THE EFFECT OF HIGHER GAS PRICES

Last week's national GlobeSt.com Quick Poll asked readers if rising gas prices are effecting the way business is done in the commercial real estate sector. 83% of respondents said fuel costs are changing the way we do business. Jose I. Juncadella, principal of Coral Gables-based commercial brokerage firm Fairchild Partners Inc., spoke with GlobeSt.com about the way rising costs are impacting the South Florida industrial market;

"Operating costs are becoming much higher because of fuel prices. Those dealing with international trade, which is our economic engine here in South Florida, are impacted. Logistics and freight forwarding companies are especially effected. I talk with a lot of users and what we're finding is that many of them have a 'wait and see' attitude. That's why there's low velocity of leasing in South Florida even though rental rates remain stable. People want to see if fuel prices stabilize.

"Air transportation is heavily impacted. One example given to me was from a logistics company taking cargo to the Caribbean. They said the surcharge for fuel is more expensive than the actual cost of the transportation.