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Six Critical Questions Part 6: What Are Some of Southwest Florida’s Largest Commercial & Public Sector Construction Projects?

This article is the final edition of a six-part series focusing on the most critical questions about development and commercial property in Southwest Florida.  The end of 2023 saw two landmark construction projects come to an end: Margaritaville Resort in Fort Myers Beach, and Sunseeker Resort in Port Charlotte, both of which were long-awaited developments that changed the profile of their communities. These hospitality projects will soon be joined by four additional large-scale hotels in Collier County, which combined will total more than $1.4 billion in development.  However, the majority of our region’s new construction projects are focused on the needs of our rapidly growing population rather than our traditional economic base of tourism.   This brings us to the final question in our six-part series:  What Are Some of Southwest Florida’s Largest Commercial and Public Sector Construction Projects?  Over the next five years, Southwest Florida will see substantial development across various sectors, including commercial and public infrastructure projects tailored to support our expanding community. Educational infrastructure will receive a boost with multiple new schools coming in Lee, Collier, and Charlotte Counties. Combined, the new educational ventures in our region will reach more than $3.3 billion in the next half-decade, but represent only a portion of our region’s largest construction projects.  Medical & Medical Office   Lee Health plans to invest more than $750 million into fresh community health initiatives. This year, the hospital system completed the expansion of its Surfside outpatient center in Cape Coral. Lee Health has also broken ground on a new 60-bed rehabilitation hospital in collaboration with Encompass Health, slated for completion in 2025. However, the system’s most notable upcoming project is the construction of a new hospital and medical campus on Colonial Boulevard in Fort Myers.   Southwest Florida International Airport  Already one of the nation’s fastest-growing airports, Southwest Florida International Airport (RSW) envisions further expansion. This includes a $331 million terminal expansion, Lee County’s second-largest public works project ever. However, the terminal expansion is just a fraction of RSW’s $1.4 billion overall growth plan, which includes its ambitious Skyplex development.  Infrastructure and Hurricane Recovery Projects   The topic of traffic congestion is always top-of-mind for Southwest Florida residents, prompting several infrastructure projects meant to alleviate some of the many commuter challenges exacerbated by a growing population. These include the long-awaited replacement of the Cape Coral Bridge, expected to begin in 2026 or 2027, and numerous road expansion projects across the region. Beyond just transportation improvements, total infrastructure investments and expansions in Lee, Charlotte, and Collier Counties will total north of $1 billion.   Finally, it’s crucial to address the economic impact generated by our region’s ongoing recovery from Hurricane Ian. Over the next five years, projects designed to rebuild and reinforce our community will ignite construction activity valued between $60-$110 billion.  The Commercial Construction Cycle  Construction spending has a ripple effect on the economy. These improvements to our community will do more than just make Southwest Florida an even more desirable place to live. As our expansion continues, it will also foster job creation and population growth. The data suggest that Southwest Florida will lead the state in economic expansion for the foreseeable future.    How will these projects impact you and your investments? The team at Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL) has an intimate understanding of our region’s economic potential and commercial property landscape. Reach out to the Commercial Property Experts at CPSWFL with your questions. To contact us, use our online contact form or call 239-489-3600 and consult with an expert today.     

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Six Critical Questions Part 5: Has the Wave of Multifamily Construction Reached its Peak?

This article is part five of a six-part series focusing on the most critical questions about development and commercial property in Southwest Florida.  Our recent article on Southwest Florida’s hottest commercial corridors highlighted an abundance of multifamily housing springing up across the region. These projects will gradually come to market over the next 12-14 months. Some economic indicators hint that this multifamily boom may be reaching a peak, which brings us to our fifth critical question about Southwest Florida’s Development:   Has Southwest Florida’s Wave of Multifamily Construction Reached its Peak?  Over the past year, Southwest Florida has seen a dramatic 62% decrease in construction starts. Escalating material and labor costs, combined with higher interest rates, are making it more expensive to build and borrow money, dampening the incentive for multifamily developers. Moreover, the additional supply in the market should cause rent prices to stabilize, further making multifamily housing less attractive for developers. However, we anticipate this trend to be a short-term pause rather than a long-term slump because of ongoing demand.  Rental Rates and Housing Shortages in Southwest Florida   The shortage of multifamily housing in our region has been a longstanding issue. While the current boom will certainly narrow the gap between demand and supply, the current wave of construction will not fully address the region’s housing crisis. The majority of the new units in the current pipeline are luxury and market-rate apartments, which do little to alleviate Southwest Florida’s housing affordability crisis.   We’re all familiar with the often-cited guideline that no more than 30% of our before-tax income should be spent on our housing. Yet Gulfshore Business recently noted that the median household income in Lee County is $71,072. To meet the 30% affordability standard, monthly rent on a two-bedroom apartment should cost no more than $1,777. The reality is quite different, however. Renters in Lee County pay an average of $2,273 a month, meaning there will still be significant demand for housing in our region.  Demand and Multifamily Construction Activity  As the new inventory of multifamily units comes online over the next 12 months, we can certainly expect a temporary lull in construction activity. Nonetheless, demand should rebound quickly as the region’s population continues to grow. With economic conditions expected to improve, we anticipate that investors will once again turn to multifamily development, driving another surge in construction in 2026. In other words, although our current multifamily construction wave may have plateaued, the peak is yet to come.  If you’re a developer considering multifamily construction in Southwest Florida, your next step is to contact the Commercial Property Experts at Cushman & Wakefield | Commercial Property Southwest Florida (CPSWFL). Our team can leverage our data and local knowledge to help you understand the economic potential of your potential development project. Reach out to us by completing our online contact form or calling 239-489-3600 to speak with an expert.     

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