ComReal Miami Office Q1 2013 Newsletter

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Q1 2013 Office Newsletter

-Louise Bendix

A new route to the airport on the "Orange Line"

Last week I attended a Commercial Real Estate conference focusing on transportation issues and the challenges of managing Miami's expected growth. The meeting was to begin at 9:00am at the airport. It took me 1hour and 15 minutes to drive there from my home that is only 16 miles away. Google maps tells me it should take only 23 minutes to drive from door to door. Ironically I learned at the meeting that I could have taken a train from Dadeland South directly to the airport for only $2.00 + $4.00 to park. That ride, according to the web-site, will take only 33 minutes with a train leaving every 10 -15 minutes depending on the time of day. I raised my hand and requested a tour and promised on my next visit I would take the Orange Line.

The Miami Airport Intermodal Center is a beautiful structure that brings together all modes of transportation to one location. The Intermodal Center is connected to the main terminal by a Metro Mover train. It contains a new rental car facility, a MetroRail train station, a bus station, and eventually the Tri-rail and Amtrak will all come to the same place. Today it is packed with people but I can say the people are mainly tourists from other countries who are used to using public transportation. From the intermodal center you walk a short distance to a MetroMover that takes you directly to the terminal.

Traffic and parking woes are all results of a growing a vibrant city. We cannot wish them away but we can do a better job of utilizing alternative means of transportation to get from point A to point B. According to MDX, 90% of people go to work in cars. By 2035 they expect the number of cars to increase 39%. As professionals and citizens we need to encourage use of public transportation alternatives that are already available. With increased use there promises to be increased availability and services.

Advantages to hiring a professional Tenant Representative

When a tenant “hires” an Exclusive Tenant Representative, they are hiring a professional, whose sole interest, is to find the best location, considering all variables, for their client to conduct their business. A Tenant does not compensate their Tenant Representative. The compensation comes from the Landlord in form of a negotiated commission.

When a prospective Tenant “goes at it alone”, or uses a myriad of Real Estate Professionals to “just look”, they are always at the mercy of the Landlord and the information that the Landlord is offering. Landlords are looking out for their best interest. There is not a professional looking out solely for the Tenants best interest.

In the State of Florida, unless an exclusive representation agreement is signed, Real Estate agents are considered “Transaction Brokers”. That means their fiduciary responsibility is not the landlord or to the prospective tenant but to the Transaction. A Transaction broker has done his/her job when the transaction closes. The Exclusive Tenant Representative has only completed their job when the Tenant is completely satisfied and signs a lease.

How would a prospective tenant really know what market rent is until they enter into negotiations for several different properties? How would a prospective tenant know what a Landlord is really willing to offer as far as Tenant improvements unless there is market knowledge of what the competition is doing?

For more information on how a Tenant Representative can help you find a new office or to see if renewing your current lease in existing space is the best alternative, please call or e-mail me today.

LOUISE BENDIX,LEED-AP | Office Leasing Specialist
ComReal Miami, Inc.|Commercial Real Estate Services
366 Altara Ave., Suite 102 | Coral Gables, FL 33146
lbendix@comreal.com | www.LouiseBendix.com
T 786-433-2376

"ComReal is Commercial Real Estate"

An Invitation to CREW Miami's Networking Event of the Year

Do not miss CREW Miami and The Women's Fund of Miami Dade County's Cocktails, Communities & Connections event. This will be CREW Miami's 8th annual Fall Fundraiser. Proceeds will benefit both CREW Miami as well as the Women's Fund of Miami Dade County. Tickets are $50.00 and sponsorships for this high profile event can be purchased on-line. Click on the link below.

http://tinyurl.com/365fj3z

Should LEED Certified Buildings Command a higher lease rate?

Just 2 years ago, the South Florida Branch of the USGBC would meet monthly and discuss the virtues of LEED certified buildings without one LEED building yet completed in Miami Dade County. I believe the very first LEED certified building was a single tenant retail store on Biscayne Blvd.
Now we have several LEED certified buildings in our office inventory. The most prominent being the new office towers, Well Fargo Center, 1450 Brickell, and Miami Green. There are also several LEED certified EBOM, or Existing buildings, where certification is earned when retrofitting and establishing new operational practice. Both forms of certification require a commitment by the building owner to pay a premium for certification. They both require a commitment to bring together a team of designers, builders, engineers, and property management to follow through. Although the cost is going down there is undoubtedly a premium to building to a LEED certification standard. LEED building certification promised a better building with higher operating efficiencies.
A building owner should be rewarded for this commitment. We do not have enough history in the South Florida market to substantiate whether or not LEED certified buildings are bringing their owners the rewards promised by doing the right thing.
South Florida needs data to substantiate the original claims of the USGBC. Other parts of the country where LEED certified buildings are the norm have done a good job of documenting higher lease rates, lower vacancy rates, and therefore higher rates of return for the building owners. Tenants occupy a healthier space that has monitored air quality, more day-lighting, increased control of temperature, usually increased space efficiency (more comfortable people in less space), while making less of an environmental impact. For companies that have Corporate Responsibility Statements, leasing in a LEED certified building is almost a mandate.
The Commercial Real Estate Community needs to take a leadership role in promoting this space to prospective tenants. In the 3 new office towers in Dade County, the LEED certification is just a by-line. It is the job of the Tenant Representatives and Landlord Representatives to promote the LEED certification as a real and tangible benefit to the tenants.

LOUISE BENDIX,LEED-AP | Office Leasing Specialist
ComReal Miami, Inc.|Commercial Real Estate Services
366 Altara Ave., Suite 102 | Coral Gables, FL 33146
T 786-433-2376 | F 888-316-6818
lbendix@comreal.com | www.LouiseBendix.com

Vote NO to Amendment 4 on November 2

The supporters of Amendment 4 would say that it gives the voters more say in how municipalities, in which they pay taxes, are developed. At first glance it seems like a reasonable propositon to allow the public more voice in how their cities and towns are built. Passing of this amendment could actually have disastrous consequences that could halt worthy projects throughtout the state.

We consistently have a very poor turn-out to vote in our country. The voters that consistently show up are those people that are voting against something. The content, working population, despite efforts to change that, do not make voting a priority. It makes sense to see that with all the additional elections this amendment will require, only those opposed to projects will vote. "Passage of Amendment 4 could lead to hundreds, if not thousands, of extra elections that would cost $44.6 million to $83.4 million statewide, Florida TaxWatch said in a briefing released Tuesday."

"Our nation’s founding fathers and Florida TaxWatch have long warned against 'hyper-democracy' and its threat to our republic form of government. The current process to amend comp plans is already accessible and open to the public. The voters currently hold elected officials responsible for their actions in amending comp plans."

Florida TaxWatch expressed concerns about jobs s well."Amendment 4 would stymie business formation and expansion as higher costs would emerge for approved commercial and residential investment. Future development in the state will be further deterred, as potential and existing industry would face uncertainty and longer waiting periods as a result of the required elections under Amendment 4," the group said.

“With Amendment 4, you are putting a roadblock in place,” Debbie Orshefsky, co-chair of the national environmental and land development practice at law firm Greenberg Traurig, said during the Business Journal's Aug. 6 Critical Conversation about Amendment 4. “The public is very parochial. The public is going to think of ‘what is good in my backyard?’”

Read More: http://tiny.cc/herb9

LOUISE BENDIX,LEED-AP | Office Leasing Specialist
ComReal Miami, Inc.|Commercial Real Estate Services
366 Altara Ave., Suite 102 | Coral Gables, FL 33146
T 786-433-2376 | F 888-316-6818
www.LouiseBendix.com

Tenants hold the advantage as vacancies continue to rise.

graph courtesy of CoStar

Why Should Companies hire a Tenant Representative?

Are you with a company whose lease is ready to expire in an existing space or a company that needs to expand or contract? Have you considered that with more efficient buildings you can significantly reduce your costs and "step up" to a better environment? Do you operate your current business with a lot of empty space that you are paying for? Do you have a professional that you can trust to work with you through every step of new lease negotiation and transaction?

At ComReal, the Tenant Representative's first objective is to listen to your requirements for a fully functioning and efficient office. You will quickly become educated on the spectrum of choices that meet your requirement. Often times compromises need to be made and a ComReal professional can help prioritize your needs. Often times pricing is very deceiving and a ComReal professional will help make sense out of all the layers of fees and costs. They will learn about your business and plans for growth; they have existing relationships with landlords and landlord representatives so they know the "real price"; they know the good, bad, and ugly of the buildings in the geographic area where they are an expert. A ComReal Tenant Representative will save you a lot of time and money.

Leasing office space can be a complex process and it can take precious time away from your core business. Leave the hunting and negotiating to the experts.

LOUISE BENDIX,LEED-AP | Office Leasing Specialist
ComReal Miami, Inc.|Commercial Real Estate Services
366 Altara Ave., Suite 102 | Coral Gables, FL 33146
T 786-433-2376 | F 888-316-6818