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
May 2011
HAS MIAMI OFFICE MARKET... can see that happening between the 1st quarter of 2010
and the 2nd quarter.
This chart is intended to be a snapshot of the current
position/most recent change in rents (updated on a
quarterly basis), and the following points should be noted:
• the chart reflects overall trends rather than each
micro-movement in rents
HIT BOTTOM? • there is an inherently forward looking element to the
positioning of markets on the cycle, involving brokers’
Last week, my research department released their Miami judgments on the anticipated strength and direction of
office rent cycle graph which shows we are at the bottom future rental change
of the rent cycle. CBRE tracks rent cycles on a global basis • this chart is based on the question: “how did rents
and Miami is one of the US cities we track. move over the last 3-6 months, and how does this
As you can see, it is clearly evident that Miami is at the compare with expectations for the next 3-6 months”.
bottom of the market in office rental rates. The pendulum This rent cycle looks at Miami as a whole, so we in
is about to swing to the landlord’s advantage. reality must take into account the nuances of individual
To put Miami into perspective on a national basis, submarkets. One thing is clear -- the window of
Chicago, San Diego, Los Angeles, Austin, Atlanta and opportunity is closing. Call me today to discuss
Houston have not reached the bottom where we sit. creative ideas on how to take last minute
While, New York, northern New Jersey, San Francisco, advantage of the rent cycle before it’s too late.
and Boston are a step ahead of us.
This rent cycle chart is subjective rather than a verifiable Click here to open full report
calculation or “fact”. It is intended to represent, in a
general sense, where the Miami
office market stands. This rent cycle
is based on information gathered by
Miami Office Market Rent Cycles – Quadrants
our research team who surveys the
office brokers within the Miami CBRE Rental Decline Accelerating Rental Decline Slowing Rental Growth Accelerating Rental Growth Slowing
office and actual deal information. 1Q09 3Q09
1
1
2 16
This chart looks at effective rents
2Q09
15
3
(i.e. what the tenant actually pays, 4Q09
after taking into account leasing 4
14
incentives, etc.) rather than “asking” 1Q10
5 13
rents.
3Q10
Keep in mind that markets can 6
2Q10
12
move in either direction along the 7 4Q10 11
1Q11
curve, and may “jump” from one 8 10
9
quadrant to another depending on
changes in market conditions. You
NB. Markets do not necessarily move along the curve in the same direction or at the same speed. The rental cycle is intended to display the trend in net
effective rents :: Soutce: CB Richard Ellis
© 2011, CB Richard Ellis, Inc.

3. OfifceNotes
SUMMER IS COMING
READY OR NOT
I am already dreading the approach of summer. For during and after
me it means hot, sticky, bad hair days and my umbrella the storm. Consider
is never where I need it. The other bad news about emptying the office
summer is that it marks the beginning of hurricane refrigerator prior to
season. As Hurricane Andrew survivors, my husband closing the office.
and I spend June preparing for a stormy August and Also, CLOSE
September. Now is the time to review your hurricane all office doors. This simple act can actually help
and disaster plans for your office. limit damage if a window breaks. Unplug your
There are four key components for an effective equipment to avoid power surges during the storm.
disaster plan: CREATE A CHECKLIST NOW. Distribute your hurricane
1) planning, plan at the beginning of the season and again once
a storm is headed our way.
2) communication before, during and after the storm,
3) supplies, and
COMMUNICATION
4) business continuity and contingency alternatives.
This is also the time to make sure you have up-to-
date information for all of your employees. Cell
PLANNING phone and landline numbers are a must. I believe
A written plan provides a “go that social media will be a huge asset
to” resource for your employees, CREATE A CHECKLIST NOW should we get hit by a storm. Twitter,
vendors and clients. To prepare a Distribute your hurricane plan at the Facebook and LinkedIn could become
workable plan, you need to know beginning of the season and again valuable tools for connecting with clients,
what will happen to your office once a storm is headed our way. vendors and employees.
building in the event of a storm. You can post updates through these
The majority of office buildings platforms. Change your office message
close up once a hurricane warning is posted. This on your main line to explain the situation and
means the building management shuts down your alternative ways to reach key personnel.
air-conditioning and parks the elevator on the second My company has a toll free number that serves as a
CB RICHARD ELLIS :: MIAMI-DADE
or third floor. They do this to protect the building’s clearing house of information in case of emergency
infrastructure. Check with your building for their and it distributes laminated wallet-size cards with key
procedures and plans including security before, contact information to all employees.
Elizabeth Santos has over 18 years of experience in office
ELIZABETH SANTOS leasing with over $150 million of lease transactions during
Office Specialist that time. Her primary focus is tenant representation.
elizabeth.santos@cbre.com Elizabeth is currently on the Leadership Council for
Take Stock in Children and a member of both the Doral
T 305.779.3133 Business Council and The Commonwealth Institute. She is
the 2009 Rising Star for CBRE’s Miami Office and Top 25
CB Richard Ellis, Inc. | Licensed Real Estate Broker for CBRE Florida
May 2011

4. OfifceNotes
SUPPLIES our out-of-state data centers in the event of a disaster so
our files are safe and accessible. How will you handle
During June, collect your office hurricane supplies.
payroll during the post-hurricane recovery phase?
Some helpful items are:
Do you have insurance for business interruption?
• heavy-duty plastic bags to cover computers, This is very common for retailers, but many office-based
copiers, phone equipment and desks businesses do not carry this coverage.
• bottled water and some easy packaged foods for a We can have another discussion solely about generators.
quick snack or lunch so employees don’t have to use The pros and cons, who needs them, portable versus
personal supplies fixed, how will it be re-fueled after the storm, will your
• fans (perhaps some that are battery-operated landlord allow one? Generators are expensive so assess
with batteries) just in case your air-conditioning is the costs versus the benefits carefully. It can take months
damaged to gain approval from your landlord, obtain permits and
• extra fully charged cell phone batteries for key finally install the generator, so plan ahead.
personnel
NOTE: do NOT store things in empty trash cans – I had What about your employees? How will you
a tenant who did and the janitorial crew thought it was contact them after the storm? Discuss post-hurricane
garbage and tossed it. responsibilities with staff and find out now who will be
available. Who will be evacuating and to where?
How will you deal with childcare issues? During the
BUSINESS CONTINUITY 2005 storm season, Miami-Dade schools were closed for
On the business continuity side, what is your plan if your about three weeks. Parents were reluctant to leave even
building is severely damaged? One resource for you is teen-age children alone in a house without electricity
me. I can help you locate temporary or new office space and a generator running.
if your office is severely damaged. Your landlord may be
too busy to deal with your individual situation, but I can
help you locate a new location so you can get back to CONCLUSION
business as quickly as possible. After Hurricane Andrew, Common sense is the best tool for hurricane
Burger King had to relocate about 100,000 SF from preparedness. Give your employees time to get home
south Dade to downtown Miami – it was a commercial safely before the storm and prepare their homes. Cover
real estate broker who had the market knowledge and your office computers and equipment with plastic to
contacts to get Burger King back to work quickly. My protect from water damage—even if the equipment is
company has a variety of resources including construction not close to a window in case the water comes from the
management and move management to help companies floor above you. Make sure your cell phone is charged
recover after a disaster. and your car has a full tank of gas.
During the 2005 season, several buildings were closed
CB RICHARD ELLIS :: MIAMI-DADE
for days and even weeks due to damage. How will you For more information on preparing for hurricanes
access your data? Who has your back-up tapes and and tracking the storms, the National Hurricane
how will you access them? Is your server off-site in Center website at http://www.nhc.noaa.gov/
a safe location? My office can transfer service to one of
PERSONAL NOTE
This summer I have several ambitious plans and they don’t all involve vacation. My biggest plan is to
go through every drawer and closet in my house to get rid of STUFF. My theory is if I have not used it
in a year, out it goes to my favorite charity. Since it is so hot outside, this project gives me an excuse to
stay in the air-conditioning over the weekend. My goal is that by the end of the summer, I should be
clutter-free. Wish me luck!
May 2011
© 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.