Hurricane Ian - Residential Property Taxes

Market Update - NAPLES RETAIL

Retail rents in the Naples market were rising at a 5.9% annual rate during the first quarter of 2023, and have posted an average annual gain of 4.1% over the past three years. In addition to 410,000 SF that has delivered over the past three years (a cumulative inventory expansion of 1.73%), there is 100,000 SF currently underway. Vacancies in the metro were somewhat below the 10-year average as of 2023Q1, and trended slightly down over the past four quarters. Employment in the metro was recently rocketing higher at annual rate of 5.1%, or a gain of about 8,100 jobs.

Naples is a midsized retail metro that had 88 retail sales close over the past 12 months, which was about average for its peer set. That was more of the same for the market, as deal flow kept pace with what was typical over the past five years. Annual sales volume has averaged $265 million over the past five years, and the 12-month high in investment volume hit $524 million over that stretch. In the past 12 months specifically, $371 million worth of retail assets sold. Deals involving general retail steered annual sales volume, accounting for $205 million of the metro's sum in the past 12 months. Market pricing, derived from the estimated price movement of every single retail property in the metro, sat at $319/SF during the first quarter of 2023. That figure is an improvement over this time last year, and the price itself sits way above the average pricing for the overall country. The market cap rate has dropped since last year and currently sits at 5.5%. This is the lowest cap rate that has been seen in Naples during the past five years, and the rate in the metro is structurally lower than those across the country.

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BUSINESS SPOTLIGHT

KOVA Commercial Group was able to successfully assist Carole’s House Café & French Bakery in locating their first location in St. Andrews Plaza Lely, and we are excited for them to be able to open up their second location in North Naples on February 5th..

Carole’s House Café & French Bakery is a contemporary, yet cozy, French café that brings a piece of France to Naples!

From all-day breakfast menus, salads, quiche and croissants, Carole’s House Café & French Bakery offers a variety of delicious options.

We invite you to try out their menu at either location:

Lely

8793 Tamiami Trail E, Naples, FL 34113

North Naples

5620 Strand Boulevard, Naples, FL 34110

Learn more at www.caroleshouse.com or on Instagram

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