UpClose with Cushman & Wakefield's Tere Blanca

Tere Blanca is senior managing director of Cushman & Wakefield of Florida and recently became chair of the Beacon Council economic development partnership in Miami. A challenging real estate market in South Florida doesn’t faze Blanca, who says enthusiasm and energy are contagious within the industry, and urges professionals to stay focused on the times ahead. She maintains an upbeat attitude while coming face to face with the challenges in the South Florida commercial sectors, which she recently discussed with Associate Editor Crystal Proenza:

Real Estate Florida: As head of C&W’s South Florida operations, you know better than most what this market is going through. Which sectors are currently affected by the economic downturn and the residential crisis, and in what way?

Blanca: I think all commercial sectors have been affected, some more than others. The financial credit markets started impacting investment sales during the latter part of last year, and this credit crisis in the capital markets has continued throughout this year. Until there is more alignment between sellers and buyers in terms of value expectations, and until the credit side of the business opens up, we won’t recover the vibrant activity that we experienced in past years.

What has happened is that we are going through a very organized process of de-leveraging. That had to happen because real estate was never meant to be over-leveraged. The time of the highly leveraged player in real estate is gone.

Real Estate Florida: What direct effect has the housing downturn had on the market?

Blanca: Other than investment sales, as a result of the housing downturn the industrial sector has felt a significant impact given that there are large users that were tied to the residential housing boom here. Demand for drywall, furnishings and supplies directly tied to housing are gone. Major industrial users have had to contract operations, some have gone out of business and some have had to sublease significant portions of space. However, Miami-Dade County has been somewhat protected by the international trade activity that has allowed us to maintain a healthy market.

Real Estate Florida: What about the retail sector? Is there any upside to these daunting economic conditions?

Blanca: We’ve had very robust activity in the retail side of the business in Miami with continued interest from outside retailers wanting to come into our market. Certainly more opportunities are available, because some of the retailers that have been present here have felt the impact of the slowdown in the economy and have put spaces on the market.

South Florida still remains under-retailed. We think the region in general might be impacted for the short term, but we have great opportunities going forward to continue to satisfy retail demand and service the local community.

Real Estate Florida: What can brokers do to make it through this time of slowed transactions?

Blanca: Clients are looking for communication, particularly during times like these. From our perspective at Cushman & Wakefield, we see ourselves as advisors. Be sure to communicate at all levels, and overcommunicate. Be consistent in the way you approach projects. We are strategic and proactive as opposed to reactive. We have been collaborating across teams to bring to bear a higher percent of available talent. Navigating through a challenging time, there’s always opportunity.