Hot, hot, hot!: U.S. 41 near Sarasota Memorial Hospital - Spring 2018

It’s been said that the only constant in life is change – an adage that applies to real estate markets as well. Identifying areas that are poised to turn up or sink down and the factors behind such moves is the key to correctly anticipating the market and then making intelligent decisions. Consider the city’s “Hospital Zone” enacted in the early 2000s. While it has attracted significant attention because of the anchor and economic engine of Sarasota Memorial, the superior visibility that U.S. 41 provides and the affluent demographics of surrounding neighborhoods, the area has not attracted a significant number of new businesses. Today, on the other hand, the area is one of the hottest submarkets in the entire region and demand for office and restaurant locations is strong. This trend was recently exemplified when a property at 2900 S. Tamiami Trail in the district went under contract of sale just two days after it was first listed, for the full list price. Moreover, the sale price of $290 +/- per square foot did not include the necessary cost of updating that would typically be required to a building constructed in 1982. What attracted the buyer were the positive fundamentals possessed by the property: great visibility, excellent parking and solid construction. The quick sale and high price is indicative of the solid interest in this area and the recognition that the hospital district is a superior location.