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Colliers Connects

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									                                                  COLLIERS ARNOLD                                          |                ORLANDO




                                                  Colliers Connects 
                                                SECOND QUARTER |                         2010 Real Estate Management Division


                                                SUCCESS STORIES


                                                  VANTAGE POINT
                                                  96,000 Square Feet
                                                  Sanford, Florida

   COLLIERS ARNOLD ON THE                         Centrally located, Vantage Point has easy access to retail and commercial amenities. The park consists of four
            MOVE                                  (4) office/flex buildings totaling 96,000 square feet. The project was completed in 2007 and the buildings have
                                                  an attractive appearance that differentiates itself from nearby competition. The design allows functionality for a
When the world economy almost                     wide variety of tenant usage.
collapsed in October of 2008, most
companies began to reach deep into their          Colliers Arnold is responsible for the property and construction management on this asset. By providing
collective budgets to cut costs and tighten       excellent customer service and working closely with the outside broker, the occupancy has increased. When
belts- a practice that continues to this day.     Colliers Arnold began managing this asset in 2007, General Works Roofing and Sheet Metal was the only tenant
And for good reason; the cost-cutting             in the park. Today, the park is the home of five (5) tenants including Patterson Dental and Patterson Medical.
strategies have allowed many companies            Additionally, a sixth tenant will take occupancy in the next few weeks. By overseeing the construction
to stay afloat, or even thrive, during the        management, Colliers Arnold has been able to negotiate with the construction vendors, providing savings to the
darkest days of the downturn.                     Owner.

One company however, has taken the                Colliers Arnold provides onsite maintenance and porter service. Proper maintenance of the buildings enables
view that cost-cutting is not the right           lower operating costs while maintaining the asset in a first class fashion.
approach. Colliers International believes
that now is the time to make significant          Client
changes in its operational strategies and to      GID Investment Advisers LLC
invest in the company’s future with a focus       Boston, MA
on enhancing the service experience with
                                                CONTROLLERS CORNER
its clients.

Clients want global service and                 Benjamin Franklin’s quote still rings true today…. 'In this world nothing can be said to be certain, except
accountability, local service or something      death and taxes.'
in between, such as national or regional        During economic downturns, it is not uncommon for states to increase the number of Sales & Use Tax audits as a way to
initiatives. With the new structure,            generate additional revenue. This article is intended to remind all interested parties about the various tax implications
Colliers can do it all. The industry is         associated with commercial leases.
continuing to move to a much higher level       According to Florida Statute, sales tax is due on the total rent paid for the right to use or occupy commercial real property,
                                                unless the rent is specifically exempt. If the tenant makes payments such as mortgage, ad valorem taxes or insurance on
of specialization, creating polarization
                                                behalf of the landlord, those payments are also classified as rent and are subject to tax.
within the industry: either you can deliver
                                                The majority of the time commercial rental sales tax liability arises from recurring charges such as monthly rent, common
service at this level or you cannot.
                                                area maintenance, real estate tax, and insurance. However, there are other key factors that may create a liability based on
Colliers enterprising spirit is what makes      how the lease language is written or how a transaction is recognized.
the difference.
                                                For example, the costs of tenant improvements are a form of rent consideration subject to Florida sales tax if the
                                                improvements made by the tenant are, required under the lease, and the real property improvements will remain with the
Colliers International is the global            developer/landlord after the term of the lease. Another example would be lease termination payments which allow the tenant
commercial real estate industry’s third         to terminate or cancel a lease prior to the expiration of the lease term, provided a specified amount of money is paid to the
largest real estate service firm and            landlord. Depending on how the lease termination language is written in the lease, the payment may not be taxable. In
growing. We are actively establishing           determining whether these “lease termination payments” are subject to sales tax, the DOR reviews how these payments are
                                                                   COLLIERS INTERNATIONAL
                                                recorded in the books and records of the landlord and the tenant.
offices in major market areas where we
                                                                                      NEWS
                                                Florida has an established set of rules for landlords and tenants to follow for commercial leases
may not have had a presence in the past.
At this time, Colliers International            and sales tax. To minimize liability, it is important for all interested parties to understand the tax
employs more than 15,000 people in 480          implications for certain transactions and how lease language can affect whether an item is taxable.
offices in 61 countries, and generates          For more information on this topic please refer to the
                                                Florida Commercial Real Property Standard Industry Guide located at:
nearly $2 billion in revenues annually.
                                                http://dor.myflorida.com/dor/taxes/sigs/commercial_rental_external.pdf.
-Kimberly Lamb, Sr EVP                                                                                                                         www.colliersarnold.com

                                                                                                                                          COLLIERS ARNOLD | 1
      2010              |            Second QUARTER NEWSLETTER                     |          ORLANDO



         ORLANDO OVERVIEW                                                                     EMPLOYEE NEWS

The first quarter of 2010 was more of the same. In        On January 25, 2010, Colliers Arnold held its annual company retreat in
nearly all asset categories, vacancy remained
statistically stable, rental rates continued to decline
                                                          Tampa, Florida. In addition to the general meeting and break out sessions, the
and construction activity is nearly non-existent. The     2009 company awards were distributed. Orlando Property Management
good news; fewer tenants are vacating spaces              received the following awards:
compared to this time period one year ago.
Industrial space is currently averaging a 13.2 percent
vacancy rate; office space is averaging 16.5 percent;           •     The Property Manager of the Year Award went to Margie Scott, for
and retail is averaging 10.4 percent.                                 her outstanding customer service and dedication.
During the first quarter leasing transactions
                                                                •     The Award of Excellent went to Rebecca Whitley, Senior Property
generated the majority of the activity in the local                   Manager, for going the extra mile and completing annual budgets while
market. Investment transactions remained slow,                        on maternity leave.
however, a few significant transactions occurred. As
pricing is slowly aligning with buyer expectations, the
                                                                •     The Community Service Award went to Kathy Carter, Assistant
amount of interest in investment properties has                       Property Manager, for sending care packages to our troops overseas.
improved. Landlords willing to negotiate to meet
tenant needs are experiencing positive attention          Congratulations to all of our hard working recipients.
resulting in higher occupancy levels. Free rent,
favorable tenant improvement allowances and/or
heavily discounted rates are common negotiation
tactics. The dark cloud over the market remains the
current unemployment situation. In the Orlando-
Kissimmee MSA, 12.4 percent of the population is                                           INVESTMENT SALES
unemployed. This is compared to the state and
national average of 12.2 and 10.6 percent,
respectively. Until job growth returns to the local       SALES ACTIVITY
market, vacancy rates will likely stay in the double
digits throughout 2010 and well into 2011.                BLDG NAME
                                                                                PROP.                       SIZE       SALES        SALES
                                                          PROPERTY                       BUYER NAME                                           SUBMARKET
                                                                                TYPE                        (SF)       PRICE       PRICE/SF
                                                          ADDRESS

              SAFETY TIPS/TALK                                                              Procacci
                                                          9495 Delegates Dr.     Ind.                       50,000   $4,300,000     $86.00     SW ORANGE
                                                                                          Orlando, LLC
                                                          3941 Bryn Mawr                   Overland
                                                                                 Ind.                       31,840   $1,300,000     $40.83     NW ORANGE
                                                                                         Holding Corp.
The three (3) most predominant hazards when
                                                          Lincoln Plaza                   300 S Orange      246,10
using a ladder are trips, slips and falls. Below          300 S Orange Ave
                                                                                Office
                                                                                            Ave LLC           0
                                                                                                                     $52,250,000   $212.31     DOWNTOWN
are some safety practices to reduce these hazards:
                                                          235 N Westmonte Dr               Westmonte
     •    Use ladders for the purpose for which                                 Office   Professional Ctr   24,102   $3,360,000    $139.41     SEMINOLE
          they are designed.                                                                   LLC
     •    Do not load ladders beyond their                Pleasant Hill                      Inland
          maximum intended load.                                                Retail                      71,540   $12,375,000   $172.98     KISSIMMEE
                                                          Commons                          Diversified
     •    Secure ladders to prevent accidental            University Plaza               LF2 University
          movement, use on level surfaces and                                   Retail                      95,862   $5,900,000     $61.55    WINTER PARK
                                                          4076 N Goldenrod Rd                 LP
          barricade to keep traffic away.
     •    Be sure ladders are used at the correct
          angle.


                                               GREEN INITIATIVE & SUSTAINABILITY

Did you know that a typical office worker uses 10,000 sheets of paper every year? That is an average
of 20 reams of paper per worker per year! Even using 30% post-consumer recycled paper, every
office worker would require one half of a tree per year for his or her own use! According to the
Department of Energy, paper production is the 3rd most energy-intensive of all of the manufacturing
industries in the United States and accounts for nearly 30% of all of the wood harvested. Here are
some small steps to reduce your impact on the environment:
        Recycle or reuse all office paper
        Make sure all office paper products are at least 30% post consumer waste recycled products
        Utilize electronic files to edit and draft documents before printing
        Utilize paperless alternatives accounting and general administrative tasks and forms
        Change the default copier and printer settings to print on both sides of the paper
        Use Processed Chlorine Free Paper
        Utilize Computer faxing in lieu of traditional faxing
 2        |        COLLIERS ARNOLD                                                                                         COLLIERS ARNOLD | 2

								
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