Real Estate Trends 2014 SW Florida

Residential Trends Summary

  • Largest Population Immigration starting with “Baby Boomer” (people turning 65 years of age in next 18 years) moving to Florida after retirement.
  • New Construction House permits up 107% over same period last year.  Expected to double in next 3-5 years.
  • Highest number of units in New Construction is in $225,000 to $300,000 price range.  Next highest units in $3,000,000 International Home Buyersprice range
  • Rental rates increase due to large number of foreclosures, corporations moving facilities to SW Florida and again, Baby Boomer migration.
  • Multi-family units are being constructed as apartments with platting in place to convert to condos in 16 to 18 months.

Commercial Trends Summary

  • Average age of the population is increasing and medical needs are twice as high as current residents.  Need for Independent Living Facilities, Assisted Living Facilities (ALF) and Medical plazas.
  • Self Storage units are needed as retirees migrate to SW Florida downsizing their living space but still owning furniture from larger living spaces up North.
  • International Developers are Land Banking preparing for exponential population growth.
  • National companies are being courted to Florida by Economic Development Offices along SW coast with tax and building images 21incentives.
  • Lee County has 4 Trade Free Zones in place for businesses importing and exporting to International countries.
  • Veterans Investing Zone attracting medical facilities, shopping plazas, family attractions, hotels and restaurants.
  • Increase in need for small retail and condo/warehouse units as “Cottage” Industries grow with new Entrepreneurial incentives and need to move out of garages as business is growing.  This trend is also a result of the “Baby Boomer” migration.
  • Growth in need for Office space as companies are growing again after tremendous downsizing suffered during economic downturns.  Unique open office spaces and executive suites are also growing.
  • Commercial Owners are turning to Lease-Back Sales of their properties.

Mike Cathell,

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

Cell:  (239) 770-6250   Fax:  (239) 220-5508
Email:  InvestSWFL@gmail.com

 

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2 thoughts on “Real Estate Trends 2014 SW Florida

  1. Thanks for those interesting stats Mike. What’s driving the upward trend in new house construction permits? 107% already is a huge increase, but then to double again in the next couple of years? Wow

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