1. CB Richard Ellis
777 Brickell Ave, Suite 900
Miami, FL 33131
Office
NOTES
News on the state of the Miami-Dade Office Market...

2. CB RICHARD ELLIS :: MIAMI-DADE
OfficeNotes
April 2011
THE WINDOW OF OPPORTUNITY IS CLOSING
Transaction volume has picked up so real estate the pendulum swings the other way. We are showing that
professionals are optimistic that the bad times are behind increased competition from the availability of Class A and
us. You have to love a real estate broker – we are the Class B product continues to place pressure on Class C
world’s eternal optimistic. At CBRE, we office to be more competitive.
are seeing trends that tenants still have ALTHOUGH we have a negative
Another positive sign is that unemployment is
opportunities to take advantage of absorption of 118,065 sf, this was
beginning to drop. Last year Miami hit 13%.
market conditions, however, the great expected as several large tenants
We have now dropped to 11.8%. Florida is
concessions being offered last year are physically moved into their new
at 11.0% but we are still lagging behind the
fading away. Now is the time to act if locations. national unemployment which is at 9.8%. Our
you can.
research department theorizes that some of
Our first quarter numbers are showing that the Miami this decline in unemployment is due to people no longer
office market has finally stabilized. Although we have filing or qualifying for unemployment benefits.
a negative absorption of 118,065 sf, this was expected
Indicators are showing that Miami is emerging from
as several large tenants physically moved into their new
the other side of the Great Recession. With the exciting
locations. Downtown Miami was hardest hit by this event.
expansion of the Port of Miami, the Miami economy
Our asking rent average is an interesting number because should continue to recover and prosper. Is your company
it’s the average price of the vacant space. So if we have poised for this? Call me to discuss creative ideas on how
lots of vacant Class A and Class B space, the number is to grow your business without increasing your real estate
skewed that way. If the vacant space is mostly Class C, costs.
ELIZABETH SANTOS FIRST QUARTER 2011
Office Specialist TOP LEASE TRANSACTIONS
elizabeth.santos@cbre.com
T 305.779.3133
CB Richard Ellis, Inc. | Licensed Real Estate Broker SF Tenant Submarket
Elizabeth Santos has over 18 years of
experience in office leasing with over $150 32,000 FIU Brickell
million of lease transactions during that time. Her
primary focus is tenant representation. Elizabeth
is currently on the Leadership Council for Take 22,526 Regus Brickell
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 18,000 Astra Zeneca Coral Gables
Miami Office and Top 25 for CBRE Florida
Source: www.cbre.com/research
© 2011, CB Richard Ellis, Inc.

3. FIRST QUARTER 2011 MARKET STATISTICS
OfifceNotes
Avg Asking Dir
Direct Total YTD Net Under
Submarket Building SF Lse Rate ($/SF/Yr)
Vacancy % Vacancy % Absorption Construction
Full Service Gross
Airport West 9,886,510 18.6 19.2 $24.83 (68,725) 0
Brickell 6,536,894 19.1 19.5 $35.59 7,861 614,908
Coral Gables 6,119,932 15.6 16.8 $33.40 12,008 217,276
Downtown Miami 7,605,092 20.1 20.6 $33.69 (117,957) 0
CBD Total 14,141,986 19.7 20.1 $34.58 (110,096) 605,886
Suburban Total 29,761,504 17.0 17.5 $27.37 (7,969) 217,276
Overall Total 43,903,490 17.9 18.4 $30.02 (118,0650 823,162
Class A Total 19,456,767 16.7 17.3 $36.29 (19,895) 823,162
Class B Total 18,313,879 19.7 20.2 $26.75 (99,807) 0
Class C Total 6,132,844 16.1 16.3 $22.12 1,637 0
Source: www.cbre.com/research For the full First Quarter 2011 MarketView visit http://gkc3.cbre.com
This Port trade surplus. In addition, experts believe the Deep Dredge
of Miami’s project alone will allow the Port to double cargo output and
D e e p create up to 33,000 new jobs.
Dredge To compliment the Deep Dredge project, the Port of
project Miami anticipates completing its tunnel project by Spring
has the 2014. This tunnel will provide trucks (and passengers)
potential direct interstate access between the Port of Miami and
of shifting I-395 thus enabling the Port to increase truck movements
PORT OF MIAMI’S U.S. trade
with East
to twice today’s capacity. In addition, the U.S. Department
DEEP DREDGE
of Transportation awarded the Port of Miami with a $22.7
Asia from million grant to restore rail service between the Port and
U.S. Pacific the Florida East Coast Rail Yard in Hialeah. This provides
ports to direct cargo access to the national rail system, further
Atlantic ports. If you have been following the local business enhancing our Port’s intermodal capacities. The rail project
news of late, you know that Governor Rick Scott approved is scheduled to be completed in 2013.
$77 million for the Port of Miami to deepen the channel to
minus 50 feet so larger ships can gain access to the port. “This is a solid first step toward enhancing Florida’s
The Port’s Deep Dredge project is timed to coincide with the infrastructure and getting our state ready for a new
CB RICHARD ELLIS :: MIAMI-DADE
opening of an expanded Panama Canal in 2014. There generation of international trade with South America
are only three other Atlantic Seaboard ports that will have and beyond,” said Governor Scott. As the second largest
our capabilities – Norfolk, New York and Halifax. Miami economic engine in Miami-Dade County, the Port currently
is the closest major U.S. port to the Panama Canal, so it is accounts for $18 billion in economic impact annually and
positioned as the first port of call for the next generation of 176,000 jobs. This project should solidify trade as a major
fully-laden post-Panamax vessels. business source for South Florida.
The industrial brokers in my office are thrilled. Why the
excitement? These post-Panamax ships can carry almost
PORT OF MIAMI FACTS AT A GLANCE
four times the TEU’s (20-foot equivalent units) of our • Largest container port in Florida - 807,000+TEU’S
current Panamax vessels. More cargo means more • 11th largest port in the nation
distribution space could be needed. Trade is king in Miami. • Closest US port to the Panama Canal
In 2010, the Miami Customs District produced the largest • Largest US cruise port - serves over 4 million cruise ship
passengers annually
trade surplus of any area in the nation. We exported FOUR
• Serves 20 shipping lines that call on 100 countries and 250 ports
times the national average – that’s an over $20 billion
April 2011

4. OfifceNotes
GETTING IN THE GAME VS. CLOSING THE DEAL
BY: SENIOR MANAGING DIECTOR, JOHATHAN SANGSTER
The doldrums of the 2007 Recession continue to affect Key Strategic Drivers - Infrastructure, workforce, and tax
most regional and State economies. Budget deficits, lack of climate are on the top of the list. Following these items are
employment growth, consolidations, and little to no economic availability & cost of real estate and regulatory concerns.
development prospect activity are plaguing large community. Overall, relative to all items most corporate real estate
State policymakers, Mayor’s offices, and regional economic executives consider, economic incentives tend to be one of
development marketing groups are starting to question their the final factors in a location decision. Incentives can become
recruiting strategies and, more specifically, policies toward more decisive when competing markets have relatively similar
economic incentives. Some states are far behind the eight labor costs & skill levels as well as State & local taxes.
ball when it comes to economic development. Communities
in the middle of the country (Nebraska south to Texas) to the CLOSING THE DEAL
Midwest (Ohio, Indiana, Illinois, Michigan) to the Southeast As companies become more and more mobile and indifferent
(Louisiana, Arkansas, Georgia, Florida) are much more to location, economic incentives can make the difference
evolved at economic development and have instituted policies between winning and losing. Economic incentives are intended
and incentives programs to tap into when a strong prospect to lure businesses that will significantly expand the tax base,
comes looking. At the end of the day, the discussion of better employ local residents, have a catalytic effect on local suppliers,
competing for quality jobs and capital investment comes down are in a job-growing mode, and creates local wealth.
to “getting in the game” and “closing the deal.” Incentives are the most persuasive when location factors are
relatively equal between locations and can either level the
GETTING IN THE GAME playing field or be the deciding factor among a short list of
The primary role of a State’s economic development policy is to locations. The net effects of meaningful incentive programs
support business recruitment and retention. Firms considering are to lower startup investment and reduce on-going operating
relocation or expansion almost always evaluate how state costs. If an incentives package hits neither of these hot buttons,
economic development assistance might affect their total cost a business and site selection consultant will immediately write
of doing business in a particular location. In order to effectively off the projected savings.
and efficiently target economic development policies, a clear
understanding is needed of what questions a CEO asks when ECONOMIC DEVELOPMENT & TAX POLICY
making a location decision. Consistent economic development policies and incentives tools
can help on the margin to better diversify a State’s economy. If
Business Climate Rankings - Company executives, targeted strategically and effectively, these policies will have a
economic development agencies, and site selection consultants significant impact on a State’s ability to grow better by creating
keep a close eye on a state’s business climate ranking. Whether high quality jobs and inducing significant capital investment
to confirm a perception or satisfy curiosity, business climate that otherwise would not happen.
rankings tend to be one of the first items of business when
considering new operations. A number of business climate States and communities can either sit or wait for business
rankings are periodically published by Site Selection Magazine, activity to happen or they can control their own destiny. In a
Business Facilities, CNBC, Forbes, Chief Executive Magazine, world where communities cannot control labor costs, real estate
CB RICHARD ELLIS :: MIAMI-DADE
and IBM Global Business Services just to name a few. pricing, and geography, economic incentives can sometimes
be the only thing controllable in recruiting new business to the
State.
A special thank you to Jonathan for sharing his knowledge and expertise. Do you think South Florida is sitting and waiting or
actively courting new companies to move here? We haven't seen many new large businesses move here during the recession,
but with a slow recovery beginning, perhaps this can change. If you are considering adding jobs, the Beacon Council and South
Florida Workforce may be able to provide some assistance. Contact me for details on my experiences with these organizations.
PERSONAL NOTE
In 2009, we renovated the patio area of my home. The screen enclosure came down, the pool was re-tiled and re-surfaced and we
painted the house a bright tropical color. Welcome to Club Santos! This year we have added a combo pool table/ping pong table.
It’s a great place to spend a lazy Sunday afternoon. My husband recently gave me a fantastic gift – a $10 Home Depot mister that
April 2011
sprays a refreshing mist while I lounge by the pool. He knows me so well!
© 2011 CB Richard Ellis, Inc. CB Richard Ellis statistics contained herein may represent a different data set than that used to generate National Vacancy and Availability Index statistics published by CB Richard Ellis’ Corporate
Communications Department or CB Richard Ellis’ research and econometric forecasting unit, CB Richard Ellis—Econometric Advisors. Information herein 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. Any projections, opinions, assumptions or estimates used are for
example only and do not represent the current or future performance of the market. This information is designed exclusively for use by CB Richard Ellis clients, and cannot be reproduced without prior written permission of CB Richard Ellis.