RESIDENTIAL REAL ESTATE OUTLOOK

from Business Climate Real Estate 2020

THE MAKING OF A NEW DOWNTOWN DISTRICT

by Eric Milstead Nai Pensacola Commercial Real Estate

Pensacola is booming! From downtown to the Beulah corridor, Pensacola is experiencing growth with increasing demand for housing. Buyers, sellers, realtors and builders had another busy year in 2019. Drivers of the market include the expanding radius of the downtown area, increasing growth in the Nine Mile Road area, and rising rents which push renters into home ownership. Low interest rates on mortgage products and zero down programs for first-time home buyers also contribute to the market growth.

Increasing job opportunities have attracted even more people into Pensacola. Young talent is staying in the area and others are moving into the area for the great quality of life offered in Pensacola. Pen Air Federal Credit Union, Navy Federal Credit Union and ST Engineering are just three examples of corporations that are adding jobs in Northwest Florida, all with average pay scales that will accommodate a comfortable lifestyle in the area. Furthermore, retirees are also flocking into the area. A moderate cost of living, mild weather and active city are drawing retired people to Pensacola. Both sets of buyers are looking for the same options in a home, which include low maintenance, a convenient location closer to the downtown area, new or newly renovated, and easy access to activities and beaches. The retired buyers normally pay cash and also want newly renovated and updated properties that require no further repairs. Both buyer sets were key drivers of real estate sales in 2019.

Downtown Pensacola, for many years has been centered around Palafox Street and expanding a few blocks to the east and west. New developments to the east are now reaching the waterfront, so the city is growing and redeveloping to the west. Properties west of Palafox, stretching to Pace Boulevard, are in high demand. In addition, rental units are running close to 100 percent occupancy. The demand for new construction and newly renovated housing is very strong. Entrylevel new homes are selling between $170 to $225 per square foot making the average new home price between $205,000 to $289,000. These homes are typically 1,200 to 1,600 square feet. They are located on small lots with low maintenance exteriors and interiors. “Move in and Plug in” is number one on buyer’s list of demands. They want to move in, plug in and go back to their daily lives, without having the weekends tied up with home projects or yard work. Therefore, new or newly renovated homes are prime for commanding top dollar and short marketing times. Luxury units downtown including luxury singlefamily homes are selling for starting at

46 | Business Climate | 2020 / 2021 Annual Real Estate $300 per square foot. These units are very popular with professionals and retirees. This buyer set is looking for all of the conveniences of living in the urban core and still have the amenities such as garages and pools, which are typically sacrificed when living in a town center.

Rental rates in the Pensacola area have continued to climb in 2019 and demand has kept its pace. The average rent for an apartment in Pensacola is $978, a six percent increase compared to the previous year, when the average rent was $920 according to RentCafé. Thus, encouraging investors to jump into the property business. Investors are moving money out of the stock market and taking advantage of low interest rates to purchase properties to use as rentals. Therefore, the available units continue to be depleted by investors.

According to Zillow, the average listing price in the Pensacola metro area is $235,000 reflecting at 3.8 percent increase over the last 12 months. The average rate on the 30-year fixed mortgage fell to the lowest level since October 2019 to 3.69 percent as reported by Mortgage News Daily. At that interest rate, the principal and interest payment on a 30-year fixed rate loan with a 20 percent down payment would be $864 per month. Although the average list price has increased, the average payment

has dropped in the past 12 months due to lower interest rates. The growth in population and low unemployment will continue to drive the housing market in 2020. It is still a great time to buy and lock in a great interest rate and a payment far less than rent.

East Hill continues to be another hot spot in the Pensacola real estate market. Prices have surpassed the $200 per square foot mark and are pushing north of that mark. East Hill has a mixture of vintage homes built in the early 1900s and a mix of new homes built in the last decade. Both types of properties are currently in high demand. The area offers close proximity to the downtown core with larger yards and a quaint neighborhood environment. The area is expanding west of 9th Avenue to Dr. Martin Luther King Jr. Boulevard. This formally untapped area is scattered with new construction and lots of freshly renovated homes.

Known as the East King Tract, the area is seeing a dramatic increase in prices and a high demand for the new homes. The Beulah corridor continues to expand with new infrastructure, businesses and homes that are popping up at a rapid pace. The expansion of Nine Mile Road is getting closer to completion and will be a key to making the area a thriving micro economy. New homes in the 32533 zip code are selling for $100 to $129 per square foot, setting the median price at $239,500 according to the Pensacola Multiple Listing Service. Proximity to shopping areas, schools and restaurants are driving buyers to this area. With easier access to greater Pensacola via I-10, the Beulah area offers more home for the money.

Pensacola has become a destination for many to live, work and play. Pensacola offers theater, opera, ballet, minor league sports, art galleries, a historic village and great festivals. In addition to a thriving entertainment district, the big town activities with a small town-feel attracts and keeps people in the area. With the addition of new and available jobs, our area will continue to grow, pushing the need for additional housing units.

Northwest Florida is set up for another record housing year in 2020. Rentals, new construction and existing home sales will all be in high demand. Interest rates are still low enough to support prices and makes homeownership affordable for most. Population growth, low rates, strong economy and more first time home buyers entering the market will support a strong year for the area housing market.

Eric Milstead is the Senior Residential Real Estate Broker with Florida’s Top Properties. He has helped buyers, sellers and developers with their real estate needs for over 20 years.

As downtown Pensacola continues to grow, the Downtown Improvement Board is investing in technology, partnerships and infrastructure to make the 44-block district safe and secure for those who work, live and play downtown.

One of the ways the DIB is addressing safety is through collaborative relationships such as one forged with the City of Pensacola Community Redevelopment Agency in December, which put two additional dedicated patrolmen on downtown streets. The DIB also drove an initiative that paired Pensacola Police Dept. and private industry to combine police surveillance cameras with private security systems installed in and around downtown businesses. With access to a more comprehensive view of the area, the police are able to intervene faster and more knowledgeably if and when an incident occurs.

“The DIB district is rapidly evolving with a lot of moving parts,” said Lissa Dees, DIB executive director. “Our challenge is to approach difficulties and opportunities with innovative solutions so we can create and maintain a safe, secure environment for everyone who enjoys downtown.” In addition to new law enforcement officers and shared surveillance video, here are some of the other ways the DIB is addressing the important work of keeping downtown safe:

LED Lights in DIB Parking Lots and Jefferson St. Garage Lights in the DIB-managed North Palafox lot were replaced by City of Pensacola Public Works with brighter, safer LED lights, and an upgrade to the lights at the Tarragona St. lot was completed by Next Era Energy. Lights in the Jefferson Street Garage were completely replaced with LED lights in 2019. After-Hours Ambassador in the Jefferson St. Garage A graveyard-shift DIB ambassador is now patrolling the Jefferson Street Garage during the late evening-early morning hours. Security Monitors Security monitors were installed in the DIB office, accessible to police officers assigned to patrol the downtown area. Jefferson Alley The once-dark and empty alley between the Jefferson St. Garage and the rear of Palafox businesses is now a well-lit active community space with plants and planters, paint, lights and planned public art. Parking App Downtown visitors need not exit the security of their cars to pay to park in DIBmanaged parking lots, on-street parking or the Jefferson St. Garage, now that the DIB has launched its Passport Parking app. Photo by Laura Bogan Photography

The Pensacola Habitat for Humanity board members voted unanimously to elect Mei Davis as chairwoman of the board.

Davis has been a member of the board since 2017, as well as been active on several committees. She is involved with many events organized by Pensacola Habitat, including their annual golf tournament. She will serve as chairwoman of the board for the next two years.

“Pensacola Habitat does more than just build homes in our community.” said Davis, “They work hard to bring people together and help strengthen our community. I am excited about the future of Pensacola Habitat and look forward to being chairwoman.” Al Coby will remain on the board after the end of his term as chairman. Coby has served on the board since 2014 and has held several offices during that time. During his term as the chairman of the board, Pensacola Habitat launched their online application process, which almost tripled the amount of applications they received.

Coby stated, “I love working with Pensacola Habitat for Humanity. They have helped almost 1,400 families in both Escambia and Santa Rosa Counties achieve affordable homeownership. That number continues to grow year after year. I am excited to still be a part of such a great organization.”

Pensacola Habitat for Humanity is a nonprofit organization that seeks new and innovative ways to positively impact the community through various projects such as their Home Buyer and Neighborhood Revitalization programs. They offer unique financing opportunities to qualified applicants to provide affordable home ownership in Escambia and Santa Rosa Counties. For more information, visit pensacolahabitat.org. PENSACOLA HABITAT FOR HUMANITY’S BOARD ELECT’S NEW CHAIRWOMAN

Revenue at the Port of Pensacola nearly doubled year-over-year from fiscal year 2018 to 2019, growing from $1.26 million to $2.41 million – an increase of more than 91 percent.

The port also saw a significant increase in dockage days, wind energy shipments and breakbulk cargo, with approximately 64,638 tons of breakbulk cargo shipped through the Port of Pensacola in 2019.

“We’ve been working hard to continue to attract new tenants and provide opportunities for existing tenants to expand and do business at the Port of Pensacola, and we’re excited to see that reflected in our revenue,” Port Director Amy Miller said. “We look forward to another great year ahead as an economic driver in the City of Pensacola and beyond.”

The revenue totals include port operations only, excluding grants and other non-operating revenues. Some highlights for the Port of Pensacola in 2019 include: • 64,638 tons of breakbulk cargo, an increase of 78 percent from fiscal year 2018 • 1,632 units of wind energy shipments, an increase of 126 percent from fiscal year 2018 • 737 dockage days, an increase of 287 percent from fiscal year 2018 • $3.1 million received for berth restoration to provide additional opportunities for large vessels to dock at the port, along with an additional $450,000 for upland cargo and berth improvement initiatives • Portside Pensacola Vision Plan completed in 2019 • 38 open house hours • 84,572 social media views • International trade partners and cargo routes including Mexico, the Bahamas, Brazil and Israel • Continued involvement in aquaculture through Pensacola Bay Oysters The Port of Pensacola’s plans for 2020 include working with the City of Pensacola to activate the SCAPE “Hashtag Connector” concept and Port Vision Plan, along with continuing to improve port infrastructure and increase cargo volumes. The port also plans to pursue new marine maritime repair and overhaul, or MRO, business and related light manufacturing.

The Port of Pensacola currently houses a variety of tenants in industries ranging from cement and building materials to sailing and oyster farming. Tenants include Cemex, Pensacola Bay Oysters, American Magic Sailing, Blue Origin, Pate Stevedore, Martin Marietta and Offshore Inland Marine & Oilfield Services.

“We are fortunate to have such a thriving deep-water port right here in Pensacola,” Mayor Grover Robinson said. “To see them almost double their year-over-year revenue is a true testament to the Port of Pensacola’s value and their significant economic impact in our community, and it shows that we are reaping the rewards of following our plan to be a niche port. I am confident that we will continue to see great things happening at the port in 2020.”

To learn more about the Port of Pensacola, visit portofpensacola.com.

Residents of Escambia and Santa Rosa counties making $66,000 or less annually are eligible to file their taxes for free with United Way of West Florida’s Volunteer Income Tax Assistance (VITA) Program. Eligible participants may visit one of five convenient locations across the community to utilize this free service and maximize their tax return with the assistance of an IRScertified volunteer.

In 2019, United Way of West Florida tax assistance services helped individuals and families complete over 3,000 tax returns, saving $668,961in preparation fees. With over 5,000 hours of service from IRScertified volunteers, the program had a total community impact of $5.7 million.

On Jan. 21 and 22, the PSC Main Campus VITA Site will hold a soft opening. Please see below for a complete list of VITA sites throughout Escambia and Santa Rosa counties, as well as their opening dates and hours. VITA is by appointment only in 2020, to schedule an appointment simply dial 2-1-1 or visit uwwf.org/taxhelp. Community Action Program Committee (CAPC) 1380 N. Palafox St., Pensacola, FL 32501 Opening: Jan. 28 Hours: Tuesday, Thursday 12 pm – 5 pm Early Learning Coalition of Santa Rosa County 6460 Justice Ave., Milton, FL 32570 Opening: Jan. 28 Hours: Tuesday, Thursday 12 pm – 5 pm Goodwill Easterseals of the Gulf Coast 1715 E. Olive Rd., Pensacola, FL 32514 Opening: Feb. 7 Friday 12 pm – 4 pm; Saturday 10 am– 2 pm Pensacola State College (Main Campus) 1000 College Blvd., Pensacola, FL 32504 Opening: Jan. 21 Hours: Monday, Wednesday 10 am– 4 pm; Tuesday, Thursday, Friday 10 am– 7 pm; Saturday 10 am– 2 pm Pensacola State College (Warrington Campus) 5555 US-98, Pensacola, FL 32507 Opening: Jan. 28 Hours: Tuesday – Wednesday 3 pm – 7 pm Filers must bring the following documentation with them when filing taxes at one of the VITA sites: • State or federal photo identification • Social Security cards for all members of the household • All W2s, 1095s, 1098s, and 1099s • Childcare provider’s information • Investment statements and other tax forms • Amounts of other income • Bank account information for direct deposit • Last year’s tax return, if available Promotional materials containing information about United Way of West Florida’s VITA program are available for distribution. To request these materials, or for any questions concerning the VITA program, contact Financial Stability Outreach Manager, Katrina Madden, at vita@uwwf.org or by calling 850-434-3157.

United Way of West Florida’s VITA Program is sponsored by Regions, the University of West Florida, the Florida Department of Economic Opportunity, the Escambia County School District, Community Action Program Committee, Inc., and Wells Fargo. FILE YOUR TAXES FOR FREE WITH UNITED WAY OF WEST FLORIDA’S VITA PROGRAM

ASCENSION SACRED HEART PENSACOLA ADDS SURGICAL ROBOT FOR JOINT REPLACEMENTS

Ascension Sacred Heart Pensacola is now offering robotic technology to assist surgeons in performing joint replacement surgery.

The hospital is the first in Pensacola to provide the new Stryker Mako robotic system, which allows surgeons to create a patient-specific 3D plan and perform procedures using a surgeon-controlled robotic arm. Robotic-assisted surgery is a newer approach to hip and knee replacement that offers the potential for a higher level of accuracy in the alignment and positioning of implants. For many patients, robotic surgeries often mean less pain and a quicker recovery.

“This technology enables us to provide each patient with a more personalized surgical experience based on their specific diagnosis and anatomy,” said Dr. Jean Dabezies, an orthopedic surgeon who performs knee and hip joint replacement surgeries at Ascension Sacred Heart Pensacola. “We can customize each patient’s surgical plan and implant placement before entering the operating room and use the robotic arm to execute with a higher level of accuracy. This level of surgical planning hasn’t been available previously.”

Knee replacement and hip replacement are designed to relieve pain caused by joint degeneration due to arthritis. In knee replacement surgery, the arthritic portion of the knee is removed and covered with a combination of plastic and metal parts that form the new surfaces of the knee joint. During robotic total knee replacement, surgeons use computed tomography (CT) scans to build a virtual model of the patient’s knee.

With the ability to personalize joint replacement surgeries to fit each patient’s individual anatomy, robotic-assisted procedures offer hope for more successful hip and knee replacements.

“We are excited to be able to offer this innovative robotic technology to advance our joint replacement services,” said Dawn

Rudoph, president of Ascension Sacred Heart Pensacola. “This surgical advance further demonstrates our commitment to provide the community with cost-effective, high-quality orthopedic care.”

To learn more about this advance in joint replacement surgery, ask your orthopedic specialist or call Ascension Sacred Heart Orthopedics at 850-494- 9000.

WSRE HAS NEW GENERAL MANAGER

Pensacola State College has appointed Jill Hubbs to serve as interim general manager of WSRE and executive director of the WSRETV Foundation. She joined the PBS member station in 1996 and has served as director of Educational Services and Outreach. She is replacing Bob Culkeen, who joined WSRE in 2016 and has been named president and chief executive officer of WTCI in Chattanooga, Tenn.

Hubbs is a graduate of Pensacola State College and the University of West Florida with a bachelor’s degree in Early Childhood Development and Elementary Education. A former school teacher, she has successfully launched major early learning initiatives and teacher training programs during her 23 years at WSRE. Most recently, she led the opening of a neighborhood Imagination Station early learning activity center at Weis Elementary School.

She is also the award-winning executive producer of several WSRE productions, including “Gulf Islands National Seashore: The Treasure of the Gulf Coast” and “Baseball in Pensacola.” She produced “They Were Their Fathers” in commemoration of the 50th anniversary of the Vietnam War, resulting in national broadcasts, screening events at the presidential libraries of Ronald Reagan and Richard Nixon and last year’s week-long Reading of the Names at the Wall South in Pensacola’s Veterans Memorial Park, for which she is a founding board member. “Jill lives the mission of public television on and off the job. Her work at WSRE has positively impacted many lives in our community, particularly our children, teachers and military. Bob will be missed, and fortunately Jill is well poised to build upon his successes with a solid team at WSRE and PSC,” said Sandy Cesaretti Ray, PSC’s associate vice president of Community and Government Relations.

“I am grateful to Bob Culkeen for his service to the station, college and community. His accomplishments here have been significant, from launching the new WSRE PBS KIDS channel to completing technology upgrades that will serve us well into the future. We will miss his fun sense of humor, and we extend our congratulations to Ms. Hubbs on her new leadership role,” said PSC President Ed Meadows.

UWF ANNOUNCES $200K GIFT FOR FIRST NAMED LAB IN LABORATORY SCIENCES ANNEX

The University of West Florida announced today a $200,000 gift from Roger Hemminghaus to name the Roy and Henrietta (Etts) Hemminghaus Chemistry Lab in the new Laboratory Sciences Annex. The gift will support scholarships for students in the Department of Chemistry. Roger said a campus visit with his daughter and son-in-law, Sherri and Jeff Weeks, inspired him to give to the Department of Chemistry, which is housed in the Hal Marcus College of Science

and Engineering. Roger opted to support the annex in honor of his late father, Roy Hemminghaus, who served as senior project coordinator and general manager for the Chemstrand Corporation nylon plant, established in Pensacola in the 1950s. “It’s our wish for the income from our endowment to provide encouragement and financial means for current and future students to pursue and excel in careers in science and other related fields,” Roger said. “Made possible by a nearly full scholarship, my father was the first in his family of seven children to attend and graduate with a Bachelor of Science degree. My mother never had that opportunity, but was certainly an influential partner for Roy and a great role model for me and my siblings.”

Sherri Weeks said her grandfather was known for being a “people-centric” manager, remembering the names of all 4,000 employees, as well as one personal fact related to their family, training and/ or job. After serving as the vice president and general manager of the Pensacola plant, Roy became the vice president for all nylon and acrilan manufacturing at the Chemstrand headquarters in Decatur, Georgia. He was also responsible for managing manufacturing facilities in South Carolina, Great Britain and Japan.

“We are grateful for the support of the Hemminghaus family and excited to share the news of the first named lab in our new Laboratory Sciences Annex,” said Dr. Jaromy Kuhl, dean of the Hal Marcus College of Science and Engineering. “This gift will benefit our chemistry students tremendously and carry on the legacy of Roy and Etts.”

The annex houses 12 new teaching facilities for the University’s growing biology and chemistry programs and was designed with unfinished “shell” space for potential expansion. These labs along with the new equipment will provide hands-on educational experiences for students. For more information about the Hal Marcus College of Science and Engineering, visit uwf.edu/hmcse.

UWF RESEARCHER EARNS GRANT TO STUDY RETINA REGENERATION IN FISH

Dr. Scott Taylor, assistant professor in the University of West Florida Department of Biology, has secured a $400,000 grant from the National Eye Institute to study how zebrafish regenerate preceptor cells in their eyes after they’ve been damaged.

The research will focus on using Clustered Regularly Interspaced Palindromic Repeats, or CRISPR, genomeediting techniques to explore how zebrafish regenerate the retinal cells that receive light and start the visual process.

Taylor said the research could eventually have applications for treating blindness in humans.

“(MiR-18a) might be extremely important for starting the regeneration process and at least helping to produce new photoreceptor cells,” Taylor said. “That’s really what we want to get at because in humans a lot of the retinal diseases destroy photoreceptors. So, we want to find ways to regenerate those cells in humans so that vision can be restored.”

Zebrafish can fully regenerate cells in their eyes even after extensive damage.

“In other animals, including mammals, damage to the retina causes permanent blindness, but zebrafish can fully recover from this,” Taylor said. “Otherwise, our retinas are almost identical in terms of how they work and how they’re structured.” Taylor has used CRISPR to create zebrafish without MiR18a, a molecule that regulates regeneration in the eye, to see how their vision recovers in its absence.

“Fish without this molecule have an exaggerated regeneration response,” Taylor said. “They produce more new cells and photoreceptors than normal fish would. We think this process is critical for regulating retinal regeneration.” Taylor has studied retinal regeneration at UWF for more than three years.

The grant will fund three years of work and will support research positions for undergraduate and graduate students.

For more information about the UWF Department of Biology, visit uwf.edu/ biology.