2021 Forecast - 1st Quarter 2021

Florida is wonderfully positioned to benefit in a post-Covid-19 world. Because schools and most businesses have remained open, in contrast to many states, people from New York, Chicago and California have flocked to Florida and specifically to Sarasota. Consider the region’s residential real estate market today: Buyers from out of state dominate purchases and many pay cash, despite historically low interest rates. As population grows, so does the demand for all types of new businesses and services while existing businesses also expand to meet the population influx. Not too surprisingly, population growth often also incites anti-growth arguments – some valid and some more “Not-In-My-Backyard” (NIMBY) than valid. With pent-up market demand, a growing population, continued low interest rates and the seemingly endless supply of federal Covid-19 relief dollars, the future of commercial real estate in Sarasota and the surrounding area for the foreseeable future is very bright.

Going forward, look for residential developments to proliferate to meet the market demand from new residents and because capital continues to seek a home in this market sector and in Florida. The continued purchase of income properties from well-funded out of the area investors attests to the attractiveness of our market on a national and international level.

New industrial projects also will come to market late in 2021 and into 2022 to fulfill online shopping orders and modern distribution requirements -- if developers can find adequate land for them, as many industrial sites lose out to residential developments with better yields.