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By Gary Tasman “Sustainability” has become one of the most common buzzwords in the business world, thanks to an evolving movement focusing on the triple bottom line: Profit, people, and planet. While the environmental impact of the way we conduct business shouldn’t be downplayed, the last year forced many businesses to double down on the first two “Ps” of sustainability: Profit and people. Social distancing and other precautions during the early months of the pandemic certainly created concerns about the long-term profitability of our local businesses, especially those in the hospitality industry. At the same time, the pandemic placed great strain on our people, who had to learn to work in new ways—or had to find ways to live without working—until restrictions were lifted. Despite the challenges, Southwest Florida has thrived. Our businesses—and by extension, our commercial property market—have sustained through the pandemic. I like to call this trend “Business Durability,” and Southwest Florida has it in spades. In May 2021, the U.S. Bureau of Labor Statistics reported that the unemployment rate in our region was as low as 3.7% in the Naples metro area with Punta Gorda and Fort Myers-Cape Coral slightly higher at 4.6% and 4.7% respectively. All three were stronger than the state average of 4.9%, and a full base point better than the national unemployment level of 5.9%. How do these numbers translate to commercial property? Consider this: In the first quarter of 2021, 16.4% of commercial offices across the country sat vacant. Here in Southwest Florida, our collective business durability resulted in an office vacancy rate of just 5.9%. What made Southwest Florida’s businesses so durable in comparison to companies in other regions? There are a variety of factors, but I’d like to focus on one that I think is often overlooked: Our favorable environment for small businesses. Last year across the country, 200,000 small businesses closed permanently due to the pandemic, and our region certainly saw its share of closures. However, small businesses in southwest Florida are bouncing back. In April of this year, WalletHub named Fort Myers the eighth-best small city in the nation for starting a business– out of more than 1,300 municipalities studied. Just to the north of us, South Bradenton ranked at #11, and also high on the list was Immokalee at #28. In fact, the Collier region that includes Immokalee, Naples, and Marco Island has more small businesses per capita than nearly any other medium or large metropolitan area in the entire nation. With 3.06 small businesses per 100 residents, Naples trails only Portland, Maine. Make no mistake, large businesses are certainly the engine that keeps Southwest Florida’s economy moving. But it’s no secret that small businesses are more nimble and can shift gears and adapt their cultures more easily in a crisis. When the pandemic forced businesses to close their doors, many large companies struggled to change their employee handbooks, adjust their engagement processes, and alter their resource allocation processes. Meanwhile, some small offices were able to simply pack up their laptops and work remotely, family-owned restaurants and bars switched to carry-out models, and local retailers shifted to offering online ordering and delivery models. While businesses of every size learned to adapt, these small businesses had the agility to shift gears more quickly. As employees nationwide continue returning to the office, it will be interesting to see how many of the cultural and procedural changes we all made will stick. My guess is that many larger businesses have lost a cultural connection with their employees, especially in locations where employees were working remotely—or not at all—for six months or more. Disengaged employees are more likely to search for new positions, and many large businesses may continue to struggle while their more durable, smaller counterparts thrive. Here in Southwest Florida, we are continuing to grow, in part because of our environment that nurtures small, durable businesses. As a result, our commercial property market is thriving. If it’s time for your growing small business to relocate, 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 Real estate is hot once again, with housing prices skyrocketing across the nation. Redfin reports that median home sale prices across the nation are 17% higher than they were just one year ago. Southwest Florida once again has one of the hottest real estate markets in the nation. In 2020, sales of existing homes increased by 27% in Collier County and 14% in Lee County. Ordinarily, that news would be reason for celebration. However, many homeowners in our region are feeling déjà vu and worry that current conditions represent a housing bubble like we saw in 2007. Southwest Florida was the epicenter of the subsequent housing crash and foreclosure crisis, both of which led to the Great Recession. One out of every ten Lee County homeowners faced foreclosure between 2008 and 2013. Many of those who lost their homes, jobs, and savings are now wondering if the current housing market is in another bubble that will burst in the same dreadful way. While current conditions certainly seem reminiscent of the housing boom before the Great Recession, the news is actually much less dramatic. Most economic experts agree that a market correction will come, but it will be nothing like the severe housing market crash we experienced in the aughts. That’s because the conditions that created the last housing bubble are very different from the drivers that created the current housing situation. The 2007 bubble was caused by a number of factors, including a largely unregulated lending environment. Mortgage lenders were offering subprime loans to homebuyers at well above the home’s value. Banks were extending credit and zero-money down loans to buyers with little ability to repay. Cash-strapped buyers were choosing adjustable-rate mortgages, gambling that they’d be able to sell their homes before interest rates ballooned. Since then, the Dodd–Frank Wall Street Reform and Consumer Protection Act has overhauled financial regulation. Though portions of Dodd-Frank have been amended or repealed since 2010, it continues to regulate many sectors of the financial industry in the hopes of avoiding another financial disaster. The current housing boom has been fueled by more familiar economic factors, primarily supply and demand. The days of seeing dozens of “for sale” signs on every residential street are long gone. In fact, today we’re facing a housing shortage. For the past five years, homebuilders in the U.S. have constructed just 1 million homes a month. By comparison, in 2006 we were building up to two million homes per month. That trend came to a grinding halt during the Great Recession and never returned to pre-recession levels, creating a shortage of new homes. And unlike during the housing crisis, people who lost their jobs during the pandemic have been able to keep their homes thanks to generous mortgage forbearance programs, meaning fewer re-sales are on the market. At the same time, demand for housing has remained high. Near-historic lows in interest rates mean that buyers can borrow more home for their money. A record number of buyers are now purchasing second homes. Adding to the demand, Millennials, the largest generation in the country, have more buying power than ever. With the majority of Millennials now in their 30s, they are ready and able to purchase. While it’s easy to look at the current real estate boom and think history is about to repeat itself, the 2021 boom is the result of sound economic fundamentals. The market has responded to historically high demand and a low inventory of available homes. Yes, there will likely still be a market correction, either because of rising interest rates, rising housing inventory, or rising prices that are out of the reach of middle-class homebuyers, but a housing bust like we saw nearly fifteen years ago is highly unlikely. A downturn will be more likely the result of rising inflation or stagflation than because of speculative investment. Southwest Florida’s popularity in the housing market and population explosion have also made a significant impact in the commercial property market. Our area’s population boom has led to a high demand for infrastructure, medical services, retailers, dining establishments, and more. 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 Like most Americans, your grocery shopping habits probably changed significantly during the COVID-19 pandemic. Social distancing and capacity restrictions, limited hours, and even limited stock forced us to shift the way we shopped—and forced retailers to find new ways to provide our essential goods and services. Half of U.S. consumers now say they purchase at least some of their groceries online, either through delivery services such as Shipt and Instacart, from online retailers like Amazon, or via BOPIS (Buy Online, Pickup In Store) services. But with vaccinations now widespread and our nation slowly returning to normalcy, will consumers rush back to supermarkets or will traditional grocers expire as we continue to shop from the comfort of their home? An argument can be made on either side. On one hand, grocery delivery and pickup services earn excellent reviews from busy consumers, and were surging in popularity well before the pandemic rendered them a necessity for many. Alternatively, 72% of consumers still consider an in-store shopping experience extremely important to them. Consider the number of times you’ve gone to a particular store because of an experience important to you, like product samples on weekends, a specialty bakery item, a diverse or unique produce selection, or even assistance loading your vehicle. Each of these services nurtures our loyalty to the in-store experience. With consumers wanting both convenience and an in-store experience, smart retailers are looking for ways to balance everything their customers want. WD Partners, a customer experience strategy firm, has released its vision for the grocery store of the future, and its hybrid model combines convenience and engagement to create limitless options for shoppers. Those seeking convenience will benefit from BOPIS fulfillment, order kiosks, and drive-thru pickup options, as well as an emphasis on prepared foods and pre-packaged meals in a grab- and-go section. The grocery of the future also satisfies experience-focused customers with a farmers’ market-style produce section, demonstrations in an experiential showroom, and comfort zones like an in-store coffee shop or outdoor seating area. Many grocers currently offer some, but not all, of these features, and have earned devoted customers as a result. An excellent example is Whole Foods, which has developed a near cult-like following with its focus on local produce, chef-prepared family meals, healthy and organic foods, and free delivery for Amazon Prime members. Specialty grocers aren’t just popular with residents—they’re also a favorite of tourists who rent family homes through services like Airbnb or VRBO. The full kitchens found in weekly and monthly vacation rentals are popular with families in search of a relaxed, homey experience in a tropical locale. Prepared, packaged, and grab-and-go meals are perfect for these vacationers who wish to maximize both their time and budgets while still enjoying Southwest Florida’s lifestyle. But while grocers such as Whole Foods, Fresh Market, and Sprouts Farmers Market are popular with both residents and visitors, they are anything but plentiful in our region. Lee and Collier Counties possess only a sprinkling of each of these stores, mostly along US-41. I anticipate this trend will change in coming years, as our region’s population and popularity among vacationers continues to grow. One area ripe for a specialty grocer is Cape Coral, Florida’s largest city between Tampa and Miami. Despite being one of the state’s fastest-growing municipalities, large specialty grocers have yet to invest in Cape Coral. For more than a decade, Publix and Walmart have dominated the city’s grocery market. However, recent additions such as Aldi and Winn-Dixie have shown that there is still room for competition. The Cape’s booming population, as well as its 3,200 vacation rentals, make it a prime location for a new grocery concept to blossom. The COVID-19 pandemic has altered the way we experience retail, and grocery stores are no exception. Grocers will continue to adapt to our changing preferences, creating hybrid centers that combine both convenience and customer experiences. Traditional grocery stores will need to invest in reinventing themselves if they want to stay fresh in this evolving marketplace. 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 Southwest Florida commercial real estate market is white-hot, and many property owners are hoping to take advantage of high values by selling their assets. While some buildings and land will be snapped up quickly by eager buyers, other properties are likely to languish on the market for months—or even longer—with little interest from potential investors. When a property is lingering on the market, it’s time for the broker and property owner to have a potentially uncomfortable conversation about the causes. Generally speaking, there are four reasons why your commercial property isn’t selling. It’s not priced to sell at market value. Properties can have many different “values.” Insurance value, estate value, tax value, and market value are all different and can vary significantly. A property’s market value, simply put, is the amount that a willing seller would accept, and a willing buyer would pay, given proper time and exposure. Market value is a moving target, changing based on the supply of properties on the market, economic conditions, the property’s features and benefits, and numerous other factors. A reliable broker uses local data and trends, combined with research and experience, to assess the market value of a property and position it to sell. People don’t know it’s for sale. Price and positioning are the two most important variables when it comes to selling a property. More than half the properties that don’t sell in any given market either aren’t priced or positioned correctly. If you’re priced at market value but your property isn’t moving, that means potential buyers may not be aware of it. Awareness is a large part of positioning. Your broker isn’t just responsible for making sure people see your property — they’re also responsible to make sure the right people see your property. In other words, you probably won’t succeed if you just drop a “For Sale” sign on your property or list it online and wait for a sale to happen. Your broker should have a vision of your ideal buyer, and use their sphere of influence to ensure they know about your property. Brokerages like Cushman & Wakefield | Commercial Property Southwest Florida have relationships in every sector of the commercial real estate market and are ready to position your property for maximum exposure to its most likely buyers. The property isn’t in ideal condition. Regardless of whether you’re selling property or land, the condition of your property is vital, and not just because you want to make a good first impression. The only reason people buy investment property is because they believe it will be worth more in the future than it is today. If an investor believes they’ll need to make a large capital infusion in your property to make it profitable, they’re likely to pass on it. To prevent buyers from worrying about your property’s condition, you need to show it in the best condition possible for its market. While this may produce short-term expenses, it will also reduce the investment risk for buyers. Property investors will recognize its long-term potential for higher lease rates and lower capital expenditures, increasing your market demand and likely offsetting your costs. You’re not truly motivated to sell. Real estate brokers define a “good listing” as one with a motivated seller. Ask yourself why you want to sell, and how important it is for you to rid yourself of this property. Perhaps you’re selling because of a life change, a new opportunity, a tax-efficiency strategy, a need for renovation, or even just a hunch that the market is about to take a turn. The level of a seller’s motivation is often closely tied to the ease a broker has in listing and selling a property. This is where the conversation between broker and seller can get uncomfortable. If it’s important for you to sell quickly and break free from the property, you may need to be more flexible. Determined sellers are often more willing to negotiate on price and more flexible in the sale terms they offer. They understand the fluidity of the market and are prepared to listen to the advice of their broker. If you’re not motivated to sell your property quickly, consider why you want to sell your property at all. You may want to consider another strategy. Full service commercial real estate agencies like Cushman & Wakefield | Commercial Property Southwest Florida have experience in leasing, property management, facility maintenance, and financing, and can help you determine the best tactics for producing revenue from your commercial property. 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 Do you remember your first mobile phone? Perhaps it was a 1980s car phone, a 1990s brick phone, or a flip phone from the early 2000s. Several generations of mobile technology preceded today’s smart devices, and each advancement in tech followed a revolution in how mobile networks operate. Today, we’re on the cusp of another revolution: 5G. Simply put, 5G is the 5 th Generation of mobile networking technology. Over just a few short decades, wireless tech has evolved from basic analog audio to the incorporation of digital voice, texting, web access, and mobile streaming. 5G is poised to bring innumerate improvements to mobile networking—many of which have yet to be invented. 5G won’t just change the way we use our phones and mobile devices. This new technology promises to change our workplaces, as well as the way we design, market, and monetize commercial property. While it may seem like we’ve been hearing predictions about 5G for years, the first 5G-enabled iPhone just hit the market in October 2020. Currently 60 major cities in the U.S. have 5G Ultra Wideband access, which offers ultra-fast networking speeds. These cities include Miami, Sarasota, St. Petersburg, and Tampa. Many other areas, like parts of Southwest Florida, offer 5G Nationwide access, which is closer in speed to 4G and promises to improve. But the number of locations with Ultra Wideband is also expanding, meaning more potential for all of us to experience the immersive networking experiences that 5G boasts. The 5G revolution comes at a perfect time. More Americans than ever are working remotely and discovering both the potential of remote work as well as the challenges it presents. We’ve become accustomed to video conferencing with anyone at any time, and to working untethered from our desks on multiple devices. For those who will remain working from home or other off-site locations, 5G allows for faster streaming, less latency, and higher quality video. For the majority of people who will eventually return to the office, private 5G networks will permit employees the opportunity to work free of cables and bulky devices. Rather than being limited to working in certain areas that have network access ports or a strong wireless signal, staffers will be able to meet on the fly, seamlessly access real-time data from any device, and connect to network-enabled monitors, projectors, computers, and other devices with ease. With unlimited access to bandwidth and data, video conferencing and cloud-based collaboration will remain commonplace, and mobile apps will become even more powerful and interactive. As a result, close attention to 5G technology infrastructure will be key for builders and property owners when marketing their spaces. “Landlords and investors are increasingly viewing 5G as a ‘must have’ versus a ‘nice to have’ amenity,” explained Rob Franch, Cushman & Wakefield’s Chief Technology Officer. “We’ve been advising our clients to make sure they have the technology infrastructure in place to be able to enable 5G, and recently we’ve gone a step further, helping tenants optimize their space for 5G as well.” To ensure that property owners are prepared for the 5G revolution, Cushman & Wakefield is partnering with Verizon to help owners develop 5G strategies. “With high-speed connected buildings in place, owners and investors could potentially be offering premium connectivity to tenants,” said Arvin Singh, Verizon managing director of connected solutions. “Smart building enhancements like security enhancements could also lead to new offerings. These are the types of things that could change the economics of the investments you make in a traditional building, really adding long-term value.” 5G infrastructure also provides additional opportunities for property owners to monetize wireless technology expansion by leasing rooftops of their buildings and other structures for small cell towers. 5G relies not only on existing cell towers but on a network of smaller towers to transmit high-spectrum, high-frequency signals. Partnerships between carriers and building owners will be critical for the success and expansion of 5G. 5G promises to change the way we access data and communicate with others, just as earlier technology like texting and video streaming has evolved. As a builder, property owner, investor or tenant, are you ready for this next generation of wireless technology? Our team of professionals at Cushman & Wakefield |Commercial Property Southwest Florida are prepared to help you make this transition. Our local data, insight, and experience, combined with Cushman & Wakefield’s expertise and strategic partnerships can help you prepare for the 5G revolution. Contact us for a complimentary, no-obligation consultation by calling 239-489-3600 or contact-us.

By Gary Tasman We will all remember the year 2020 for innumerate reasons. The coronavirus pandemic, historic unemployment levels, a highly divisive election, and civil unrest all shared the headlines in a year none of us will soon forget. 2020 was also the year that many office employees and their employers discovered that they could complete their responsibilities remotely, as COVID-19 protocols limited face-to-face contact and emptied workplaces. Yet as our nation returns to normalcy with improved pandemic procedures, antiviral technologies and a rising vaccination rate, offices are once again filling with employees. Southwest Florida, in fact, is setting the pace for a resurgence in commercial office space. When the pandemic shut down offices across the nation, millions of jobs were lost either temporarily or permanently. In just two months during the second quarter of 2020, 2.86 million office-using jobs were lost, part of the biggest decline in the history of U.S. payroll employment. Since then, well over half of those jobs have been recovered, and Cushman & Wakefield projects that the office employment market will have fully recovered by July of this year. The pandemic push to work remotely left many people wondering if traditional offices would ever truly return once the world returned to normalcy. While the work from home trend certainly helped many organizations discover new efficiencies, some employers are rediscovering the purpose of the office. While technology has allowed business leaders to manage teams remotely, smartphones, notebook computers and virtual meetings have not been able to simulate other benefits of working in an office environment. While many remote employees were productive in their duties, a 2020 Cushman & Wakefield survey found half of U.S. employees who worked from home during the pandemic struggled to feel connected to their company culture, and more than one-third felt like they weren’t learning while working remotely. As a result, the purpose of today’s resurging offices has shifted away from traditional management command and control and towards innovation, knowledge-sharing, and productivity, as well as creating social and cultural connections. What does this mean for the commercial property market? Office properties are suddenly hot again. While construction ground to a halt during the pandemic, the demand for office space has continued to build. Southwest Florida currently has the hottest office market in the entire state. While Tampa and Miami currently have office vacancy rates over 15%, more than 91% of Southwest Florida offices are filled with tenants—tops in the state. And although office rents have increased in our region, our average rent of $19.34 per square foot is dwarfed by Orlando’s $24.36 and Tampa’s $29.00 average, and completely overshadowed by Miami’s average asking rent of $41.48. Southwest Florida’s relatively low rent and vacancy rates have created a landlord-friendly market which will continue to boom as the economy improves. With no large-scale speculative office projects under construction in our area, the demand for office space will continue. New businesses are already eyeing our region favorably in terms of cost, and our area’s rapid population growth over the last year will provide more available employees for companies relocating to– or expanding in– Southwest Florida. While many people and businesses are still struggling to recover from the economic downturn, Southwest Florida’s office sector has been somewhat insulated from the worst of the impact. The commercial office property market is one indication of how our region can thrive in the face of adversity. Property owners with available office space are in a prime position to take advantage of this recovery. The professionals at Cushman & Wakefield | Commercial Property Southwest Florida are available to help you understand the value of your office property and how you can position it for sale or lease in this exciting market. Contact us at info@cpswfl.com&lt, call 239-489-3600 or contact-us.

By Gary Tasman For investors, the opportunity to earn “passive income” is one of the most appealing parts of commercial property ownership. A well-managed property will generate rental revenue above and beyond the expenses of mortgage payments, interest, and regular upkeep. However, that doesn’t necessarily mean owning property is necessarily easy. Bookkeeping, rent collection, emergency maintenance, and tenant issues can be time consuming, stressful, and potentially damaging to your bottom line. Many commercial property owners invest in a professional property management service to handle these responsibilities. Ready to make a move?  Get started by contacting us. How do you know if you need a professional property manager? There are seven major signals that indicate you may benefit from employing a property manager. Signs You Need a Property Manager You aren’t able to fill your vacant units While some tenant turnover is natural and can give you an opportunity to perform maintenance or upgrades, vacant units don’t produce cash flow and can quickly turn your financial investment into a financial drain. A professional property manager can market your property to potential tenants, show the units, and process applications and credit checks to ensure your units are generating a return on your investment. You’ve been burned by delinquent tenants Most property owners don’t relish the idea of being a landlord, performing collections, managing tenant conflicts, or worse, evicting delinquent tenants. Professional property managers are prepared to deal with these unpleasant activities and provide a buffer between you and your tenants. More important, they have an understanding of the legal issues regarding tenant-landlord relationships to ensure you remain compliant while negotiating these issues. You own more properties than you could visit in one day As your commercial property portfolio grows, your ability to respond to on-site issues will shrink. If you live more than 90 minutes from some of your properties, or simply have more properties than you could visit in the course of an eight-hour day, you may not be able to effectively handle your responsibilities in a timely manner. A property management company has the resources to deploy staff quickly and efficiently to manage issues. You have another full-time job Even property owners with a small portfolio of real estate investments can struggle to find time to manage their properties when they’re also part of the working world. While investors love the phrase “passive income,” managing a property takes time—and time is money. When property management obligations start interfering with your full-time job responsibilities, it’s time to consider employing a management company. You’re not sure what to charge your tenants Knowing how to set the appropriate rent for your property takes a specialized skill. It requires knowledge in accounting, economics, and real estate values in your market. An experienced professional property manager has access to professionals with knowledge and proficiency in each of these areas to ensure your rental rates are appropriate for your facility. You’ve been accused of discrimination or negligence As a property owner, there are a host of legal requirements and considerations that affect your business. Commercial real estate activity is dictated by federal, state, and local laws to ensure fair treatment, safe facilities, and liability. A commercial property manager has the legal and regulatory knowledge to avoid these complex issues. Additionally, when tax season rolls around, your property manager’s expertise with legal and financial issues will come in handy. You struggle to find good vendors/contractors/maintenance workers Even if you consider yourself to be handy with a plunger or a set of power tools, the maintenance needs of your commercial property will likely extend beyond your abilities. Rather than hunt for an appropriate vendor every time a maintenance issue arises, your commercial property manager likely has a list of vetted professionals ready to assist. Some property management agencies, like Cushman & Wakefield | Commercial Property Southwest Florida, have a facilities management team on staff to handle these issues even more efficiently. If any of the issues above are becoming a challenge for you, reach out to the professionals at Cushman & Wakefield | Commercial Property Southwest Florida. Our full-service property management team has the knowledge and experience to keep your commercial property running efficiently and profitably. To learn more, call us at 239-489-3600 or contact-us.

By Gary Tasman Fledgling investors are typically given the same advice: Set your goals, know your risk tolerance, and start with broad investments like mutual funds in a tax-deferred Individual Retirement Account. Many people stick to this advice right up until their retirement, investing primarily in stocks, bonds, and mutual funds. These types of assets can be purchased quickly, often with the click of a mouse, and don’t require tens of thousands of dollars at a time to invest. For investors with limited time or capital, these investments are a sound long-term strategy. Real estate, however, should not be overlooked as an investment opportunity. Although there are some significant barriers to entry which we’ll discuss later, there are also numerous advantages to including commercial property in your investment strategy. Benefits of Investing in Commercial Property: You can invest with debt Anyone who’s purchased a home knows that you don’t need to pay the entire amount in cash. Instead, buyers place a down payment then finance their home. Commercial property investment can also be purchased with leveraged funds. On a $2.property, you might invest $50,000 as an initial down payment, but you’ll still reap the benefits of owning $250,000 worth of real estate. You can earn passive income One of the largest benefits to investing in real estate is the cash flow that your property can produce. The monthly rents you receive from your tenants should offset your expenses and produce passive income. You’ll receive healthy tax benefits There are numerous tax advantages to real estate investing. Property owners are able to write off their interest payments, depreciation, renovations, maintenance, and other operational costs. Additionally, the passive income earned by investors is taxed at a significantly lower rate than ordinary income. You can hedge against inflation While no investment is truly recession-proof, the value of real estate reacts in proportion to inflation. When inflation rises, so does the value of your property, and rents will often increase. Nearly every other type of investment, including stocks, react to inflation in the opposite direction. You’ll experience less volatility Anyone who follows the stock market can tell you that stock prices can change quickly, as dozens of variables can impact stock prices. As an example, just this year, Tesla stock has ranged from a high of $880 per share to a low of $563, dropping in value 36 percent between January 8 and March 8. Property is substantially less volatile. While you may not experience the exhilarating highs of a bull market as a property owner, you also won’t endure the nauseating lows of a bear market. Challenges to Investing in Commercial Property: While there are many benefits to investing in real estate, there are also challenges. Although buyers are able to mortgage their properties, cash can still create a high barrier to entry. Investors need large down payments to enter the market, and transaction fees can total as much as 10% of closing costs. Additionally, purchasing real estate takes substantially more time and research than purchasing stocks and bonds. Between due diligence, financing, and paperwork, it can take up to three months to purchase commercial property. After completing a purchase, real estate investors must still pay taxes and operational costs like maintenance, utilities, and insurance, even if the property is sitting empty and not generating income. And because real estate is an illiquid asset that can’t be sold with a simple click of a mouse, investors can be saddled with their property for much longer than they initially expected. Even with these drawbacks, real estate can be a valuable asset in your investment portfolio, and your commercial property broker is an instrumental partner as you consider your future investments. The professionals at Cushman & Wakefield | Commercial Property Southwest Florida are ready to help you determine your investment goals and strategy, locate properties that meet your needs, secure appropriate financing, and even assist you with the management and maintenance of your commercial property after your purchase. To learn more about how 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 With the Southwest Florida business landscape changing at the speed of light, many business owners are faced with a dilemma: Should they sell their building to invest in a larger facility, or add on to their existing structure? You may be facing this very decision right now. The decision whether to buy or expand is a complex choice involving many variables, including cash flow, interest rates, existing debt service, the needs of the business and its employees, and countless others.  Fortunately, business owners don’t need to make this decision alone. A well-chosen commercial property brokerage is armed with the experience, data, and knowledge you need to choose the right option for your business. Property brokers like the Go-To Team at Cushman & Wakefield | Commercial Property SWFL are experts at guiding businesses to the optimal solution for their workplace needs. For those who determine that it’s time to sell, the professionals on our team are prepared to help sellers net the highest dollar in the shortest amount of time. The process starts with our brokerage’s dedicated research team, who tirelessly study the individual property itself, using public records and other available data to become experts in that property.  Based on this information, the Go-To Team then thoroughly investigates recent sales of comparable properties to develop a starting point at valuation. Finally, the researchers take a deep dive into other properties currently on the market to determine a property’s competitive advantages, proper positioning and pricing. Thorough, accurate research is only the first phase in the 15-day process to get a property to market and start generating demand. Because our team has experience in all asset classes, they understand the dynamics of the commercial real estate market and are able to cast a wide net to ensure that properties receive optimum attention.  Because our brokerage is part of Cushman & Wakefield’s global real estate network, properties are marketed to potential buyers locally, regionally, nationally, and around the world to generate maximum interest and maintain awareness. Once there are offers on the table, our brokers thoroughly examine each proposal and their benefits. While the offer price is always a consideration, it certainly is not the only factor in determining the best buyer for a property. The offer’s terms, a buyer’s credit, and other dynamics are at play. In an active market, brokers are often able to generate multiple offers on a property, at which time our team implements a controlled auction process to secure the most competitive offers for sellers. Using knowledge of the local market, our team encourages bidders to compete against one another to produce the best possible offer available under current market conditions. Whether a client is selling a 3,000 square foot single-unit office or a portfolio of multiple million-dollar properties, the process remains essentially the same, as does the care and attention our team provides. Our goal at Cushman & Wakefield | Commercial Property SWFL is to secure our clients the highest selling price in the shortest amount of time.  From your initial decision to sell all the way through closing, our Go-To Team will be there every step of the way. Are you facing a tough decision about the location of your business? The experts at Cushman & Wakefield | Commercial Property Southwest Florida have access to best-in-class data, analytics, and proven processes to help you make the right decisions for your property needs. Contact us at 239-489-3600 or contact-us.

By Gary Tasman With Southwest Florida’s population booming and interest rates at near historic lows, our region is once again ripe for commercial development, and investors are taking notice. But for first-time buyers looking to capitalize on the commercial property market in Southwest Florida, the process of scouting properties can be intimidating. Before you take the leap into commercial property investing, there are five questions you should ask yourself. What’s my goal? One of the first questions your broker will ask you is your investment strategy: Are you interested in growth or income?Investors who pursue a growth strategy are hoping to buy a property in a prime location in the hopes that they will be able to re-sell the property for a profit after the property appreciates. Often, however, these properties come with high price tags and low operating income potential, which creates a significant barrier to entry for first-time investors.The second property investment strategy focuses on income production and cash flow, also called high yield properties. In this scenario, investors seek properties with low operating costs in relation to the rental income they generate. While the monthly and annual returns on these properties can be favorable, these properties also tend to increase in value slowly, meaning an eventual sale may not generate a significant profit. What’s my risk tolerance? Just like any type of investing, some property investments have relatively low risk, and some are high risk ventures. A commercial building that already has tenants locked in for several years can be fairly low risk, because the income is somewhat guaranteed. On the other hand, a completely vacant building might appeal to you because it’s a clean slate. Unfortunately, you’ll take the risk that lessees may be challenging to find.Another indicator of the level of risk you’re taking on is the property’s capitalization rate, or “cap rate.” This ratio essentially represents your annual return on investment and is calculated using your investment’s net income divided by the property’s purchase price. The higher the cap rate, the higher the reward, but high cap rates also come with increased risk.Even with a comparatively high-risk investment, a strong commercial property broker can help you mitigate some of that gamble. By conducting a thorough market analysis, your broker can determine the best possible use for your property, ideal rental rates, and how to position your investment properly to get the best price possible on your timeline. How long of a commitment am I ready for? If you’re thinking short term and want to start earning on your investment today, your broker will likely guide you towards infill properties. Infill properties are those already in high density areas, with established infrastructure and demand generators nearby. You’ll be located in a neighborhood that customers are already visiting for their business needs, but you’ll likely pay a high price and still need to deal with the aggravation of maintenance or upkeep of an older building.If you’re in it for the “long haul,” however, your broker may guide you towards “path to growth” areas. These properties are located in an up-and-coming region that is not yet developed, or which has experienced minimal development but shows outstanding potential. A strong broker will use his or her knowledge of the local market, growth patterns, neighborhood demographics, infrastructure updates, and recent transactions to identify the ideal properties to take advantage of future development. In the short term, you may not see much income from your path-to-growth property, but with guidance from the right broker, you’ll be well-positioned for the long haul. Who are the current tenants? Unless you’re purchasing raw land, your commercial property investment will likely have current occupants in place. These could be the current owners, or more likely tenants who are renting one or more units in the property. Believe it or not, the quality of your tenants can often dictate the quality of your investment, and learning about the property’s tenants is an essential part of your due diligence.Obviously, the more creditworthy your tenants and their businesses are, the better position you’ll be in financially. You’ll want to review the lease terms for each of the current tenants to project future income from the property, and to develop a plan for upcoming vacancies. Your professional commercial property broker can complete a thorough analysis of your existing tenants, and guide you on decisions like rent adjustments, lease terms, improvements and modifications, as well as the types of tenants you’ll want to pursue in the future. How hands-on do I want to be? If you have tenants in your property, you’ll need to find a way to manage the day-to-day operations. Accounting, marketing, repairs, daily maintenance and managing your tenants can be a full-time job, depending on the size and condition of your property and the number of tenants you’ll have. If you’re not an experienced property manager, the responsibility can be overwhelming. If you live far from your investment, have other full-time obligations, or simply want to be hands-off, it’s a smart decision to hire a property manager. Fortunately, many full-service brokerages like Cushman & Wakefield | Commercial Property Southwest Florida offer property management services to take care of the daily responsibilities of ownership. Once you’ve truthfully answered the five questions above, you’re ready to take the next step on your property investment journey: Consulting with an experienced commercial property broker. The experts at Cushman & Wakefield | Commercial Property Southwest Florida have access to best-in-class data and analytics to help you make the right decisions to meet your property investment goals. Contact us at 239-489-3600 or contact-us.