Dear Friends and Clients,
After a tumultuous ten months, it feels like we're finally seeing the light at the end of the pandemic tunnel. As more people get vaccinated and begin returning to our normal activities, commercial property will reap the benefits of pent-up demand that has been building since spring of 2020.
As our MarketBeats reports below show, the commercial property market has essentially rebounded to our pre-COVID levels. The office market is particularly competitive right now. As more folks move to Southwest Florida, we expect this trend to continue. I have great optimism for 2021, and I hope after reading the insights below, you'll share that sentiment with me.
Sincerely,
Gary Tasman
CEO & Principal Broker
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Navigating the Southwest Florida commercial real estate market and the economic indicators affecting its performance can be a challenging task. Cushman & Wakefield | Commercial Property Southwest Florida offers quarterly MarketBeat reports to help you stay ahead of the real estate curve. |
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OFFICE Q4 2020
Southwest Florida unemployment is lower than the national average-- which is one reason why office vacancy rates are a low 5.8%, slightly more scares than even in Q3. The scarcity of office space means that asking rents are climbing. The average asking rent in Southwest Florida is now $17.98 per square foot, and is approaching $23 psf in the Naples submarket.
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INDUSTRIAL Q4 2020
Distribution and warehouse leasing continued to lead the way in Southwest Florida in Q4 2020. This sector had the highest amount of leasing activity of all asset classes in the quarter.
The rise in e-commerce since the start of the pandemic has led to improvements in asking rents. Collier County has shown the highest increase-- just over $2.00 per square foot.
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RETAIL Q4 2020
Optimism is high in the retail asset class for 2021, as our region's economy continues to recover from the pandemic. Southwest Florida retail saw a 20.3% surge in leasing in the second half of 2020, compared to the first six months of the year. Despite a relatively low supply of available retail space, tenants and landlords are still hesitant to push asking rents, but this trend will likely change as Southwest Florida continues its road to economic recovery.
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GARY TASMAN TALKS RESTAURANT BUSINESS IN THE NEWS-PRESS
When the Fort Myers News-Press wanted to understand new restaurant trends in Southwest Florida, they turned to Cushman & Wakefield's Gary Tasman.
Locally-owned, independent restaurants are popping up across the region, even while in the midst of a pandemic. Gary Tasman gives his perspective in the Jan. 20 article.
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RATIONAL COMMERCIAL GROWTH IN SWFL
More than 100 years ago, Thomas Edison, famously said “There is only one Fort Myers, and 90 million people are going to find it out.” Ever since, Southwest Florida has struggled with its own success, perpetually playing catch-up to build infrastructure and provide jobs for residents who continue to move here in droves. But after a century, development in our market is finally becoming more rational.
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WHAT'S NEXT: EP. 11
2020 YEAR IN REVIEW
2020 was a challenging year for all of us, but there’s reason to be optimistic about the future of commercial real estate in our region.
As 2020 drew to a close to a close, Southwest Florida’s housing market was booming– and that’s good news for commercial property owners who are poised to take advantage of a chain reaction.
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WHAT TO WATCH: NINE SIGNS OF RECOVERY IN COMMERCIAL REAL ESTATE
After months of an unrelenting global health crisis, ongoing uncertainty, economic damage and disruptions, the reality of an effective vaccine has sparked hopes for 2021 and speculation about recovery.
While pinpointing the timing of local recoveries may not be possible, Cushman & Wakefield Research has identified nine signs to watch—signals that could indicate the CRE market and the economy in cities across the globe are transitioning to a recovery phase.
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MILLENNIALS AND COVID-19: THE UNLUCKY GENERATION
Millennials have been more affected by the pandemic than other generations. Having attended school during the Dot.com crash, they came of age during the Great Financial Crisis, and now find themselves enduring the worst recession in a century at a time when they are trying to build their careers, as well as focus on their personal lives.
In this article, Cushman & Wakefield’s Global Head of Demographic Insights shares insights into why Millennials have been dubbed “the unlucky generation.”
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WORKPLACE ECOSYSTEMS OF THE FUTURE
The workplace is changing. The pandemic-induced work from home experiment has altered perspectives on work, flexibility and the office. Cushman & Wakefield partnered with top researchers from George Washington University to explore potential outcomes for the future of office.
In this report, we examine what the office will look like in a post-COVID-19 world by exploring investor, occupier and placemaker feedback and analyzing historical work from home (WFH) penetration rates.
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Gretchen Smith joined the Cushman & Wakefield | Commercial Property Southwest Florida brokerage team in May 2015. She has more than 14 years of experience in real estate, and for the last five years, has focused on commercial property.
Gretchen is skilled in market analysis for residential real estate, residential property management, residential foreclosures, broker price opinions, commercial market research, demographic analysis and site selections.
As part of our Office and Retail Team at CPSWFL. Gretchen specializes in tenant and landlord representation. She's passionate about business development and the growth of Fort Myers, and has comprehensive experience developing and maintaining relationships with small businesses, large corporations, institutional clients and national retailers.
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Cushman & Wakefield Supports Pace Center for Girls |
The professionals at Cushman & Wakefield | Commercial Property SWFL are committed to making an impact by helping young people follow a positive path. One of the local nonprofits we're passionate about supporting is Pace Center for Girls- Lee.
The Pace Center's mission is to provide girls and young women an opportunity for a better future through education, counseling, training, and advocacy. For more information about CPSWFL's charitable initiatives, visit our website.
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TOP LISTINGS AND CLOSED DEALS – Q4 |
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FEATURED LISTING
Available for lease: 8,000 square foot second-floor office space with close proximity to I-75 in a rapidly-growing section of Naples. Waterfront property with security system, covered parking garage and surface parking available. Landlord is willing to demise. $19.00/s.f. base rate.
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SALES
Sold on Dec. 11, 2020 - BA Acquisitions, LLC purchased a 57,600 SF property at 8391 Littleton Rd., North Fort Myers, for $3,100,000. (Gary Tasman and Shawn Stoneburner represented the seller and the buyer in negotiating the transaction)
Sold on Dec. 30, 2020 - Inge & Associates, Inc purchased 88.85 acres at 7700 & 7750 Bayshore Rd. in North Fort Myers, for $2,350,000. (Gary Tasman and Lane Boy represented the seller in the transaction)
Sold on Oct. 14, 2020 - TT of Daniels, Inc purchased 5.3 acres at 13770 Jetport Commerce Pkwy. in Fort Myers, for $1,100,000. (Gary Tasman and Shawn Stoneburner represented the seller in the transaction)
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LEASING
Stifel, Nicolaus & Co, Inc. leased 6,283 square feet of office space for a term of 61 months at 3777 Tamiami Trl, Unit #300, Naples from The Trianon Centre Land Trust. (Gary Tasman and Shawn Stoneburner represented the tenant in negotiating the transaction)
Otis Elevator Company leased 6,000 square feet of industrial/flex space for a term of 2 years at 12730 Commonwealth Dr, Unit 4-5, Fort Myers from Westlinks Gateway, LLC. (Gary Tasman and Shawn Stoneburner represented the tenant in negotiating the transaction)
70920 Ventures, LLC leased 5,909 square feet of medical office space for a term of 10 years at 3400 Lee Blvd., Suites 108-111, Lehigh Acres from Ironcrest Lehigh Acres, LLC. (Gary Tasman and Gretchen Smith represented the landlord in negotiating the transaction)
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NEW LISTING ASSIGNMENTS
8359 Stringfellow Rd, St.- James City, FL 33956 - Gary Tasman and Gretchen Smith are leasing 1-2 units of office/medical office space (997-1997 sf) with frontage on Stringfellow Rd. Building has ample parking and renovations, including kitchenette, in progress. $13.50/SF gross.
23 Barkley Cir. - Fort Myers, FL 33907 - Gary Tasman and John Albion are offering a vacant medical/professional office property consisting of 5,685 SF for sale and build-to-suit or lease. Zoned P1 for $850,000 or $30/SF
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