Commercial Property

The Data Center Boom: Florida’s Role in a Growning Commercial Real Estate Sector

The Data Center Boom By Gary Tasman The digital revolution is reshaping commercial real estate, with data centers emerging as one of the most in-demand asset classes. The surge in cloud computing, AI, and IoT has fueled an unprecedented need for data center space, both globally and in key U.S. markets. Florida, with its emerging data center market, strong connectivity, and business-friendly environment is becoming an attractive location for companies looking to establish a robust digital infrastructure near the Florida business and consumer marketplace. Florida’s Competitive Advantage in Data Centers Florida has data center hubs in Miami, Tampa, Orlando, and Jacksonville. Its excellent fiber optic infrastructure and position as a hub for submarine fiber landings make it a key gateway for global data connectivity. Additionally, Florida offers competitive electricity rates, with some exemptions on electricity sales tax, making it a cost-effective environment for data center operations. Florida has abundant power in many locations. Development & Conversion: A Real Estate Opportunity As demand grows, both new developments and adaptive reuse of commercial properties are becoming viable solutions. Industrial warehousing and manufacturing buildings can be converted into data centers, leveraging Florida’s favorable infrastructure and cost benefits. Investors and property owners should consider power availability, diverse fiber availability, flood risk, and hurricane risk when exploring these opportunities. Sustainability & Security: Key Operational Considerations Sustainability is a major focus in data center design, with renewable energy integration, water-efficient cooling systems, and regulatory compliance shaping the future of operations. Security—both physical and cyber—is also a top priority, making data centers among the most fortified commercial properties. Investment Outlook: Florida’s Growing Market For investors, Florida’s data center market presents a strong opportunity for long-term value. Florida is an emerging market and is considered underdeveloped for the coming data center demand. There are development and investment opportunities to reposition land for data center development and convert existing buildings. There are also investment acquisition opportunities to consider. Colocation models, capital stacking strategies, and evolving valuation metrics provide diverse entry points into this high-growth sector. With demand continuing to rise, commercial real estate professionals must stay ahead of market shifts to capitalize on Florida’s position as a data center hub. Florida’s data center market is very exciting and is poised for unprecedented growth. With over 100 data centers already established and significant investments projected to exceed $2 billion in the coming years, Florida offers a highly attractive environment for data center investment and development. The state’s business friendly policies, abundant renewable energy resources, and strategic connectivity to undersea fiber optic cables make it a prime location for both national and international data center investment.” Randolph W. Borron, Vice Chairman, Global Data Center Advisory Group, for Cushman & Wakefield CONTACT GARY TASMAN, CEO & Principal Broker At Cushman & Wakefield | Commercial Property Southwest Florida, we understand the evolving landscape of data center real estate. Whether you’re looking to invest, develop, or reposition existing assets, our expertise can help you navigate this rapidly growing sector. For more insights on Florida’s data center real estate opportunities, contact Gary Tasman today at 239-489-3600 or by email gtasman@cpswfl.com.

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Six Critical Questions Part 2: What Impact Will Interest Rates Have on Commercial Real Estate?

🔍 What Impact Will Interest Rates Have on Commercial Real Estate?   Join Gary Tasman, CEO & Principal Broker of Cushman and Wakefield Commercial Property Southwest Florida, as he shares his strategic thought leadership on the factors influencing the commercial real estate market in Southwest Florida in part 2 of our video series on Emerging Trends in SWFL.   Over the past year, we’ve seen a significant deceleration in transaction volume due to rising construction costs, land scarcity, increased insurance premiums, and, notably, higher interest rates. To learn more about emerging trends in commercial real estate in SWFL follow this link; https://bit.ly/InterestRatesCPSWFL

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Six Critical Questions Part 2: What Impact Will Interest Rates Have on Commercial Real Estate?

This article is part two of a six-part series focusing on the most critical questions about development and commercial property in Southwest Florida.   The volume of commercial real estate transactions in Southwest Florida decelerated over the last year, likely attributable to number of factors. These variables include escalating construction costs, scarcity of land for development, increasing insurance premiums, and growing interest rates.   Yet, despite this slowdown in commercial sales velocity, prices are still on the rise.  This brings us to the second critical question in our six-part series:  What Impact will Interest Rates Have on Southwest Florida Commercial Real Estate?  Undoubtedly, interest rates have a visible influence on the commercial real estate investment market. Elevated interest rates mean a hike in the cost of borrowing money and can ultimately dampen demand from developers and investors.  Interest Rates and Treasury Yields  Commercial mortgage rates are typically based on the 10-year treasury. Treasury yields peaked at 4.92 percent in October 2023 and currently hover at about 4.3 percent, roughly 80 basis points higher than we saw last April. Such rates can pose hurdles for properties that can’t generate enough cash flow to support high-leverage mortgages. Fortunately, rent growth should soften the impact of pricier borrowing costs on balance sheets.  The Federal Reserve Bank escalated interest rates 11 times in 2022 and 2023 to counteract skyrocketing inflation. Since inflation began to stabilize in mid-2023, the Fed has left rates unchanged in six of its last seven sessions. Currently, the U.S. inflation rate stands at 3.2 percent, and although the Fed disappointed many by announcing that it’s unlikely to reduce interest rates in the immediate future, experts still anticipate at least one rate cut before the end of the year.   More Interest Rate Stability Coming  We anticipate much more stability in interest rates from this point forward. As a result, property values in our region are poised for marginal growth, thanks to low inventory and high rent potential. However, we shouldn’t expect to see sales volume rebound to previous levels for another year to 18 months.    Are you prepared to take advantage once interest rates begin to fall? Whether you’re a property owner looking to position your asset for sale or a potential buyer seeking opportunities in our marketplace, the Commercial Property Experts at Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL) have the data, analytics, and local experience to assist you with your needs. Complete our online contact form or call CPSWFL at 239-489-3600 today to speak with one of our experts.   

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Craft Brewing Revolutionizes Commercial Real Estate

Craft Brewing Revolutionizes Commercial Real Estate By Gary Tasman CEO & Principal Broker, Cushman & Wakefield Commercial Property Southwest Florida, LLC Anyone who has taken up the art of market watching over the last ten years may have noticed that breweries, micro-breweries and brewpubs have more than tripled the craft brewing market and placed most U.S. living quarters within 10 miles of a craft brewer. With Millennials accounting for 41% of the weekly beer-drinking population, the industry will continue to affect local and national real estate, as well as the economy. Craft Brewing Reclaims Obsolete Space Many brewing facilities are currently operating out of abandoned mills and vacant manufacturing spaces, as well as in redeveloped, archaic brew shops — in other words, reclaimed space, such as Millennial Brewing Company and Scotty’s Bierwerks’. Additionally, the craft brew space in Southwest Florida is split by retail and industrial space, with much of the retail space for breweries located in retail strip centers, such as Bury Me Brewing Company, Bone Hook Brewing Company, Old Soul Brewing and Point Ybel Brewing Company. Nearly 75% of tracked U.S. brewpub deals have also become a part of retail or commercial space, while microbreweries and regional craft brewing operations have mostly been tenants of industrial space. This translates to over 55.6 million square feet of occupancy growth across industrial (81.4%) and retail (18.6%) space as of 2007. A Growing Trend Within the State of Florida, there were a total of 195 breweries by the end of 2016, which suggests a 333.3% change in brewery growth since 2011 and translates to 1.3 breweries per capita. Over 1,200 barrels of craft beer per year are produced statewide, translating to 2.5 gallons per 21-plus adult. Ironically, five-plus years ago represented a time of zero breweries in Southwest Florida. But right now, there are 14 from Punta Gorda to Marco Island. Here is a look at local market indicators: Retail Vacancy Rate: 4.7% Industrial Vacancy Rate: 1.8% Office Vacancy Rate: 6.1% Population: 1.2 million Will this Trend Decline? The double-digit growth of individual markets may decline in 12 to 18 months, resulting in the closing of some breweries, largely in the markets where the trend has already proven to be strongest, because that is where the fiercest competition lies. Even so, small brewpubs, microbrewery operators and larger, regional players are continuing to multiply, especially as they expand to tasting rooms, full pubs and/or restaurants, as well as wedding and event venues. Additionally, more startups, private-equity funds and big beer conglomerates are looking to get a piece of the craft beer market. Tap House As aggregate craft beer production increases, these producers will be looking for outlets to expand their markets. Along with the potential to wholesale direct to local restaurants and bars, we see a new concept emerging. Tap houses that feature multiple products will be another potential outlet. One such concept, slated to open in early 2018, is Marlins Brew House. Here, patrons can choose from a rotating 32-tap inventory of local craft beers. Watch for Marlins Brew House and likeminded tap houses to expand rapidly throughout the region and beyond. How Do the Strong Survive? Prospective brewers should enter the craft beer market with a solid concept in place to ensure proper capital and space. This includes an executed lease before receiving approval for alcohol sales, because landlords will not take a chance on tying up a property without confidence in a business plan. Operators should also understand how local regulations may impact their business plan and have the necessary clauses written into their lease. Additionally, to connect with the Millennial consumer base, material goods should never take priority over experiences. The real estate and the design matters much more than how many taps one owns. Start by picking the right location. Just watch out for plug-and-play leases in otherwise nondescript second generation retail space. Then, invest in innovative design and architecture to stand out from the competition. This should include open spaces for live music, film screenings and/or backyard-style games for a family-friendly environment. And remember to seek partnerships with restaurateurs including food truck operators. This will allow brewers to focus on their craft, while potentially keeping customers in their space longer, driving beer sales up.

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Cushman & Wakefield | Commercial Property Southwest Florida brokers $3.875M sale of investment property in Naples

Naples, Fla. (Nov. 16, 2022) – Gary Tasman, CEO and Principal Broker, and Shawn Stoneburner, Senior Director, of Cushman and Wakefield | Commercial Property Southwest Florida, LLC have just facilitated the sale of Chase Bank on 10975 Tamiami Trail N in Naples, owned by JPMorgan Chase Bank NA to Butterfli Holdings 004 LLC for $3,875,000. The class A building has a great location and surrounding demographics, in addition to the full office build out and ample parking already on site. Also, the property has been approved for a small drive-thru business to be built in the parking lot to diversify future uses. Upon closing Butterfli Holdings 004 LLC had contracted Mr. Tasman and Mr. Stoneburner to represent them for leasing the property. This is a great example of the trusted name and reputation Cushman and Wakefield | Commercial Property Southwest Florida, LLC has in the community. “Great relationships and trust built with every interaction sets us apart from the rest!” stated Mr. Tasman. About Cushman & Wakefield | Commercial Property Southwest Florida, LLC Cushman and Wakefield | Commercial Property Southwest Florida, LLC delivers integrated solutions by actively advising, implementing, and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. They cultivate long term relationships, advising clients in buying, selling, financing, leasing, and managing assets. C&W also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance. For more information about this transaction, or to learn more about Commercial Property Southwest Florida, please contact Gary Tasman at gtasman@cpswfl.com or visit www.cpswfl.com. Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2019, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation, and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

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Cushman & Wakefield | Commercial Property Southwest Florida brokers $860K sale of commercial property in Bonita Springs

BONITA SPRINGS, Fla. (Oct. 4, 2022) – Lane Boy, Executive Senior Director, of Cushman and Wakefield | Commercial Property Southwest Florida represented Bonita J Inc. in the sale of 1.18 ac of land to Landsource, LLC for $860,000.  According to Boy, “Land development opportunities along the Bonita Beach Road corridor are dwindling as remaining vacant sites are built out. The buyer in this case was attracted to the property’s location and prospects for a unique residential development project.” About Cushman & Wakefield | Commercial Property Southwest Florida, LLC Cushman and Wakefield | Commercial Property Southwest Florida, LLC delivers integrated solutions by actively advising, implementing, and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. They cultivate long term relationships, advising clients in buying, selling, financing, leasing, and managing assets. C&W also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance.  For more information about this transaction, or to learn more about Commercial Property Southwest Florida, please contact Gary Tasman at gtasman@cpswfl.com or visit www.cpswfl.com.

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Cushman & Wakefield | Commercial Property Southwest Florida brokers $4.962M sale of industrial flex building in Fort Myers

FORT MYERS, Fla. (Sept. 27, 2022) – Gary Tasman, CEO and Principal Broker, and Shawn Stoneburner, Senior Director, of Cushman and Wakefield | Commercial Property Southwest Florida, LLC recently facilitated in the sale of a +/-26,801 sf industrial flex building in Fort Myers Florida. The property, located at 5570 Enterprise Parkway, sold for $4.962M to LB Anderson Construction, LLC as an investment property. The property was purchased from Island Roofing who put the building under a total renovation, including new impact glass windows, LED lighting, new office build out, new siding, new landscaping and fenced in outside storage area, just before the sale. It is 100% occupied by Island Roofing, with a 6.25 CAP rate and a 10-year leaseback at closing from Island Roofing. Mr. Tasman and Mr. Stoneburner represented the seller in the transaction.  About Cushman & Wakefield | Commercial Property Southwest Florida, LLC Cushman and Wakefield | Commercial Property Southwest Florida, LLC delivers integrated solutions by actively advising, implementing, and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. They cultivate long term relationships, advising clients in buying, selling, financing, leasing, and managing assets. C&W also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance.  For more information about this transaction, or to learn more about Commercial Property Southwest Florida, please contact Gary Tasman at gtasman@cpswfl.com or visit www.cpswfl.com.

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Cushman & Wakefield | Commercial Property Southwest Florida brokers $1.95 million sale of North Fort Myers property

NORTH FORT MYERS, Fla. (Sept. 13, 2022) – In the rapidly growing Fort Myers MSA, developers see the needs of the area and they are delivering. With the population expanding at the highest rates in Southwest Florida’s history, as well as projections of population exponentially growing in the upcoming years, finding more housing options is more than necessary. Evergreen Pine Island Co. saw this need and will be bringing new housing options to the busy North Fort Myers/Cape Coral area. Laurel Center Management recently sold 9.3 acres of land in North Fort Myers/Cape Coral to Evergreen Pine Island. Laurel Center Management purchased the three-parcel property back in December of 2012 for $295,000, around $0.61 per square foot; to say that the surrounding area has changed would be an understatement. The population in a 10-mile radius surrounding the property since 2010 has grown by over 30,000 and is projected to gain another 22,000 by 2027. The local community around the parcels has grown in many ways to fill the needs of the current expansion: a plethora of businesses, schools, medical facilities, and restaurants have recently developed. Furthermore, the land was recently annexed into Cape Coral which further increased its value and sold at $4.96 psf for $1,950,000 to Evergreen Pine Island Co. Gary Tasman, CEO and Principal Broker, along with Shawn Stoneburner, Senior Broker, for Cushman and Wakefield | Commercial Property Southwest Florida facilitated in the sale of the land. Evergreen Pine Island Co. now plans to develop multifamily housing/luxury apartments with the land. Recognizing the housing needs of the current market, it is expected to be a great addition to the community. With the property in close relation to many businesses and major corridors, it will be a great location for living in Southwest Florida. About Cushman & Wakefield | Commercial Property Southwest Florida, LLC Cushman and Wakefield | Commercial Property Southwest Florida, LLC delivers integrated solutions by actively advising, implementing, and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. They cultivate long term relationships, advising clients in buying, selling, financing, leasing, and managing assets. C&W also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance. For more information about this transaction, or to learn more about Commercial Property Southwest Florida, please contact Gary Tasman at gtasman@cpswfl.com or visit www.cpswfl.com. Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2019, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation, and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

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Cushman & Wakefield | Commercial Property Southwest Florida brokers $8.9 million sale of Naples land

Gary Tasman, CEO and Principal Broker, as well as Shawn Stoneburner, Senior Director of Cushman and Wakefield | Commercial Property Southwest Florida, LLC handled the sale of 8552 Collier Blvd in Naples, Florida. Latigo Naples, LLC purchased the property from Amerisite, LLC for $8,995,000. The land consists of three conjoined parcels totaling 18.95 acres Zoned C4-General Commercial and is fully entitled and ready for commercial development. However, Amerisite, LLC has other plans for the land. Amerisite, LLC will be using the property for a new class A apartment complex. The complex will have +265 units, bringing more housing options to Southwest Florida’s ever-growing population. A great example of Southwest Florida’s population growth, is the population in a 10-mile radius of 8552 Collier Blvd. In 2010 the population was 183,300 people, now as of 2022, the population has grown to 225,521 people with a projected population of 250,883 by 2027.  The land has already been approved for multi-family development and Amerisite, LLC plans to break ground by the end of the year. In a time of such exponential population growth, the addition of this class A apartment complex will be a great addition to the local community, as well as stimulate the local economy by bringing more housing with a smaller footprint. With its proximity to Florida Southwestern State College, just west of Florida Sports Park, and just across the street from Naples Lakes Country Club, it will be a prime location to live. At closing Mr. Tasman said, “In a market with such a need for more housing, it is great to assist in a solution!”

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Cushman & Wakefield | Commercial Property Southwest Florida wins 5 prestigious CoStar Power Broker Awards

FORT MYERS, Fla. (July 26, 2022) – Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL) won five CoStar Power Broker Awards, recognizing and celebrating commercial real estate’s top brokers, firms, and deals throughout the United States and Canada. The awards luncheon was held at Ruth’s Chris Steak House, in Bonita Springs, on July 13. “We are so honored to be named top in our business, by the top in the business,” said Gary Tasman, Founder, CEO, and Principal Broker at CPSWFL. “The CoStar Awards are quite an accomplishment and validate the work we are doing to transform Southwest Florida, drive its economic standing, and improve quality of life in the region.” Recognizing the best of the best in commercial real estate, The CoStar Power Broker Awards verifies and analyzes thousands of deals submitted to identify winners in each market (based on cumulative deals) by a panel of esteemed industry professionals. Recognized as the premier industry award, both the firms and brokers have the opportunity to obtain this recognition, placing them among the industry’s elite.  CPSWFL received both the Top Leasing and Top Sales Firms Awards. Tasman earned the Top Office Leasing Brokers Award, and he and Shawn Stoneburner each received the Top Sales Brokers Award. For more information about CoStar Power Broker Awards, methodology, or to see a complete list of winners, please visit costarpowerbrokers.com CPSWFL is the only independently owned Cushman & Wakefield alliance in the state of Florida, providing the ability to integrate its global resources and platform with the strength of local talent, relationships, and market intelligence. CPSWFL delivers an exceptional portfolio, specialized services, and best-in-class systems that allow the firm to pass on research analytics and thought leadership to clients. For the past 15 years the firm has been a driving force behind local development and growth and strives to be a guiding force for improving quality of life in the region. For more information about CWCPSWFL, please contact Gary Tasman at gtasman@cpswfl.com or visit www.cpswfl.com.  About Cushman & Wakefield | Commercial Property Southwest Florida, LLC  Cushman and Wakefield | Commercial Property Southwest Florida, LLC delivers integrated solutions by actively advising, implementing, and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. They cultivate long term relationships, advising clients in buying, selling, financing, leasing, and managing assets. C&W also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance.  About CoStar Group, Inc. CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada and Asia. From time to time, we plan to utilize our corporate website, www.costargroup.com, as a channel of distribution for material company information. For more information, visit www.costargroup.com.

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