Commercial Real Estate Investment Opportunities SW Florida – 2014

SW Florida Investment opportunities are being driven by the largest immigration in their history- Baby Boomer Retirees.  Their needs will include:

  • Independent Living Facilities and Assisted Living Facilities
  • Storage facilities
  • New Home Construction
  • Retailers specializing in health products and products for senior life style.

This large immigration will also foster the largest exchange of money in SW Florida’s history also.  Astute Investors will be planning and building the facilities needed to provide life style to this huge population over the next 10 years.   One example of the need for this movement was discussed last year at a City Council meeting.  An empty hotel building on the Fort Myers waterfront (asking price $45 million) will only be issued a permit for use as an Independent Living facility.  These facilities if planned and rehabbed properly can experience a 50% or higher cap rate.

Office space pricing will increase driven by existing companies as well as start-ups.  Companies were forced to downsize dramatically as the economy dropped.  images (4)Employees were forced to take on new jobs as the number of people in the work force was downsized.  The economy is now trending upward and unemployment figures have decreased.  Companies now need more space as they grow in services and number of employees once again.

Office space will also be driven by the entrepreneurial spirit growing from large unemployment and Government incentives to open businesses.  Baby Boomers again are a driving force as they take their hobbies to a business during their retirement.  Unique spaces such as Executive Suites, Open Work Spaces and “Green” work space have become buzz items for this new entrepreneur entering the business world.

Another unique opportunity has emerged due to rising interest rates and commercial property owners being unable to refinance their properties.  As due dates for balloon payments loom in the near future, some owners are selling their properties and leasing the property back from the new owner.  This creates a great investment property with an existing tenant wanting a long-term lease.

The above opportunity is also being offered by financial institutions as a discounted note sale.  The advantages to the note buyer are many.  Producing notes provide a stream of income and an opportunity to sell the note to the mortgagee at a future date.  The Note Holder takes the place of the Bank so the property owner is still responsible for property taxes and insurance.  If property owner defaults on payments then Note Holder can foreclose on the property and now own an under market price property.  Some Note Holders actually purchase non-performing notes with the intention of foreclosing to obtain ownership of property at very discounted market prices.

Mike Cathell,

Broker/Owner, Investment Property Consultant
Real Estate Services of SWFL, LLC

Cell:  (239) 770-6250   Fax:  (239) 220-5508

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