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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.

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.