Tampa Market Update 2nd Quarter 2016

TAMPA BAY ECONOMIC UPDATE Amazon Deal, $103M for 1.02M SF, contrasted with the Evergreen $103M for 1.66M SF in

34 buildings, 5 business parks. Hilton Downtown Tampa sold for $100M ($194,000/key) to CrossHarbor Capital, a $12B

fund • Driftwood and IHG paid $62M in 2013 • Contrast with, October 2014, $150M purchase of Marriott Waterside, $134M sale of

Hilton Clearwater Beach and the record $125M sale of the 250-room Hyatt Regency Clearwater ($482,000/key)

Great Recession recovery (82 months) Vinick Downtown Channelside purchase, $2.2M for 0.26 acres from Buckeye

Restaurants, for a continuous retail corridor

TAMPA BAY ECONOMIC UPDATE Employment levels rising, payroll sluggish Tampa Port & Manatee port handled more than 45% of port traffic in Florida Citigroup rumored 1M SF where? T. Rowe Price site in Pasco back in play Spanos buying apartment sites in Longleaf, Pasco, etc. Gary Mandel, Pasco deal above Flying J, near 52 and Pasco Speer Family purchased for $1M 13 acres, retail near 52 and I-75 in Pasco Wiregrass USACOE permit finally for Raymond James site, 500k SF+ In 3 years, there will be a new East-West road over to 301 from Wiregrass area

TAMPA BAY ECONOMIC UPDATE

Baseball to Tampa Park apartments on the Southwest edge of Ybor City or not Bertram Yacht, $10.7M for 7 acres, 115k SF industrial, Gandy at WestShore Bloomingdale & 301, Richman purchases Curtis site, $12,000 per door apartments Greystar Apartment purchase for $30,000 per door Agricultural and Forestry sales from $1,300

• 576k acres from Foley, near Perry • $3,500/acre for 2,000 acres near the Myakka area

TAMPA BAY ECONOMIC UPDATE

Exotic $17M island sale to ItWorks Homebuilders Hovnanian sold 232 lots in Spencer Creek, phasing out Beazer selling 365 lots in Balm Apartment and major builder single-family plays near Amazon, South County West River $500M project on 150 acres, 1500 units, Tampa Housing Authority and

its partners

TAMPA BAY ECONOMIC UPDATE

Wiregrass in Pasco and Faulkenberg in Hillsborough, $15M indoor/outdoor sports facilities New economic development leaders, Craig Richard in Hillsborough, and Bill

Cronin in Pasco Healthcare: BayCare bought the Bartow Hospital Tropicana Field, 85 acre redevelopment, HKS selected as planner, 1st community

workshop July 18 at the Coliseum (may or may not include baseball redevelopment)

TAMPA BAY ECONOMIC UPDATE

St. Petersburg: Red Apple billionaire owner paying over $15M for several acres in the 400 Central Avenue area of downtown, after successful fight against historic preservation Polk County: 4,600 acres on the market from Williams Company mew Polytechnic

University site Polk County: North of I-4, on US-27, almost 2M SF industrial/distribution Polk County: Almost 1M SF industrial/distribution near State Road 33 and Polk

County Parkway East Hillsborough County: industrial and office plays, Sable Park area

The Heights $820 million 1,520 residences 640,000 SF office/retail

Clearwater Marine Aquarium Lot Competing plans for lot Church is reportedly offering $4.25 million

DEVELOPMENTS Strategic Property Partners $2 billion 400 to 500-room hotel 650,000 SF office tower 300,000+ SF retail 1,000 apartments (Phase 1) New land acquisition

Port of Tampa 53 acres 4,000 residences 9,000,000SF

RESIDENTIAL - OVERVIEW

Comparisons between May 2016 and May 2015

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Hernando Hillsborough Pasco Pinellas Florida

Closed sales +6% +14.4% +2.8% +9.4% +4.5%

Paid in cash -18.3% -14.6% -26% -3.8% NA

Median sale price +19% +10% +12.8% +8.1% +10.5%

Median time to contract -48.5% -33.3% -26.1% -20% NA

Supply of available homes

-15.9% -25.6% -15% -12.8% NA

Source: Tampa Bay Times

RESIDENTIAL – LENDING

Fewer Homes Underwater • 31.4% decrease in homes with negative equity • April – 45.5% fewer foreclosure sales, 21% fewer short sales than March

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RESIDENTIAL – INTERESTING DEALS

Solaris Key Complex • $85.5 million • $200,704 per unit for 426 apartments

New Item on Colonnade Restaurant’s Menu

• Ascentia Development Group just announced a condominium development on the Colonnade restaurant site.

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OFFICE - OVERVIEW Total Office Market Statistics Mid-Year 2016

Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Tampa 1,593 32,171,569 2,680,267 2,871,297 8.9% 281,344 195,722 4,000 $24.74 Eastern Outlying 1,372 11,735,841 699,032 699,032 6.0% 66,997 4,500 0 $16.51

Hernando County 281 1,911,583 131,063 131,063 6.9% 31,998 0 0 $14.75 I-75 Corridor 1,289 19,892,980 1,757,855 1,802,258 9.1% 285,613 31,200 8,000 $18.80 North Hillsborough 1,095 10,293,133 1,132,255 1,158,777 11.3% 10,833 13,321 3,300 $18.26 Pasco County 1,238 7,885,719 710,026 745,972 9.5% 37,573 9,904 1,854 $15.53 Pinellas 3,658 40,807,432 3,816,786 3,888,018 9.5% 391,478 0 155,575 $18.43 Totals 10,526 124,698,257 10,927,284 11,296,417 8.7% 1,105,836 254,647 172,729 $18.15

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Source: CoStar Property

OFFICE – CONSTRUCTION / DELIVERIES

Laser Spine Institute at Avion Park

• 175,998 SF • Leasing Company: Highwoods Properties

OFFICE – LEASES / SALES • Leases

o General Dynamics Ordinance and Tactical Systems 69,871SF at the Roosevelt Technology Center Landlord Rep: Echelon Real Estate Services LLC

o WellCare 46,080SF at the Tampa International Business Center Landlord Rep: CBRE

• Sales o Corporate Oaks

$32,000,000 ($162.21/SF) Cap rate: 8.0 197,279 SF Sale Date: 6/7/2016

o Cardinal Point Riverside at Telecom $27,400,000 ($163.34/SF) Cap rate: 8.3 167,744 SF Sale Date: 6/14/2016

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RETAIL – OVERVIEW

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Total Retail Submarket Statistics Mid-Year 2016

Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Bayside 187 4,163,940 107,050 107,050 2.6% 57,780 68,865 0 $16.05 Clearwater CBD 217 1,474,614 75,784 75,784 5.1% 19,887 0 0 $15.58 East Tampa 986 13,057,329 443,219 449,742 3.4% 34,620 14,377 5,000 $15.15 Gateway 290 3,438,086 83,880 83,880 2.4% 77,222 22,265 0 $13.33 Hernando County 577 8,666,636 441,438 485,433 5.6% 42,884 7,000 12,610 $10.94 Manatee 1,584 18,623,974 1,140,609 1,140,609 6.1% 117,138 91,998 41,019 $13.06 Manatee Outlying 103 1,513,769 38,985 38,985 2.6% 20,109 0 1,962 $16.49 Mid-Pinellas 1,043 10,818,586 588,497 588,497 5.4% 87,594 4,200 109,200 $14.76 North Pinellas 1,067 14,600,456 778,480 819,660 5.6% 162,030 65,258 0 $16.05 Northeast Tampa 1,159 12,466,536 616,004 618,675 5.0% 6,904 44,042 8,000 $12.45 Northwest Tampa 1,369 18,652,244 919,577 920,377 4.9% 68,771 18,712 155,000 $14.52 South Pinellas 1,965 18,318,057 898,105 1,004,504 5.5% 154,349 52,700 8,600 $13.52 South Tampa 816 6,030,977 113,468 113,892 1.9% 41,321 54,000 22,320 $17.95 St Petersburg CBD 174 1,758,556 59,072 59,072 3.4% (1,324) 0 30,000 $16.77

Tampa CBD 74 1,297,116 245,294 245,294 18.9% 14,627 0 0 $16.79 Westshore 738 8,335,366 285,232 312,032 3.7% 87,872 0 0 $19.93 Totals 12,349 143,216,242 6,834,694 7,063,486 4.9% 991,784 443,417 393,711 $15.21

Source: CoStar Property

RETAIL – DELIVERIES

Reload Indoor Shooting Range • 58,000 SF • Leasing Company: Capitol Resources • Developer: European Equities Corporation

Cobb Luxury 10 Theatre • 44,000 SF • Leasing Company: Simon Property Group

Delivered: LA Fitness – 5205 Cypress Preserve Drive

• 35,000 SF • Developer: McCorkle Construction

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RETAIL – UNDER CONSTRUCTION Costco at Citrus Park

• 155,000 SF in 4 outparcels • Leasing Company: Edgewood Properties

Seminole City Center • 85,000 SF • 71% preleased • Leasing Company: North American

Development Group • Developer: rimerica Group One, Inc.

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RETAIL – SALES / LEASES

Brandon Centre South • $22,450,000 ($157.85/SF) • 142,226 SF • Sale Date: 04/29/2016 • Buyer: Centro Realty LLC • Seller: Inven Trust Properties Grp

Sprouts Farmers Market

• 32,500 SF at Palm Harbor Commons • Landlord Rep: RMC Property Group

INDUSTRIAL – OVERVIEW

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Total Industrial Submarket Statistics Mid-Year 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Downtown Tampa Ind 430 7,899,347 424,805 424,805 5.4% 7,917 0 0 $6.06

E Hillsborough/Plant Ind 269 12,478,935 588,090 588,090 4.7% 187,588 260,000 0 $4.97

East Side Ind 1,504 50,956,348 3,939,757 4,003,301 7.9% 624,906 28,500 179,324 $5.14

NE Hillsborough/Univ Ind 95 1,698,871 105,404 105,404 6.2% 19,594 0 220,000 $7.08

North Pinellas Ind 902 13,416,497 290,622 290,622 2.2% 179,888 0 6,400 $7.06

NW Hillsborough Ind 191 3,254,254 320,546 325,546 10.0% 51,308 10,500 0 $7.36

Polk County Ind 1,379 54,230,133 4,924,901 5,023,187 9.3% 190,584 1,140,743 2,715,607 $5.00

South Pinellas Ind 2,974 55,920,989 3,103,153 3,302,535 5.9% 333,403 0 341,976 $5.72

SW Hillsborough Ind 100 3,360,702 217,340 217,340 6.5% (34,231) 0 0 $5.18

Westshore/Airport Ind 846 18,298,833 1,018,354 1,078,790 5.9% 45,761 0 0 $6.40

Totals 8,690 221,514,909 14,932,972 15,359,620 6.9% 1,606,718 1,439,743 3,463,307 $6.00

Source: CoStar Property

INDUSTRIAL – SALES

Amazon Distribution Center • $103 million • 1.02 million SF • Buyer: Cole Office & Industrial

REIT • Seller: USAA

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INDUSTRIAL – SALES (CONTINUED)

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10001 16th Street North • $9,100,000 ($159.87/SF) • 56,920 SF • Buyer: Jabil Circuit, Inc. • Seller: NAC Group Inc.

Pinebrook Commerce Center II & III • $8,700,000 ($96.23/SF) • 90,408 SF • Buyer: illsborough County • Seller: Leder Realty and Management

Tampa Distribution Center • $43,375,000 ($45.42/SF) • 955,000 SF • Buyer: High Street Realty Company LLC • Seller: MetLife Inc.

Madison Business Center – Building A • $28,300,000 ($73.39/SF) • 385,619 SF • Buyer: JLL Income Property Trust Inc. • Seller: IDI Gazeley/Brookfield Logistics

Hampton Oaks Business Park • $20,800,000 ($80.19/SF) • 259,385 SF • Buyer: Alidade Capital LLC • Seller: Foundation Realty Advisors LLC

HOSPITALITY

Lodging Transactions • $290,000 per room

Tourism • 105 million visitors • Cautious optimism

Construction • Worries of excess inventory

Interesting Sale • Hilton Tampa Downtown purchased for $101M by CrossHarbor Capital

Partners

REGULATORY UPDATE Richman Group v. Pinellas County - $16.5M judgment DRI repeal leaves questions whether existing orders should be abandoned or

rescinded, rules for which are softening regarding mitigating certain phases in order to abandon. Go Hillsborough Funding Proposal fails Board vote, declining to put a $3.4B half-

cent sales tax referendum on the November 8 ballot. TBX Yes Campaign, multibillion dollar state-funding for express toll roads all over

the region over the next decade, and major downtown and airport interchange dramatic upgrades., including a new Howard Franklin Bridge. Legislation Update

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Ronald L. Weaver rweaver@stearnsweaver.com

813-223-4800