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By Gary Tasman The scaffolding has been removed from the new air traffic control tower at Southwest Florida International Airport (RSW), serving as a visual reminder of the rapid growth and transformation of our region. The travel and tourism industry has long been Southwest Florida’s major economic driver. While travel trends are still slow in other parts of the country, travel to our area has never been more popular—and its impact on our commercial property market is substantial. According to the Lee County Port Authority, more than 814,000 passengers traveled through RSW in July—an increase of 42% over July 2019 and a jump of 218% over last year. To accommodate our region’s popularity as a travel destination, the airport itself is expanding. In addition to the new control tower, plans are underway for a four-story terminal building expansion and other support structures. And just this week, RSW hosted a job fair for more than 200 positions at multiple companies located within the airport. Modifications to the airport itself are only a small part of the changing landscape around RSW, however. Construction crews have become a common site in the airport vicinity over recent years, in particular along Three Oaks Parkway near Alico Road. Commuters on I-75 have watched a series of new buildings rise on the horizon just west of the interstate, including the new NeoGenomics world headquarters, Scottlynn USA’s North American headquarters, and a new corporate office and surgery center for Frantz EyeCare. The Alico Road corridor between I-75 and US-41 has a staggering number of commercial building projects currently in planning, permitting, and construction. Many of these are large commercial developments like Three Oaks Marketplace, a 400,000 square foot commercial/industrial mixed use planned development on Alico Road. An assortment of other industrial and commercial parks and distribution and logistics centers are planned for this area, including a planned 278,000 square foot Amazon last-mile distribution center with 78 loading docks. Along Daniels Parkway and the north side of Southwest Florida International Airport is the new Skyplex, a 1,150 acre development area that is becoming home to office buildings, industrial warehouses, corporate headquarters, retail, restaurants, and aviation-related industries. With close proximity to workers from Fort Myers, Gateway and Lehigh Acres, it’s no surprise that large local employers like Gartner Inc. and Alta Resources have pounced on Skyplex as a location for their new facilities. Other parcels near the airport display a diverse array of future purposes. A Porsche dealership has joined its neighbors Audi of Fort Myers and Rockstar Harley Davidson near I-75 and Daniels Parkway. Best Home Services plans a 62,000 square foot headquarters off of Three Oaks Parkway. South of the Airport, the proposed Florida Gulf Coast Technology and Research Park will boast nearly 5 million square feet of retail, commercial, and industrial space. More planned residential units are coming as well, including Esplanade Lake Club and Wildblue off Alico Road as well as Timber Creek near Daniels Parkway. Perhaps the most surprising thing about the development near RSW is the relative dearth of hotel properties near the airport. Most major airports are surrounded by hotels, perfect for weary business travelers. With large businesses now setting up camp near RSW, our region will need more inland hotels with proximity to the airport and major employers. We’ve already begun to see a small shift in this direction. This summer, Home2 Suites by Hilton opened a 123-suite hotel near Terminal Access Road and Ben Hill Griffin Parkway. Further to the south, the Florida Gulf Coast Technology and Research Park proposes to develop up to 240 hotel/motel units, and on the other side of the interstate, the Avid Hotel plans to provide130 rooms at the Three Oaks Marketplace. On the heels of all this development, we should anticipate a future hotel and conference center near the airport, which would cement Southwest Florida’s transformation from tourist destination to commercial hub. Currently, the region’s convention business is limited to beachside resorts and downtown conference centers. With plentiful retail and restaurants at nearby Gulf Coast Town Center and Miromar Outlets, a full-size conference hotel near the airport is a likely prospect for the future. Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL) has the knowledge, data, and resources to stay abreast of current commercial real estate trends in our region. Whether it’s time for you to sell, buy, or you’re just considering your options in our current market, the commercial property experts at CPSWFL are able to assist you with determining your best strategy for the future. Contact us by calling 239-489-3600 or contact-us.

By Gary Tasman When Hurricane Charley decimated parts of Charlotte County in 2004, it took years for the community to recover, but ultimately led to an evolution of downtown Punta Gorda. But while Punta Gorda has undergone a significant and noticeable revitalization, development across the river in Port Charlotte has progressed less dramatically. That changed in late 2018, when Allegiant Air broke ground on its Sunseeker Resort Charlotte Harbor along the north bank of the Peace River. Although construction on the resort was stalled for 17 months, the continued sight of six large construction cranes that remained on site buoyed hopes that it would return to activity. As of August, crews have now resumed the work of building the partially-constructed project. Changing the Landscape of Charlotte County Development news in Charlotte County often takes a back seat to neighboring Sarasota and Lee Counties, but Sunseeker Resort will change the face of Port Charlotte—and not just its skyline. The $510 million project will also make a significant economic impact to a region that has been rapidly growing, albeit under the radar. In the last decade, Charlotte County experienced a 26% increase in net migration—or the number of people moving to the county minus the number of people who moved away. And while Charlotte has a reputation for having one of our nation’s oldest populations, much of its recent population boom has been working age. Net migration among employed individuals increased by nearly 20% in Charlotte County over that same time period. Babcock Ranch The most heralded recent growth in the region is in Babcock Ranch, where the county has issued 1,433 single family permits in the last five years. The community, which has made headlines for being the first and only solar-powered community in the U.S., will eventually be home to more than 50,000 residents, including young families and working-age adults who commute to nearby Port Charlotte, Punta Gorda, and Fort Myers. Although much of the land near Babcock is natural preserve, transportation corridors in these areas will likely see future development as commuter traffic to and from Babcock increases. Punta Gorda Airport (PGD) Another area experiencing rapid development is the Punta Gorda Airport (PGD), which has grown exponentially over the last decade, from a passenger count of 182,423 in 2010 to 1.19 million passengers in 2020. The airport is currently in the midst of a $12 million runway rehabilitation project, as well as development of its airport aviation expansion area, which will include a new General Aviation Center. Later this year, Allegiant will be joined at PGD by Sun Country airlines. Not surprisingly, commercial development near the airport is springing up quickly. A North Carolina developer has received approval to build a 250,950 s.f. distribution center convenient to both I-75 and PGD. While the tenant has not been revealed, the developer has built five similar buildings in Florida which are all FedEx distribution centers. Although large, the facility would be about 174,000 s.f. smaller than the nearby Cheney Brothers distribution facility that opened in 2015 and expanded in 2020. Murdock Circle and Murdock Village A third rapidly growing area in the region is the Murdock Circle area. East of Murdock Circle, a flurry of construction is planned on Quesada Ave., Peachland Blvd., and Cochran Blvd., including a 103,000 s.f. BJ’s Wholesale Club. West of Murdock Circle lies the Murdock Village Community Redevelopment Area (CRA), future home to the Arredondo Pointe development. Arredondo Pointe will include commercial, restaurant, retail, lodging, cultural spaces, and a 45-acre water park. Also in the CRA is West Port, a mixed-use community currently under construction with more than 2,400 residential units planned. Sunseeker Resort Charlotte Harbor While each of the above areas will have a substantial effect on the county, Sunseeker will likely have the most significant economic impact to the region since Hurricane Charley. The finished resort is expected to hold 500 guest rooms and 180 extended-stay suites, as well as 55,000 square feet of conference and meeting space, nearly 20 restaurants and bars, and retail outlets. In total, the resort is expected to employ 1,150 staffers, which would make Sunseeker the third- largest employer in the county when it opens as early as 2023. As job opportunities in Charlotte County continue to grow, the subsequent domino effect will impact all types of development in the region. Employees will move to the area, sparking a need for more housing. As the population grows, so will commercial needs for retailers, restaurants, entertainment, health care, and other services. In total, Allegiant estimates the resort will bring an economic impact of $1 billion over the course of ten years and increase tourism to the area by as much as 300,000 visitors a year. It’s been 17 years since Hurricane Charley changed the face of Charlotte County, and by 2023, we can expect to see the impact of the next wave of development in Charlotte. Are you prepared to grow with Charlotte County? To learn more about how the Commercial Property Experts at Cushman & Wakefield | Commercial Property Southwest Florida can assist you in your property investment strategy, call us at 239-489-3600 or by contact-us.

By Gary Tasman Property values are soaring, and interest rates are at near record lows. It’s no wonder many commercial property owners are considering selling their assets to take advantage of one of the strongest sellers’ markets in recent history. Much like preparing to sell a home, commercial properties need to be appealing to potential buyers. But unlike your home, which might be improved significantly with some simple landscaping and a fresh coat of paint, commercial properties need more than just a physical facelift. They also need fiscal preparation. Physical Preparation for the Sale On the physical side, sellers often focus on the interior of their building and forget to pay attention to a buyer’s true first impression: the parking lot. Fresh striping, neatly placed curb stops, and a pothole-free parking area are some of the most important details that are overlooked by commercial sellers. Although few commercial sellers would consider their roof part of a first impression, today’s buyers conduct their own research online, which includes looking at aerial imaging via Google Earth and other apps. Sellers need to check these services to see the condition of their roof when the most recent satellite images were taken. If a roof was in poor condition at the time of the image, special attention should be given to improvement to convince sellers that the needed repairs have been made. Major cosmetic changes aren’t necessarily essential when preparing a building’s interior for sale. Many buyers will want to change an interior layout or design after purchase and are ready to absorb that expense. Some issues, however, are important to repair. Obvious water damage or cracked flooring, for example, might lead a prospective buyer to believe that a building has significant structural damage. Fiscal Preparation for the Sale While presenting a physically appealing building is important, offering a fiscally appealing investment is absolutely vital to selling your commercial property. Smart investors are aware that it’s easier to cure deferred maintenance issues than it is to cure financial issues. Buyers will look closely at financial documents and pay close attention to the property’s income and expenses before making the decision to buy. For a potential purchaser, a steady income stream is likely to be a top priority. A property with high quality tenants committed to a lengthy lease translates into a predictable income stream. Owners should think strategically before making the decision to sell and shore up their lease terms with tenants before listing a property on the market. While the financial documents related to the property’s income are important, buyers may also want to see the financial documents of the tenants currently housed in the commercial property. Potential purchasers will want to see strong and organized financial documents for a facility’s tenants, including the tenant’s income stream through multiple business cycles and even personal financial data on the tenants. This data will provide peace of mind that the property will produce income over the long term. Smart buyers will also be inquisitive about a property’s expenses. These expenses can fall into two categories: controllable and noncontrollable. Some operating expenses are completely unavoidable. Property taxes, insurance and utilities represent noncontrollable expenses. While insurance rates can be negotiated and utility payments may fluctuate slightly, these expenses are fairly consistent and necessary costs. While noncontrollable expenses are a concern for any investor, a seller’s attention to controllable expenses will definitely make a property more marketable. A building without costly upcoming maintenance expenses will be more appealing to buyers. Additionally, features like recent capital improvements designed to produce long-term savings will be appreciated by prospective purchasers, especially if the improvement eliminates a costly monthly lease. Replacing a leased HVAC with a new system or removing troublesome trees that require constant maintenance would be appreciated by potential buyers. The first step in preparing your property for the market is to consult with an experienced commercial real estate professional. The expert team at Cushman & Wakefield | Commercial Property Southwest Florida is prepared to evaluate your property and guide you to decisions that will properly position your commercial real estate as you prepare to sell.  Contact us at 239-489-3600 or by contact-us.