Arsenal courted Suarez all summer as they looked to add to their attacking options, but Liverpool rebuffed their attempts to lure the Uruguayan away from Anfield.
Cazorla is a big admirer of Suarez and felt he would have been a perfect addition to Arsene Wenger's side, but was delighted the club made up for missing out on the forward by splashing out big to land Mesut Ozil from Real Madrid.
"Suarez's incredible. I'd have loved it if he had come; his style would have suited us," Cazorla told The Guardian. "Arsenal did all they could and he wouldn't have minded.
"But Liverpool didn't want to sell, which they're entirely entitled to do, and he's playing incredibly again.
"It's a pity he's not on our team! [Arsenal] saw some doors shut and, when they saw the chance to get Mesut, it was an opportunity to thump a fist on the desk, to make a statement. He's a superb signing. He's brought illusion, optimism and hope."
Cazorla also revealed he felt like a little kid when Arsenal signed Ozil, conceding he was surprised that Real were willing to sell the Germany international.
"I spoke to friends of mine at Madrid who told me that Mesut was talking to Arsenal and that he wanted to leave," added Cazorla.
"You think, 'How are Madrid going to let Mesut get away?' He's one of the best players in the world and the truth is you don't really believe it.
"Then one day the manager said to us, 'We've signed Mesut, he's going for his medical'.
"I was like a little kid.
"I knew that a great player was coming and that because of the way he plays, he was going to be a perfect fit for us."