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The complete takeover of the Miami Dolphins will likely occur quickly, as owner H. Wayne Huizenga's agreement with prospective new partner Stephen Ross includes provisions that give both men the right to call for the sale in the next two years, according to a source familiar with the deal.

When that happens, Related Group Chairman and CEO Jorge Perez, who leads South Florida's largest condo builder, indicates he may end up with a minority stake in the team. Huizenga announced on February 22nd that Ross would buy 50 percent of the team and Dolphin Stadium, though Huizenga would remain majority partner. Both were coy about when Ross might fully take over. Huizenga in January promised Bill Parcells , the team’s new executive VP of football operations, that the owner would stay in charge during Parcells' four-year contract. Huizenga, however, has a "put" option as soon as within one year of the Ross deal closing, meaning the owner could require his partner to take over then, the source said. Within two years, Ross has his own option to take over as general partner.

While the Dolphins and Ross, 67, will not discuss the timing or their reasons for the sale's timetable, one factor behind an accelerated turnover might be the pending increase in the federal capital gains tax. In fact, there could be a flurry of minority – and even majority – partnership sales in all sports – not just football – to take advantage of the lower rate before it expires. "A lot of people are worried about the capital gains tax going up," sports investment banker Sal Galatioto said. "The short-dated option [in the Dolphins deal] may have something to do with the capital gains tax."

In 2003, the capital gains tax dropped to 15 percent from 20 percent. The rate reverts back to 20 percent after 2010, when the tax legislation expires, and many investors fear a Democratic president next year could further increase it right away. Democratic presidential candidate Sen. Barack Obama has proposed raising it to 28 percent. "Nobody really knows what the rate will be, arguably because we will have a different Congress [and president]," said Mike Kessel, a partner with a specialty in tax issues at Herrick, Feinstein LLP. "People are cashing in now."

The difference for Huizenga and his estate is significant. He ultimately acquired the team and stadium for $125 million in 1994, after owning part of it since 1990. The Ross deal valued the two assets today at $1.1 billion, minus debt.

By way of example, assuming $200 million of debt, the Dolphins deal would still be a $900 million cash deal. If the next half of the team sold at a 20 percent rate, the tax on that part would be $77.5 million, instead of $58.1 million today. If the rate went higher than 20 percent, the spread would be even greater. League owners still need to approve Ross' proposed 50 percent purchase.

The washout in South Florida housing will splash into the office market this year, eroding tenant demand and overshadowing rent growth and vacancy rates, according to a forecast by Marcus & Millichap Real Estate Investment Services.

The challenges caused national rankings for all three South Florida counties to tumble in the Encino, Calif.-based brokerage’s 2008 National Office Property Index. The index scores growth prospects this year for 43 metropolitan areas by using employment indicators, new construction, corporate demand, rental strength and vacancy.

Palm Beach County took the biggest hit in South Florida – and the nation – falling 12 spots to 31st overall. Miami-Dade County fell six spots, to 23rd, and Broward County fell seven places, to 17th. “Any market that is heavily influenced by mortgage companies, construction and the housing industry are going to be seeing a decline,” said Alan Pontius, managing director of Marcus & Millichap’s National Office and Industrial Properties Group. “We don’t see South Florida improving in 2008 and, in fact, we see South Florida as having some fundamental declines in 2008.”

Seattle took the top spot on the index due to its limited exposure to the housing crash and strength in high-tech job growth, Pontius said. But the broader economic downturn is squeezing office properties nationwide, he said. “Demand fall-off is a national issue,” Pontius said. “This does not compromise a generally bullish outlook over the long term. The trough, I think, will be somewhat short-lived.” But in the near term, sluggish demand, rising sublets from downsizing or closing companies and new construction deliveries are undermining South Florida’s office market. There is no question about it: You are getting vacancies in the office sector and no one is expanding,” said Douglas Mandel, associate VP of investments in Marcus & Millichap’s Fort Lauderdale office. “Title companies, mortgage brokers, real estate brokerages and any of those companies directly tied to the housing boom are going out of business.” Mandel said experienced office operators would likely ride out stormy leasing seas. “There is a shakeout,” he said. “The inexperienced operators are going to continue to struggle.”

Vacancy rates are forecast to rise 100 basis points in Miami-Dade, to 9.7 percent this year; 140 points in Broward, to 12.4 percent; and 120 points in Palm Beach County, to 12.6 percent, according to the report. New construction deliveries also will begin kicking into to gear this year across the region.

In Miami-Dade, 600,000 square feet of new rental offices and 1 million square feet of office condos are poised to open this year, the report said. In Broward, 1.1 million square feet of offices will be completed and 1 million square feet will open in Palm Beach County, the report said. After years as a landlord’s market, competition to snag tenants could spur rent concessions in softer submarkets, Mandel said.

From whether a receptionist can keep her Smith & Wesson revolver in her Honda to who gets to hear tax appraisal protests, this year’s legislative session will have a little something for most every business owner. The first two weeks will be devoted to cutting $500 million from the existing budget. But that won’t stop the session’s hot issues from sifting through committees. Here is a preview of legislation that is expected to have the biggest impact on Florida businesses:

Gun lobbyists will attempt for the third time to pass legislation allowing employees to bring their guns to work, with this push – like the last – limiting them to the parking lot. Employers would be fined if they prohibit employees from keeping guns in their locked vehicles while at work.

This one could go either way, considering similar legislation was ready to hit the Florida Senate floor before being voted down by a group of committees in the Florida House of Representatives.

Instead of businesses appealing property appraisals to a value adjustment board – consisting of a property tax appraiser, tax collector and school board member – they would go in front of a magistrate. There is also a push to change the level of proof needed by businesses to get the appraisal overturned. Debate: Advocates of reform say board members’ interests are naturally inclined against reducing appraisals. Opponents claim board members know the issues and are best skilled at judging the tax impact on the community.

Passage. Considering how Gov. Charlie Crist’s property tax relief push was of little or no relief to companies, business lobbyists are pushing hard for some real satisfaction.

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