The cranes are back. Not the feathered, two-legged variety that are ubiquitous throughout Southwest Florida; but the mammoth construction cranes whose presence on the skyline are highly visible displays of confidence in the region’s commercial real estate market. Several of these cranes are already up and running. More are on the way. A Transformation of the Commercial Landscape Once these giant hoists have completed their jobs, Southwest Florida’s commercial landscape will have undergone a game-changing transformation that adds nearly 1,000 much-needed hotel rooms, close to 1,500 residential condominiums; and well over a quarter of a billion dollars in new construction spending throughout the region. There will be game changing retail centers as well, with the most anticipated being the Mall at University Town Center, one of only two enclosed malls of major size and scope under construction in the entire U.S. Moreover, the financial commitment its developer has made to the region has prompted many of the nation’s premier luxury retailers to eagerly follow suit. VUE Sarasota Bay Another game-changer is set for downtown Sarasota’s bay front. VUE Sarasota Bay, for which ground will soon be broken, is already being hailed as an iconic representation of Sarasota’s history as an important laboratory for mid-century modern architecture. The 18-story condominium—which will be paired with a new Westin Hotel—has been designed to capture the spirit of The Sarasota School of Architecture; and been praised for its faithfulness to the major design principals of the genre, which is indigenous to our region and studied by architectural students the world over.
Rendering of VUE Sarasota Bay
Commercial projects of this size and scope are never the result of hasty or capricious business decisions. The national hotel, restaurant and retail chains that are racing to plant their luxury brands in the region employ sophisticated real estate and marketing teams to routinely conduct extensive research—including demographic, traffic and land-use studies—to determine which U.S. markets will best enable their brands to thrive. Southwest Florida Consumer Trends Saks Fifth Avenue is a good example of a retailer who acts aggressively on shifting consumer trends. The luxury chain’s decision to completely shutter its Tampa store, while doubling the size of its Sarasota operation, is indicative of a noteworthy migration of wealth into the southernmost reaches of the Tampa Bay area. The new Saks that will debut this fall with the new mall is now the retailer’s only Gulf Coast location north of Ft. Myers; and is twice its size. A Magnet for Tourism This massive influx of commercial activity is a watershed moment for Southwest Florida. Its cumulative effect greatly advances the region’s economic goals by increasing new business activity, productivity, employment, property values, investment and tax revenues. It also boosts our level of economic competiveness vis-à-vis other Florida communities. Combined with the region’s solid reputation as Florida’s cultural capital—and its emerging profile as a state-of-the-art venue for many international sporting events—our evolving commercial landscape is poised to become yet another magnet for tourism dollars, as people from outside the region make dedicated trips here to shop, dine, stay overnight and avail themselves of other local amenities. Tourism growth typically stokes increased demand for both residential and commercial properties; as newcomers to the region often arrive with their businesses in tow. New businesses create new jobs; and thus perpetuate the cycle of prosperity. In ancient mythology, cranes of the feathered, two-legged variety were often thought to symbolize good fortune. Here, the construction crane is more than a symbol. It’s a very real sign of confidence in our market. Fortunately Southwest Florida has an abundance of both types of cranes. Is there a particular project coming to Southwest Florida that excites you? Let us know in the comments!
