State of the Market - Spring 2018

All sectors in Sarasota’s commercial real estate market are presently experiencing positive activity, although some geographic areas are naturally experiencing greater activity than others. The office rental market, for instance, remains sluggish but activity has been increasing over the past two quarters. Buyers for quality, Class A office buildings abound – although they are discerning in their purchases and are flocking to properties that have been well maintained and have sustained value. The industrial market, meanwhile, is steadily moving forward as trade, distribution and manufacturing businesses expand and many make moves to purchase buildings. The lack of supply has pushed rents and purchase prices alike. As the upwardly trending sales prices eclipse replacement costs, we believe that new product will be developed market wide. This is already happening in Lakewood Ranch, where Tampa’s Harrod Properties has developed several industrial and flex buildings in the Gatewood Commerce project.