1. O f f i ce
NOTES
from Elizabeth Santos
News on the state of the Miami-Dade Office Market...
Elizabeth Santos
Senior Associate
Brokerage Services | Office Properties
T 305 779 3133
F 305 381 6462
elizabeth.santos@cbre.com

2. CB RICHARD ELLIS :: MIAMI-DADE
Elizabeth Santos | Office Specialist | 305.779.3133 | elizabeth.santos@cbre.com
September 2010
VIEWPOINTS
OPINIONS ARE LIKE NOSES – EVERYBODY HAS ONE!
For this issue of Office Notes, we collected the opinion of leading Senior Fellow, Governance Studies at The Brookings
economic experts who are looking at the economy from a macro Institution. For the complete article, click on the following
viewpoint. Which expert most closely mirrors your own opinion? link: http://www.brookings.edu/opinions/2009/0901_
Do you have another expert you would recommend? I welcome economy_galston.aspx
your thoughts and feedback.
Throughout the summer, data signals have become more alarming.
WHAT MY EXPERTS ARE SAYING Despite all the rhetoric about job creation, unemployment remains
“Economic recoveries are characterized by periods of volatility, stubbornly high and the problem is becoming structural in nature
and this recovery is no exception. The return to economic growth is (and, therefore, harder to solve). Consumer credit continues to
clearly under way, although its pace weakened during the second contract while small companies find it difficult to access new bank
quarter. Inventory restocking earlier in the year caused a spurt lines of credit. Housing activity is falling, and home values are
in manufacturing activity worldwide, which boosted GDP growth poised for further declines as foreclosures increase. The trade
in most regions. However, with this growth spurt easing, leading balance has taken an ominous turn, with exports stagnating and
economic indicators are pointing to a more tepid recovery in the imports surging. More Americans are falling through the large
economy going forward. These setbacks have created increased holes in the country’s safety net.
risks to the recovery, but the general trend remains upwards.”
From the August article “Why Another Fiscal Stimulus
From the Global MarketView, September 2010, by CB Won’t Do” Mohamed A. El-Erian, CEO of Pimco and
Richard Ellis Global Research and Consulting author of “When Markets Collide,” a New York Times
and Wall Street Journal bestseller and named a book of
WHAT OTHER EXPERTS ARE SAYING the year by e Economist. For the complete article click
“Once the dust settles from the economic crisis of 2007-2009, we on the following link: http://www.pimco.com/Pages/
are likely to enter a period of new normality, with lower household WhyAnotherFiscalStimulusWon’tDo.aspx
debt, higher personal savings, and less consumption as a share
of Gross Domestic Product. The effects of this transition will ripple “This week’s economic data (Sept. 6-10) went a long way toward
through both the domestic and the international economy. At easing fears about a double-dip recession. A second downturn is
home, some of our bloated retail infrastructure will disappear as not implausible, but worries that real GDP could fall into negative
businesses shift their focus to producing more for export. Abroad, territory in the coming quarter now seem a little overblown. But,
countries that have depended on exports to fuel economic growth before we pop the champagne cork, our forecast still calls for
will have to shift toward domestic consumption, which means sluggish economic growth through 2010 and gradually increasing
lower savings rates and a diminished appetite for U.S. government over the course of 2011.”
debt, putting pressure on U.S. fiscal policy.”
From the Wells Fargo Securities Weekly Economic &
From the September article, “The “New Normal” For the Financial Commentary for Sept. 10
U.S. Economy: What Will It Be?” by William A. Galston,
Elizabeth Santos has over 18 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.

3. CB RICHARD ELLIS :: MIAMI-DADE
Elizabeth Santos | Office Specialist | 305.779.3133 | elizabeth.santos@cbre.com
September 2010
My thoughts...
All these economists make me think about a line from a Dolly Clearly the “New Normal” is here to stay. My prediction is that
Parton song that my Brazilian husband quotes regularly. As even if business activity increases and companies see profits
Dolly Parton sang, I’ll be fine and dandy. Lord, it looks like begin to increase, the added expense of personnel (including
another hard candy Christmas. I’m barely getting through additional real estate) will be postponed for as long as possible.
tomorrow, but I won’t let sorrow bring me way down.” A savvy business will not want increase overhead until these
increased profits appear stabilized and long-term. Prudent
Click on the following link to listen to the song on YouTube leaders need honest, expert advice as they navigate through this
http://www.youtube.com/watch?v=RGZ1IYRirtQ new economy. Let me help you with the real estate portion of
your equation. Contact me for a free lease analysis
What’s Happening in the Trenches
Clearly we are in this downturn for the long-haul. My office has a monthly meeting focused on the office portion of commercial
real estate. The number of large tenants (10,000 sf and up) seeking office space has declined when compared to September
2009. We currently are tracking 29 companies seeking almost 1 million sf . This is almost half of what we were tracking in
September 2009. Interestingly enough, the 54 tenants sought 1.2 million sf of office space – almost the same square footage
as today. Of these 54 large tenants from 2009, about 20 ended up signing either a renewal or a new lease. Some of these
tenants may simply be testing the waters or trying
to leverage a better negotiating strategy with their
landlord. Some still show up on our tracking list a
year later.
With large blocks of office space available, the
big tenants have serious options to consider and
may be able to upgrade their office space either by
moving to a better building or planning a new, more
efficient space which lowers their footprint and
ultimately their overhead.
Another clear trend is that the number of subleases
is declining. This actually benefits both landlords
and tenants. Tenants are not stuck with surplus
space they must dispose of at fire sale pricing and
landlords are not competing against these bargain
basement spaces.
The next two years (2011 and 2012) are predicted
to have quite a bit of lease rollover from expiring
leases. We have not seen much in new tenants to the market other than some smaller transactions of less than 10,000 sf. The
new buildings are slowly filling up with existing tenants moving from other locations in Miami. Clearly Miami is experiencing its
own brand of the “New Normal”.
Personal Note
The “New Normal” is shaping up to be more realistic and certainly more painful era for quite a few people. For me personally,
I have one child finishing college in a year and next hopefully on to medical school followed by another entering college in four
years and I have this crazy idea called retirement. With these heavy expenses looming, the Santos Family has been cutting back.
Facing the New Normal is daunting at times.

4. In 2010, “Going Green” Means
Going with the Industry Leader CB RICHARD ELLIS :: MIAMI-DADE
Elizabeth Santos | Office Specialist | 305.779.3133 | elizabeth.santos@cbre.com
September 2010
CB Richard Ellis is proud to be the only commercial real estate
services firm to attain all of these leadership metrics:
Pledge to becoming carbon neutral
Be named one of Newsweek’s 50 greenest companies
Benchmark more than 1,400 buildings in EPA EnERgy
StAR® and capture the Sustained Excellence Award for
2010—reflecting achievement of Partner of the Year status
in three consecutive years
Win both USgBC’s Leadership Award and Corenet’s
Sustainable Leadership and Design Award for
accomplishments in sustainability
Manage more than 50 projects totaling more than 30 million
sq. ft. that have attained USGBC’s LEED® EB status
Employ more than 400 professionals who have achieved
LEED® accreditation
Commit more than 200 million sq. ft. of managed space
worldwide to participating in Earth Hour 2010
Earn a Carbon Disclosure Project score that is nearly double
the average for all companies*
CB Richard Ellis has the resources, knowledge base and first-hand
experience in its own operations to help turn sustainability goals
into reality. to learn more, contact Dave Pogue, national Director
of Sustainability, at 408.453.7444 or dave.pogue@cbre.com.
GOING GREEN...
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