A Glimpse Of History – Sarasota Market In 1989 - Winter 2019

Thirty years ago the greater Sarasota market was terribly different. Sarasota slid into the national recession of the early 1990s a year early, on the back of a proposed “No Growth” initiative that would have placed a moratorium on commercial building permits in the county. While the initiative was defeated 3-1 at the polls, the market nonetheless fell into a malaise, and the sale of commercial properties, particularly vacant land, slowed to a trickle fueled by uncertainty. Nationally, the country was just beginning to come to grips with the Savings & Loan crisis that, in turn, led to the creation of the federal Resolution Trust Corp. (RTC), which seized insolvent thrifts and banks with significant real estate loan exposure. Downtown Sarasota suffered monumentally. A total of 13 of 16 major commercial projects downtown were foreclosed upon and ultimately became RTC properties, which ushered in a tremendous buying opportunity for those with the guts and cash. Downtown office vacancy stood at 30%, Main Street had many vacancies with rental rates generally in the $7-$10 per square foot range, roughly one-third of the rate today. Downtown core land, meanwhile, sold for less than $20 per square foot – if it sold at all. The supply of all product types soared, with no clear path to future absorption. The dark days lasted until about 1994. Even so, it was also a time for beginnings. Armed with the confidence, brashness and perhaps the obliviousness of youth, I started Harshman & Co. in December 1989. By putting one foot in front of the other and by keeping expenses down, some businesses, including mine, found a way not only to survive the economic tumult but flourish in it. The recovery was slow and painful, but it taught me valuable business and real estate lessons that I carry with me to this day.