Originally Published May 1, 2018
What are you seeing around town? Classic supply and demand with academic foundations in growth. Our Tampa Bay market is growing and moving in concentric circles of expansion in all counties Pinellas, Hillsborough, Polk and more. Our infill core markets are solid with a strong foundation, and the sub-markets on the fringes are seeing activity and redevelopment with some strong pressures.
Tampa Bay Is Part of a New Movement
If you look deep at some of our drivers, such as the tech eco-system, you’ll notice that Tampa Bay is part of the new movement shifting away from Silicon Valley, via the existence of our ecosystem from Tampa to St Pete to Lakeland to Sarasota.
It’s no longer a “must” to be in Silicon Valley, and we’ve known that for years around Tampa Bay’s tech community where ideas, founders, ventures and funding continue to gain traction.
What to Expect in the Future
Looking ahead, if wages and consumer salaries start to increase then that will offset the rising prices in homes and goods, but if we don’t see consumers getting paid more in this tight labor market and expanding economy then it’s likely that a pricing correction will occur. Even the Leading Economic Index points out that we’ll need to watch the labor markets in the near future, as the monthly gain is slower than previous months, yet still increasing.
In the complex and heated world of commercial real estate these days, even the Fed’s Beige Book has pointed out things to monitor. Along with the increase in activity and demand improvements, we’ve also been seeing major increase in construction costs and steel prices due to tariffs. Businesses are continuing to anticipate price increases in the months ahead and budgeting those into to their expectations.
Consumer Confidence Index reported, “Overall, confidence levels remain strong and suggest that the economy will continue expanding at a solid pace in the months ahead.”
Call Fortress Commercial Real Estate, so we can talk expert advice on where your real estate strategy should be focused in West Central Florida. Fortress CRE adds value to business owners looking to grow through their real estate, office and building needs.
Contact us online, call us at 813.444.3330 or email us at kostas@FortressCRE.com for more sound advice.