State of the Market - Summer 2015

Residential and hospitality development remain very active throughout Sarasota and all of Southwest Florida, while office leasing and industrial sales remain sluggish by comparison. The region’s retail market, while improving in particular nodes such as the University Parkway corridor, is still not at a level that could be considered vibrant – despite the anticipated move by quality convenience operator Wawa and other non-traditional merchants into the area in the months to come. Overall, however, many properties are benefiting from renewed economic activity and owners are able to push rental rates and sales prices incrementally. At the same time, diminishing distressed sales have meant that market-rate transactions are becoming the norm once again. Development, meanwhile, is largely being fueled by capital that is seeking higher yields than might be obtained on Wall Street or through other, more traditional forms of investment.