The Commercial Real Estate Alpha Site

By James Forsyth

Notes below from a recent real estate luncheon in Sarasota, FL

Excerpts relating to Commercial asset classes below;

‘On the seller side, Saunders mentioned that those who did not sell at the height of the market are now hoping for high prices to return. However, what is happening is a rebalancing act with more price reductions in the market.

Regarding office space, Hembree believes that it is making a comeback despite the push to shrink or eliminate office spaces due to remote work. The Sarasota area has the lowest office space vacancy rate in the state at 4.2%, and Hembree predicts that office rents will increase as finding office space becomes harder.

The Sarasota area is also facing challenges in land use. The county lost a significant amount of industrial-focused land, and Hembree suggests that there needs to be a conversation about embedding places for people to work into the growth plan.

In the multifamily sector, apartment rents have come down by 3.3%, but it is essential to address the growth in rent prices. Currently, there are 6,601 multifamily units under construction in the Sarasota area.’