It’s been exactly 1 year since the last blog post. Since then, Tampa’s local commercial-industrial real estate market (and the local economy) is still firing on all cylinders. The dichotomy between the national news being pumped out and the local situation couldn’t be more contrasting. Meaning with every commercial real estate asset class (including offices) doing well in Tampa Bay due to growth in population, increased demand for consumer goods and a rise in technology sector businesses. Read on to find what factors came out of the pandemic, affecting many industries including the commercial real estate market.
Outlook on Pandemic & Consumer Behavior
Nationally, the consumer is still very strong going into the holidays. This has not let up since the pandemic took hold. This brought forth a majority of consumers shifting to digital means. We are getting very used to our buying habits happening online, and new variants are not stopping that habit.
According to the US Conference Board, October 2021 brings growth in the following index reports:
- Consumer Confidence Trends.
- Employment Trends.
- Leading Economic Trends.
Now, it’s important to point out that November’s Consumer Confidence levels did decrease as a result of rising prices and new covid variants. However, November’s Employment Index again saw an increase, showing where the future headwinds could come from. That said, it’s still widely understood that the holiday season will be a strong one with momentum building from the summer.
Consumer Confidence, Employment, and Leading Economic Trend Index
All 3 indexes are helping forecast growth well into 2022 with unemployment levels to reach pre-pandemic lows by the end of 2022. That’ll make it very hard to hire unless wages increase. The ongoing main challenges everyone is facing seem to have little hope in sight:
- The prices of goods.
- Supply chain issues.
Realistically, the only things that contain these issues are if the consumer gets angry enough to stop shopping. Additionally, if the Fed starts moving rates to control this overheating.
The first is unlikely given how accustomed everyone is getting to the new shift in online consumption of goods, That second scenario is much more predictable, and we’re starting to hear that in the media reports. Additionally, it’s causing the stock market to get more volatile and change course too.
Not that the stock market is a bellwether for the overall economy anymore, but the volatility does have an effect on the consumer as well as some of the capital on the sidelines, so we should be wary.
Real Estate Market Local Impact
Locally though, the west coast of Florida could benefit from all the new influx of people and businesses. This more than likely could result in propping up our economic base. Add to that our Tampa Bay low cost of living score, and you can see why people are flocking here and staying.
Call Fortress CRE, so we can talk expert advice on where your real estate strategy should be heading in West Central Florida. We add value to business owners looking to grow through their real estate, office space, and industrial building needs.
Contact us today!