Real Estate Maintains Investor Interest During Economic Downturn - Fall/Winter 2001

 The fluctuating stock market pushes interest and confidence to real estate.  The recession we have been experiencing and subsequent downturn in leasing have not clouded investors’ vision. They recognize that the recent appreciation of real estate and stabilized vacancy rates are signs that the recession will be short-lived. Confidence in real estate as a sound investment is buoying real estate markets, and sellers are pressing for higher prices.

In almost every U.S. city, we have noted significant real estate value appreciation. Pent-up demand, aging Baby Boomers and the raging stock market of the 1990s are some of the reasons. Sarasota is clearly following suit. In the early 1990s buyers were few and far between for C-CBD-zoned vacant land at $20 per square foot.  Recent recorded sales have reached $55 per square foot.  St. Armand’s retail building sales have now reached  $450 per square foot, compared to $200-$300 in 1990.