TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 MARKET OVERVIEW PALM BEACH COUNTY & TREASURE COAST.

OCTOBER 15, 2002 TREASURE COAST MARKET OVERVIEW

MARKET OVERVIEW

PALM BEACH COUNTY& TREASURE COAST


POPULATION GROWTH

1990 -2000

Source: US Bureau of Census

Florida 12,937 15,982 2.1%

Palm Beach 863.5 1131.1 2.7%

Martin 100.9 126.7 2.3%

St. Lucie 150.2 192.7 2.5%

Indian River 90.2 112.9 2.3%

1990 2000 Annual Growth


POPULATION GROWTH

1999 -2002

Source: Fishkind & Associates

2002-2004

Growth

1999 2000 2001 2002 Rate

Florida 15,580,590 15,982,376 16,335,883 16,626,955 2.2%

Palm Beach 1,098,860 1,131,185 1,157,293 1,181,368 2.4%

Martin 124,360 126,731 129,317 131,835 2.0%

St. Luc ie 188,327 192,695 198,844 201,291 2.2%

Indian River 109,266 112,947 116,161 118,241 2.7%


POPULATION GROWTH

2002 - 20042002-2004

Growth

2002 2003 2004 Rate

Florida 16,626,956 16,940,867 17,292,502 2.0%

Palm Beach 1,181,368 1,207,198 1,234,990 2.2%

Martin 131,835 134,050 136,699 1.8%

St. Luc ie 201,291 205,372 209,899 2.1%

Indian River 118,241 120,761 123,166 2.1%



EMPLOYMENT GROWTH


Annual

Growth

2000 2001 2002 2003 2004 Rate

Florida 6,776,313 6,879,888 6,981,013 7,133,563 7,317,829 1.9%

Palm Beach 481,054 492,639 495,812 499,086 511,880 1.6%

Martin 50,964 52,428 52,740 53,652 55,401 2.1%

St. Luc ie 51,429 51,917 51,001 52,529 54,273 1.4%

Indian River 41,737 42,815 42,345 43,402 44,559 1.6%


CHANGE IN EMPLOYMENT


2,000 2,001 2002 2003 2004

Florida 209,553 103,575 101,125 152,550 184,266

Palm Beach 17,262 11,586 3,173 3,274 12,794

Martin 2,114 1,464 312 912 1,749

St. Luc ie 2,288 488 (916) 1,527 1,744

Indian River 670 1,078 (470) 1,057 1,157


Source: American Metro Study

Palm Beach CountyAnnual Job Growth



TRENDS IN OVERNIGHT VISITATION

Annual

Growth

2000 2001 2002 2003 2004 Rate

Florida 100,157,509 100,658,848 100,456,959 105,939,862 109,187,153 2.2%

Palm Beach 3,686,211 3,499,649 3,577,449 3,793,637 3,884,661 1.3%

Martin 285,883 275,538 275,497 283,215 283,222 -0.2%

St. Luc ie 648,321 687,278 702,249 751,697 811,909 5.7%

Indian River 613,024 603,346 588,477 439,895 537,914 -3.2%

Hotel Occupancies mid / lower 60s %

Bed tax revenues 2002 YTD off 10 percent over 2001 same YTD


INDUSTRIAL SPACE MARKET

• Net Rentable: 42.8 Million Sq. Ft.

• Vacancy Rate: 5.0 Percent

• Annual Absorption: 103,477 Sq. Ft.

• Under Construction: 294,394 Sq. Ft.

• Average Lease Rate (NNN): $5.89 per Sq. Ft.

Source: CB Richard Ellis 2nd Quarter 2002


OFFICE SPACE MARKET

• Net Rentable: 22.7 Million Sq. Ft.


• Annual Absorption: (405,687) Sq. Ft.

• Under Construction: 0 Sq. Ft.

• Average Lease Rate (NNN): $16.10 per Sq. Ft.



RETAIL SPACE MARKET

• Gross Leasable: 31.0 Million Sq. Ft.


• Under Construction: 835,932 Sq. Ft.

• Average Lease Rate: $14.79 per Sq. Ft.




Palm Beach County Housing Activity By Quarter Three Year Trend Analysis



Treasure Coast Housing Activity By Quarter Three Year Trend Analysis



Palm Beach County Housing Inventory by Quarter Three Year Trend Analysis



Treasure Coast Housing Inventory by Quarter Three Year Trend Analysis



Palm Beach County Housing Starts By Quarter Versus Annual Job Growth Three Year Trend Analysis


Source: Fishkind and Associates

INTEREST RATES


FACTORS INFLUENCING

RESIDENTIAL REAL ESTATE

• Low interest rates

• Move-up market

• Retirement Market

• Other Inmigration

• Stock Market


SELECTED MASTER PLANNED COMMUNITIES

A B

C

D

E

F



Most Active (Starts) in Planned Subdivisions •Valencia Falls (420); •Venitian Isles (356), •Madison Green (351)•Bellagio (323), •Verona Lakes (292), •Baywinds (258)•Nautical Isles (258)

A: Central / West Palm Beach County

Upwards of 8,000 platted but undeveloped lots in this region

Middle to upper middle income product



•Convention Center to Open Fall 2003Bookings affected by lack of onsite hotel

•Additional Retail, Office and Residential Condominiums are planned

•Hotel Rooms Planned (800)

B: City Place – West Palm Center



C: Palm Beach Gardens / Jupiter

Ibis: 1900 Acres; 3 golf golf; Started in 1990; 1000 units remaining

Mirasol: 2300 Acres; 1163 units planned; Price Range $300 k to $3 Million Sold 200 to date; absorbed 121 last 12 months. Art Hills and Tom Fazio Golf Courses; Golf Digest Learning Center

Evergrene (WCI) 905 units; $175 to 700K; 36 acre lake; Pre-sales

Frenchman’s Reserve 530 units; $600 to $2 million; Palmer Golf Course

Old Palm Golf Club (WCI) 312 units $1 million plus; Floyd Golf Course

Ritz Carlton Club 133 units; Nicklaus Golf; Fractions $250,000 plus

Abacoa: 6280 units; 1525 sold; 300 annual absorption; $200 k to $700 K FAU, Cardinals Stadium, Residential over Commercial Center

Paseos: 207 acres; 327 SF units 311 MF units; Town Greens; Bike Trails



D: Martin County

Stand-alone Upscale Private Golf:

Mac Arthur (Hobe Sound): 130 sold $175,000 Initiation DepositDye Preserve (North of West Jupiter): 71 pre-sold $75,000 Initiation DepositBallyhoo (West of Stuart) 100 pre-sold $60,000 Initiation Deposit

Residential:

Hammock Creek in Palm City Active (132 units started last 12 months) Golf semi-private – Nicklaus design

Anti-growth Politics – Developers generally avoiding Martin County



E: St. Lucie County

St. Lucie West 20 % of 9500 DusSt. Lucie (217 units started last 12 months)

PGA Village 4100 units 25 % built outPGA Village (183 units started last 12 months)

The Reserve (80)Partnership with PGA of America; 3 golf courses; to add

three more; state of the art learning center

Westchester – several 1000 unitsJoint planning with PGA VillageTo include residential, office and commercialWithin six years a regional mall



F: Indian River County

Selected ResidentialGrand Harbor 2553 units approved and 1223 completed

45 holes of golf 144 slip marina; Orchid Island (32 active starts last 12 months)Indian River Golf Club (30 active starts last 12 months)

Private Upscale Stand-alone golfQuail Valley ($ 120,000 initiation fee)Red Stick ($120,000 plus initiation fee)


CONCLUSIONS• Geography Great!• Seeing high quality planned communities• Sales remain outstanding in weak economy supported

by low interest rates, intrastate migration (from Broward, Dade & PB) and interstate-migration

• Development opportunities most prevalent north of Martin County

• Treasure Coast offers a large variety of Recreational Opportunities

• Quality of Life Is the Major Attraction – Must be preserved through investment in infrastructure, schools, etc.

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 MARKET OVERVIEW PALM BEACH COUNTY & TREASURE COAST.

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