Things Are Changing Around Here

It is summer time in the sunshine state and we all know it’s hot around here, but this time it’s even hotter and it’s not just the weather that’s causing it! 

Keep your head up and eyes open.  Look around at Florida from your local perspective and from a satellite view.  You’ve noticed its growing all around you but you will soon also notice it’s growing in many other parts of the state too.  We quickly became the 3rd largest state in population and now our Tampa metro has also become one of the hottest real estate markets for investment.  People from all over the country and the world are paying attention to our diverse and expanding demographics, and they want to be part of it.  That is causing some structural changes in our economy and creating new norms. 

Every week you read a new article highlighting new accolades for our region, and at work you hear more and more large companies coming to the area, with more and more new people moving here not just for retirement reasons.  Construction is going on all around us and our aesthetic is improving with these new buildings and concepts.  Our core drivers are still strong and our new economic drivers are vibrantly taking their place.  Infrastructure is the next challenge we face so that we can support everyone coming here, along with everyone already here. 

There’s a whisper that some type of recession is coming nationally, but you don’t hear many around Florida talking about it with much worry in their voice.  Sure, we need some pricing relief, but our foundation only seems to get stronger at a “new normal” level which means there have been some secular changes that should push us swiftly through an impending national recession. 

Nationally the consumer confidence index rose again last month, although at a lower level than last year at this time, signaling that the near term should still expect to see continued growth through the summer but signs that a slow down in momentum is occurring.  

The national employment trends are also moving in the same direction of positive growth but at a similar slowing pace with mostly lateral month over month gains.  The expectations are all within desired ranges that don’t cause any panic or worry. 

Welcome to Tampa!  Your investments in this area are safe here...for the long term.

Call Fortress CRE, so we can talk expert advice on where your real estate strategy should be focused in West Central Florida.  Fortress Commercial Real Estate (CRE) adds value to business owners looking to grow through their real estate, office and building needs.

Visit www.Fortress-CRE.com and call or email me for more sound advice.

kostas@Fortress-CRE.com

813.444.3330

Question What You Thought About Slowing Down

It seems there’s still gas in the engine for growth, and Nationally the Leading Economic Index rose again for the first time in 5 months, which indicates improved financial conditions and a rebound in stocks that offset any labor market issues that might have been as a result of the government shutdown.  The economy is still healthy with unemployment near a 50 year low and there are still very few major reasons to worry about the fundamentals. 

There are spots to watch such as the treasury yields in financial markets and rising construction costs in real estate markets, but with the Fed indicating how they’ll slowly approach rate increases this year it continues to breathe life into the economy.  Add to that fact that recessions usually appear close to 2 years after yield curve inversions and you get more confidence that time is on our side for 2019.  Yes, slowdowns could occur in the areas of lower yields for investors and more disciplined lending by bankers, which slow down investment returns, but the amount of capital and liquidity in our system is more than eager to test those theories.

Florida outpaced the country’s average in 2018 for job growth, and local sentiment is that Tampa Bay’s economy and growth have plenty of runway to go, and good tailwinds behind us, with some experts thinking that we’re just catching up to where other metro areas are in their stage in the economic cycle.  Population growth is the 2nd highest in the country and that popularity is bolstering investment decisions locally. 

With the trajectory of Tampa’s direction, the notion that time flies by quickly, and the fact that we have a NFL Super Bowl here in 2021, it points to a busy 2019 and 2020...  So, there’s no real detrimental slowdown in sight…Right?  We’ll see, but either way if you network around town and meet the business leaders that are helping shape our growth you will notice that there is a lot of excitement and positivity around our future here. If you haven't seen the reasons to move to Tampa yet, please click here to read this article.

From a commercial real estate perspective, a Call to Action that I see is that we need more real and available supply before major companies will move and relocate to Tampa Bay.  The timeframes those companies consider when relocating require more immediate supply to allow them to make the right decision based on their demand. If the I-4 Corridor was a state it would have the 4th largest population growth in the country, and with that growth you can believe major corporations are considering our area, asking questions about what’s available, and deciding if their business plans meet the timing of new development or if they should wait until more office or warehouse product is available to move in to.

From a seaport perspective, the industrial projects in this area are not limited to just the new warehouses being built along the I-4 Corridor, but also on the Port of Tampa near downtown. The Port has millions of dollars of development being planned, both in cross docking and in a new steel mill on port property, as well as land at the edge of downtown Tampa’s central business district that could be a mixed use development in the coming decades.  Our Port’s revenues break records every year and it’s not just from the cruise business.  Get to know your local Port...there’s a lot more going on there than you think!

Call Fortress CRE, so we can talk expert advice on where your real estate strategy should be focused in West Central Florida.  Fortress Commercial Real Estate (CRE) adds value to business owners looking to grow through their real estate, office and building needs.

Visit www.Fortress-CRE.com and call or email me for more sound advice.

kostas@Fortress-CRE.com

813.444.3330

Impactful Supply Decisions Based On Demand Analysis

Impactful Supply Decisions Based On Demand Analysis

Things to think about regarding inflation, demand, supply and recovery/recession dynamics