Is LEED the way for Miami office?

Today it was announced that the law firm Bilzin Sumberg Baena Price & Axelrod will be vacating 80,000 sq. ft. of office space at the once iconic Wachovia office tower for the yet to be completed 1450 Brickell office tower at the end of 2010. To put that in perspective, this transaction will increase the vacancy at the 1,225,000 sq ft Wachovia Financial Center to 24% from a more respectable 17% advertised on CoStar today.

What does this mean for all of the existing office space in downtown Miami? Are tenants shopping for newer more efficient buildings? Are tenants shopping for “deals” where they are pitting the current landlord against developers who just hope to get most of their operating expenses covered by these new lease deals? In the case of the new deal at 1450 Brickell, has the developer made huge concessions just to get a coveted tenant to give the building some credibility? In any case there is certainly going to be a lot of activity in the office market in downtown and surrounding markets during the next few years while tenants are shuffled around. It is becoming increasingly apparent that Real Estate professionals, landlords, and tenants are all going to have to work very hard in this environment to preserve value, keep occupancy rates high, and be aware of market conditions especially LEED certification for buildings and LEED accreditation for individuals.

There is approximately 3 million square feet of new office space coming on line when Met II, 1450 Brickell, and Brickell Financial Center come on line. There is not any evidence that economic growth alone will bring nearly enough new tenants to South Florida to absorb all that space. The 3 buildings are boasting a LEED certification for Core and Shell meaning all 3 buildings are registered with the USGBC and are being audited to receive some level of certification. LEED certified buildings are buildings that are constructed for the long term health of the community and the occupants.

Developers at one time thought tenants would be willing to pay more for all of these benefits. There is no clear evidence in the Miami market that tenants are willing to pay more for LEED but I can see the occupancy of LEED certified buildings increasing while existing non LEED buildings will lag in occupancy rates. The answer is for existing building owners to take initiative and get their buildings at the very least energy star rated with possible upgrades to HVAC, lighting, and reflective roof material. A step further would be to get their buildings LEED-EBOM certified for existing buildings, operation and maintenance. This will give them the edge to keep current tenants, operate more efficiently, and ultimately help turn the tide on doing the “right” thing for their bottom line and their communities.

ABMC Loans: Miami Commercial Real Estate Mortgage Broker

If you like to do business the old fashioned way with a personal touch from competent professionals, please consider contacting ABMC American Bankers Mortgage Corp. Based in Coral Gables on Almeria Avenue, Eric Garcia and Manny Ojeda specialize in financing Miami commercial real estate properties for owner-users and SBA loans. Call them now at 305-448-6446 or visit their website at www.abmcloans.com to learn more about Miami commercial real estate mortgage brokers.

BIS Commercial Real Estate Property Inspections

As Miami commercial real estate professionals, we always suggest that you complete a full inspection before you purchase and/or lease the property. Over the years our customers have always had great experiences with BIS Building Inspection Services. Personally, I have used them many times to assist with the inspections on warehouses in Miami.

Please visit their website at http://www.bis-inspections.com/florida-commercial-building-inspection.htm or phone them at 1-800-939-3915.

THE NEW STDBonline IS LAUNCHED AND READY FOR YOU!

STDBonline is arguably the most comprehensive suite of online resources available to commercial real estate professionals. Are you using it to its fullest potential? Let Jay Lucas, CCIM, President and CEO of STDB Inc. demonstrate the fundamentals you need to know in order to take advantage of this phenomenal CCIM Institute member benefit.

Reload your arsenal of the STDBonline tools, know how to recognize what is happening in your market, spot trends, analyze areas and apply it to commercial real estate The hands-on participation format will be a showcase of what the client wants and how the site provides answers, information for decision making, functionality, a case study of a property to presentfeatures of STDBonline, with emphasis on:

 Thematic maps
 User points
 Business lists

Tuesday, September 29, 2009

Nova Southeastern University
8585 SW 124th Avenue, Computer Lab #210
Miami, Fl 33183Phone: (305) 274-1021
Registration: 8:00am
Seminar: 8:30am to 11:30am /12:30pm to 3:30pm
Fees:
Miami-Dade-Monroe FloridaDistrict Members: $75.00
Non-members: $125.00

"Only 30 Total Seats Available!"

Questions:
Ed L. Boen, CCIM
305.446.2586

Register

To Learn more about STDBonline view a video at :
http://www.youtube.com/watch?v=2_UKvyMfnkQ