First Industrial Realty Trust : Park Miami and South Florida Market Review

South Florida Portfolio

First Industrial Realty Trust

Total In‐Service Portfolio

As of December 31, 2023

Square Feet:

Properties:

Occupancy:

Average Net Rental Income/Occupied SF:

• of Total In‐Service SF:
• of Total Rental Income:

Under Construction:

Land Holdings:

2.7 MSF

23

98.0% $9.95 4.1% 7.0%

• First Park Miami ‐ Building 12
• • 135,707 SF; $33.7M, 2Q24 Completion
• First Park Miami
• • 38.3 acres; 846,000 SF Developable
  • ≈ 21 acres future takedown, 430,000 SF
• First 95 Distribution Center II
• • 19.6 acres; 340,000 SF Developable
• Pompano Business Center II
• • 4.1 acres; 60,000 SF Developable

Increasing Part of FR Portfolio

• 2% of rental revenues in 2020, ≈7% today

Can grow to ≈12% ‐ assuming steady state portfolio, build out of owned/optioned land

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South Florida Market Drivers

• Demand from a fast growing population, global tourism, and increasing international trade
• Naturally resistant to new supply with one of the lowest vacancy levels in the U.S.
• Currently only ≈1,300 acres of developable industrial land in Miami (per CBRE research)
• Widest span of the market (Ft. Lauderdale) is only 21 driving miles wide and 115 driving miles long (from Jupiter to Homestead)
• All of the above support South Florida's long‐term rental rate growth profile

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Why South Florida?

Gateway to the Americas

Global business & tourism hub plays a crucial role in international trade. MIA handles 80%+ of all imports and exports between U.S. and Latin America.

#1	#2
MIA International	MIA International
Air Freight (1)	Passengers (1)
#3	#2 & #3
MIA International	Annual Cruise
Total Cargo Airport (1)	Passenger Volume
	Port Miami & Port
	Everglades (1)

Pro‐Business	Long‐Term Growth
Favored for low tax environment, global	South Florida industrial market driven by
connectivity and diverse economy, South	a surging population, robust labor
Florida is home to 1,400+	market, excellent connectivity and
multinational corporations.	severe land constraints.

$0	5.5%	9.5%	2.4%
Personal	State Corporate	Miami	Unemployment
State Income	Income Tax	Population Growth	Level
Tax	Rate	(2010 - 2022)	August 2023

#2	#4	1,300 acres	3.2%
Best State	Best Tax Climate	Industrial land	Vacancy
for Business	Tax Foundation,	remaining in Miami	Rate
Chief Executive	US Chamber of	(implies only 10%	CBRE
Report (2023)	Commerce	inventory increase) (2)	4Q23

1. 2022 domestic rankings.
2. CBRE

S O U T H F L O R I D A	| 4

First Park Miami

126		2.5M		1.2M		0.8M		0.4M
Total		SF Total		SF Completed +		SF Developable		SF Future
Net Acres		Developable		In Process		Today		Dev. Takedown

F I R S T P A R K M I A M I	| 5

Property Location

Miami	16 miles	9th Largest MSA in U.S. (6.1M People)
PortMiami	16 miles	#2 Cruise Port in World
#10 Container Port in U.S.
		#1 in U.S. For Intl. Air Freight (2.24M Tons in 2022)
Miami Airport	5 miles	#2 in U.S. For International Visitors/Travel
		#3 in U.S. For Total Cargo

F I R S T P A R K M I A M I	| 6

Property Location

• Ideal location between FL Turnpike to the west and Palmetto Expressway to the east
• Access via NW 74th and NW 87th provides excellent traffic flow
• 5 miles from MIA cargo terminal
• Located in Miami's Medley submarket

Market (1)	Total		2023 Net	Under
Inventory	Vacancy Rate	Absorption	Construction
	(SF)		(SF)	(SF)
Miami	241M	3.2%	3.5M	8.6M
Medley	46M	3.1%	0.6M	2.0M

1. Market Data: CBRE 4Q23

F I R S T P A R K M I A M I	| 7

Property History

• Operated as limestone quarry from 1950's through 1980's
• Majority of site was a lake, average depth of ±35'
• Purchased by prior owner in early 1990's
• • Portions of lake filled with construction debris, primarily concrete and fine materials
  • Currently filling remaining developable portion of lake area at a rate of 1 acre per month
  • • ±1 acre/month = 300 truckloads/day
    • ±8 acres remain to be filled
• FR diligence/pursuit began in 2015, first land closing in January 2020

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Progress Photos

First Closing ‐ January 2020

February 2024

FR Platform at Work Executing a Complex Investment

All disciplines: due diligence, environmental, land acquisition structuring, development & leasing

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Progress/Returns to Date

Bldg.	Size	Leased %	GAAP Investment	Initial
Cash Yield
Complete
1	219,040	100%	$42.1	5.8%
2	258,925	100%	$42.2	5.8%
9	132,751	100%	$21.8	7.9%
10	198,108	100%	$38.0	7.8%
11	200,264	100%	$32.8	7.1%
13	56,404	100%	$15.0	6.4%
	1,065,492	100%	$191.9M	6.7%
In Process - 2Q24 Completion		(estimated)
12	135,707	0%	$33.7	6.9%
	135,707	0%	$33.7M	6.9%

FP Miami's Rent Growth Trajectory

• $8/SF underwritten in 2019, low $9s in 2021, ≈$17/SF market rents today

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