The Elephants Aren’t Moving

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This week we are looking at the largest tenants who represent 5% of the total number of tenants.  When we look at these elephants, they oftentimes indicate current and future trends for everyone else.

These are the largest deals in Miami for 2Q2012:

Tenant

Sq Feet

Submarket Transaction Type
Lennar Corporation
Homebuilder
       150,000

Airport West

Renewal/
Expansion

Brightstar
Telecommunications
         61,053

Airport West

Renewal

Young & Rubicam
Advertising Agency
         43,000

Brickell

Renewal

Merrill Lynch
Financial Services
         30,827

Coral Gables

Renewal

FIU
Education
         28,350

Brickell

Expansion

Healthsun Health Plans
Healthcare provider
         28,000

Coconut Grove

Renewal/
Expansion

 

What do they all have in common?  Nobody is moving.  What does that mean?  I have a couple of theories.  The first is that the existing landlords are taking the necessary steps to insure the long-term tenancy (and income stream) of their major tenants.  It also means that for the renewals, the competing landlords could not provide lease terms that would compel a large tenant to move and/or company leadership was unwilling to make a bold decision in our uncertain economic times.  It is encouraging to see three large tenants expanding because that adding on more office space is a long-term fixed cost, so it’s a clear sign that those three are feeling confident about their business.

Landlords count on 70% of their tenants renewing their lease.  It takes a tenant rep broker like me to insure a level playing field for companies who are negotiating their leases.  Call me today to discuss your specific office situation.

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