Sarasota Investment Real Estate Remains A Much Desired Commodity - Winter 2017

Properties with credit tenants and longer-term lease commitments have been trading at capitalization rates ranging between 4.5% and 6%, depending on location. Typically, these deals are with national restaurants, pharmacies and service oriented stores. These properties are often purchased by private investors, but this cycle has seen the advent of large institutional investors eyeing our marketplace as never before and often looking for the higher dollar investments. The recent purchase of the 907,000-square-foot Meridian Distribution Center, at Clark and McIntosh roads, for $52,500,000 by Agellan Commercial REIT of Canada serves as a prime example of the willingness of institutional capital to bypass more urban markets in favor of Sarasota, and demonstrates the confidence these investors have in our market.