Q3 Newsletter 2019

Dear Friends and Clients, Attached please find our Q3 2019 newsletter. Third quarter market fundamentals remained strong as vacancy lowered in most sectors and rents increased. Most significantly, in the industrial sector, lack of inventory is driving new projects that will be available in the fourth quarter of 2019 and the first quarter of 2020. All indications point toward a strong end of 2019 and the beginning of 2020. As always, thank you for your trust and confidence in our capabilities. Please feel free to call or email me any time with questions about commercial real estate in our region. Sincerely, Gary Tasman CEO & Principal Broker Q3 Marketbeat Reports Navigating the Southwest Florida commercial real estate market and economic indicators affecting its performance can be a challenging task. Cushman & Wakefield | Commercial Property Southwest Florida offers quarterly MarketBeat reports to help you stay ahead of the real estate curve. MarketBeat reports offer trends, insights and forecasts on all segments of the commercial real estate market in the region. They provide answers to questions such as the current state of the market, and where the real estate market is going. Q1 2019 reports are now available. Download a free copy today. Local MarketBeats Q3 2019 Office Market Beat Economy Southwest Florida, which includes Charlotte, Lee and Collier counties, had an unemployment rate of 3.8%, down 10 basis points (bps) year over year. The unemployment rates for the three counties with office inventory were 3.5% in Lee County,the largest… Market Overview The market wide overall vacancy rate narrowed to 5.2% at the close of third quarter, a -80 bps decrease from second quarter 2019. Overall market vacancy stabilized for Class A office space as leasing activity and… Download 3Q Office MarketBeat Q3 2019 Industrial Market Beat Economy Southwest Florida, which includes Charlotte, Lee and Collier counties, had an unemployment rate of 3.8%, down 10 basis points (bps) year over year. Lee County had the lowest unemployment rate at 3.5%, while Collier County was at 3.8% and Charlotte… Market Overview The overall vacancy rate closed out third quarter 2019 at 2.9%, driven mostly by tenant move-outs in the Lehigh submarket. This vacancy rate remained unchanged for the total market from last quarter… Download 3Q Industrial MarketBeat 3Q 2019 Medical Office Market Beat Economy Southwest Florida, which includes Charlotte, Lee and Collier counties, had an unemployment rate of 3.2% in September 2019. Lee County, with the largest medical office market in the region, had an unemployment rate at 2.9%, while Collier County was at 3.2% and Charlotte County… Market Overview The overall vacancy rate was historically low at the end of third quarter. Vacancy rates decreased from 9.3% this time last year to 8.4%, a -90 bps decrease. During this timeframe asking rent stabilized, remaining consistently … Download Medical Office Beat WHAT’S HAPPENING IN COMMERCIAL REAL ESTATE U.S. Economy Still Growing: Consumers Confident and Spending The U.S. economy continued to grow at a steady pace in the third quarter of 2019, adding approximately 470,000 new jobs, of which 140,000 were in the key office-using sectors. Consumer confidence… Read More of Cushman & Wakefield U. S. Economy and MarketBeats… Have you called your primary care doctor lately and been told to go to urgent care? It is the trend in the medical Sector. It is also a great opportunity for medical office space investors. Urgent care centers (UCC) will bridge the gap between planned primary care visits and jammed emergency room visits. Urgent care centers free up emergency services by treating immediate needed, but non-life threatening illness or injury. UCCs are characteristically free-standing. Another new trend is major retail pharmacy chains creating retail clinics inside the pharmacy that give vaccinations, treat minor illness without the need for a doctor. Florida has the highest forecasted need for new urgent care centers by 2030 based on population growth, specifically those 65 years and older. In Charlotte, Lee and Collier County, six (6) new UCCs opened since 2016. For more information on the Urgent Care Surge, click Here. Charlotte, Collier, Lee, Hendry, and Glades Counties have designated Opportunity Zones. Opportunity Zones incentivize investment in low-income or economically challenged areas. Program Benefits: Opportunity Zone Programs are similar to 1031 exchange in that the property is identified within a designated time frame, 180 days. December 31, 2019 is the initial deadline. Capital gains can be deferred up to December 31, 2026. Investors may defer taxes on long-term capital gains, effectively reducing tax liability to 15%, but must hold interest in the asset for at least five years. Investors who hold the fund for at least ten years can sell their interest in the property, and there is no capital gains tax. Some programs require job creation along with the capital investment in the Qualified Opportunity Zone. This map illustrates the Opportunity Zones in Southwest Florida. If you are interested in investing in an opportunity zone or own property in an opportunity zone, we will help you through the process. Click here to access Frequently Asked Questions by Cushman & Wakefield’s Opportunity Advisory Group Click here to link to the IRS Frequently Asked Questions about Opportunity Zones. RECENT MARKET MOVERS SIGNIFICANT SALES 17280 Jean St., Fort Myers was sold to 17280 Jean St, LLC for $772,500 from Resun Modspace, LLC: Gary Tasman and Shawn Stoneburner 16281 & 16291 Domestic Ave., Fort Myers was sold to GH Domestic Ave, LLC for $2,895,000 from HMTW Land Fund I, LLC: Gary Tasman and Shawn Stoneburner. North Cape 68 / Multiple 10 Lots, Cape Coral was sold to D.R. Horton, Inc. for $110,000 from Landmark Assets Florida, LLC: Gary Tasman and Shawn Stoneburner. Keith Pickard dba: Marlin Plaza, Inc.: 5611 & 5631 Six Mile Commercial Ct., Fort Myers, FL for $6,500,000 from Marlins Property Holdings, LLC Gary Tasman and Shawn Stoneburner. SIGNIFICANT LEASES Klocke of America, Inc. leased 18,419 square feet of industrial space for a lease term of 60 months at 16260 Airport Park Drive, Fort Myers from Premier/Sum Fort Myers,