March Newsletter

1. CB RICHARD ELLIS :: MIAMI-DADE
Elizabeth Santos | Office Specialist | 305.779.3133 | elizabeth.santos@cbre.com
March 2010
The Results are in...
At the beginning of January, we surveyed companies to ana-
lyze their results in 2009 and forecast expectations in 2010. Local Real Estate.
The results were very interesting.
The revenues and outcomes of 2009 were not a surprise
to 46% of companies. Unfortunately, an equal percentage
found 2009 to be slightly worse or far worse than antici-
pated. When companies compared revenues from 2008 to
2009, 54% found 2009 revenues to be slightly below or far
Worldwide.
below 2008. 46% found revenues to be better.
CB Richard Ellis combines the broadest array of real estate services with unsurpassed local
market intelligence. Our innovative solutions are customized to every client’s requirements,
2009 was a year of cutbacks for most companies. A strong regardless of size or location. At CB Richard Ellis, powerful meets personal.
We asked companies to identify their largest challenge for
majority of respondents (62%) were forced to either have CB Richard Ellis was the leading commercial real estate firm in Austin for 2007,
2010.year-to-date totals of:
with The overwhelming answer was attaining new cli-
hiring freezes or lay-offs. 38% also reduced working hours
ents and/or markets. Million in Sales Volume
$793 The next greatest challenges were
to cut costs. Other cost saving measures of closing offices 7.5 Million SF Sales Transactions
both increased competition Lease Transaction Volume struggle to
$109 Million in and the continuing
or reducing office sizes were utilized by 23% of respon- 1.2 Million SF Lease Transactions
further reduce operating of Land Sales Small companies were
792 Acres expenses.
dents. Please note that this category allowed for multiple 6.9 Million SF Leased and Managed
also faced with the credit crunch and the need for additional
275 Appraisal Assignments Totaling $5.1 Billion
selections, so totals exceed 100%. $1.3 Billion in Loan Originations
capital.
The right business partner for all your real estate needs.
Looking ahead to 2010, there is some cautious optimism. #1 in commercial real estate worldwide www.cbre.com/austin 512.499.4900
The majority of our respondents were small business of less
31% of respondents are forecasting increased revenues and
than 100 employees. This fits the profile of a typical Miami-
increased profits. 23% are forecasting to increase staffing
Dade business. Our results are based on a small sample
through the addition of either temporary or permanent posi-
and reflect primarily anecdotal information. We appreciate
tions. Our region’s recovery will be slow. 23% of our re-
everyone who participated in our survey. This survey will
spondents are anticipating that 2010 will be a difficult year
be repeated next year so we can continue tracking business
with the possibility of more layoffs and office closures.
trends.
Elizabeth Santos has over 16 years of experience in office leasing with over $150 million of lease
transactions during that time. Her primary focus is tenant representation. Elizabeth is currently on the
leadership council for Take Stock in Children and a member of both the Doral Business Council and The
Commonwealth Institute. She is the 2009 Rising Star for CBRE’s Miami Office and Top 25 for CBRE Florida.
©2010 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its
accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently
confirm its accuracy and completeness.

2. CB RICHARD ELLIS :: MIAMI-DADE
Elizabeth Santos | Office Specialist | 305.779.3133 | elizabeth.santos@cbre.com
March 2010
Miami Office Market Overview
The 2009 final numbers have been calculated and to no one’s 409,227 negative absorption of office space. This follows on
surprise, vacancy is still increasing and rental rates are continu- the heels of the -759,572 sf of negative absorption in 2008.
ing to fall in Miami. According to my research department, Some markets have been harder hit than others. Miami Lakes
office vacancy has increased by 4.9% from 2008. Keep in and the Biscayne Boulevard corridor continue to be the hardest
mind that this statistic includes the addition of 231,000 sf of hit with vacancy rates of 23.8% and 35.4% respectively.
newly completed office buildings. The end result of 2009 is a
MarketView Miami Office
Market Statistics
Avg Asking Dir
Total Total Lse Rate ($/SF/Yr) YTD Net Construction Under
Submarket Building SF Absorption
Availability % Vacancy % Full Service Gross Completions Construction
Airport West 10,057,570 23.6 17.6 $24.60 -133,852 231,000 150,000
Aventura 1,269,746 22.7 15.2 $32.80 -49,755 0 0
Biscayne Blvd. 1,214,469 37.3 35.4 $29.28 157,657 0 0
Brickell 5,991,462 19.8 13.1 $34.41 -169,142 0 1,175,886
Coconut Grove 1,073,406 23.7 13.1 $32.04 -8,022 0 0
Coral Gables 6,111,150 20.3 11.8 $35.62 31,009 0 0
Downtown 6,898,292 21.0 13.4 $30.63 -193,732 0 700,000
Kendall 3,329,548 18.8 14.2 $27.48 118,897 0 0
Miami Beach 2,003,532 16.4 10.5 $33.19 -42,634 0 0
Miami Lakes 1,415,157 27.6 23.8 $25.43 -65,563 0 0
North Miami 1,177,635 20.3 13.0 $24.94 -20,845 0 160,000
Residual 1,542,668 19.5 10.5 $23.57 -81,122 0 0
South Dade 539,756 8.3 8.0 $23.64 -4,461 0 0
Miami—CBD t 12,889,754 20.4 13.2 $32.33 -362,874 0 1,875,886
Non-CBD 29,734,637 22.0 15.6 $28.45 -46,353 231,000 310,000
Total 42,624,391 21.5 14.9 $29.63 -409,227 231,000 2,185,886
Class A 18,163,842 20.2 13.8 $35.66 -64,605 231,000 0
Class B 17,932,901 23.3 16.4 $27.54 -226,577 0 0
Class C 6,527,648 20.4 13.7 $23.03 -118,045 0 0
* Represents a quarterly change in inventory due to construction completion. t The Miami Central Business District is a combination of the Brickell and Downtown Miami submarkets.
Miami-Dade 10.5% The national unemployment rate was reported as 9.4%, an
Florida 11.5%
Unemployment Rate United States
increase of 3.5 percent from the same time last year. Miami-
9.4%
Dade County’s unemployment rate reported 10.5% in
November, a decline from the 11% reported in October of
this year. Yet, this is still 400 basis points higher than reported
10% in November 2008. Palm Beach County now has the highest

3. CB RICHARD ELLIS :: MIAMI-DADE
Elizabeth Santos | Office Specialist | 305.779.3133 | elizabeth.santos@cbre.com
March 2010
One of the interesting trends in our statistics is the spread The last vacancy peak in the real estate cycle was in 2003
between the percentages of Availability and Vacancy. Our with almost 16%, so although vacancy rates overall for the
research team tracks Available office space, which includes county are at 14.9%, landlords look at the availability numbers
sublease space, office condos and space that is occupied but and shudder because they are faced with stiff competition for
will be future vacancy – it does not include buildings under those tenants on the market. Even though this seems dismal
construction. Vacant space is available immediately directly for landlords, nationally our market is only the fifth lowest in
from the landlord. vacancy.
The three largest submarkets in Miami-Dade County: Airport The result is that tenants have firmly gained the upper hand.
West, Brickell and Downtown are showing a spread between As landlords see more sublease space on the market plus their
Vacancy and Availability of over six percentage points. As own increasing vacant space, they are prepared to fight to
an example, this means the Airport West submarket currently keep their existing tenants in addition to working hard to attract
has 603,454 sf of available sublease space. This creates a whatever tenants may be on the market.
problem for landlords who have over 1,770,000 sf of va-
cant space now competing with this sublease space and the Is your company poised to take advantage of this turn of
prospect of another 150,000 sf of newly completed buildings events? For a free consultation about your particular situation,
in 2010. contact me.
Notable MIAMI OFFICE LEASE Transactions for 4Q2009
Tenant Building Market SF Type
Business Type
FedEx 701 Waterford Miami Airport 60,000 Renewal
Transportation
Precision Response Corp. 14901 NW 79th Ct. Miami Lakes 48,000 Sublease
Call Center
BNP Paribas Miami Center Downtown 35,000 Renewal
Financial services
GSA - Diplomatic Security Omni Center Biscayne Blvd. 27,000 New Lease
Federal government
AT&T Dadeland Executive Ctr. Kendall 25,000 Renewal
Telecommunications
United Home Care Services Westside I Miami Airport 24,000 New Lease
Home health care agency
Oracle USA 6505 Waterford Miami Airport 21,786 Renewal
Techology & software
The Fund Doral Center Miami Airport 19,000 Renewal
Title insurance company