Today's Events:

President Mike Mills presiding

We welcome all of our visitors:

Hank Langston, RCCG
Gloria Burns, RCCG
Daniel Berger (Ellen)
Dr. Jacqueline K. Gonzalez (Asaad)

* * * A N N O U N C E M E N T S  * * *

Next meeting on December 18, 2007

Two lovely people are under the weather….

Fellow Rotarians and Friends,

I had announced at last Tuesday’s meeting that my wife Racheli was very ill with the resurgent effects of Crohn's disease - a chronic autoimmune disease that affects the intestines. Racheli had her endoscopy exam today and the results were better than expected. She will not need hospitalization in the near term.
We appreciate the well wishes and prayers you have delivered upon us and we are grateful.

Thank you!
-Felipe

Saturday & Sunday, FEBRUARY 23 – 24, 2008

Our #1 Fundraiser
South Miami Rotary Art Festival

www.southmiamiartfest.com

What could be offered at our children’s alley, with your ideas and input…

For a quick slide show of the 2006 craft show click below

FUN-DRAISER – Raising $$ while Saving $$
Coming Soon…

This coming Friday, December 14, 2007

Sunday, January 6, 2008 at 10 am

A POLICE ESCORTED BICYCLE RIDE FOR FAMILIES

Friday & Saturday, February 2 & 3, 2008 

Rotary Leadership Institute

http://www.rlitraining.org

Visit the club’s NEW MYSPACE page:

www.myspace.com/southmiamirotaryclub

We have over 45 friends…

Hampton Booker:
Spare change fundraiser: Toss your coins into the jug at the   Sgt. Of Arms table & Make a wish!!!

We are accepting empty inkjet cartridges for recycling.    Bring them to the meetings or take a postage-paid plastic envelop home –  ask Mike Mills
Recycle ~ Reuse ~ Renew

DID YOU MISS A MEETING ‘CAUSE YOU WERE AWAY?

Our club goal is 100% Attendance! If you miss a meeting, it can be made-up within 2 weeks, before or after, of the missed meeting date.

For online make-ups:

http://www.rotary.org/newsroom/downloadcenter/pdfs/eclub_list.pdf

Visit www.rotary6990.org to find a club to make up an absence.
Attendance credit for a 30-minute interactive club Web site activity offers an alternative to making up a meeting at another club. To earn this credit, Rotarians log on to the site, read up on a range of subjects, post comments, & submit a form to the club secretary.

For make-ups anywhere around the world when traveling internationally: http://rotary.org/support/clubs/index.html

NOTIFY DOREEN REITNAUER, SECRETARY, OF ALL MAKE-UPS:   dhiker217@aol.com

Programming Chair 2007-08:  Roy Gonas
Members responsible for programming by month:
December – Bill
January – open
February – Wendy
March – Otto
April – Ann
May – Ed

2007-08 RCSM OFFICERS

To send an E-mail to the Rotary Club of South Miami’s Board of Directors, board@southmiamirotary.org

South Miami Rotary Club:
www.southmiamirotary.org

Rotary District 6990:
www.rotary6990.org

World Organization:
www.rotary.org

Mission Statement

THE 4-WAY TEST OF THE THINGS WE THINK, SAY OR DO:       

• Become connected to your community.
• Work with others in addressing community needs.
• Interact with other professionals in your community;
  assist with RI's international humanitarian service efforts.
• Establish contacts with an international network of professionals.
• Develop leadership skills, Involve family in promoting service efforts.

Renewing or Joining
To Renew ($250) or to become a New Member ($300) contact
Asaad Massoud, at www.racharters.com

Fundraisers
Interested in putting together a fundraiser? Contact Club Service Chair Linda Kaplan at lindakaplan@lk.com

President Elect & December’s Programming Chair Bill Enright introduced…  

Robert Gallaher, President

Gallaher & Birch, Inc., Real Estate Appraisers and Consultants  

7400 S.W. 50th Terrace, Suite 201
Miami, Florida 33155
305-663-1140 / Fax: 305-663-1130
http://gallaherandbirch.com/

Our speaker’s beloved daughter moved to Australia after a Rotary scholarship sent her there to study and she met her husband.   This took her too far from home for his happiness.  Now that she’s moved, with his two grandchildren to CT, he is pro-Rotary. J

Robert’s talk will focus on real estate markets in major sectors in Dade County and what’s been the talk in the medias’ headlines.

1)  Residential market – these dramatic changes effect the most amount of people.

The condo market is in the toilet because 26,600 units were planned for just Brickell, Downtown and Omni all to come onto market at the same time.  Most were bought with no intention for the owner to move in. They were purchased to flip for resale.  This was happening multiple times prior to the buildings’ opening. 

Developers put clauses in contracts to try to stop this practice.  The market is currently overloaded.

2)  Subprime lending fiasco occurred due to human nature.  Two parties arrange in financing – lenders get paid a percentage for getting the money out.  Acquiring money became easier and easier. 

Appraisers get blamed since they are tge only party not in the transaction.  Bankers, brokers and buyer and seller all have financial interest in the transaction.  Appraiser got a nominal fee – since they were the outsider they get the fingers pointed at them for the deal. 

Appraisers feel the pressure to help get the real estate deal to work out.  This has now created a lot more foreclosures when the teaser rates go real.

~ The homes priced an average of $400,000-600000 are getting impacted the worst. 
~ Lower price end housing will retain their values – under $300,000
~ Over $3million – rich don’t care about the price

South Dade development allows up to 6 units per acre versus the  1 unit per 5 acres in the Redlands.  Builders have been focusing on developing the  south parts of the county with again housing has been bought with no intention to be lived in.

As of today, there are 1,500 houses available East of US1 in Homestead.  It’s endemic of today’s real estate market – driving down the turnpike 1 out of 3 housing are not occupied. 

This will correct quickly due to our currency been so weak on the world market.  It is  .60 cents on the dollar for Europeans.  More people want to come to S. Florida.  However, we’ll see price declines, and  folks who cannot find a buyer or renter will drop prices and get low quality renters. 

This makes these developments turn into Work Force housing that brings in low quality / qualifying tenants. 

3)  Retail shops – lots of national retailers want to locate in S. Dade US-1 corridor.  S. Dade is under-retailed as there is no opportunity to build more.

4)  Office space – all $ going into residential.  The conversion of office buildings to condos trend was not profitable.  Law firms, for example, have partners that come and go so their needs grow and contract.  It is easier for a law firm to have a lease and  not an equity position in an office space.  There’s a tight supply of rental space.  The media stated 3-4% vacancies in Dade.  However, his own research showed that S. Dade has a .4% vacancy especially with medical space. 

~ The offices on Brickell rent for $40 per square foot due to lack of supply.
~ $475.15 avg sq ft to buy a Coral Gables building.
~ Need to rent to provide return $38 per sq foot.
~ Current rental rates $25-$30 per sq. ft

5) Industrial space– there’s currently a nice balance of supply and demand.  There are more areas in Homestead under development – ½ million sq feet being built.

Goulds and Perrine have land opportunities for industrial development

The city of S. Miami will have its industrial pushed out just as Coral Gables’ area became upscale and Miomi Beach’s Purdy Ave’s industrial area was rezoned for higher density.

Downtown Dadeland is a microcosm of what is happening in the entire economy.  Retail and restaurants are doing well.  The intent of this project was to push development to the corridors and to take cars off of the overburdened roads. 

This area may have overreached on the supply with Lennar’s huge complex on Snapper Creek.  It is not badly priced and has location advantages.  The problem with Downtown Dadeland was many construction delays, such as the flood that created a lake and is now a garage that needs a pump for keeping water out. 

January’s election on property taxes must pass with 60% voter affirmation.  He doesn’t think it will pass.  Portability is the biggest piece allowing people to move.  If it passes, the situation will be good for empty nesters who want to downsize.

Due to the current glut of properties on the market and the lack of movement, appraiser in 2008 will be reassessing and downsizing the prices of real estate. 

R congratulates us all for choosing to live in the S. Florida marketplace. 

From the website  http://gallaherandbirch.com/

GALLAHER & BIRCH, INC. is a commercial real estate appraisal and consulting firm serving the south Florida market area.

Our appraisal reports have been used in mortgage lending, eminent domain takings cases, internal corporate decision making and in filings with the Internal Revenue Service.

We have provided real estate consulting services to real estate developers, local governments and religious institutions. 

Click on our sponsor's business cards to visit their website