Sarasota’s Evolving Marketplace - Spring 2016

Sarasota’s commercial real estate landscape has evolved over the past five years to one that is comprised more than ever before of national retailers and investors.

That’s primarily because Sarasota is becoming recognized for its sophisticated population and abundance of wealth – traits retailers, developers and investors alike look for when considering where to allocate capital. The trend also speaks to the perceived value that Sarasota real estate still has on a national scale, relative to larger markets like Atlanta, Miami and elsewhere, as well as the overall confidence investors now have in Southwest Florida.

The presence in our market of national companies like Taubman Centers at the Mall at University Town Center; TerraCap Management at the four-building Gateway Professional Center office complex on Cattlemen Road and at Kane Plaza downtown; GreenPointe Communities at the 15-acre, former Sarasota Quay site downtown; apartment developer Carter downtown; and CapStone Management LLC downtown at the Ringling Square and PNC Bank office buildings demonstrates a growing desire among institutional investors to be located here.

Additionally, Benderson Development Co.’s headquarters’ relocation from Buffalo, New York, several years ago continues to send ripples through our market and a message to others. Benderson, one of the nation’s largest privately held real estate developers, has also been a major force in transforming Sarasota into more of an institutional marketplace.

Collectively, these half-dozen firms alone have invested more than $700 million regionally to date, and in the case of Carter, CapStone and GreenPointe, future significant capital outlays are likely to be forthcoming.

Also, more than a few of these investments indicate that sellers are relying increasingly on capitalization rates rather than offering product below replacement costs. CapStone’s nearly $16 million purchase of the PNC building, for instance, is noteworthy for its $286-per-square-foot price – a robust figure even after considering future development potential.