What has the Spring brought us? Nationally, the consumer confidence level has leveled off, seeing increases and decreases this year, yet, staying at strong levels.
This economy could even improve later in the year if consumers decide to spend more and invest more. The tight labor market is balanced with an increase in manufacturing orders, and GDP increasing early in 2017 and yet robust job growth should continue into the summer. Just about every other key economic indicator also increased or stayed flat, with the exception of new residential construction decreasing nearly 7%. That could end up being a measure of control in an area otherwise prone to overbuilding supply, which causes severe value fluctuations.
What’s Going on in Tampa Bay?
Locally, demand continues to outpace supply, with absorption continuing to show strong positive moves. The lack of land available to develop at prices that would meet current underwriting parameters is showing it’s ugly face in our local sub-markets. This is pushing smaller, merchant builders or developers out of competitive stance and yet larger developers with financial ability still do not want to put their land into production at this stage of the cycle. This puts the local area in a difficult position to grow the economic base because if anymore sizable corporations start quietly looking for facilities to house expanding operations they might not find what they’re looking for in our region, nor have the time to wait on a new facility to be built in the sub-market of choice. The end result is a missed opportunity.
From a city perspective, Tampa continues to outperform local expectations while reaching national accolades. We are the nation’s number one healthiest housing market due to increases in employment and housing prices, we are the number one location in terms of a city people moved to in 2016, and we are the number one hottest city for startups. Forbes gave us an amazing article on where we stand in the eyes of today’s choices around the country.
How Fortress Commercial Real Estate Can Help
Call Fortress, so we can talk expert advice on where your real estate strategy should be focused in West Central Florida. Fortress Commercial Real Estate adds value to business owners looking to grow through their real estate, office and building needs.
There’s an elephant in the room we want to talk about, Fortress Commercial Real Estate. With over 30 years of Florida experience and local real estate knowledge. Paying attention to Florida real estate so you can pay attention to growing your business.
Contact us online, call us at 813.444.3330 or email us at kostas@FortressCRE.com for more sound advice.
