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By Gary Tasman We’ve all noticed the change—at the supermarket, at the gas pumps, and nearly everywhere else. Whether it’s the cost of your Christmas tree or your New Year’s Eve champagne, prices are significantly higher today than they were just one year ago. In fact, the Consumer Price Index has climbed 6.8% in just the last year, the largest inflationary jump we’ve seen since 1982. Initially, the Federal Reserve had categorized our current economic situation as “transitory inflation.” In other words, a temporary and predicted result of the pandemic and its impact on our economy. In the last month, however, Fed Chairman Jerome Powell has admitted that our current inflation will likely last longer than initially anticipated. With the knowledge that we may need to endure inflation for longer than expected, it’s time to examine how inflation will impact commercial real estate. Real Estate as a Hedge Against Inflation Many investors purchase real estate and other tangible assets to hedge against inflation. While most investments, including stocks, tend to react negatively in inflationary conditions, the value of property reacts proportionally to the inflation rate and appreciates as inflation climbs. In other words, if you have a loan on a commercial property, and have locked in a low interest rate on that loan, the value of your property will continue to rise with inflation, even as your cost remains the same. Knowing the relationship between inflation, costs, and interest rates allows us to make other predictions about the impact of inflation on commercial real estate. The impact of Supply and Demand on Leasing Our economy is influenced by countless factors, including supply and demand. Some of our current inflation has been caused by the supply chain issues that have plagued the globe for well over a year. When materials and products are scarce, prices of those items increase. And when prices increase, typically the cost of labor also escalates. Increasing labor and material costs will force some developers to put the brakes on building new properties. As a result, demand for existing properties will climb, and property owners will be able to raise rental rates. At the same time, we can also expect to see owners offering shorter-term leases. While a shorter term doesn’t offer owners the same stability in occupancy over time, it does provide owners with the opportunity to adjust rental rates more frequently and take advantage of the increased demand for their space. The Impact of Inflation and Interest Rates on Market Share Just as increased costs make it more difficult for developers to build, increasing interest rates will make it more difficult—or at least less advantageous– to borrow money. The Federal Reserve is expected to raise interest rates as many as three times next year and anticipates raising rates at least three more times by the end of 2024. The combination of higher inflation and higher interest rates will not only cause developers to build less, but existing property owners will likely choose to hold on to their assets. In a rapidly developing real estate market, property owners lose market share every time a new building opens its doors. However, when development slows, owners maintain their market share. Again, this will give owners the upper hand when setting rental rates and terms. How long will these conditions last? Just as it has been difficult to predict how long the coronavirus pandemic will last, it is also a challenge to forecast how long our pandemic-influenced economic conditions will prevail. It has become apparent that inflation is not just a transitory blip on our economic radar, and we’ll be dealing with the repercussions of rising prices for at least another year. While some of us who recall the economy in the 1970s are anxious about our current conditions, history is unlikely to repeat itself in another “Great Inflation.” The economic drivers behind our current conditions are different from those in the 1970s, and economists are better prepared to manage inflation than they were 40 to 50 years ago. The Fed will attempt to temper inflation through adjustments in interest rates and reduced bond purchases. However, Fed Chairman Powell has acknowledged that our high consumer prices will continue well into summer 2022, and investment group Goldman Sachs is projecting that inflation will get worse before conditions begin to improve. For those who currently hold commercial real estate and those who are considering adding property to their investment portfolios, our current economy provides opportunity. 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 contact-us.

By Gary Tasman December 2021 marks an unpleasant milestone, as the first cases of COVID-19 were reported to the World Health Organization two years ago this month. While we certainly all feel like we have a clearer picture of the pandemic’s influence than we did when it first reached our country, much of the initial uncertainty we were feeling two years ago remains. This is particularly apparent for business owners, many of whom have struggled to manage the challenges that COVID has created. Keeping customers and employees safe and healthy has required some to realign offices and public areas. Others have transitioned to remote and work-from-home models, either temporarily or long-term. Some of those with less flexibility have installed protective measures like plexiglass barriers, air filtration systems, and even staggered work hours to limit capacity. Even for those businesses who have largely returned to “normal,” a looming question remains: Do we have the right amount of space to conduct our business? While many assume that businesses have scaled down during the pandemic, increased social distancing measures and rearrangement of public and private areas are forcing businesses to assess whether they have enough space in our new normal. Does Your Business Have Enough Space? Are you wondering if your business has outgrown its space? There are a number of signs—beyond the obvious– that may indicate that you are ready to upsize your commercial footprint. People Don’t Want to Meet at the Office/Worksite If you—or your managers—have started scheduling your client meetings off-site, there’s a good chance that you no longer have either the space or the privacy you need. If your conference rooms are always booked, or you’ve found yourself scheduling more lunch meetings or client get-togethers at coffee shops, this is a sign that you may need to grow. Similarly, have you noticed more employees finding reasons they need to work from home instead of reporting to the office? An increase in mid-day doctor’s appointments, car troubles, or “waiting for the cable company” could mean your employees are avoiding a cramped or unpleasant workspace. Your Workplace is Noisy By nature, some businesses are loud. For example, auto repair shops, preschools, dentist offices and restaurants produce a lot of noise. However, every business needs to have a quiet space for both productivity as well as comfort. If you’ve begun to outgrow your space, your noise levels will become less accommodating for both your team and your customers. When a business’ space needs increase, the buffer between the loud and quiet areas of your operation begins to fade. But noise levels aren’t just a factor for these types of business. Even a library can become too loud if it doesn’t have enough space for its staff and patrons. Your Team or Customers are Waiting Are you noticing long queues for the restrooms, break room, parking spaces or other facilities? Every business has its ebbs and flows—but if lines are occurring consistently, it may be time to begin looking for a new facility. While a remodel can alleviate some of a business’ growing pains, it’s difficult to build a new kitchen, restroom, or parking lot without a major capital investment. You’re Repurposing Your Space for Storage or Staff In a sense, many businesses are like goldfish, who will continue growing as long as their fishbowl will allow them to. When your workplace was initially designed, you probably had more storage and working area than you knew what to do with. Over the course of time, however, your space needs change. It’s not unusual for companies to convert small conference rooms and lesser-used hallways to become storage closets or offices—especially when external conditions force us to reassign our working space. While this can be a reasonable temporary accommodation, over the long term it’s a sign that you need to grow into a larger space. Your Building Doesn’t fit Your Brand Consider your company’s public image and the value proposition you offer. Are you customer service-oriented? If so, you need to have clean, spacious, and comfortable public areas. If your company’s persona is distinguished and professional, your facility should reflect that same image with generous, well-appointed offices. Does your business market itself as creative and fun? Then your workplace should reflect that attitude with collaborative and engaging spaces for your team to both work and unwind. Unfortunately, as businesses outgrow their space, they tend to dismiss the features that are part of their brand. If this sounds familiar, it’s time to look for a larger facility that will help you get back to your core brand. Your business cannot truly thrive when you’ve outgrown your space. Whether you own or lease your workplace, the Commercial Property Experts at Cushman & Wakefield | Commercial Property Southwest Florida are ready to help you assess your company’s needs—not just for today, but for the future. Our knowledge of the Southwest Florida commercial real estate market, combined with our actionable research and insights, will prepare your business for 2022 and beyond. Find out how our team can position you for what’s next by calling 239-489-3600 or by contact-us.

By Gary Tasman Although it seems the worst of the COVID-19 pandemic may finally be behind us, its effects continue to change the way we do business. It also continues to create some challenging situations for both commercial property owners and their tenants. Earlier this year, we discussed how force majeure lease clauses are being interpreted in the context of the pandemic. Force majeure is just one of many clauses that are essential for property owners to protect their investments. There are a number of other clauses that are—or at least should be—included in any commercial property lease, and many of them are even more relevant in our “new normal.” Important Commercial Lease Clauses Governing Law Laws can vary quite significantly from state to state, and that includes the laws that interpret leases. Novice commercial property owners may not be aware that a contract can designate which state or jurisdiction’s laws will apply to it. In other words, just because a contract was signed in Florida, it may not be governed by the laws of the State of Florida. As investors from across the country snap up property in our region, they may choose their home state’s statutes, or even U.S. Federal law, to govern potential contract disputes. Property owners need to understand their governing law options and how they vary to ensure they are making the most beneficial choice for their leases. Improvements and Alterations With demand for commercial property at an all-time high in 2021, it’s becoming more difficult for tenants to find a space that meets all of their needs. Many properties will need alterations to make them suitable for the tenants who wish to lease them. A clearly outlined improvements and alterations clause will denote what changes you are willing to make to the space before your tenants move in, who is responsible for the cost of those improvements or alterations, and the terms of payment if applicable. This clause should also outline a tenant’s rights to make changes to their space in the future, and the process for gaining approval to do so. Many businesses have seen changes in their need for space and how they use it because of the pandemic, and tenants will likely appreciate the opportunity to alter their space to fit their needs. However, as an owner in our current market, you have a distinct negotiation advantage. While your prospective tenants may want a number of alterations made to a space, they also understand that you likely have other potential renters who may not have as many needs. Subleasing Subleasing is another clause that is particularly vital in our current environment. As some workplaces downsize their teams or shift staff members to remote employment, they may find that they have more square feet than they need. To remain financially viable while keeping their current location, some tenants may want to sublease a portion of their space to another tenant. The sublease clause outlines not only whether or not this is allowed, but can outline any specific restrictions and create a process for seeking approval to sublet. Rent Escalation Consumer prices have increased more than 6% in the last year, the biggest jump in inflation in three decades. As a lessor, that means it now costs you more to maintain your property. If you don’t have a rent escalation clause in your lease, you are solely responsible for covering those unexpected expenses. Rent escalation clauses outline exactly how and when rent will increase for your tenants. This could be an annual increase of a fixed amount, for example a 2% escalation each year of the lease. However, this clause can also tie rent increases to inflationary indices like the consumer price index. This provides you with an insurance policy of sorts in volatile economic conditions. Merger With competition high for commercial space, many prospective renters are willing to negotiate to acquire the space they want. They may promise or agree to terms that would not typically be included in a boilerplate lease. No matter how formal these arrangements are, the merger clause will override any agreements that are not included in the actual lease document. This clause protects everyone by ensuring that all enforceable agreements between parties are included in one singular document. For novice property owners, it is particularly important to remember to include every agreement with a tenant inside the body of the lease. Tenant Self-Help As a landlord, you hold certain obligations for the maintenance and repair of your property, and  your tenants expect you to perform these duties. When property owners don’t take corrective actions, the tenant self-help clause outlines when renters can take matters into their own hands. Property owners would clearly prefer to have control over the costs of these repairs, but in an emergency, it may be more efficient for tenants to take action. In these cases, the tenant self-help clause will outline which expenses are reimbursable, when repayment should occur, and the situations in which self-help is allowed. Dispute Resolution In the event that you and your tenants have a disagreement about any of the terms of the lease, the dispute resolution clause outlines how to resolve those issues. Often, leases will outline a multi-step approach, beginning with mediation, then progressing to arbitration before resorting to litigation. This type of approach can potentially reduce the cost and time involved with a lawsuit. A related clause, Attorney’s Fees, assigns responsibility for litigation costs.  Typically, this clause will state that the winning party may recover attorney’s fees from the losing party. It can also denote responsibility for other costs like court fees, and even the expenses associated with arbitration or mediation. In many cases, the clauses above are considered “boilerplate” by both inexperienced property owners and renters. However, each of these clauses should be carefully considered and scrutinized when writing and reviewing commercial lease agreements. If commercial leasing or tenant issues are a concern for you, reach out to the professionals at Cushman & Wakefield

By Gary Tasman Nationwide, commercial property is experiencing a significant shift in the makeup of the brick- and-mortar retail market. The COVID-19 pandemic has repeatedly taught us that convenience is king, and although we have somewhat returned to our pre-pandemic routines, online ordering, delivery services, and omni-channel distribution are all continuing to thrive. While some traditional retail shops are downsizing their space or even shifting to digital storefronts to better serve their customers, an interesting class of new retail tenants, called “medtail,” is drawing new customers to shopping centers. While the increased foot traffic is a boon to commercial property owners seeking to fill retail space, this growing class of retail also brings unique challenges to lessors. The Rise of Medical Retail “Medtail,” short for “medical retail,” is a rapidly growing addition to the retail tenant mix. Dermatologists, physical therapists, medical spas, and even imaging services and urgent care centers are now occupying retail space once held by more traditional retailers. Growing consumer expectations for convenience are one source of medtail’s increasing popularity, alongside an aging population with more significant medical needs than previous generations. While much of the nation is just beginning to experience this trend, Southwest Florida has long been a medtail mecca. Thanks to a population 13 years older than the national average, our region is no stranger to these medical-retail hybrids. For landlords, medtail tenants bring foot traffic to shopping centers and variety to a tenant mix. However, healthcare-oriented tenants have specialized needs, and property owners must be prepared to meet the expectations of their medical lessees. Medtail Tenant Needs In many cases, improving a space for a medical retail tenant may be cost-prohibitive. Landlords must consider the following needs when considering leasing to a medtail tenant. Barrie Scardina, Cushman & Wakefield’s Retail Services Leader for the Americas, outlines several factors: Waste Disposal The disposal of medical waste requires special pickup services, and these waste products must be kept separate from general waste. Medtail leases must address responsibility for medical waste pickup as well as any insurance issues that may result from potential contamination issues. Structural and Weight Constraints Imaging and advanced diagnostic equipment may require different floor load factors to accommodate the weight of these items. Additionally, imaging equipment may require reinforced walls, and labs may require specialized ventilation. Electrical and Plumbing Needs Surgery centers and facilities that conduct similar procedures require a backup generator and may also utilize an additional electrical feed. Facilities used for heavy medical purposes need a sink in each examination room, and typically have separate staff and patient restrooms. Life Safety Systems It is not uncommon for medical facilities to require more robust fire and life safety systems than standard retailers. Co-tenancy Clauses Medtail brands want to ensure that they project a healthful image. They will typically avoid being located near tenants like tobacco shops or liquor stores, and may seek a co-tenancy clause to ensure their health-conscious image is protected. Because of the above factors, tenant improvements can be very pricey for medical retail uses. “Depending on the healthcare entity signing the lease, they could have very high tenant improvement allowance demands,” explains Scardina. “$50 to $75 per square foot is standard in a medical office building, but their total cost could run between $200 and $300 psf for standard healthcare uses.” While the medtail trend may not be new to Southwest Florida, we anticipate that this sector will continue to grow as our desire for convenience in all areas of our lives matures. Whether you are a healthcare provider seeking retail space or a property owner in search of a dependable tenant, the Commercial Property Experts at Cushman & Wakefield | Commercial Property Southwest Florida are prepared to assist you. Contact us by contact-us

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By Gary Tasman If “season” in Southwest Florida felt a little different to you this year, it’s probably no surprise. We’ve all grown accustomed to seasonal population fluctuations, but the variance between our busy winters and lazy summers is decreasing rapidly—and this new year-round tourism trend will have a significant impact on our local economy and business climate. Just 15 years ago, it was not uncommon for restaurants to close for several weeks during the summer, especially in tourist havens like Fort Myers Beach, Sanibel, or Marco Island. Many small businesses took advantage of a major dip in tourism from mid-May through mid-October. Today, taking two months off during the “slow months” seems nearly unthinkable for a local business. A glance at passenger traffic through Southwest Florida International Airport explains this phenomenon. In 1984, the first full year RSW was open, the airport saw 194,287 passengers in March, its busiest month. By contrast, August 1984 only saw 75,638 passengers travel through RSW, 61.1% fewer passengers. In 2021, seasonal fluctuations still exist, but not at the extreme level we’ve seen in past years. 1,162,342 passengers traveled through RSW this March, an astounding number considering the impact of the coronavirus pandemic. In August of this year, 647,534 travelers passed through the airport, a drop of just 44.3% from the airport’s busiest month. Why the shift? Certainly, the pandemic had some impact on travelers. Pent-up demand after months of coronavirus isolation had consumers itching for travel, and Florida’s open business climate and scarcity of coronavirus restrictions made the state an ideal tourist destination in 2021. Tourists could travel to Florida without fear of beaches, parks, golf courses, and restaurants being closed due to coronavirus controls. While the pandemic may have accelerated this trend, we expect it to continue. Since those early days of travel through RSW, our economy has diversified. Today, people visit Southwest Florida in the summer and discover that even with our sweltering afternoons and evening thunderstorms, this region has much to offer: a nurturing environment for business and employment, outstanding schools, and top-of-the-line healthcare. We’ve all seen the impact of this realization in the number of homes being sold and built in Southwest Florida, and seasonal homes are a large part of that equation. Nationwide, the U.S. saw a huge jump in the number of vacation homes sold in early 2021, and as of 2019, Lee and Collier are the country’s #1 and #3 counties for vacation homes. And as more people realize that they can be effective while working remotely, our population boom—both seasonal and permanent—will continue. With population growth comes opportunity, a concept we’ve discussed here before. Homes need to be built, fueling the construction industry. New residents need services like physicians, auto repair shops, air conditioning technicians, and landscapers. They also need grocery stores, restaurants, entertainment, and recreation centers. The need for these businesses and services drives even more growth, and the cycle continues with commercial real estate in high demand to fulfill the needs of our growing population. As long as Southwest Florida can continue offering everything that makes it special— year- round recreation, outstanding healthcare and educational opportunities, and growing employment opportunities–– we anticipate the exponential growth of our region to continue its upward trajectory. To learn how you can take advantage of the demand created by our current market, contact the commercial property experts at Cushman & Wakefield | Commercial Property Southwest Florida. Whether it’s time for you to sell, or you’re just considering your options in our current commercial real estate market, the commercial property experts at Cushman & Wakefield | Commercial Property Southwest Florida have the knowledge, data, and resources to determine the best strategy for you. Contact us by calling 239-489-3600 or contact-us.

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.

By Gary Tasman Review the financial statements of nearly any location-based business and you’ll see a similarity. In most cases, the company’s most significant investment will be its real estate.  Whether that business leases a small office or owns a 500,000 square foot warehouse, its land, buildings, and improvements will account for some of the largest numbers in its operating budgets. To protect that investment, most businesses either employ or outsource facilities managers—professionals who oversee building-related tasks like maintenance, cleaning, security and more.  For decades, many companies looked at facilities management as simply an assortment of a la carte services, often retained only when needed. However, a shift to more strategic facilities management has recently started, and this change has accelerated in part due to the coronavirus pandemic. Today’s facilities managers do more than coordinate plumbers, cleaning crews, and building renovations. According to the International Facility Management Association, these professionals “ensure functionality, comfort, safety and efficiency of the built environment by integrating people, place, process and technology.” This definition acknowledges that facilities are integrated and interconnected systems, and not individual stand-alone parts. Bryan Jacobs, President- Global Integrated Facilities Management at Cushman & Wakefield, says that the facilities management profession, or FM, may need a rebranding to reflect its role more accurately. “FM is really almost needing a change in definition,” he says. “A change in term, more to what I call ‘workplace operations.’ It’s the operating and delivery of services in the workplace.” Modern facility managers are responsible for ensuring that a building’s physical space and technology are used effectively and efficiently, and that employees feel safe, comfortable and engaged in their workplace. Each of these areas have become substantially more relevant for businesses since COVID-19 changed our world in Spring 2020. The use of physical space in a workplace has never been more critical, thanks to social distancing guidelines during the pandemic. For those businesses that stayed open, employee and customer proximity and traffic flow needed to be modified for safety without sacrificing functionality or efficiency. Ingrid Fenn, president and CEO of SIREAS (Strategic International Real Estate Advisory Services), says companies have traditionally been inefficient with their space. The pandemic, she adds, simply further exacerbated the issue. Businesses that were unable to continue operations at their facilities quickly learned the value of workplace technology and its role in keeping their teams connected. Despite the fact that their facilities may have been closed, facilities managers were integral in providing the right supplies and organizing efficient processes to the virtual doors open for business. As employees continue to return to the office worldwide, the role of facilities managers in helping to establish and reaffirm workplace culture has become more relevant. The pandemic has placed a stronger emphasis on employee health and well-being, and facility features ranging from air filtration systems all the way down to restroom soap dispensers play a role in staff safety. The facility manager’s role in employee satisfaction and retention is equally as important, and again, the pandemic has also underscored this need. “People… want to feel good about work because they realize they can work anywhere,” says Fenn. “If you’re going to have me– or force me– to go into the office, provide me with an environment that’s not stifling.” To improve office environments, Jacobs has shifted his hiring philosophy when looking at his global facilities teams. “We’ve actually started to hire a lot of people with a hospitality background,” says Jacobs. These team members are focused on providing a positive brand experience in his facilities. Facilities, and the companies that use them, are ecosystems. Employee and customer experiences are interconnected with the environments that surround them. As our world continues to change, our workplace experiences are also evolving, and so too is the field of facilities management. To continue providing value and positive experiences, businesses need to shift their thinking of facilities management. No longer just a series of basic functions, facilities management is the strategic gatekeeper of the overall business experience. Does your facility nurture positive employee engagement and experience? Cushman & Wakefield’s Experience per SF™ is a proprietary tool that uses data-driven insights to help you retain employees, improve operational efficiency, bolster employee engagement and productivity and increase your bottom line. If you’re searching for ways to make your workplace more efficient and engaging, Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL) offers full-service property management that address an entire spectrum of services ranging from “physical” to “fiscal.” Learn how CPSWFL can help you achieve your business goals and objectives by contact-us.