Every quarter, MSC Commercial brings to you the latest news from commercial real estate in Sarasota, Manatee, and Charlotte county. Read on for in depth look at what’s happening in our region in the first quarter of 2016.
State of the Market: Manatee, Charlotte, & Sarasota Counties
New developments are taking shape throughout the region, and the MSC Commercial Division continues to serve as a go-to resource for land acquisition in Manatee, Sarasota and Charlotte Counties. Michael Saunders & Company is excited to have the opportunity to work with The Kolter Group again while securing the prime downtown Sarasota location for its latest urban development, The Mark. This 157-residence condominium is to be built at Lemon Avenue and State Street, along with 50,000 square feet of ground floor retail and office space. This will include “The Promenade,” an interactive alfresco shopping and dining experience.
The Mark, coming soon to downtown Sarasota.
Michael Saunders New Homes & Condominiums
The MSC Commercial Division works closely with clients to secure the right location and land for exceptional new developments. The MSC New Homes & Condominiums Division takes over from there, putting to work dynamic strategies that bring these exciting communities to the market. Communities represented as of March 2016:
Regional Trends & Reports
A General Outlook
- Locally we face similar economic headwinds as the rest of US. However, we have a few that directly affect us.
- With already compressed cap rates, any raise in interest rates could temporarily slow growth as the spread tightens.
- There is abundant new construction activity on the Gulf Coast, with many new multi-family, condo, retail and hotel developments coming out of the ground. Anytime you have this much activity there is an air of excitement, however, there is also a cautious eye on the absorption rates.
- Increased activity means we are starting to see a widening gap in spreads between seller and buyer valuations for properties. While
prices have risen, there are still the underlying fundamentals in every transaction that dictate price. - In 2015 we had near boom time highs in new housing starts, especially in Manatee County. The difference this time around
is that the population growth seems to be keeping up with the housing starts. That bodes well for commercial real estate in our market. - Aging assets and a lack of quality space have slightly pushed down office rental rates and we saw a slight increase in vacancies toward the end of the year. We expect the new office projects as well as some substantial remodels to help push prices north as well as lessen vacancies.
- Overall we expect another strong year in 2016, with a few headwinds to keep an eye on.
Bradenton
- The K Center office park is filling up rapidly, with a new lease nearly once every month.
- Sales are happening more frequently than leases, with office space moving unusually slow for the first quarter.
- A $435,000 land property just went under contract for potential hotel development.
- 2424 office building is now at 95% occupancy.
- A potential long term major lease is pending at the Starbucks building on 59th, for the entire remaining vacant square footage.
- 7.25 acres in East Manatee went under contract for roughly $400,000.
South Sarasota & Charlotte County
- After years of silence, new retail developments are commencing construction throughout South Sarasota and into Charlotte
County. - At the southwest corner of I-75 and Jacaranda Drive Dunkin Donuts is under construction with an opening which will just
miss the seasonal crowd. - Wawa will soon be a neighbor to Dunkin Donuts, and ears are being kept close to the ground for prospective leasing activity on
the long proposed power center approved on the same corridor. - Within this same trade area may soon come the sound of frying chicken as a variety of national and regional quick service
restaurants (QSR’s) are known to be seeking locations. - Further north on Tamiami Trail, in Nokomis and Osprey; retail, restaurant and service businesses are expanding due to
the success of their existing locations. Long dormant Bay Street - Town Center will soon have a new European style pastry and espresso store opening, while Shear Paradise is doubling the
size of their salon services with the acquisition of the former Colonial bank building. - Aldi has opened a location in North Port and is under construction with another location in Port Charlotte. Not to be outdone, several value and organic grocery operation are on the search for locations within the same markets.
- Driving the attention in South County is spillover from tenants who have found recent success in Sarasota and seek in-fill locations to capture greater market share. The rapid expansion of home building along Tamiami Trail, between Jacaranda and River Road, further whets the appetites of developers and tenants.
- Valuation of property, especially existing retail uses, is climbing and becoming more competitive with a litany of national
investors now having targeted the area for acquisitions.
Lakewood Ranch
- University Town Center continues to thrive.
- Two additional Benderson out parcels are being developed and leased out. Daily Eats, Fresh Kitchen and Tom and Chee are newly opened.
- Lakewood Ranch is growing. Only one retail store is available with Nancy’s Bar-B-Que and Craft Growlers To go & Tasting Room newly opened.
- Lakewood Ranch is planning its Life Science Center.
- New home developments in Manatee are at varying stages.
- The University interchange construction is in full swing with Lorraine and Lakewood Ranch Blvd extensions expected in the
2nd quarter, 2017.
Visit our website to learn more about our MSC Commercial Real Estate Team. Read the Commercial Quarterly on Issuu:
What developments are you most excited about seeing? Comment below with your thoughts.