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By Gary Tasman If nothing else, 2020 taught us that we can all adapt to changing conditions and learn how to navigate through radical shifts in how we function day to day. This is true not only for individuals and families but also for businesses. Millions of business owners and managers were forced to radically reinvent their business models to remain solvent during the COVID-19 crisis. This is especially true of the restaurant industry, which is accelerating trends at warp speed. Stay-at-home regulations, social distancing, and public apprehension have forced restaurants to shift their models significantly to focus on delivery and carry-out in order to stay profitable. Fortunately for many establishments, this “quick service restaurant” trend had already emerged pre-pandemic. Restaurants that had already embraced this shift were better positioned to weather the storm produced by COVID-19.  For decades, the food delivery space was dominated by pizza, but in recent years delivery apps rapidly grew in popularity, making it possible to have meals delivered from a variety of restaurants. Locally-based Grub Cab, now part of Bite Squad, began delivering from restaurants in Fort Myers more than a decade ago, and has since been joined by national competitors like Grubhub, DoorDash, and Uber Eats. Cushman and Wakefield corporate research indicates that digital ordering and delivery have been growing 300 percent faster than dine-in traffic since 2014—and that trend is unlikely to slow in our “new normal.” This paradigm shift shouldn’t be surprising, as we’ve seen a similar trend developing in retail for years. Omnichannel ordering and engagement—activities such as ordering online for in-store pickup—has redefined big box retail and even automobile sales models. It only stands to reason that this template would eventually carry over to the dining industry. “Today’s world is all about convenience,” explained Matt Ashman, Cushman & Wakefield’s head of London leisure and restaurants. “Increasingly more customers, especially Millennials who represent a growing proportion of the consumer population, want to consume their favorite foods whenever and wherever they want.” A shift to omnichannel dining doesn’t occur overnight, and restaurants that weren’t prepared to shift their business model likely learned some tough lessons during the early months of the pandemic. In many cases, restaurants have needed to remodel to be able to simultaneously offer delivery, pickup, and dine-in options. Delivery drivers need designated spaces, carry-out customers need a dedicated pickup area, and in-person diners wish to dine uninterrupted by the change in workflow. In some cases, specialized equipment, technology, physical remodeling and plumbing or electrical infrastructure updates are needed to ensure customer satisfaction no matter how they order and consume their meals. The shift to our “new normal” has clearly left its mark on the dining industry. A survey released by the National Restaurant Association in December indicated that 110,000 restaurants had closed permanently or long-term as a result of the COVID-19 pandemic, representing roughly one in six dining establishments in the United States. Of the full-service restaurants that had remained open, revenue had fallen 36% on average. Like every other industry, the dining industry is headed for a reset as we journey towards recovery from the COVID-19 recession. Regardless of the pandemic, omni-channel dining is here to stay. Those restaurants that were able to shift their business models quickly will likely reap the benefits of pent-up demand once the pandemic has finally passed. Restaurants that don’t outlast the pandemic will ultimately lead to more restaurant space available for a new generation of omni-channel dining establishments.  Are you prepared to evolve your business and take advantage of the paradigm shift presented by COVID-19? The Go-To Team of commercial property brokers at Cushman & Wakefield | Commercial Property Southwest Florida is an excellent resource as you consider your options. Cushman & Wakefield’s Southwest Florida property brokers have extensive local market knowledge and best-in-class data and analytics to guide your decision-making. Contact us for a complimentary, no-obligation consultation by calling 239-489-3600 or contact-us.

By Gary Tasman Season has arrived in Southwest Florida, but like so many other traditions, it doesn’t look quite the same as it did one year ago. While our roads are busier than they were a few months back, our annual winter influx of visitors and residents hasn’t quite reached the levels we saw in 2019 or even early 2020. Tourism, hospitality and lodging have long been the primary drivers of our region’s economy. The last year has definitely been the most challenging for these intertwined industries. Lodging, in particular, has struggled across the world. And while Southwest Florida has seen its share of difficulties in the hotel industry, our region is actually one of the brighter spots in the nation. When the COVID-19 pandemic essentially shut down the U.S. economy in March, travel plans were first on the chopping block. An April 2020 survey by ValuePenguin and LendingTree showed that nearly half of all Americans canceled our summer travel plans because of coronavirus concerns. The impact on the lodging industry was immediate. Cushman & Wakefield data reveals that nationally, hotel occupancy was at a mere 33.5% in the second quarter of 2020, compared to 70% occupancy over the same period in 2019. Road trips were the preferred travel option for most Americans, who likely sought socially- distanced vacations at destinations close to home. Hotels located near highways and recreational destinations had stronger performances than urban lodging and conference destinations. Southwest Florida benefited from the road trip trend in 2020. Situated within a few hours of three of the nation’s largest metro areas, and with an abundance of socially-distanced outdoor activities available, visitors from across the state turned to our area in search of open beaches and a change of scenery. According to the Tourist Development Council, in-state visitors to Collier County in October 2020 increased 60% over October 2019. Lee County has seen a similar trend. A recent News-Press article, citing data from Arrivalist, noted that 70% of Lee County’s visitors since the pandemic began have come from other parts of Florida. Nationally, hotel construction and sales have slowed, and while many lodging establishments are still being built, most have pushed back their opening dates until travel is more active. This was not the case for Fort Myers’ long-awaited Luminary Hotel & Co., which opened in September. Our area shows little intent to slow down, with five more new Lee County hotels in the works for 2021, averaging more than 110 rooms each. Local developers appear to be banking on a rapid recovery of the tourism market. The exception is in Port Charlotte, where Allegiant Airlines halted construction of its massive waterfront resort, suspending construction in mid-2020 and ending a loan agreement to develop the destination. The resort was expected to lure travelers from the 40+ cities with nonstop flight access to Punta Gorda, but Allegiant recently stated that it has no plans to put more capital into the project until late 2021. A full recovery for our tourism and lodging industry will be slow, even while the COVID-19 vaccines are providing hope to lodging owners and travelers alike. Nationally, the lodging industry isn’t expected to see a full recovery until late 2023 at the earliest, but here in Southwest Florida, we’re already seeing signs of hope. Alaska Airlines, Allegiant Airlines, United Airlines, JetBlue Airways and Southwest Airlines have all either added routes to our region’s airports or have announced plans to do so in the very near future. While many northern states are still partially shut down because of the pandemic, Florida’s open economy may serve as a potential beacon for vacationers from these destinations, sparking a faster-than average recovery in the tourism and lodging industries. Property owners with land or buildings suited for lodging or hospitality should not lose hope in the face of the pandemic, nor should commercial property owners in any other asset class. Tourism in Southwest Florida is expected to recover much more quickly than the nation as a whole, thanks to in-state travelers who are sustaining Southwest Florida’s tourist economy. We sometimes bemoan Southwest Florida’s dependence on tourism for the health of our economy, and certainly we felt the sting in mid-2020. However, a quick projected rebound in lodging and hospitality will generate tourism dollars in our region and create demand for commercial property in all asset classes. To take advantage of this projected trend, contact the professionals at Cushman & Wakefield Commercial Property Southwest Florida. With extensive local market knowledge and best-in class data and analytics, Cushman & Wakefield is your go-to team for commercial property decision-making. Contact us by calling 239-829-5400 or contact-us.

By Shawn Stoneburner When the economy takes a tumble, investors immediately start hunting for recession-resistant assets. For the better part of the last 30 years, commercial real estate investors have turned to medical properties, which has been one of the strongest investment performers in our economy, regardless of economic conditions. Even during the global financial crisis of 2007-2008, growth in the medical office market continued while other sectors stumbled. A drive around Southwest Florida provides plenty of evidence of the resiliency of the medical real estate market. In the last five years, our region has seen close to a dozen urgent care centers open, including several multi-location chains. Lee Health invested in a mammoth expansion of Gulf Coast Medical Center, Family Health Centers of Southwest Florida added a three-story, 65,000 square foot medical center in Lehigh Acres, and Healthcare Network of SWFL opened its own three-story facility in Golden Gate.  Ready to make a move?  Get started by contacting us. The real question is if the medical real estate market is immune to COVID-19. As we all know, the COVID-19 recession has been unlike any other economic downturn we’ve experienced in our lifetimes. Nationwide, pandemic-related shutdowns forced doctors’ offices to close and elective procedures to halt. For those who needed to see a doctor, many delayed appointments or switched to telehealth services rather than risking exposure to the novel coronavirus. As a result, spending in the healthcare sector declined sharply in the second quarter of 2020, and medical office occupancy plunged. Commercial property investors have been left wondering if the medical real estate sector was as bulletproof as we’d been led to believe. While worry is certainly understandable in uncertain times like these, the pandemic’s impact on the medical office market should be a short-term concern. Over the long run, Cushman & Wakefield’s commercial brokerage professionals believe that the medical office market is poised to make a strong comeback. There are two primary reasons why. The first is our aging population, and the second is the economic condition of the healthcare sector as a whole. When the baby boomer generation first appeared, our nation’s population looked very different. In 1950, there were only about 12.4 million senior citizens in our country. Today, the U.S Census Bureau estimates that there are nearly 51 million Americans age 65 or older—a number that’s expected to increase to 80 million by 2040. And as we collectively age, our medical needs increase. While the 65-and-older crowd makes up just 15.6% of the U.S. population, this age group accounts for 36% of healthcare spending. With our nation aging, our need for medical care will only increase further, and medical office properties will be in high demand. Here in Southwest Florida, that demand will be even more relevant. Seniors currently make up an estimated 32% of the total population in Charlotte, Collier, and Lee Counties, keeping the need for health care on the rise. Health care also continues to be a strong sector financially. For the last decade, health care spending has increased $136 billion per year. Our aging population, combined with the rising cost of health care services, has kept spending on an upward trajectory. In fact, the Center for Medicare and Medicaid Services projects that health care spending will nearly double over the next decade—to an average growth of $268 billion per year. Even when COVID-19 brought the economy to a near standstill, the health care sector was one of the quickest to rebound. The pandemic caused a 9.6% decline in healthcare employment—a staggering number, but small compared to the 14.5% decline in U.S. jobs overall. More important, as of October, nearly two-thirds of those health care jobs had been recovered, compared to 54% of all jobs in the country. Health care spending followed a similar pattern. In the second quarter, health care spending dropped 54%. By the third quarter of 2020, 94% of that spending had bounced back. For decades, the medical sector in commercial real estate has been considered nearly recession-proof. While the COVID-19 pandemic has certainly challenged that belief, the experts at Cushman & Wakefield believe that our population trends, combined with the economic growth of the health care sector, will keep medical properties in high demand well into the future. We’re already seeing local indications of this trend. Six months into the pandemic, Encompass Health announced it was planning a 40-bed rehabilitation hospital in Cape Coral—one of six new medical offices planned for the Cape in the midst of a pandemic. Along the I-75 corridor, Frantz EyeCare is finalizing plans for a 60,000 square foot corporate headquarters, surgery center and medical office building that will break ground next month.  The remainder of Southwest Florida is likely soon to follow. While nobody will soon forget the human tragedy of COVID-19, the pandemic’s influence on the medical office real estate market will likely be a short-term stumble rather than a long-term calamity. To learn more about commercial real estate and development opportunities in the medical office market, contact the professionals at Cushman & Wakefield Commercial Property Southwest Florida. With extensive local market knowledge and best-in class data and analytics, Cushman & Wakefield is your go-to team for commercial property decision-making. Contact us for a complimentary, no-obligation property valuation by calling 239-829-5400 or contact-us.

By Gary Tasman and Shawn Stoneburner January 2020 seems like a lifetime ago, and as we think back to the start of the year, before the COVID pandemic changed the world, it’s difficult to recall where we were just 12 months in the past. Commercial property brokers and property investors entered 2020 with a great deal of enthusiasm. Vacancy rates were low, demand was high, and average rent rates were near historic levels in some asset classes. Developers were continuing to regard Southwest Florida with an optimistic eye. We all recall what happened after that. By Mid-March our economy and our optimism came to a screeching halt. Record numbers of Floridians filed for unemployment as businesses were forced to close or scale back, and Southwest Florida development activity came to a near- standstill. Nationwide, the U.S. economy collapsed at a 31.7% annual rate in the second quarter as schools, retailers, restaurants, theaters, hotels, and other businesses closed. Ready to make a move?  Get started by contacting us. It’s difficult to evaluate how our region – and our nation – has responded to the COVID recession. The last pandemic to make a significant impact on the economy was a full century ago, hardly a comparable era. What we do know is that as we enter 2021, we once again have reason for optimism. Ancient Greek philosopher Plato was the first to say that necessity is the mother of invention. Even 2400 years later, Plato’s words still ring true, as many recent innovations were necessitated by the pandemic. Necessity motivated biotechnology companies to develop innovative COVID-19 vaccines using groundbreaking messenger RNA technology. Necessity inspired the federal government to develop the Coronavirus Aid, Relief, and Economic Security (CARES) Act and other emergency relief. Necessity also stimulated corporations large and small to find new ways to conduct business when traditional interaction was off the table. Necessity has also sparked a rebirth in several sectors of the commercial property market, most notably industrial real estate. The jump to online shopping during the pandemic has made property in the industrial/logistics asset class hotter than ever before. “In the second quarter of 2020, internet sales surged 44.5% year over year,” explains Kevin Thorpe, chief economist and Ken McCarthy, principal economist, both of Cushman & Wakefield. “In this environment, it is no surprise that demand for logistics space is nearly back to pre-crisis levels and occupancy is near all-time highs.” Our local Southwest Florida market reflects this same international trend. Industrial class real estate is filling nearly as quickly as it becomes available, with just 3.4% of industrial properties currently vacant. Rent rates, which were already at historic highs at the end of 2019, are still climbing, presenting an excellent opportunity for owners of properties and those with land ready to develop. The office property market gave investors and brokers plenty of anxiety in March and April, as traditional offices closed their doors and transitioned to telecommuting. Those nerves from six months ago are quickly subsiding, as Southwest Florida properties in this asset class are also recovering quickly. Cushman & Wakefield data indicates this recovery will continue, following a national trend as our economy shifts to more service and knowledge-driven industries. “As the economy adds jobs, a greater proportion will be in an office-using industry,” stated Thorpe and McCarthy. Of course, the full picture isn’t completely rosy. Much of our economy has yet to recover. Southwest Florida’s unemployment rate at the end of the third quarter of 2020 was still a staggering 10.2%, well above the national average and an alarming increase over last year’s third quarter local unemployment rate of 3.8%. Our region’s dependence on retail and hospitality jobs will likely keep employment recovery slow – but there is light at the end of the tunnel. Florida’s low taxes, combined with our region’s high-quality workforce, safety, healthcare, and quality of life continue to make Southwest Florida an appealing destination for residents, vacationers, and new businesses. Companies worldwide are expanding and relocating to Southwest Florida. Home sales are skyrocketing, which will spark other sectors of our economy including construction, finance, retail, and hospitality. We’re not completely out of the woods yet, but the gloom and doom of Q2 2020 is fading. Necessity generates invention, and the Southwest Florida property market is continuing to reinvent itself. For commercial property owners, there are blue skies ahead, and the professionals at Cushman & Wakefield | Commercial Property Southwest Florida have the knowledge and data to help you come out on top in 2021. Contact us for a complimentary property valuation and to learn how our best-in-class data and analytics can benefit you in the new year. If you have commercial real estate, the professionals at Cushman & Wakefield Commercial Property Southwest Florida are an excellent resource as you consider your for selling, buying, and leasing. Cushman & Wakefield’s brokers have extensive local market knowledge and best-in-class data and analytics to guide your decision-making. Contact us for a complimentary, no-obligation property valuation by calling 239-829-5400 or contact-us.

By Gary Tasman With the holiday season officially here, our minds naturally turn to giving, and the same can be said of companies, who turn their thoughts to “corporate social responsibility,” a somewhat stuffy term we use to describe philanthropic activities and accountability to social or environmental issues. Social responsibility is more than a good deed. It is also a good business practice and should be part of every organization’s corporate DNA. Cushman & Wakefield Commercial Property Southwest Florida (CPSWFL) is proud to support a number of causes here in Southwest Florida—more about them later— because we care about our neighbors and know our support contributes to quality of life in our community. When local nonprofits thrive, it stabilizes our region and raises the tide across our entire community. By improving the quality of life in Southwest Florida, we create a positive domino effect, and make our area more attractive for growth. This leads to jobs, housing, and a stronger tax base to support the needs of our community. Every organization can adopt corporate social responsibility as part of its core business practices. Social responsibility doesn’t have to come in the form of financial contributions, although those are certainly welcomed by nonprofits.  Organizations with tight budgets can encourage leadership to lend their expertise on nonprofit boards of directors, organize employee donation drives, or even offer paid time off for staff members to volunteer. Social responsibility has been shown to not only improve employee satisfaction but also customer loyalty—meaning that your philanthropic actions will not only improve the community but also your bottom line. I’d like to shine the spotlight on some of the causes that our team supports at Cushman & Wakefield Commercial Property Southwest Florida. This support comes in many forms, from financial contributions, to volunteer hours, to board membership. Children’s Network of Southwest Florida provides the Operation Santa program for local children in foster care. This year we’re partnering with Children’s Network to bring Christmas cheer to children in need by hosting an Operation Santa toy drive through Dec. 9. To learn more, visit www.childnetswfl.org. Keep Lee County Beautiful is focused on making Lee County a pristine place to work and play by inspiring, educating, and engaging our community in improving, beautifying, and protecting our environment. Since 2017, we have participated in the Adopt-A-Road program, and our team members are proud to keep our adopted roadway clean throughout the year. Apply to adopt a road at leegov.com/dot/adoptaroad/application. Junior Achievement of Southwest Florida inspires and prepares young people to succeed in a global economy. Junior Achievement of Southwest Florida reaches 11,600 students each year at schools and after-school organizations in Lee, Collier, and Charlotte Counties. We are gratified to be able to provide leadership for local programs that teach business acumen, problem-solving, entrepreneurship, and financial literacy to young people. More information can be found at juniorachievement.org. Residential Options of Florida (ROOF) is a nonprofit that helps people with developmental disabilities to successfully maintain affordable and inclusive housing of their choice. ROOF sponsors six three- and four-bedroom homes in Lee, Collier, and Charlotte Counties, and also helps adults with disabilities maneuver the complexities of available federal and state support programs. Florida is home to more than 300,000 individuals with developmental disabilities, and finding appropriate housing for adults with disabilities is a cause we’re proud to support. Learn more about ROOF at flroof.org. This Thanksgiving, CPSWFL also joined forces with the Lee County Sheriff’s Office to adopt five families in need. Our team gathered all the fixings for a traditional Thanksgiving meal, donated cash, and then delivered baskets to the families in time for a Thanksgiving feast. Cushman & Wakefield Commercial Property Southwest Florida is proud to support a number of additional nonprofits, community organizations and benefit events in our region, including American Heart Association Heart Walk, Aubuchon Helping Hands for the Holidays, the Bobby Holloway Jr. Memorial Fund, Catholic Charities Diocese of Venice, Chabad of Cape Coral, Champions 4 Children, Clinic for Rehabilitation of Wildlife (CROW), Community Cooperative, Evangelical Christian School, Florida Gulf Coast University, Habitat for Humanity of Lee & Hendry Counties, Harlem Heights Foundation, Hope Hospice, Oasis Elementary North, Pace Center for Girls, Rotary Club of Fort Myers South, St. Jude’s Children’s Hospital, SWFL Children’s Charities/SWFL Wine & Food Fest, Urban Land Institute (ULI), and Valerie’s House. These organizations, and thousands of other notable nonprofits and civic-minded groups, are meeting many needs in our community. They support education, business, children, needy families, the environment, and other worthwhile causes. Each of them improves our quality of life and makes Southwest Florida a better place to live – not just for those they serve, but for all of us. If you have commercial real estate, the professionals at Cushman & Wakefield Commercial Property Southwest Florida are an excellent resource as you consider your for selling, buying, and leasing. Cushman & Wakefield’s brokers have extensive local market knowledge and best-in-class data and analytics to guide your decision-making. Contact us for a complimentary, no-obligation property valuation by calling 239-829-5400 or contact-us.

By Shawn Stoneburner More than 100 years ago, our area’s most famous seasonal resident, Thomas Edison, famously said “There is only one Fort Myers, and 90 million people are going to find it out.” Ever since, Southwest Florida has struggled with its own success; we perpetually play catch-up to build infrastructure required to provide jobs and services for the residents who continue to move here in droves. Commercial development in the 1970s and 1980s focused on our coastal areas and US-41, catering primarily to sun-seekers and retirees. In the 1990s and 2000s, commercial development boomed in South Lee and North Collier Counties, thanks to plentiful available land and relatively low costs. Yet our largest population centers, Cape Coral and Lehigh Acres, are nowhere near the bulk of our region’s jobs. As a result of this irrational pattern of growth, the average one-way commute time in Lee County is now 42 minutes, according to Lee County Economic Development. That’s significantly higher than the commute times in many similar-sized metropolitan areas around the country. Ready to make a move?  Get started by contacting us. Fortunately, there’s good news for those of us stuck in traffic every morning. Employers are beginning to realize that it makes good financial sense to move their businesses closer to their workers. A 2018 study by global staffing firm Robert Half discovered that nearly one-quarter of American workers have left a job because of a bad commute. That translates to tens of thousands of dollars in hiring and training expenses and lost productivity per year even for small businesses, and millions of dollars annually for large employers. As a result, we’re seeing a rationalization of our marketplace across Southwest Florida. In Lee County, jobs are migrating closer to the center of the county, with the I-75, Alico Road, and Daniels Parkway corridors leading the way. This central region of Lee County, with close proximity to Southwest Florida International Airport (RSW), is seeing exponential growth from both existing businesses and newcomers to our area. Commercial property in this area is booming. Land in close proximity to RSW already houses some of Southwest Florida’s largest employers, including Florida Gulf Coast University and Gartner. Massive new facilities for Scottlynn USA, NeoGenomics, and Alta Resources are moving into the neighborhood, and companies from across the nation are poised to follow. Central Lee County is on the short list for substantial new manufacturing, research and development, office, call center and distribution facilities. The anticipated result is 45,000 new jobs coming to Southwest Florida in the next five years and another growth spurt for our region. But unlike past growth spurts, today’s more rational market will be prepared for it. The new air traffic control tower and runway at RSW will help the airport accommodate more commercial traffic for these businesses, and new transportation corridors like the Daniels and Alico Road extensions are already improving commutes, particularly for Lehigh Acres residents. “The goal is not to grow just for the sake of growing. We want to achieve targeted growth that improves the quality of life for our residents,” says John Talmage, Director of Lee County Economic Development. “For example, right now the cost of commuting and maintaining a vehicle make up close to 25 percent of household expenses for people in Lehigh. But as jobs move north, those expenses decrease dramatically. Car costs will be closer to 10 percent of household expenses. That’s a considerable upgrade in quality of life.” Demand for property in central Lee County is high, and commercial property investors know that our supply of developable land is low because of the environmental sensitivity of our region. For owners of property near RSW, Daniels Parkway, or Alico Road, your acreage has never been more desirable for development. Our new, more rational marketplace has created an ideal time to consult with a broker and take advantage of Southwest Florida’s next growth spurt. The professionals at Cushman & Wakefield Commercial Property Southwest Florida are an excellent resource as you consider your options. Cushman & Wakefield’s brokers have extensive local market knowledge and best-in-class data and analytics to guide your decision-making. Contact us for a complimentary, no-obligation property valuation by calling 239-829-5400 or contact-us.

By Shawn Stoneburner With election day now behind us, it’s important to understand how the election results may impact commercial property. A predictable pattern has emerged in the commercial real estate market. As with every election year, we’re facing a high degree of uncertainty about what lies ahead, and that uncertainty typically sparks a “wait and see” attitude among investors because of a fear of the unknown. Research shows us that there’s really no reason to let fear drive us to wait and see what happens. Whether the occupant of the White House wears a red or blue necktie actually has little traditional impact on the commercial property market. History shows us that even a dramatic shift in the presidency or congress doesn’t necessarily mean disorder or turmoil are on the horizon. “Commercial property has performed well under both parties,” says Kenneth McCarthy, Principal Economist with Cushman & Wakefield. “Since 1979… property index returns have averaged better than 8.5% annually under various democratic and republican administrations.” Ready to make a move?  Get started by contacting us. Obviously, the results of the election matter to each of us individually, but there are more significant factors for commercial property buyers and sellers to consider when evaluating their options. The market cycle, interest rates, employment levels, geopolitical events, Gross Domestic Product (GDP) and consumer spending, as well as the pandemic, can all impact commercial real estate pricing levels and transactions. And while the political makeup of Washington, D.C. can influence each of these factors, the sheer number of variables in play prevents drastic change in the market even when there’s drastic change inside the Beltway. For example, a democratic administration could raise corporate taxes and reduce overall earnings. But that same administration might modify trade relations with our foreign partners and improve our nation’s GDP. Conversely, a republican administration may improve corporate bottom lines by lowering taxes on businesses. At the same time, those tax cuts could reduce available federal funding for the infrastructure needed to support growth. There are simply too many variables at work to make a significant short-term impact. Regardless of these facts, we will still face a period of election-related uncertainty in the real estate investment market. In 2020, this “wait and see” period could be longer than usual, with some Senate races still undecided and results of the presidential election are challenged in a number of lawsuits. It would be a mistake to look at this uncertain period as a negative and let fear keep us from moving forward. In many ways, this is actually a period of opportunity. The hesitation builds pent-up demand for commercial property, and at the same time means there’s less competition while other sellers wait to see how the situation will shake out. This supply constraint, paired with repressed demand, drives quicker sales and higher prices. If you’re considering selling a commercial property, this is a great time to consult with a broker about how to take advantage of the current market. With interest rates still at historic lows and the Southwest Florida population continuing to climb, buyers are ready to jump into the market. The sooner your property is on the market, the better positioned it will be to sell. The professionals at Cushman & Wakefield Commercial Property Southwest Florida are an excellent resource as you consider your options. Cushman & Wakefield’s brokers have extensive local market knowledge and best-in-class data and analytics to guide your decision-making. Contact us for a complimentary, no-obligation property valuation by calling 239-829-5400 or contact-us.

By Gary Tasman Black Friday and the year-end shopping season are right around the corner, and 2020 promises to bring changes to the way we shop for our holiday gifts. Retail had already been undergoing a transformation before the COVID-19 crisis reached our shores, and the pandemic will bring both short and long-term implications to the way we shop. Successful businesses will be those who find a way to reimagine the retail experience, and property owners need to understand how these implications affect them. For decades, shopping malls were the primary destination for holiday shoppers, thanks to big-box stores and appearances by Santa Claus. But as consumer preferences and habits have changed, the mall experience has begun to erode. COVID-19 will likely accelerate this attrition, as Americans continue to avoid crowds and indoor gatherings. Deloitte’s 2020 holiday retail survey found that more than 50% of holiday shoppers feel anxious about shopping in stores this year. It would be a mistake, however, to consider brick-and-mortar retail a thing of the past. While the current state will certainly reinforce the popularity of e-commerce, brick-and-mortar retail still has a path to success. For years, successful retailers have adapted to consumer preferences by providing customers with an experience rather than just a mundane shopping trip. From in-store play centers, to celebrity appearances, to hands-on and virtual reality demonstrations, brick-and-mortar retail is evolving into “retailtainment,” sometimes called experiential retail. Ready to make a move ? Get started by contacting us. Personal shoppers, group cooking demonstrations, and custom fittings might seem tone-deaf in the midst of a pandemic, but savvy business owners are already looking ahead to our post-COVID future. Some experiences simply can’t be provided online, and retailers who are prepared to shift their business models to a more experiential paradigm are more likely to weather the storm. After a record year for retail property sales in 2019, retail real estate sales volume has lagged since March. In fact, sales volume in Q2 and Q3 2020 has been lower than we’ve seen in three years. But retail property owners shouldn’t lose hope. While empty retail spaces may be more plentiful now, Cushman & Wakefield’s Chief Economist, Kevin Thorpe, expects retail, and especially experiential concepts, to storm back after COVID-19. “People are pining to go out and shop, eat and be entertained,” explains Thorpe. “Pent-up demand will be unleashed.” It’s not just existing retailers who are buying in to the retailtainment trend. New businesses are already poised to take advantage of this pent-up demand. Consider the early success of Popstroke in Fort Myers, which opened recently to crowds and fanfare despite the pandemic. Popular pre-COVID concepts like painting studios, rage rooms and ax-throwing bars will see a likely resurgence in our post-pandemic future. Even the much-maligned shopping malls are getting in on the action. Forty years ago, malls promoted trendy features like skating rinks and waterparks to draw consumers away from downtown shopping districts. Today, malls like the Edison Mall in Fort Myers are turning to similar tactics, looking towards adaptive reuse to fill vacant space and provide entertainment. Edison Mall will soon be the home of the Southwest Florida Military Museum, a departure from the mall’s traditional retail model. New malls are also providing retailtainment venues. Miami’s planned American Dream mall is expected to host an indoor ski slope, a Ferris wheel, an amusement park, and more. It’s understandable for retail property owners to be frustrated in our current market, but with the proper data and positioning of these properties, retail spaces still hold value. The professionals at Cushman & Wakefield have the research, insights, creativity, and vision to help find the best use for your property and connect you with the buyers who are ready to bring their vision to life. There is no doubt that shoppers will eventually head back to stores for items other than essentials, although with COVID cases spiking across the nation, that shift may not occur in time for this year’s holiday shopping season. “The issue with this recession has not been one of demand, it’s been supply led,” said Cushman & Wakefield Global Futurist Andrew Phipps. “We haven’t had the chance to spend the money we’d like to, as opposed to not having the money to spend.” Even though the 2020 holiday shopping season will continue to see challenges for the brick and mortar retail industry, it’s not time to sound the death knell for retail. Instead, as we inch closer to our post-pandemic future, expect to see the retail market evolve in new and exciting ways. The retailers that will survive will be the ones who anticipate – and invest in — this evolution.

By Gary Tasman Although it may seem as though time has stood still since early March when the COVID-19 pandemic began impacting our region, Southwest Florida has continued to grow. In fact, data from AtoZ Database indicates that nearly 15,000 people have made Southwest Florida their permanent or primary home in the last six months, representing close to 10,000 households. Many of these new residents come via our traditional migration paths. It’s probably no surprise to anyone that about 40% of our area’s newcomers hail from New England, New York, New Jersey, and the upper Midwest. Our sunny and mild winters have been a magnet for transplants from these regions for decades. More surprising, however, is the number of families moving to our region from other parts of the Sunshine State. A full 20% of Southwest Florida’s newest residents hail from areas like Tampa, Orlando, and the state’s bustling east coast. And while northerners move to Southwest Florida for sunshine, fellow Floridians are now flocking to our area for another reason: opportunity. Ready to make a move ? Get started by contacting us. “For decades, the blessing and curse of Southwest Florida has been its distinction as a vacation paradise,” explains Shawn Stoneburner of Cushman & Wakefield Commercial Property Southwest Florida. Tourism and hospitality have been our region’s major economic drivers since the mid-1900s. In good years, the steady flow of tourists to Southwest Florida have kept taxes low and the quality of life high. In other years, our dependence on tourism and hospitality have left us vulnerable as hurricanes, the BP oil spill, and other external factors have stemmed the flow of tourists to our coastal paradise and damaged our region’s economy. Diversifying our economy has been a top priority for our area’s leaders, and that vision for a more varied economy is finally becoming a reality. Today, Southwest Florida is becoming a hotspot for technology, manufacturing and entrepreneurship. Powerhouses Arthrex, NeoGenomics, Gartner, and Alta Resources have expanded their considerable footprints in our area by purchasing property, building facilities and hiring employees, making the region more desirable for other companies to do the same. Growth like this begets more growth, creating a sustainable cycle of economic activity and opportunity. “As businesses move to our area, they lure employees from other parts of the state and across the country,” says Stoneburner. “This influx of new residents creates demand for schools, medical facilities, grocery stores, and other service providers. The construction industry and commercial property owners benefit, and the cycle continues.” Our area will soon see another boost, thanks to the Edison Awards, an international program that honors innovation and brings together hundreds of world-class thought leaders from around the globe for a conference, showcase, and awards program. Fort Myers will be the home of the Edison Awards for at least the next three years, bringing unprecedented exposure to our region. Many of the world’s brightest business minds will converge upon Southwest Florida and will surely see the opportunities that our region presents. Our region’s growth, diversification, and bright future are of great importance to commercial property owners. As new residents flock to Southwest Florida, new businesses are following suit, and their planners are seeking land and existing buildings to stake a claim in Southwest Florida. In turn, the intrinsic value of your property increases. If you own commercial property in our region, now is a great time to sell. If you own a commercial property and want to understand the value it holds, Gary Tasman and Shawn Stoneburner of Cushman & Wakefield Commercial Property Southwest Florida are your go-to team. Their extensive knowledge of Southwest Florida, along with best-in-class data and evidence-based insights, will help position your property to sell for maximum value in minimum time. The landscape of Southwest Florida is changing. Are you ready for it? Cushman & Wakefield Commercial Property Southwest Florida wants to help you take advantage of this opportunity. Contact-us.

The industrial property segment has been among the top performing asset classes in terms of net occupancy growth, rent growth and capital appreciation over the past several years. As COVID-19 spread across the country, real estate markets across the country have been affected in various ways. However, the industrial asset class seems to endure despite the challenges that the COVID-19 recession has brought forth. Much of this is due to the industrial market’s strong position heading into the pandemic. Use Cushman & Wakefield’s interactive map to find out how the U.S. and Canadian industrial real estate markets were performing at the onset of the current recession compared to previous recessions and read the full report to understand how key industrial markets are expected to weather the storm.