submarkets reporting even stronger rent growth due to specialized medical uses and limited new inventory. Absorption/Occupancy Office Positive net absorption in Palm Beach County is primarily concentrated in newly delivered Class A buildings such as One West Palm, where pre-leasing and post-delivery leasing have absorbed significant space. Conversely, Broward County recorded a slight negative absorption figure in early 2025 due to some large tenants vacating or downsizing; however, new lease signings and tenant expansions in strategic locations suggest a potential rebound in the second half of the year. Medical Office Both counties maintain robust occupancy above 90%, supported by ongoing healthcare sector growth, including outpatient services, specialty clinics, and wellness centers. Leasing activity remains consistent, and developers are selectively pursuing new projects to meet demand while remaining cautious due to inflation and construction cost concerns. New Development/Construction Pipeline Palm Beach County Office development activity remains moderate, with projects such as One West Palm nearing completion. Medical office construction is more subdued but includes strategic expansions by major healthcare providers, reflecting demand for specialized clinical space and outpatient facilities. Broward County Office projects are progressing, particularly in high-demand submarkets like downtown Fort Lauderdale and Sunrise. Medical office construction is ongoing but cautious, with developers balancing demand with economic uncertainties and construction cost inflation. Sales Activity Palm Beach County Peninsula Corporate Center, Boca Raton: This 48,829-square-foot office building sold for $15.3 million. It is fully leased to 54 tenants, offering value-add potential through lease renewals and rent escalations. The transaction reflects investor interest in stable, multi-tenant assets in strong submarkets. One Clearlake, West Palm Beach: An 18-story Class A office tower sold for $45 million, representing a 26% discount from its 2021 price. The buyer plans to invest $10 million in renovations aimed at repositioning the property to attract premium tenants. Northlake Corporate Park, Palm Beach Gardens: A four-building office park totaling 75,606 square feet sold for $13.8 million. The office park was fully occupied with an 8% CAP rate at the time of sale. Broward County 401 E Las Olas, Fort Lauderdale: This premier office tower sold for $221 million, underscoring strong investor confidence in Broward’s core submarkets. The asset’s location on Las Olas Boulevard and high-quality tenant roster contributed to its record sale price. 350/450 E Las Olas, Fort Lauderdale: These two adjacent office buildings sold for a combined $208 million. This transaction highlights the demand for trophy office assets in Broward County, particularly those offering modern amenities and proximity to downtown. 400-700 N Hiatus Rd, Pembroke Pines: A four-building medical office complex totaling nearly 92,000 square feet was acquired for $38.3 million. The acquisition by a prominent institutional investor reflects growing confidence in the medical office sector’s resilience. Market Drivers & Challenges Key drivers include robust economic and population growth, a strong healthcare sector expanding outpatient services, and increasing corporate demand for flexible, amenity-rich office environments. Challenges involve managing vacancy and absorption in Broward’s office market, navigating inflationary pressures on construction and operating costs, and potential shifts in remote work patterns that may affect office space utilization. Outlook & Forecast Broward County While some near-term headwinds persist in the office sector, increased leasing activity and high-profile sales signal improving market fundamentals. The medical office market is poised for continued growth, with rising rents and occupancy levels driving investor interest. Palm Beach County The office and medical office markets are expected to strengthen, supported by limited new supply and ongoing demand for quality space. Rent growth is likely to continue at a moderate pace, with positive absorption forecasted, especially in well-located Class A properties.

Connor Anthony

Associate

7/8/25

Q125 | Multifamily Market Report | Fort Lauderdale, FL

Q1 2025 Fort Lauderdale Multifamily Market Report Key Findings • Fort Lauderdale Market Sees Diverging Trends Between Demand Recovery and Supply Pressure: Although quarterly apartment absorption has rebounded to over 900 units, exceeding the 10-year average, vacancies have risen to 7.2% due to an ongoing wave of over 9,600 new luxury units. • Sales Volume Slows But Pricing Remains Resilient: While annual transaction volume has dipped to $2.1 billion and cap rates have risen to 5.9%, top-tier properties like Bell Pembroke Pines and The Ellsworth still traded for over $290K and $420K per unit, respectively. • Affordable Assets and Workforce Housing Outperform: With Class C units posting higher annual rent gains (1.3%) than luxury units (0.2%), deals like 6101 Pierce St and 5195 NE 18th Ave show stronger pricing relative to stable occupancy and affordability appeal. • Hollywood/Dania Beach and Pompano Lead Both Demand and Delivery: As over 30% of new supply targets submarkets like Hollywood and Pompano, recent trades such as 1241 NE 16th Ter and 1241-1251 W River Dr reflect investor focus on yield in affordable growth corridors. Fort Lauderdale’s economy remains resilient, supported by strong employment in finance, professional services, and information sectors, which has helped push median incomes 7% above Miami’s. Although job growth is slowing, the region’s unemployment rate remains below 4%, and nonfarm employment is still 4% above pre-pandemic levels. Real retail sales are 13% higher than pre-2020, reflecting the area’s solid consumer spending power despite rising living costs. Market Performance The market is facing a notable expansion in vacancy, driven primarily by the surge in new construction deliveries. In Q1 2025 the vacancy rate increased to 7.5%, up from a post-pandemic low of 3.5%, with the luxury segment experiencing the sharpest rise to 9.2%. In contrast, vacancy rates for Class B and C units have remained below 7%, supported by continued demand for more affordable rental options. Much of the recent vacancy expansion has been concentrated in submarkets like Hollywood/Dania Beach and Pompano Beach, where a large share of the metro’s supply pipeline is currently under construction or recently delivered. Rent growth has slowed markedly in response to the rising vacancy and intensified competition among new, high-end properties. Asking rent growth stands at just 0.5% year-over-year, well below the five-year average of 5.2% and even the national average of 1.2%. The slowdown has been most pronounced in the luxury segment, where annual rent growth is a muted 0.2%, as developers offer significant concessions—such as two months of free rent—to attract tenants. Meanwhile, Class C units posted rent gains of 1.3%, outperforming other segments due to stronger demand from cost-burdened renters and limited affordable housing supply, a trend expected to continue in the near term. Construction Multifamily construction in Fort Lauderdale has surged over the past two years, with activity continuing to accelerate through 2024. More than 9,600 units are currently underway, representing 6.7% of the metro’s existing apartment inventory—making it the fourth-largest pipeline in Florida after Miami, Orlando, and Tampa. This building boom follows record-setting construction starts in 2021 and 2022, when over 5,300 and 6,900 units broke ground, respectively. The vast majority of new developments are luxury Class A units, with over 80% of the current pipeline falling into this category, and a large share located between I-95 and the Atlantic Ocean in submarkets like Central Fort Lauderdale, Hollywood/Dania Beach, and Pompano Beach/Deerfield Beach. This elevated level of construction is reshaping the competitive landscape, particularly in premium locations with abundant amenities such as proximity to Las Olas Boulevard and beach access. Nearly 60% of under-construction units are concentrated in just three submarkets—Central Fort Lauderdale, Hollywood/Dania Beach, and Pompano Beach/Deerfield Beach—highlighting the spatial concentration of supply pressures. Developers remain active despite slowing population and job growth, banking on the region’s long-term appeal, tight single-family housing inventory, and high homeownership barriers driven by steep mortgage rates and rising insurance costs. However, the influx of new high-end apartments is expected to place continued downward pressure on rent growth and extend elevated vacancies in the luxury segment through at least the end of 2025. Sales Multifamily sales activity in Fort Lauderdale has moderated from peak levels, with total transaction volume over the past 12 months reaching $2.1 billion—below the five-year average of $2.5 billion but still in line with pre-pandemic norms. Investor sentiment has shifted amid rising interest rates and softening fundamentals, leading to higher cap rates, which have climbed from a three-year low of 4.5% to an average of 5.9% as of Q2 2025. Despite this, pricing remains strong for well-located, newer assets, with several major trades closing above $250,000 per unit, including The Rise Central and Bell Pembroke Pines. The most expensive recent deal, The Ellsworth in Plantation, sold for $422,000 per unit, reflecting premium pricing for stabilized, high-end product with minimal lease-up risk. Meanwhile, older or higher-vacancy properties are trading at deeper discounts, as seen in several mid-market transactions that posted cap rates above 7%, indicating a bifurcation in buyer appetite based on asset quality and income stability.

Erik Leon

Associate

6/17/25

Multifamily Markets in 2025: Navigating Oversupply, Rebounding Demand, and Institutional Revival

U.S. Multifamily Market Trends 2025 As U.S. multifamily market trends evolve, a clear narrative emerges: the sector is recalibrating after an era of hypergrowth. Across the Sunbelt, Midwest, and coastal metros, rising vacancy rates, tempered rent growth, and a sharp slowdown in construction activity have created a bifurcated landscape. While many cities face supply overhangs, others are benefiting from demographic tailwinds, resilient demand, and the re-entry of institutional capital. This article breaks down the multifamily dynamics across key U.S. markets and outlines the strategic shifts shaping investment and development activity in the year ahead. Sunbelt Metros: Supply Surges Meet Growing Pains Atlanta, Nashville, and Jacksonville Atlanta has witnessed a dramatic spike in vacancy rates—rising from 5.5% in 2021 to 12.5%—due to an onslaught of new Class A supply. Rents have fallen across luxury assets, with concessions such as two months’ free rent now commonplace. Similarly, Nashville added 13,000 units in 2024—nearly double its 10-year average—leading to elevated vacancy and softened rent growth. Jacksonville, too, is facing growing pains: a 13.4% vacancy rate underscores oversupply concerns, although a construction slowdown and rebounding rent projections into 2025 offer signs of recovery. Tampa, Fort Lauderdale, and Miami Tampa leads Florida markets in construction, delivering over 10,500 units by late 2024. Though vacancies remain elevated, investor interest in premium assets like The Pointe on Westshore continues to surge. In Fort Lauderdale, affordable submarkets outperformed luxury areas, highlighting a growing affordability divide. High absorption and strong investor interest suggest resilience despite moderating fundamentals. Austin, Dallas-Fort Worth, and Houston Austin remains the most oversupplied market nationally, with a 15.3% vacancy rate despite record absorption. New construction has slowed sharply, which may help the market recover by mid-2025. Dallas-Fort Worth (DFW) and Houston echo similar dynamics: robust demand (15,200 and 20,000 units absorbed, respectively) has been overshadowed by new supply, keeping vacancy rates above 11%. Southeast and Midwest Markets: Rebalancing in Progress Louisville and Birmingham Vacancy rates climbed in both cities due to aggressive new deliveries. Louisville’s rent growth remains healthy at 3% despite a 13% vacancy rate in Southern Indiana. Birmingham‘s adaptive reuse trend—converting offices into apartments—reflects creative responses to market saturation. Rent growth has slowed to 0.5%, and investor activity remains tepid. Chicago and Cleveland Chicago presents a rare picture of stability. With a 5.3% vacancy rate and low construction activity, it has emerged as one of the most balanced multifamily markets in the U.S. Cleveland, meanwhile, is rebounding: 2024 saw record absorption and leading rent growth at 3.2%, despite a market-wide vacancy of 8.3%. Private investors are increasingly driving transactions amid institutional caution. Minneapolis A tale of two markets: suburban areas are thriving, while downtown vacancy remains high due to safety concerns and changing work patterns. Overall, the metro’s vacancy rate dropped to 7.5% in 2024, and suburban rent growth continues to support market stability. Western Markets: Pressure Mounts Despite Strong Demand Phoenix and Denver Phoenix saw 18,000 units absorbed in 2024, but the addition of 22,000 units kept vacancies at 11%. With 27,000 more units under construction, oversupply concerns loom. Denver posted record absorption but continues to battle a pipeline of 91,000+ units, keeping the metro’s vacancy rate at nearly 11%. Both markets are seeing a shift toward smaller, more affordable investment targets. Los Angeles and the San Fernando Valley Los Angeles faced a devastating wildfire crisis that destroyed 10,000+ structures, driving expected rent hikes of up to 12% in 2025. The San Fernando Valley stands out with the lowest vacancy rate in California at 3.6% and outsized investor activity totaling $2.5 billion. San Diego and Sacramento San Diego‘s housing shortage persists despite improved absorption. Rent growth is sluggish at 0.6%, with affordability concerns prompting shared housing trends. Sacramento, on the other hand, has seen improving Class A demand and a vacancy drop to 6.5%, fueled by slowed construction and rising rents. East Bay and Orange County The East Bay continues to grapple with high-end rent declines (-2%) but shows promise through slowing construction and increased investor confidence. Orange County remains resilient with a 4.2% vacancy rate and one of the most expensive, yet stable, rent markets in the country. Northeast: Resilient Giants and Transit-Oriented Expansion Brooklyn and Manhattan Brooklyn’s vacancy rate of 2.6% remains among the lowest nationally, supported by strong absorption and modest rent growth (2%). Manhattan mirrors this trend, with 7,000 units absorbed in Q2 2024 and average rents exceeding $3,200. Investors are laser-focused on premium assets in these rent-stabilized, supply-constrained markets. Northern New Jersey New Jersey is experiencing record absorption with a skew toward luxury units. However, affordability challenges persist, prompting investment in transit-oriented developments like Vermella Broad Street and The Crossings. Payroll growth and a strong job base are supporting long-term multifamily strength. Institutional Capital Reawakens in 2025 Following a two-year pause, institutional investors are reentering the multifamily space. Blackstone’s $10 billion acquisition of AIR Communities in 2024 was a signal of confidence. With interest rates declining and alternative lenders stepping in, capital is unlocking for core and core-plus deals. Markets with stable fundamentals—like Chicago, Orange County, and parts of the Sunbelt—are attracting early waves of institutional funding. Strategic Focus Areas Geographic Shift: Sunbelt cities with paused pipelines and strong absorption (Austin, Jacksonville) are back in focus. Asset Selection: Workforce housing and mid-market suburban assets are outperforming luxury units in both demand and investment return. Development Retrenchment: Construction starts have fallen nationally, creating a more favorable leasing environment and room for rent growth. Understanding the shifting dynamics in U.S. multifamily market trends 2025 is essential for developers and investors aiming to time their reentry and capitalize on tightening supply-demand conditions. Outlook: Rebalancing Today, Growth Tomorrow While U.S. multifamily market trends across the U.S. are at varying stages of recalibration, the underlying fundamentals remain strong. Population growth, job creation, and homeownership constraints continue to fuel renter demand. The retrenchment in new development is setting the stage for a more balanced 2026, with absorption expected to reduce vacancy and reignite rent growth in many metros. With institutional capital mobilizing and interest rates easing, the second half of 2025 may mark the beginning of a new multifamily investment cycle—one defined not by the breakneck speed of past years, but by discipline, differentiation, and strategic foresight.