Bright Spots in a Dim Market - Summer 2008

With so much negative news surrounding real estate; lost construction jobs, reduced property values, diminished tax revenues and abandoned construction sites one might think that all development has stopped dead in its tracks.  Two major retail developments are bucking the norm and shining a light to Sarasota’s future.  The most notable is the University Town Center, a 1.68 million square foot (Sarasota Square is just over 940,000 sq ft) regional mall at University Parkway and I-75 that will include retail, office, residential and hotel.  With anchors like Nordstrom’s and Neiman Marcus, this development will add a welcome new dynamic to Sarasota’s retail. 

The other major development consumers are anxiously awaiting is an expansion of Westfield Southgate Mall.  The owners of Westfield have been working through the tedious  design and permitting process intending to expand this very popular and extremely well located mall by 250,000 square feet.  Excluding St Armand’s Key, Westfield Southgate Mall commands the highest retail rents in Sarasota, exceeding $50 per square foot and boasting strong sales volumes justifying the rents. 

This confidence in the Sarasota market is a pleasant relief in a difficult economy and we all will appreciate these fine developments once completed.  Neighboring property owners are smiling the most; as high tides raise all boats – so too will these developments increase the value of neighboring properties.