Invest: Tampa Bay 2021

Tampa Bay 2021 An in-depth review of the key issues facing the cities of Tampa, St. Petersburg and Clearwater, featuring the exclusive insights of prominent leaders.

CONTENTS

Contents: 9 Economy: 10 Economy in numbers: 12 Diverse landscape: Tourism may have been the engine that drove Tampa Bay before, but the area is proving it’s more than just beaches 13 Interview: Carole Post, Administrator for Development and Economic Opportunity, City of Tampa 15 Interview: J. P. DuBuque, President & CEO, St. Petersburg Area Economic Development Corporation 16 Interview: Ana Cruz, Managing Partner, Tampa Bay Ballard Partners 20 Roundtable: Future of the Bay Kelly Flannery, CEO, South Tampa Chamber of Commerce; Jason Mathis, CEO, St. Petersburg Downtown Partnership; Lynda Remund, President & CEO, Tampa Downtown Partnership; Chris Steinocher, President & CEO, St. Petersburg Area Chamber of Commerce 22 Interview: Sean Malott, President & CEO, Central Florida Development Council, Inc. 24 Interview: Chuck Sykes, President & CEO, Sykes Enterprises 26 Market voices: City growth Doug Lewis, City Manager, City of Pinellas Park; Debbie Manns, City Manager, City of New Port Richey Shawn Sherrouse, City Manager, City of Lakeland; Charles Stephenson, City Manager, City of Temple Terrace 29 Interview: Jerome Ryans, President & CEO, Tampa Housing Authority 30 Roundtable: County officials Bill Beasley, County Manager, Polk County; Dan Biles, County Administrator, Pasco County; Barry Burton, County Administrator, Pinellas County; Bonnie Wise, County Administrator, Hillsborough County

2 | Invest: Tampa Bay 2021 | CONTENTS

32 Market voices: Economic development; Bill Cronin, President & CEO, Pasco EDC; Sharon Hillstrom, President & CEO, Bradenton Area EDC; Mike Meidel, Director, Pinellas County Economic Development ; Courtney Orr, Ybor City Development Manager, Ybor Community Redevelopment Areas/Ybor City Development Corporation 34 Interview: Denise Sanderson, Director, Clearwater Economic Development and Housing

37 Professional Services: 38 Pivotal role: The region’s professional services were vital in ushering companies and individuals through the pandemic 39 Interview: Hala Sandridge, Shareholder, Buchanan Ingersoll Rooney PC 40 Interview: Greg Kadet, Managing Director & Market Head – Greater Florida, UBS Wealth Management USA 42 Interview: David Simmons, Founding Partner, DSK Law 43 Market voices: Legal focus Jamie Lawless, Executive Director, Baker McKenzie; Drew McCulloch, Attorney & Partner, McCulloch Carter, PLLC; Fred Schrils, Managing Shareholder – Tampa, GrayRobinson; Ron Weaver, Of Counsel, Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. 46 Perspectives: Professional services 47 Interview: Joel Stevens, Senior Managing Director, Bernstein Private Wealth Management 48 Roundtable: Legal landscape Alan Higbee, Managing Partner, Shutts & Bowen; Kevin Johnson, Shareholder, Johnson Jackson; Bill Schifino, Managing Shareholder – Tampa Office, Gunster;

Marie Tomassi, President & Managing Shareholder, Trenam Law 50 Interview: Natalie King, Vice President & COO, RSA Consulting Group 52 Market voices: Adapting Lee Bell, President, Saltmarsh, Cleaveland and Gund; Dan Dowell, Office Managing Partner, Marcum LLP; Richard Huckaby, Office Managing Member, Warren Averett; Adam Thomas, Managing Partner – Tampa, Dixon Hughes Goodman 54 Interview: V. Raymond Ferrara, Chair, CEO, & CCO, ProVise Management Group, LLC

55 Real Estate: 56 Resilient: Tampa Bay’s live, work and play offerings shine bright as the region emerges from the global pandemic 57 Interview: Andrew Wright, CEO & Managing Partner, Franklin Street 58 Interview: John Carey, Executive Vice President, VanTrust Real Estate 61 Interview: Bowen Arnold, Manager & Principal, DDA Development 64 Market voices: Developing for future needs William Bertolero, Partner, Vision Properties; Christopher Bowen, Chief Development Strategist, RD Management; Nick Haines, CEO, The Bromley Companies ; Jay Miller, President, J Square Developers 67 Interview: Brian Andrus, Broker & Owner, Stonebridge Real Estate 68 Roundtable: Commercial real estate; David Bradley, Regional Manager – Tampa, Marcus & Millichap ; Mike Griffin, Senior Vice President & Market Leader, Savills – Tampa; Danny Rice, Managing Director &

Market Leader – Central Florida, Colliers International; Larry Richey, Florida Managing Principal, Cushman & Wakefield

93 Transportation & Logistics:

71 Construction & Infrastructure:

72 Keeping up: Residential and industrial construction demand continues to rise, creating its own challenges

73 Interview: Brian Diehl, Regional Vice President, Pennoni

75 Perspectives: Outlook

76 Roundtable: An atypical year; Doreen Caudell, President, D-Mar General Contracting; Troy Hernly, Vice President & Principal, Stevens Construction; Frank Musolino, CEO, Power Design; Andy Park, Partner, Park & Eleazer Construction

80 Interview: James Fox,President, Maddox Group

81 Market voices: Engineering services Pat Gassaway, President, Heidt Design; Joseph Girgenti, President, Wilson & Girgenti, LLC; Mark Hardy, Vice President of Forensics and National Accounts, Universal Engineering Sciences; Dave Kemper, Senior Principal, Stantec – Tampa

82 Interview: Mark Metheny, President – Tampa Division, Lennar

84 Roundtable: Powering the community; Archie Collins, President & CEO, Tampa Electric; Anddrikk Frazier, President & CEO, Integral Energy; Melissa Seixas, President – Florida, Duke Energy

87 Interview: Fred Lay, President & Founder, Construction Services, Inc.

88 Interview: Tyler Kovarik, Vice President – Florida Operations, Schaefer Construction

92 Interview: T. J. Szelistowski, President, Peoples Gas

94 Conundrum: Mass transit remains a key hurdle, in contrast to the region’s well-oiled logistics and distribution machinery

95 Interview: Joe Lopano, CEO, Tampa International Airport

96 Interview: Brad Miller, CEO, Pinellas Suncoast Transit Authority

97 Interview: Thomas Jewsbury, Airport Director, St. PeteClearwater International Airport

101 Interview: Karl Kaliebe, Executive Director, World Trade Center Tampa Bay 103 Interview: Paul Anderson, President & CEO, Port Tampa Bay

107 Banking & Finance: 108 Financial magnet: Strong market fundamentals point to future growth 109 Interview: Jim Daly, Regional President – West Florida, Truist 110 Interview: Damon Moorer, President & CEO, TCM Bank, N.A. 112 Roundtable: Community banks; Jack Barrett, President & CEO, First Citrus Bank; David Moore, President, Bank of Central Florida; John Thompson, President & CEO, Central Bank; Bill West, CEO, The Bank of Tampa 114 Interview: Bill Habermeyer, President & CEO, Florida Business Development Corporation 117 Interview: Rita Lowman, President, Pilot Bank 118 Market voices: Financial services; Drew Catanese, Managing Director, Coastal Wealth; James Erb, Founder & CEO, Continuum Wealth Partners; Terry Igo, CEO, Tampa Bay Trust Company; Travis Jennings, Founder & CEO, Finance CAPE

120 Interview: Brooke Mirenda, President & CEO, Sunshine State Economic Development Corporation 123 Market voices: Banking outlook; Marty Lanahan, Regional President, IBERIABANK-First Horizon; Al Rogers, Executive Vice President & Chief Lending Officer FL & AL, Valley Bank; Steve Schultz, Region Bank President, Wells Fargo; Chris Stewart, Market President – Tampa Bay Region, Centennial Bank 124 Interview: Sean Simpson, Division CEO, Synovus Bank 125 Perspectives: Wealth management

129 Healthcare: 130 Growth despite limitations: The pandemic put unprecedented pressure on the healthcare sector but the future is bright 131 Interview: Dr. Patrick Hwu, President & CEO, Moffitt Cancer Center 132 Interview: Ravi Chari, MD, President & CEO, HCA Healthcare-West Florida Division 133 Market voices: Keeping Tampa Bay healthy; Danielle Drummond, President & CEO, Lakeland Regional Health; Jonathan Fleece, President & CEO, Stratum Health System; Rafael Sciullo, President & CEO, Empath Health; Pratap Sarker, President, Greenway Health 134 Interview: John Couris, President & CEO, Tampa General Hospital 135 Perspectives: Innovation 137 Interview: Al Hernandez, Public Sector Vice President – Florida, Humana 139 Interview: Nathan Walcker, CEO, Florida Cancer Specialists & Research Institute 142 Interview: Shane Donaldson, CEO, Pinnacle Home Care

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CONTENTS

Contents: 145 Education: 146 Altered landscape: Education in Tampa Bay is poised to recover, although what that looks like remains unclear 147 Interview: Steven Currall, President, University of South Florida 148 Interview: Anne Kerr, President, Florida Southern College 151 Perspective: Growth strategy 152 Roundtable: The future of higher ed; Ken Atwater, President, Hillsborough Community College; Timothy Beard, President, PascoHernando State College ; Kent Ingle, President, Southeastern University; Larry Thompson, President, Ringling College of Art and Design 154 Perspective: Lessons learned 155 Perspective: Teacher burnout 156 Market voices: Colleges of USF; Robert Bishop, Dean, USF College of Engineering; Moez Limayem, Lynn Pippenger Dean, USF Muma College of Business; Charles Lockwood, Senior Vice President/Dean, USF Health/ Morsani College of Medicine; Usha Menon Dean, Senior Associate VP, USF Health, USF College of Nursing 157 Interview: Frank Ghannadian, Dean, Sykes College of BusinessUniversity of Tampa

158 Interview: Angela Falconetti, President, Polk State College 160 Interview: Jeffrey Senese, President, Saint Leo University

163 Tourism, Arts & Culture:

Tampa Bay 2021 ISBN 978-0-9988966-1-8 President & CEO: Abby Melone Chief Financial Officer: Albert Lindenberg Regional Director: Jack Miller Senior Editor: Mario Di Simine Regional Editor: Max Crampton-Thomas

164 Eye on the future: Tampa Bay was tested but not broken in 2020 and promising signs abound

Art Director: Nuno Caldeira

165 Interview: Santiago Corrada, President & CEO, Visit Tampa Bay

Content Manager & Senior Writer: Felipe Rivas

166 Interview: Jackie Mangar, General Manager, The Hotel Zamora

Office Assistant: Michelle Orellana

169 Interview: Benjamin Tran, Owner Representative, West Wing Boutique Hotel 170 Roundtable: ‘Champa’ Bay; Brian Auld, President, Tampa Bay Rays; Neill Collins, Head Coach, Tampa Bay Rowdies; Brian Ford, COO, Tampa Bay Buccaneers; Steve Griggs, CEO, Tampa Bay Lightning 172 Perspectives: Growth outlook 173 Interview: Steve Hayes, President & CEO, Visit St. Pete Clearwater 174 Market voices: Tampa Bay hotels; Kevin Kennedy, General Manager, Streamsong Resort; David Rowland, General Manager, The Westshore Grand Hotel; Tabish Siddiquie, General Manager, The Vinoy Renaissance St. Petersburg Resort & Golf Club

Executive Director: Shain Collins Associate Executive Director: Robyn Mangrum Writers: Sara Warden, Esteban Pages, Cameron Saunders

Invest: Tampa Bay is published once a year by Capital Analytics Associates, LLC. For all editorial and advertising questions, please e-mail: contact@capitalaa.com To order a copy of Invest: Tampa Bay 2021, please e-mail: contact@capitalaa.com All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, without the express written consent of the publisher, Capital Analytics Associates, LLC. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication.

Capital Analytics Associates, LLC accepts no responsibility for the return of unsolicited manuscripts and/or photographs, and assumes no liability for products and services advertised herein. Capital Analytics Associates, LLC reserves the right to edit, rewrite, or refuse material.

176 Interview: Joe Collier, President, Mainsail Lodging & Development

Photo Credits: Cover: Visit St Pete Clearwater

Pg. 58 – Harvard Jolly Architecture Pg. 62 – Marcus & Millichap

Economy: Pg. 9 – City of Temple Terrace; City of Pinellas Park Pg. 12 – City of Clearwater Pg. 16 – City of Tampa Pg. 19 – Truist Pg. 22 – City of Pinellas Park Pg 28 – BDG Architects Pg. 33 – Hotel Zamora Pg. 34 – St. Pete-Clearwater International Airport

Construction & Infrastructure: Pg. 71 – Plaza Construction; Power Design Pg. 72, 82, 86 – Teco, Tampa Electric Pg. 74 – iConstructors Pg. 79 – Grayson Silver Pg. 84, 88, 89 – Duke Energy

Professional Services: Pg. 37 – Baker McKenzie; BDG Architects Pg. 38, 40 – Bank of Central Florida Pg. 46 – Espo Digital Pg. 50 – Baker McKenzie Real Estate: Pg. 55, 66 – AR Homes Pg. 56 – Stoneweg

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Pg. 124- Bank of Central Florida Healthcare Pg. 129 – Moffitt Cancer Center Pg. 130- Florida Blue Pg. 136, 142 – Tampa General Hospital

Transportation & Logistics: Pg. 93 – St. Pete-Clearwater International Airport; Pinellas Suncoast Transit Authority Pg. 94, 99, 101 – St. Pete-Clearwater International Airport Pg. 96, 105 – Pinellas Suncoast Transit Authority

Education: Pg. 145 – S outheastern University; USF Health – College of Nursing Pg. 146 – Florida Southern College Pg. 148 – Southeastern University Pg. 150 – Pasco-Hernando State College Pg. 154, 158 – Florida Southern College Pg. 160 – University of South Florida

Banking & Finance: Pg. 107 – Truist; The Bank of Tampa Pg. 108 – Kerrick Williams Pg. 110 – Hyde Park Capital Pg. 116, 120, 126 – Fifth Third Bank Pg. 122 – Baker McKenzie

Tourism, Arts & Culture: Pg. 163 – Mainsail Lodging & Development; Tampa Bay Rowdies Pg. 164 – The Vinoy Renaissance St. Petersburg Resort & Golf Club Pg. 176 – Tampa Bay Rays

Economy: Tampa Bay has evolved from mainly a tourism destination to a diverse economy with a bustling variety of business segments, including financial services, healthcare and technology. That diversity helped it weather the COVID-19 pandemic and the region is already showing signs of growth. But there are issues that could shape its competitiveness going forward.

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Economy in numbers: Tampa area Economic Summary:

Over-the-year change in the prices paid by urban consumers for selected categories

Unemployment rates for the nation and selected areas

12-month percent change in CPI-U, March 2021 14.0

4.5

United States

U.S. city average

12.0

6.2

10.0

5.5

Tampa area

Tampa area

8.0

4.7

13.2

6.0

7.1

Hernando Co..

9.2

4.0

5.8

2.0

3.5

2.6

5.4

Hillsborough Co.

6.3

4.9

0

4.6

All items

Food

Energy

Source: U.S. BLS, Consumer Price Index

5.8

Pasco Co.

Over-the-year changes in the selling prices received by producers for selected industries nationwide

5.0 5.2

Pinellas Co.

12-month percent changes in PPI

4.4 0.0 Mar-20

5.0

12.0 10.0

General freight trucking

10.0

Hospitals

8.0

Mar-21

Source: U.S. BLS,Local Area Unemployment Statistics

Offices of lawyers

6.0 4.0 2.0

Tampa area, 3Q20: Average weekly wages for all industries by county (U.S. = $1,173; Area = $1,052)

0.0 -2.0 -4.0 -6.0 Feb-18

Feb-19

Hernando

Feb-20

Feb-21

Source: U.S. BLS, Producer Price Index

$767

Average annual expenditures, United States and Tampa area, 2018-19

Pasco

$835

100% $9,735

$11,144

80%

$4,315 $5,334

$5,081 $7,230

60%

$9,053

40%

$10,692

$10,507

$20,064

$20,386

Tampa area

United States

$8,047

Hillsborough Pinellas

$1,011

$1,133

20% 0%

Housing Transportation Source: U.S. BLS,Quartely Census of Employment and Wages

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| Invest: Tampa Bay 2021 | ECONOMY

Food Personal insurance & pensions

Healthcare All other items

Source: U.S. BLS, Consumer Expenditure Survey

Housing inventory (active listings): 2017

14,000

2018

2019

2020

J F M A M J J A S O N D

J F M A M J J A S O N D

12,000 10,000 8,000 6,000 4,000 2,000 0

J F M A M J J A S O N D

J F M A M J J A S O N D

J F M

Source: Florida Realtors®

Months supply of inventory: 2017

3.5

2018

2019

2020

J F M A M J J A S O N D

J F M A M J J A S O N D

3.0 2.5 2.0 1.5 1.0 0.5 0

J F M A M J J A S O N D

J F M A M J J A S O N D

J F M

Source: Florida Realtors®

All-Transactions House Price Index for Tampa-St. Petersburg-Clearwater, FL (MSA): 360 320 280 240 200 160 120 80 40 1980

1985

1990

1995

2000

2005

2010

2015

2020

Source: U.S. Federal Housing Finance Agency

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Diverse landscape: Tourism may have been the engine that drove Tampa Bay before, but the area is proving it’s more than just beaches The Tampa Bay region is known around the world for its beaches. Situated on the Gulf of Mexico, with almost 70 miles of barrier islands from North Pinellas to Venice, the region attracts millions of tourists from all over the world.

But after COVID hit, it became evident that the region is much more than just tourism. The resilience of the Tampa Bay metro area in the absence of tourism painted a picture of a much more diverse economy that includes financial services, healthcare, IT, avionics and defense.

Despite the pandemic, there were several bright spots in 2020 for the region. Most importantly, the Tampa Bay Metropolitan Statistical Area (MSA), which includes the cities of St. Petersburg and Clearwater, had the lowest COVID-19 incidence rates among comparable MSAs, according to the University of South Florida (USF) Muma College of Business 2021 E-Insights Report, compiled in tandem with the Tampa Bay Partnership. The report also indicated the region is on its way to recovery.

The pandemic also failed to put a damper on the area’s sports: the Super Bowl went ahead at Raymond James Stadium and the Tampa Bay Buccaneers took the championship. The National Hockey League’s Tampa Bay Lightning won the Stanley Cup. But there are challenges. The E-Insights Report 12

| Invest: Tampa Bay 2021 | ECONOMY

suggests that the Tampa Bay MSA has work to do regarding its economic competitiveness compared to similar MSAs, landing in the bottom half in terms of unemployment rate and poverty.

Geography and history The Tampa Bay MSA is the fourth-largest metro area in the Southeastern United States, with 3.24 million residents living in the region in 2020, according to the Federal Reserve Bank of St. Louis. The United States acquired the state of Florida from Spain in 1819 and by the end of the Civil War, Tampa had a population of around 800. Its growth was catalyzed by the discovery of phosphate and the arrival of the railroad. Just 30 years later, toward the end of the century, Tampa was one of the largest cities in the state. In the early 20th century, the region became a magnet for Spanish and Cuban cigar workers, who moved to Tampa to work in the factories and the city simultaneously became a destination of choice for celebrities.

Protected at the innermost point of the Gulf of Mexico, the Tampa region is free from many of the extreme weather events that characterize the state. This, combined with a year-round semi-tropical climate, ( )

ECONOMY INTERVIEW

On the radar Affordable housing, workforce development and sustainability are priorites for attracting businesses and investors

Carole Post Administrator for Development and Economic Opportunity – City of Tampa

What are the city’s initiatives to attract businesses to Tampa?

Among the mayor’s priorities is a focus on streamlining the development process and making Tampa a place where you can do business, while also focusing on affordable housing, transportation, workforce development, and sustainability and resilience. In each case, we are focused on executing plans and a vision that elevates Tampa on the radar of businesses and investors. We are evaluating our land-use strategies to ensure greater housing affordability across the city. We are committed to delivering more than 10,000 additional housing units by 2027.

Another key initiative is workforce development. The city of Tampa has many organizations and initiatives driving workforce development, but there has not been a single conductor for that orchestra. We have committed new resources to help influence a more coordinated approach.

Lastly, every coastal city needs a sustainability and resilience plan. We have a superstar chief resilience officer and that will help ensure that our city is sustainable for the long term.

All these are reasons to be optimistic about our city’s future. We have many activities in the pipeline; however, for any city, you can’t just rely on the municipality to do the heavy lifting. If you do, you will never be successful.

Across our business sector, academia, and advocacy, we may not always agree on everything, but we agree that we are in a unique time for this city’s success and its future and there is a spirit of support for each other’s vision.

Looking forward, what is your near-term outlook for the city of Tampa?

There are good reasons to be optimistic. We are seeing

new businesses open and existing businesses reopen.

We were optimistic before COVID and we had a great sense of urgency to get things done. We did not lose any of that optimism or urgency. We may have lost a few steps because of COVID and needed to convert some of our resources, but now we are more eager to make up that ground and get back on track. I would be remiss to not bring attention to the success of our city’s sports franchises this year and the economic byproduct that came as a result, notwithstanding COVID. Some say it was bad timing because we did not really get to appreciate the full benefit of winning a Stanley Cup and winning a Super Bowl in our own backyard, because of the COVID-related constraints. However, I think that it was actually great timing because there is no better boost than the one you could see from those sports events and what they did for our community. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

Tampa ranks ninth nationally in terms of large-city population growth

( ) makes the Tampa Bay region a destination of choice for those looking to move to Florida. Not only does the region have a pleasant climate and few weather events, but its massive population growth in the late 20th century, sustained by visitors from all over the world, has created a solid, eclectic, vibrant cultural base that also attracts younger generations.

Landscape As of 2020, the city of Tampa had a population of just over 404,000, making it Florida’s third-largest city, behind Jacksonville and Miami. It is the 47th-largest city in the United States. Tampa ranks ninth nationally in terms of large-city population growth, according to WalletHub. The city’s population is growing at 0.61% per year but growth for the entire region is outpacing the national average at 2% per year. The city of Tampa has a young population with a median age of 36 compared

with the state median of 42.4. And the cost of living is affordable for the younger generation. The March 2019 cost of living index in Tampa was 95.9, which is very close to the U.S. average of 100.

This February, the Tampa-St. Petersburg-Clearwater area rose 20 spots on an annual ranking of the nation’s best performing areas, landing at No. 32 in the large metros category. The Milken Institute study examines several factors including job creation, wage growth and high-tech GDP. A 2019 ranking from WalletHub placed Tampa at No. 5 and St. Petersburg at No. 14 in terms of the best cities to start a business nationally. In 2020, the same organization ranked the two cities among the Top 50 best cities for finding a job in the country.

In terms of accommodation, the greater Tampa Bay area has consistently ranked among the Top 10 real estate markets in the country and in a recent study

by RentCafe, the city of Lakeland was named one of the top cities for Gen Z renters. Lakeland came in at No.4 for Florida, and Gen Z renters make up 26% of its population. Between 2019 and 2020, the city saw a 44% increase in its Gen Z population.

Yet the picture has a number of blemishes. The Tampa Bay Partnership Foundation’s State of the Region 2021 Regional Competitiveness Report showed median household income in the Tampa Bay area was $58,241, the bottom-ranked of 20 similar metros (Seattle ranked No.1) and below the U.S. average of $65,712. The report also showed the region’s advanced industry job share slipped to 11 from 10 in the previous report, standing at 15.03% versus the U.S. average of 14.52% and well below leading performer Seattle at 19.10%. The region also saw its ranking slip in the areas of unemployment, poverty and youth poverty. ( )

ECONOMY INTERVIEW

Growing smarter Corporate recruitment and expansion are helping spur diverse growth

J. P. DuBuque President & CEO – St. Petersburg Area Economic Development Corporation What were the EDC’s major 2020 takeaways?

We measure ourselves and hold ourselves accountable through the impact that we make on the community.

That impact comes through our efforts to recruit new companies to the area and our efforts in assisting both new and existing companies add jobs and grow. Although we’re a young organization — we’re only in our fourth year — 2020 was our best yet. We had some exciting corporate recruitment that we were able to announce, added to valuable corporate expansion. Our organization is built on proactive outreach, so when the pandemic was rampant throughout most of the country, it triggered a sizable change for us as we had to draw back our efforts in direct outreach. We reassessed our strategy and doubled down our focus on our local community, engaging in direct conversations with companies that, from an economic development viewpoint, revolve around our targeted industries as identified in our community economic development strategy – Grow Smarter. These targeted industries are intended to diversify the economy and build on our strengths. Fifty years ago, Florida was defined by two things: tourism and agriculture. That no longer holds true.

How has cluster theory played out in Tampa Bay regionThe whole concept of clustering is that when you have businesses that are related, they are able to create some economies of scale with regard to the needs of the business model. Clusters seem to promote both competition and cooperation. A strong cluster allows for easier talent attraction too. It’s also a self-fulfilling prophecy from an economic development standpoint.

Cities that have developed dynamic and growing clusters and are known for some sort of industry, are incredibly desirable to nearly every participant in that industry. Even if they’re not going to have their whole

operation there, they must be part of it. That selffulfilling prophecy is where we want to get to. We want to continue to build strong industries. As we continue in our effort to consolidate them, the talent gaps are going to be fewer and it’ll be easier for businesses to be successful.

What are the main goals and priorities for the St. Pete EDC? We believe that we have something very special in St. Pete and we want to stand on the top of the mountain and scream from the top of our lungs about just how awesome our city is for businesses. Those businesses that are already here know that to be the case. It’s our job to make sure the rest of the world knows that. We also have to make sure that we tell the story of being the coolest part, the most creative part, the most innovative part of the best region in the country. www.capitalanalyticsassociates.com

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Ana Cruz Managing Partner Tampa Bay Ballard Partners

Why should companies rely on lobbying services?

Everybody needs a lobbyist. Some people think that lobbyists only protect special interests or have a negative connotation but lobbyists are simply advocates. For example, if you or your company were at risk of being over-regulated or under-regulated, unfairly causing harm to you or your company, you would most likely file a lawsuit to stop that action or litigate the issue, and you are not doing that without a lawyer. The same applies for us. Lobbyists are advocates for their clients to ensure their values and points of view are well represented throughout the legislative process. We intricately understand the legislative process largely because we’ve worked in government before going to the private sector.

It is also critical to understand what the priorities are for legislative leadership and the Executive Branch, as that knowledge will help us maneuver our clients through the halls of the state capital or Congress. Passing a bill is not easy, and oftentimes takes a few years to lay the groundwork and the necessary support, but having the right team who can effectively advocate on your behalf is critical.

What issues are on your radar?

Certainly, the federal infrastructure bill. We represent quite a few clients in the infrastructure space including the American Road and Transportation Builders Association, construction companies and engineering firms. Cities and counties will benefit greatly from this infrastructure bill that will help fund projects to repair aging infrastructure and facilitate upgrades in transportation, utilities, broadband, housing and job training programs.

We help our clients understand the needs of their specific communities, building bridges with small and minority-owned businesses and teaming up on small and large projects and contracts. We also know that equity, diversity and inclusion are paramount to public policy in the new administration, but also incredibly important to our minority small-business owners, especially in Hillsborough County where I call home.

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| Invest: Tampa Bay 2021 | ECONOMY

( ) Economic performance The Tampa Bay area is no longer just about sandy beaches and dynamic nightlife. Now, the region boasts a variety of industries bolstering its revenues, ranging from finance and insurance and IT to healthcare, construction and defense. The diversity has helped the Tampa MSA become one of the Top 25 metro areas in the country in terms of Gross Metropolitan Product (GMP), coming in at No.24 with GMP valued at $156.67 billion, according to Stastita forecasts for 2020. The New York-Newark-New Jersey MSA tops the list with $1.67 trillion GMP. Tampa Bay is also a financial hub, with almost one in four business and information services firms having offices in the city. Some notable financial institutions in Tampa include Bank of America, JP Morgan Chase,

A third of Florida’s entire population lives within a two-hour drive of the City of Tampa.

ECONOMY OVERVIEW

Amanda Thompson Director – Clearwater Community Redevelopment Agency

We’ve made significant progress on Imagine Clearwater, which is an immense, $64 million redevelopment of our waterfront Downtown. While working remotely and dealing with the pandemic, our city council, who also serve as the CRA trustees, and our team have continued to move forward on this important project. At a time when it would be normal to not want to spend money and move big ideas forward due to the uncertainty, our council, the city and the community have shown great leadership in communicating that they are investing in Downtown and moving forward.

Wells Fargo, Raymond James Bank and Truist. Finance and insurance accounts for around 7.25% of the jobs in the Tampa metro area, with a workforce of over 105,000. It is the most specialized and fourth-highestpaying industry sector in the area with median earnings of $55,640. In the last year, more financial firms have moved or are planning to move to Florida, in particular to Tampa. One of these is BelHealth Investment Partners, a healthcare private equity with $500 million in assets under management, which plans to open a Tampa office.

One emerging and growing sector is IT. The region is known as the gateway to the Florida Tech Corridor – a 23-county network that was created by the University of South Florida, the University of Central Florida and the University of Florida. IT product distribution company Tech Data is one of Tampa’s largest employers, providing over 14,500 jobs and process outsourcer Sykes employs almost 18,000. Cybersecurity firm KnowBe4 also provides jobs to almost 1,000 people in the region.

Several Tampa tech companies are innovators changing the face of the industry. Suzanne Ricci, founder of Computer Coach Training Center, held over 150 jobseeker networking events and provided connections between jobseekers and recruiters during the pandemic.

Venuetize, a Tampa-based mobile-ticketing company, won the Emerging Tech Company awarded by Tampa Bay Tech in November.

The tech sector is also growing with the number of companies relocating during the pandemic. During the last year, the region welcomed Instagram, Snapchat, Wag! and HelloFresh. Tech companies in the Tampa region are now embarking on a hiring spree to ensure their talent pipeline remains constantly refreshed.

Restaurant tech startup Omnivore, edtech company www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

Tampa Bay is among the country’s top areas for job growth with another 2,316 tech jobs forecast to be added by the end of 2021 Knack, insurance tech company Trust Layer and fintech CrossBorder Solutions are all among the companies aggressively hiring at the moment. This places Tampa Bay among the top metro areas for tech job growth in the country, with CompTIA’s annual “Cyberstates” report predicting that it will add a further 2,316 tech jobs by the end of 2021.

In terms of job generation, healthcare and social assistance is the No. 1 employment sector in the region,

providing jobs for just over 208,000 people, or 14.3% of the workforce. The region has a variety of top-rated healthcare facilities for both adults and children.

According to a US News and World ranking, Tampa General Hospital is the fourth-best medical institution in the state. Morton Plant Hospital in Clearwater ranks seventh and St. Joseph’s Tampa campus ranks 15th.

The region has a burgeoning medical community with almost 53,000 nurses and 9,200 physicians, creating a physician to patient ratio of 1:341. Due to its IT strengths, Tampa is also emerging as a healthtech incubator. In November, St. Petersburg-based telehealth firm IMCS group and Tampa-based DataLink Software both received funding injections from investors to accelerate growth.

The region’s housing and construction sectors flourished during the last year as the region’s population grows. According to Realtor.com, Pinellas County is among the Top 10 most affordable warm-weather destinations in the country with a median house price of $275,000. The hot housing market has been stoked by migration from the Northeast and in Tampa Bay as of April, median rental prices have increased by about 6.9% on the year. In Hillsborough County, the median home

ECONOMY OVERVIEW

price is at a record-breaking $305,000. Greater Tampa Realtors® says it has less than one month of available inventory with high competition among buyers. As of April, there are around 1.2 million square feet of office space under construction with new developments that include Water Street and Midtown. The construction sector in the region employs about 7% of the population.

As a state with great exposure to sea level rise and extreme weather events, regions within Florida are also invested in marine research. The University of South Florida’s Center for Ocean Technology is a leader in microelectromechanical systems research and development, using technology for a range of purposes, from monitoring water quality to providing port security. Tampa Bay is also the home of the MacDill Air Force Base, Coast Guard Air Station Clearwater and Coast Guard Station St. Petersburg, three of the country’s major military installations.

Another plus? Companies in Tampa Bay have little trouble accessing funding, with $77 million raised in just the first quarter of 2021 across 17 deals. The most notable included Aspen RxHealth, which raised $23 million in a Series B funding round, SOMA Global, which raised $22.5 million and Clearwater-based Red Rover, which raised $13.6 million.

Employment The barometer for the strength of any economy is its employment rate. As of February, the counties of Hernando, Pasco, Pinellas and Hillsborough collectively recorded an unemployment rate of 4.2%, about 2 ( )

Tampa is considered the industrial, commercial, and financial hub of Florida’s west coast.

Craig Richard President & CEO – Tampa Bay EDC

Just like any other community with a diverse economy, some sectors did well, and some are doing better. The areas for us that are doing better are information technology, distribution and logistics, cybersecurity, and healthcare. These are all sectors that have actually grown over the past few months, and we see that continuing.

What Florida is known for, obviously, is hospitality and tourism, and we’ve worked really hard to diversify our economy so that when we have periods like these, we are able to recover quickly.

That’s helping us out. There are several reports out there that show how Tampa Bay is better poised for a quick recovery than many of our counterparts in the Southeast region.

www.capitalanalyticsassociates.com

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®

oundtable:

Future of the Bay Chamber of Commerce and Downtown Partnership leaders discuss the challenges and changes taking place across the region.

Kelly Flannery

CEO South Tampa Chamber of Commerce

What challenges and opportunities did businesses encounter when switching to e-commerce?

There is no business sector that was not impacted by the pandemic. More than 75% of businesses in Hillsborough County are small businesses, with less than 50 employees. Mom and pop restaurants, for instance, that had never offered takeout or delivery before made a quick shift, whether internally or by working with a new platform such as Uber Eats. We also saw retail stores that had not previously offered online shopping and were now competing with Amazon. For business owners to make these kinds of changes is a huge opportunity.

As some businesses begin to transition back to a more traditional business model, we suggest they also continue to offer these new services, and to always be looking for ways to use new technologies.

How will the chamber go about its business in the near term, considering the pandemic-induced changes?

2021 is the South Tampa Chamber’s 95th anniversary.

It’s definitely a reason to celebrate even if we have to do it in a different way.

From an events perspective, what we have learned in 2020 is that chambers in general tend to be eventheavy. While we are still moving forward, we plan to focus on the mission of the organization when it comes to organizing events. If it does not fit within our mission, vision and values, then we should not be focused on it.

We can use that time instead to focus on our members, our community and advocating on behalf of local businesses.

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| Invest: Tampa Bay 2021 | ECONOMY

Jason Mathis

CEO St. Petersburg Downtown Partnership

What steps are you taking to tackle infrastructure and transportation issues in a post-COVID landscape?

We’ve had important developments over the last year.

One was the announcement on the complete funding for SunRunner, a rapid transit bus plan from Downtown St. Petersburg to the beaches on the Gulf Coast. This project is a game changer because it will help people appreciate the benefits of mass transit, perhaps more than we have in the past. We’re hopeful that the success of SunRunner will encourage people to understand the value of transit. Smart transit and transportation options are critical for a growing urban center. Our residential population continues to boom, and that calls for a bolstered transportation infrastructure.

How is your organization pushing initiatives for St. Pete to become more of a smart city?

We have delegated a significant portion of those efforts to the Innovation District. If there is any place in our city where we should have smart city technology and innovation in terms of the actual physical design, it should be an innovation district. It’s a great way for us to pilot data collection from streetlights, smart traffic signals and the like. We know that is what the future holds.

We are supporting the work of many of our partners to bridge the digital divide in our community with access to computers and the internet. The pandemic reinforced the need for people to have access to technology. There are lots of families in our community who lack internet access. That only exacerbates challenges that they may be facing in other aspects of their life.

ECONOMY ROUNDTABLE

Lynda Remund President & CEO Tampa Downtown Partnership

How are gathering spaces changing as a result of the pandemic?

We don’t know what the future will hold. I hope at some point we’ll be back to some normalcy where we will see 5,000 people back in the park again. But from our cities and the internal chatter between staff, we’re hearing that the virtual component may stay. Just through Rock the Park, we’re bringing in 4,000 people or more and obtaining national recognition. The virtual component allows us to garner much wider reach.

What are the main infrastructure challenges to transportation within Tampa Bay? We don’t have a robust transportation system. Thankfully, we’ve been able to recruit some really big events such as the Super Bowl but transportation is our sore point.

We have to implement some kind of multimodal transportation system in the near future. Smart cities are also very important because having all those components in place allows us to be on the cutting edge. The technology and infrastructure have a direct positive effect on the well-being of a city’s inhabitants.

What are the primary industries you would like to attract to Tampa?

I think our Economic Development Corporation is doing a great job in attracting some of the higher-paying tech companies. We’re all anxiously awaiting the progress announcement coming from Water Street Tampa, which will bring in some of the larger-scale retailers the city lacks in comparison to similar cities. Big box retailers are the next logical step for a lifestyle district like ours.

Chris Steinocher

President & CEO St. Petersburg Area Chamber of Commerce

How has the ability of the city to grow small companies changed in the last year?

I think it has improved. There’s such an influx of talent, especially since people can work wherever they want now. There’s a call for innovation in areas where our community is very strong, particularly in hospitality. We’ve been strong at starting businesses even without this need to innovate, and demand has skyrocketed. The number of companies pitching at our most recent Pitch Night compared to six months ago shows that our community sees a lot of opportunity for new projects.

How does the infrastructure in the city help promote quality of life?

We’re excited about our SunRunner bus rapid transit.

Soon, we’ll be able to serve people working in the hotels and restaurants and beaches, meaning they will see a steep reduction in costs because they’ll be able to take a reliable bus to work instead of having to drive and park.

Some jobs may pay at a rate that does not allow them to buy a car, meaning the transit infrastructure is extremely important to a city. We also have the cross-town bridge expansion, which greatly helps mobility.

What is your outlook for the Chamber and St. Pete’s economy?

We can’t see any obstacles in our way except ensuring we are really tuned into where society needs to go next.

The chamber calls itself the Purple Pelican because we’re neither red nor blue. This has been very helpful because this aligns with our community and its ethos. We don’t advocate for a political party but, rather, for the city itself. www.capitalanalyticsassociates.com

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Sean Malott President & CEO Central Florida Development Council, Inc.

What improvement opportunities is the council eyeing?

One opportunity for improvement is our local manufacturing hub, which we would like to see more of. Several manufacturers were forced to tackle challenges within their supply chain. Some of the products and materials they need come from other markets that became inaccessible overnight. Thinking about where the supply chain is located, where you get your products from, we were working on messaging that made businesses think about the proportion of the inputs they can get locally and those they have to get from abroad. Our messaging centered on preparing the supply chain of the future, and we believe that means more manufacturing coming to the United States.

Some of it will come to Florida, much of it to other locations. Knowing that certain industries have done really well in this time and to have some of those within your community is important. It recognizes that having headquarters and major operations locally is definitely a benefit. We would like to see more of that.

What unique opportunities does Polk County offer companies looking to relocate?

Right before COVID, we were working on a new initiative called the Central Florida Innovation District. It’s an area that encompasses Florida Polytechnic University, right along Interstate 4. The Department of Transportation is building SunTrax, an autonomous vehicles research and testing facility down the street from Florida Polytechnic University. We designated this area as the Innovation District, tying these two large anchor institutions and attracting major state investments to the tune of hundreds of millions of dollars to increase awareness about new developments. Since we started that initiative and marketed that effort, we’ve had several developers come into the market that are in due diligence and looking to take out large tracts of land in that area. It offers definite possibilities as transportation infrastructure comes into play.

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| Invest: Tampa Bay 2021 | ECONOMY

Cuban cigars were made in Tampa for many years, earning Tampa the nickname “Cigar City”.

( ) percentage points below the national average. Even at the height of the unemployment crisis in April 2020, the region’s rate remained below the national average at 13.9%. In May 2020, the region regained more than 38,000 jobs after the initial unemployment shock, which was a faster rate than any other region in Florida.

Pinellas County recorded the lowest unemployment rate for the month at 4%, followed by Pasco and Hillsborough, both at 4.2% and Hernando at 4.9%. The average weekly wages in Hillsborough County are the highest at $1,133, although that is still slightly lower than the national average of $1,173. Pinellas County follows with an average weekly wage of $1,011, then Pasco with $835 and Hernando with $767.

As expected, the majority of job losses in the region have been in the hospitality and leisure fields, which recorded 136,600 jobs in February, 16.9% down on the

ECONOMY OVERVIEW

year. In financial services, job growth in February was 1.8% compared with the same month in 2020, while professional and business services expanded 0.9% and construction grew 0.5%. For these reasons, the employment market in the Tampa Bay area remains tight and employers still encounter difficulties in recruiting and retaining quality personnel. While some employers report a lack of applicants, others list issues such as a lack of experience, high salary expectations or a lack of hard or soft skills.

Certain other challenges persist in the Tampa Bay workforce, which are being addressed by the Tampa Bay Works program. The program intends to address four key areas to create a more effective job market for employers and employees: fragmentation, employer engagement, career awareness and cross-industry needs.

The organization has launched sector-based employer collaboratives, promoted business leadership and involvement and has begun measuring the outcomes to gather demonstrable results of the program.

Other agencies like the University Area Community Development Corporation are also working to expand training and certifications, especially for those whose livelihoods were decimated by the pandemic. “If you’re unemployed you can’t put a roof over your head or feed your family,” said Sarah Combs, CEO of the University Area CDC. She added that outreach to local institutions has been essential. “We have to ensure our residents stay employed. Through our certification program, we are able to train, certify and get residents employed within the community to ensure they are able to keep their house and have their kids continue in the same school and make sure food abounds. We used the anchor institutions that surround us, reaching out to them and ( )

ECONOMY INTERVIEW

Now trending The pandemic accelerated some trends and introduced new ones that are shaping the future of work

Chuck Sykes President & CEO – Sykes Enterprises agencies took a huge hit. But when balancing out across the company, we registered decent growth levels.

How did demand for your services change over the course of the pandemic?

The two words I would associate with the pandemic are acceleration and resilience. All trends that were already unfolding accelerated. And companies today, as they think about the future, are trying to figure out how to make their business model more resilient. We had a lot of clients that began to outsource more because they want to build more resilience into their models.

Additionally, consumer demand for greater internet bandwidth and personal computers began to increase because more and more people were working from home. With that, e-commerce-based companies saw great growth as well. So, for many industry segments, it was a fortuitous event but for our travel segment, it was devastating. The hotels, airlines and online booking 24

| Invest: Tampa Bay 2021 | ECONOMY

What are some of the unfolding consumer trends relating to retail products?

It used to be that the office was one of the main domains in which we lived, coupled with our homes and our cars.

Now, rather than people going to work, companies are bringing work to people and I believe that will be a trend that sticks. We made an investment based on that trend in 2012 and at that time I thought maybe 30% of our industry workforce of 9 million people would eventually work from home. Now, from what I have seen in the United States alone, we might go to 50% or even 70%, which is the percentage of our staff that is currently working remotely. Not every home environment is conducive to what we do. I think when discussing evolving trends, the world of work has been completely flipped upside down and this will be the future. People are missing face-to-face interactions but there will be ways to cope with that. As far as growth industries, I would concentrate on the two domains of the home and the car, rather than the office.

What makes the Tampa Bay region such a great location for your corporate headquarters?

The company was started in Charlotte and we moved the company here in 1992 with 800 employees and about $40 million in revenue per year. The company was privately held but we always had aspirations to take it public. The tax environment in Tampa is very attractive and can make a material difference to a business. I think the amazing thing now is that the state of Florida will continue to grow because of the new world of work where companies take work to people. People will continue to come in droves to Florida for its warm climate and cool living.

ECONOMY OVERVIEW

Sean Sullivan Executive Director – Tampa Bay Regional Planning Council

We like to lend an ear to our local governments to map out their priorities and how we can help shape that conversation into becoming a regional priority. For instance, in the last year, we’ve worked with three county metropolitan planning organizations, which are charged with transportation planning throughout the region. Together, we applied for a grant from the Federal Highway Administration to look at the potential impacts of extreme weather on our transportation network. It was a $250,000 award, including a contribution from the Florida Department of Transportation. The report looked at the impact of storm surges, hurricanes and intense inland flooding.

One of the things we talked about in terms of improving our transportation network was elevating roadways to improve the slope. We also need drainage network and system improvements, such as a backflow preventers on drainage systems.

( ) inquired on available positions to create a pipeline to hire our residents. They let us know the kind of training that is essential for them to stay employed and we were able to create that pipeline.”

The Tampa Bay Partnership’s State of the Region report also showed Tampa’s poverty rate at 12.17%, worsening from 16th to 17th place from a year before, and suggesting that while the region is growing economically, not everyone is benefiting.

Demographic shifts Florida is often considered the retirement state. And while there are many retirement communities in the state due to the lifestyle the area can offer for those who no longer need to work, the Tampa Bay area’s population has tended to skew to the younger side, although it has been steadily increasing in recent years.

As of 2019, the median age in the area was 42.2, with the bulk of the population falling into the 30-39, 50-59 and 60-69 age brackets. There are slightly fewer 65s and over living in the Tampa Bay region compared with the national average. The population is highly educated, with about 90% of 25s and overs reporting at least a high school education and 61% having studied some college or higher-level education.

The two primary ethnicities represented in the region are white at 61% and Hispanic at 21%. About 14.4% of the population is foreign-born, primarily from Latin

61% of people aged over 25 have some college or higher-level education America. This number is higher than the U.S. rate but comes in below the Florida average of 21.1%. The most common country of origin for foreign-born residents within the state is Cuba, followed by Haiti and Colombia. Tampa Bay has experienced strong net migration in the last five years, both from within the United States and abroad. The Tampa MSA registered 115 new residents every day in 2020, making it fifth in the nation for population growth. Growth is primarily centered on Hillsborough County, which is expected to reach 1.6 million by 2025. There are significant numbers of minority-owned businesses in Tampa Bay, which led to the creation of the Tampa Bay Green Book, a directory listing Black-owned businesses that have historically faced underinvestment. ( ) www.capitalanalyticsassociates.com

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Market voices: City growth

Doug Lewis

City Manager City of Pinellas Park

The area in and around where Amazon has chosen to occupy was designated years ago as a development of regional impact. We have had apartment complexes go up in this area and would also like to see schools and colleges move into the area as well. With large businesses like Amazon moving in and multifamily housing complexes already developed and a variety of schools potentially interested in this area, we are starting to see substantial growth that will inevitably lead to workforce availability for businesses and education and training opportunities for residents.

Economic development can still occur in spite of COVID-19. An example of that is a project that is taking place and involves Keiser University as a tenant. In order to recruit them, the city assembled three parcels of land at its principal entrance to the Downtown area. The city always had Keiser University in mind as a potential suitor. They were of interest because they were proposing a 45,000-square-foot building where they would house up to 1,000 students and a staff of 100. That was very much of interest to the city as we forecast that the staff and students would rely on our business community for many of their needs. This project represents $14 million of private investment, which is the largest investment that has occurred in decades for the U.S. Highway 19 corridor in the city.

Shawn Sherrouse City Manager City of Lakeland

Debbie Manns

City Manager City of New Port Richey

All our indicators suggest continuous growth. Despite the impact from COVID, we are still one of the hot areas in the state. Even in our Downtown core, we have a building under construction right beside city hall, on our iconic Lake Mirror Promenade. It will be a 295,000-square-foot office building that will bring 500 jobs to our Downtown. That creates opportunities for retailers, restaurants, bars and entertainment to serve the people who will be added to our Downtown mix on a daily basis.

We are considered a suburban community, but we also have been able to expand some of our zoning to include manufacturing and industrial. We pride ourselves on our approachability with companies because we always try to accommodate any requirements businesses may have. In the last two years, we have developed a new department under the executive team that handles annexations and new developments. We have never before actively gone after businesses, so we are now ramping up efforts to help develop some economic engines. We have a way to go but we are making strides.

Charles Stephenson

City Manager City of Temple Terrace 26

| Invest: Tampa Bay 2021 | ECONOMY

ECONOMY OVERVIEW

( ) Government The Tampa Bay region has several county and citylevel governments that work together for the economic development of the area as a whole. The county governments of Hillsborough, Pinellas, Pasco and Hernando all oversee activity in the area, as do city governments, including Clearwater, Tampa and St. Petersburg. This intricate network demands constant communication and collaboration among public entities.

The four counties in the Tampa Bay region are run

by Boards of County Commissioners, which consist of five to seven elected commissioners who oversee local ordinances, budgets, spending and taxes. Across the cities in the region, forms of government are mixed, with strong mayoral systems in Tampa and St. Petersburg but a council-manager form of government in Clearwater. In Tampa and St. Petersburg, a mayor is elected to a fouryear term and oversees the city council, which is served by seven and eight members, respectively. In Clearwater, the city manager forms part of the city council alongside four other council members.

These institutions are supported by economic development councils (EDCs), while chambers of commerce represent the interests of the business community. Established in 2016, the St. Petersburg Area EDC supports the local business community by acting as a bridge with the local government. The Tampa Bay EDC was established in 2009 and represents Hillsborough County, Tampa, Plant City and Temple Terrace. Both EDCs work toward business retention and expansion and provide information on workforces, incentives, real estate and permitting support to help companies establish and expand operations in the

The American Rescue Plan distributed $17.6 billion to Florida’s state, county and city authorities region. Some of the Tampa EDC’s target industries include IT, life sciences, manufacturing, defense and security and logistics.

During the COVID-19 pandemic, it was the state and local governments’ responsibility to distribute stimulus funds. The $1.9 trillion American Rescue Plan passed by Congress in March distributed $17.6 billion to Florida’s state, county and city authorities. The priority on a state level for the funds is a massive overhaul of the unemployment system due to the fundamental cracks that were exposed at the beginning of the rise in unemployment. Gov. Ron DeSantis also proposed that first-responders should receive a one-time payment. More than $500 million has been allocated to economic development and tourism-related recovery that includes job creation. Hillsborough County is to receive $285.48 million, Pinellas $189.09 milion and Pasco $107.43 million. Another $217.91 million will be split between the cities of Tampa, St. Pete, Clearwater,

ECONOMY OVERVIEW

Largo, Pinellas Park, Lakeland, Sarasota and Bradenton, with Tampa and St. Pete receiving the bulk of the funds.

Public sector initiatives Florida ranks fourth in the country in the Tax Foundation’s State Business Tax Climate Index with some of the most favorable tax structures nationwide. In 2019, the Small Business and Entrepreneurship Council ranked Florida No. 3 in its Small Business Policy Index. Florida is known to be one of the US’ most business-friendly states and most of that is down to welcoming and efficient governments, incentives and policy measures that reduce risk for private companies. This can be seen with Florida’s response to the cruise rules set by the Centers for Disease Control and Prevention (CDC). The state has taken legal action against the organization in a push to allow cruise liners – a crucial component of the Florida economy – to resume sailings.

On a regional level, Tampa Bay itself continues to rank high for small businesses and startups. The Tampa Bay Partnership report showed Tampa had climbed to No. 5 from its previous eighth-place ranking in the rate of businesses started.

Companies are also targeting the Tampa Bay MSA as a relocation destination. In January, San Franciscobased cybersecurity firm OPSWAT chose to relocate to Tampa, adding to the plethora of cybersecurity companies in the region. The organization cited the talented workforce in the area as one reason for the move. It’s a development the region welcomes. “There is a collective effort to grow innovative companies in Tampa Bay,” said Tonya Elmore, president and CEO of the Tampa Bay Innovation Center, in an interview

Though known as a desirable hospitality and tourism market, Tampa Bay is solidifying its reputation as a key finance, technology and professional services market along the Sun Belt.

Amanda Payne President & CEO – AMPLIFY Clearwater

A silver lining for our organization during the pandemic was that it gave us a chance to evolve. It gave us the opportunity to let go of some things that weren’t beneficial to the new organization, legacies that were inherited through the merger. It gave us a chance to show our true potential. During the initial weeks of the shutdown, our membership had so many questions and needed answers, and many of them turned to us for help because they didn’t know where else to turn. We quickly pivoted to be that needed resource, serving as a conduit of information for our business owners and operators.

This provided stability and predictability for our members during an extremely volatile and unpredictable time.

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| Invest: Tampa Bay 2021 | ECONOMY

CONSTRUCTION ECONOMY OVERVIEW

Jerome Ryans President & CEO Tampa Housing Authority

What has been the community impact of the $440 million dedicated to housing assistance?

Thousands of families are impacted by our investments in this community. The budget represents our relationship with our not-for-profits, too. The mayor has embraced the whole issue of affordable housing, as has every mayor before her for at least the last 20 years. The vast majority of our budget dollars contribute to payments for residents living outside of public housing itself, living in other units around the city. In our latest estimates, we have about 10,000 families on the waiting list. We’re housing anywhere from 25,000 to 30,000 families across the board. The major issue is the lack of enough affordable housing units for our community. The needs in the community far exceed the dollars allocated to address affordable housing. We were fortunate enough to acquire a statewide contract and a partnership with another agency so we could do those kinds of things.

We branched out from our housing authority role to encompass and consolidate more of an economic development arm for the city itself. We’ve also been successful in partnering with some private developers. with Invest:. “We see an opportunity with increased numbers of founders and entrepreneurs relocating to Florida from the Northeast and the West Coast. This is important to our region from a growth and talent perspective. While we are focused on growing tech companies locally, our partners are working to attract tech companies or their operations from outside our region to Tampa Bay. This influx forces us to reinvent ourselves and our programs to stay current with what the entrepreneurs and founders need. The biggest opportunity for us is to evaluate the type of programs that are being provided and identify those that are going to be more helpful to our community.”

To that end, education also continues to make strides due in part to investments from private companies. In April, multiple education institutions received a total of $653,000 in 23 grants for STEM programs from Duke Energy, aiming to support the talent pipeline. ( )

What is the Tampa Housing Authority’s near-term outlook?

One of the things that is unique about the Tampa community is the leadership on both the political and business fronts. People here tend to work together as a team as opposed to running in all different directions.

Our top priorities include the West River, Encore and Robles Park. We have been fortunate to work with some incredible developers, such as The Related Group, and the Bank of America community development component.

They both have been instrumental in partnering with the Tampa Housing Authority to develop affordable housing in the Tampa/Hillsborough community.

One of our earliest goals was to become the premiere provider of affordable housing in this community; our future is brighter because we are moving in that direction. www.capitalanalyticsassociates.com

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®

oundtable:

County officials Across the region, officials are assessing needs and allocating funds. Here, local leaders discuss what is happening in their county.

Bill Beasley

County Manager Polk County

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Dan Biles

County Administrator Pasco County

What business sectors is Polk County focused on attracting?

Polk continues to strive for balance between the tax base that supports residential growth and that which supports commercial growth. I would like to see a slightly heavier commercial growth sector, but we’re taking anything and everything that’s reasonable here. Residential growth is certainly substantial. Polk is big in the warehousing and logistics industries: that will continue. We want to push higher wage jobs, higher tech jobs. We have the SunTrax facility here located next to Florida Poly. I think there’s some good synergy there for landing some high-tech R&D in that corridor and connecting them with artificial intelligence and remote operating environments. I think we’re seeing good growth in the medical side of business.

The medical community is growing in Polk County, and that’s important both for medical workers who want to live in Polk and residents who want access to quality healthcare facilities.

What key infrastructure projects are in the pipeline?

We have a robust transportation capital program to improve our intelligent transportation system. Those projects have not stopped despite the pandemic. We were able to get approval for the Ridge Road Extension, an east-west connection from the west side of Pasco to the Suncoast toll road. Our water projects continued too. We saw a slight pause in March and April 2020 as everyone tried to figure out what was happening with the pandemic but then it was like the construction industry went into overdrive. Regional homebuilders reported they were breaking sales records due to migration from the Northeast.

In September, October and November, single-family permits were double what they were on the year, which is unprecedented growth. The same thing has happened on the commercial side. It’s impossible to get enough staff in terms of contractors, builders and even in the permitting office we are short-staffed.

What are the biggest challenges facing economic growth and development?

Let’s call it commuter mobility. I think transportation and transit could be long-term challenges. We’ve got some things we need to deal with to improve people’s ability to commute, whether that be personal vehicles, the movement of goods and services on the roadway system or public transit. Dealing with public transit or public transportation when it comes to infrastructure is massively expensive but we have some very urban, densely populated corridors in which we need to improve transportation.

What are some of the target industries you want to attract to create new jobs?

Aerospace, healthcare, manufacturing and light industrial are our target industries. Moffitt just bought around 900 acres where they are planning a long-term research campus. The Pasco Economic Development Council is our partner in marketing, and we helped formalize the deal for board approval. We’re starting to see the support businesses coming into the new office spaces. One of our industrial spaces recently filled up with light industrial companies and the developer is going ahead with another 300,000 square feet of industrial space.

| Invest: Tampa Bay 2021 | ECONOMY

ECONOMY ROUNDTABLE

Barry Burton

County Administrator Pinellas County

What does the county’s transportation future look like?

There is still a great deal of uncertainty. We will have to renew our efforts and ensure that our communication with the business community and residents is as strong as possible. We need to provide the infrastructure required to rebuild the economy. The Penny For Pinellas sales tax project, for example, was approved with a majority of 80% but the tourism industry has been heavily impacted by the pandemic and fewer tourists means less money is being spent in the county. We will need to re-prioritize some of our infrastructure projects as our long-term needs become apparent.

What are some of the flagship economic development projects that the county is working on?

The Airco project near the airport is in the planning phase.

It will provide the airport with support industries and facilities both inside and outside the fence. It’s a major economic development initiative and we, along with our partners, are excited about the progress.

What are the latest developments with the Pinellas Affordable Housing Program?

We launched the program in 2020 and we received 18 applications requesting over 1,400 units of affordable housing. We implemented a large outreach program to ensure developers were aware of our plans, resulting in a positive response. We are moving forward by approving some of the applications, while continuing to work with others. The more Pinellas County can transition to affordable housing for all, the more attractive it will be for both employees and employers.

Bonnie Wise

County Administrator Hillsborough County

How did the county use funds received from the CARES Act? We received $256.8 million and there is an obligation to spend it wisely and to report on it properly. I’ve always felt there was an obligation to tell the board, the community and the taxpayer about how that money was being spent.

At every board meeting, we deliver a report that talks about the money and the categories. We always try to report to the board about what is happening, both successes and challenges. We had about $92 million that went to 6,300 small businesses and then we had over $35 million for rental housing assistance and utility assistance programs. When we first launched our COVID-19 relief programs they immediately crashed our phone system.

We quickly pivoted to online, which was a huge help.

How is Hillsborough County working to provide more affordable housing options?

Affordable housing was identified as an issue before COVID-19. Home sales are still very high and prices remain very high, which is exacerbating our affordable housing problem, even more now that we have so many people out of work.

The county has allocated $10 million a year toward affordable housing. While that may seem like a lot of money, frankly, it’s just a drop in the bucket in terms of what is needed. We have to work with our partners in the community. We’re trying to work with various developers.

I think moving forward, there needs to be not only more multifamily affordable housing options but also some form of homeownership assistance. There is not enough of either right now. www.capitalanalyticsassociates.com

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Market voices: Economic development

Bill Cronin

President & CEO Pasco EDC

Workforce development and ensuring we have the talent pipeline ready for the future is going to be one of the most important things that we focus on going forward. Our metrics, not just for our organization but as an industry for economic development, are possibly going to change. There’s going to be more emphasis on social and economic mobility. Inclusion is going to remain front and center. We are also increasing the size of the pie by attracting overseas companies to come work here. We have a robust foreign direct investment program that involves a lot of proactiveness on our part.

Based on everything we’ve seen during the pandemic, the area is going to continue to attract businesses. We intend to capitalize on this interest with the launch of a very aggressive digital marketing campaign focused on all the positive aspects of doing business in the Bradenton area. So, I’m optimistic.

I think that we are well-positioned as a community to address that pent-up demand by supplying the best opportunities to businesses that want a Florida location.

Sharon Hillstrom President & CEO Bradenton Area EDC

Mike Meidel

Director Pinellas County Economic Development

The vast majority of the firms we work with are privately held companies with those owners in their 50s. They want to come down here and bring their company with them or at least open a new branch. Either way, we benefit. We get quality jobs for our citizens. We are also excited about our $7.5 million grant from the Economic Development Administration to build a new 45,000-squarefoot incubator in South St. Pete. It’s designed to serve the entire Tampa Bay area and will be for a mix of tech companies as well as those in life and marine sciences.

The Seventh Avenue Archway Lights Project will be a huge priority. This is about enhancing the one-of-a-kind atmosphere that makes Ybor City unique.

The other major priority will be supporting businesses in the district and getting the word out that we still have a thriving business district. Also, we need to promote new businesses. We don’t have many national franchises in the district since we want Ybor to remain unique, which is why we promote and prioritize one-of-a-kind boutique-style destinations. We very much are a small business community and we want to keep it that way. This is a big factor in why people want to come and support the district. Ybor City regularly draws a lot of visitors so we must continue to make it distinctive and create the magical experience it offers. The city’s Historical Preservation division does an amazing job upholding the authenticity of the area.

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Courtney Orr

Ybor City Development Manager Ybor Community Redevelopment Areas/ Ybor City Development Corporation

ECONOMY OVERVIEW

( ) But improvements are still needed in the region’s infrastructure. In April, the Tampa Bay Partnership used a $250,000 grant from JP Morgan Chase to commence a year-long study to evaluate the existing infrastructure and highlight critical improvement needs. In a 2017 study, the Tampa Bay Regional Planning Council projected a $162 billion impact on the area’s Gross Domestic Product (GDP) without action to combat sea level rise. The authorities hope to engage the private sector to collaborate in these needed infrastructure investments. The St. Petersburg Downtown Partnership is also welcoming the private sector into the redevelopment of the Tropicana Stadium to ensure the Tampa Bay Rays remain in the area.

For the fiscal year 2021, many of the city and county governments’ budget priorities center around public safety, particularly in light of COVID-19, and affordable housing and resilience. In the City of Tampa, the Life Up Local program is being prioritized, which encourages community-centric activities, increasing affordable housing and enhancing workforce development. St. Petersburg’s goals for 2021 center around affordable housing, sustainability and resilience, public safety, public works and outreach. In Clearwater, the bulk of 2021 funds are allocated to parks and recreation, police, fire and library services. Pasco County’s $1.4 billion 2021 budget is allocated primarily to public safety, physical environment, transportation and economic environment. Of Pinellas County’s $2.7 billion 2021 budget, $729 million will be used for the physical environment and $783 million will be allocated to public safety. Finally, Hillsborough County intends to spend $707 million of its $1.6 billion budget on public safety, $81 million on the economic environment and $71 million on human services.

Collaboration between the public and private sectors is integral to the well-being and further development of Tampa Bay’s infrastructure and related projects.

Denise Sanderson Director Clearwater Economic Development and Housing

How are you attracting corporate interest while balancing that with community interests?

We’re not facing the pressures of some of the other communities in the area. As a built-out community, we’re not seeing population growth like some of our neighboring communities in the region. However, we are competing regionally. One of the challenges is in making sure that we are viewed as much more than tourism and I think that our residents forget that as well. Regarding corporate interest, we must be good at talking about our talent pipeline and what our strengths are as a city.

We’re not going to land an Amazon 2.0 or become a logistics hub but we’re terrifically well suited for the IT industry, finance, insurance and manufacturing. And as we’ve focused more on the development opportunities, people are beginning to see there is a lot of pressure within the Tampa market. People have come to realize that Clearwater is not far from Tampa or from the Tampa airport, and that we have a great quality of life.

Which features make Clearwater unique from other areas in the region?

Tourism has been our bread and butter forever. We consistently rank as a best beach and were named No. 1 in the United States for two years in a row by TripAdvisor.

But aside from that, one of the things that makes us unique is that we have a certified unicorn company. The business had just four employees in 2012 and now it has approximately 1,000, with 800 located Downtown. As a leader in cybersecurity, others in that sector now reside here as well. Success breeds success and the potential for startups like these here and in Tampa Bay means there is potential for us to continue to help these kinds of businesses to expand. Beyond IT-related businesses, some of the biggest financial companies in the world have a large presence in this region and we’re home to Nova Southeastern University Dr. Kiran C. Patel College of Osteopathic Medicine. We offer a variety of employment opportunities ranging from entry-level to professional and highly-technical across a broad spectrum of industries.

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Tampa has been home to famous authors, including Jack Kerouac and Stephen King.

Global factors Tampa is an international city, due to its rich history of Latin American and European immigration. There are almost 500 foreign-owned companies from 40 countries operating in the Tampa Bay area according to the Tampa Bay EDC. International companies find the area appealing for a number of reasons, including its strong international air connectivity, a world-class port – the largest in the state – a huge consumer base, a favorable tax climate and world-class talent.

Breaking it down, there are over 50 German-owned companies in Tampa Bay, including BASF, Daimler, Reebok and Siemens. The region is also home to 11 Italian companies, including GTECH in Polk County, SGM Magnetics in Sarasota and Pro Tech Monitoring in Hillsborough. Essex Group and LG are two South Korean companies that have set up business in the region and Bimbo, Cemex and Ewell are just some of the eight Mexican companies with operations here.

Tampa Bay also carries out significant trade with companies all around the world. The Port of Tampa’s

ECONOMY OVERVIEW

top exports are fertilizers and steel and iron scrap, while the port records gravel, cement and sulfur among its largest imports. The port’s recent capital improvements programs include expansion of its container terminal, a new 130,000-square-foot refrigerated warehouse complex and attracting new dry bulk and commodities capacity.

Florida’s leading export markets are Brazil at $13.76 billion, Switzerland at $5.01 billion and Venezuela at $4.53 billion.

Looking ahead The Tampa Bay region is well on the road to recovery after the COVID-19 pandemic. With mass vaccination programs on the rise and rapid testing widely available, it seems that normality will resume soon. “As COVID eases, normality will resume in Florida, and this is already coming around,” Dean Maratea, CEO of the Greater Palm Harbor Area Chamber of Commerce, told Invest:.

“Restaurants are able to operate more profitably again.

In terms of office-based businesses, those that can do hybrid services will probably do so but there is no real desire to go fully remote. The DOT is working on more

street parking so the incoming businesses will have the ability to capture more traffic.” The real question is how long will it take for Tampa Bay’s many travel and leisure businesses to return to normalcy and when will the true impact of the pandemic be revealed?

One thing is certain: the authorities have planned well throughout the crisis to continue to diversify the economy and continue to plan for a resurgence in travel activity. With initiatives such as the Back to Business Hillsborough Toolkit, the Rapid Response Recovery Program, The TPAReady Toolkit and business continuity plans, the region has been able to ride out the worst of the pandemic with lower-than-average unemployment rates and a growing population. Already, there are signals of a ramp up with Tampa International Airport reporting a pickup in passenger numbers to more than 1.4 million in March, with April looking even stronger.

With this strong momentum behind the region, having the right building blocks in place will set the stage for the continued economic development of the Tampa Bay area. www.capitalanalyticsassociates.com

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Professional Services: From accounting to financial advisory to legal, the professional services sector had a busy year in 2020 and early 2021 as individuals and businesses found themselves scrambling to make sense of new and ever-changing rules and protocols related to the pandemic.

Accountants and lawyers were among the leaders helping sort through the stimulus puzzle while also needing to adapt themselves.

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Pivotal role: The region’s professional services were vital in ushering companies and individuals through the pandemic The Tampa Bay region’s professional services sector has been growing and diversifying at a strong pace, bolstered by the pandemic that saw the sector play a pivotal role in helping individuals and companies weather the storm. From leading efforts to secure PPP loans, and later forgiveness, to navigating the shifting rules and protocols related to the government’s stimulus programs, these services — accounting, legal, financial among them — have been more necessary than ever in the past year.

Forced to contend with the health crises that also sparked an economic crisis, many individuals and small businesses looked to the professional services to help them not only through the ins and outs of the stimulus options, but also with needs closer to home, including estate planning, moving to a remote working environment and all that entailed, dealing with labor challenges amid furloughs and other actions, and handling payment deferrals and in some cases, bankruptcy.

With the unexpected emergence of the pandemic, however, challenges also heightened alongside the opportunities. Chief among these is the relative dearth of skilled labor in the region. While this talent pool is 38

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growing by the year, it remains an issue that must be addressed in order for Tampa Bay and its professional services companies to take advantage of the area’s inherent potential.

The pandemic has also pushed many firms to visualize what the post-pandemic future will look like, including the use of digital technologies, the increasing cybersecurity threat as more people work from home and with that, training new recruits not only in the requirements of the job but in the culture of the company.

With Democrat Joe Biden now in the Oval Office, the industry is also eyeing a regulatory shift and potential rollbacks of Trump-era policies that could impact businesses of all sizes. “Among his first actions, the president terminated the general counsel of the National Labor Relations Board and the deputy general counsel, which has never happened before.

From our perspective as a management-side labor and employment firm, some administrations have traditionally been more employer-friendly. As that pendulum swings, we are poised as a firm to react to local, state changes and federal changes that we see on the horizon. It is something that we, as a firm, are ( )

PROFESSIONAL SERVICES INTERVIEW

What’s to come?

The full impact from the pandemic on businesses, and bankruptcies, has yet to materialize

Hala Sandridge Shareholder – Buchanan Ingersoll Rooney PC

Which particular practice areas gained relevance during the pandemic?

Certain areas are hotter than others. Bankruptcy has obviously seen increased demand but, interestingly, not as extensive as we thought it would be by now. The general consensus is that what’s going to happen is still to come. In fact, I just read about two large mall operators filing for Chapter 11. Our bankruptcy group is preparing for an influx.

Corporate is keeping busy, and there are select opportunities for growth in certain industries.

Transactions in the hospitality sector are down.

Litigation is strong, and our firm’s internal numbers show it. That might seem counter-intuitive: with courts closed to most trials, one would assume the litigators have reduced workloads. However, in litigation, there’s more pre-trial than trial. You try the case for two weeks, but you work it up for two years.

Employment lawyers have been very busy. Our clients are just overwhelmed with employment issues. Our clients have so many questions about COVID’s impact on their employee base, about rules and regulations that are constantly changing. We have assisted many clients with layoffs and furloughs. Experience shows that in a down economy, employment claims go up.

Our healthcare practice is extremely busy, but our healthcare clients have been adversely impacted by the COVID-19 rules and regulations. For many months, elective surgeries were severely limited, depriving our healthcare clients of necessary revenue. While the limitations have been lifted, the stress of COVID-19 on the financial welfare of our healthcare clients has not.

What does the job market look like for newly graduated lawyers in South Florida?

It’s strong. Litigation is one of the areas where young people have a lot of opportunity when they graduate from law school. It’s a natural area that accommodates young lawyers, and it is hot right now, and it’s going to get even hotter.

How are you addressing diversity?

It’s about the right person — not so much where they are from — and a focus on diversity encompasses a lot of different things, including people from different areas of the state. I’m a Gator, so I can say this: I don’t want a law firm filled with just Gator lawyers. That’s a lot of people with the same experience, from the same place and background, who know the same people. To me, diversity includes different people, from different places and locations in life. www.capitalanalyticsassociates.com

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Greg Kadet Managing Director & Market Head – Greater Florida UBS Wealth Management USA

How have wealth management’s primary challenges changed with the pandemic?

There are several different types of firms that focus on specific fund or asset allocation model solutions. As you move through the industry’s various models, eventually you’ll arrive at advice-driven firms like UBS, where the adviser becomes the product. When you come to UBS, you’re coming to a comprehensive wealth management firm where we consult, create and offer solutions across almost all asset classes around the globe. Our industry challenges have not really changed during the pandemic – the primary issue continues to center around helping investors understand how to engage the financial markets via the many different financial firms’ solutions and capabilities. We still have to do a lot in terms of educating the public as to who we are, what we do and what they can expect from us.

What investment opportunities is your clientele looking for?

Technology, small midcap companies and emerging markets represent the lion’s share of investment appetite at present. Our clients are looking for advice, estate and financial planning, strategic planning and family planning.

They’re primarily looking to ensure that they do not lose the wealth that they built, and if possible, to be able to grow their assets at a reasonable rate of return.

What is your outlook for Tampa Bay’s wealth management sector?

We just had another record year in the Tampa market, and our top priority is to retain our best advisers and attract top talent to UBS. Our success rides on our financial advisers’ abilities to lead clients and compete for new relationships. The best advisers are going to be able to overcome any environment to succeed. We are bullish about our sector, despite the fact that the world is getting more complicated. In reality, the more complicated financial markets become, the more we can differentiate ourselves within our industry and with clientele.

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Tampa Bay’s professional sector has been instrumental in guiding businesses through PPP loans, digital adaptation, recruitment and other business-related issues during the pandemic.

( ) well-positioned to do,” said Karen Morinelli, office managing shareholder in Tampa for Ogletree Deakins.

Landscape On a global scale, the professional services sector is forecast to grow to $5.43 trillion in 2021 from $5.03 trillion in 2020, a compound annual growth rate (CAGR) of 7.9%, according to the report, Professional Services Global Market Report 2021: COVID 19 Impact and Recovery to 2030, by the Business Research Company.

The report said the growth is “mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $7063.87 billion in 2025 at a CAGR of 7%.”

North America is the largest region globally for the professional services market, accounting for 36% of the market in 2020, according to the report.

On a regional level, the Tampa MSA financial and professional services sector employs more than 342,000 people, with a five-year employment gain of 13.9% by the end of 2019, according to the Tampa Bay Economic Development Council (EDC). That makes the segment

PROFESSIONAL SERVICES OVERVIEW

Michael Lundy Managing Partner – Older, Lundy, Alvarez & Koch

One of our top priorities is to fine-tune our service to make sure that the work we do for our clients is unrivaled. We work on this every day. We want the firm to keep growing in size in a steady and focused way. We have a strategic focus in areas that include commercial litigation and corporate transactional work, and we’re actively trying to seek out new opportunities in those areas. By the end of this year, I expect the firm to be bigger and better than it was at the end of 2020.

We have five offices in five locations: Tampa, Clearwater, Trinity, Wesley Chapel and Dade City. We are constantly looking to expand our reach throughout the Tampa Bay area and we are considering opening a new office in another nearby city in the not-so-distant future.

the fastest-growing sector in the region. The EDC also notes that employment in the finance sector remained strong in 2020 despite COVID-19, adding that 10% of the Fortune 50 and 9% of the Fortune 100 companies’ shared services operations are located in the Tampa Bay region.

Like nearly every aspect of the economy, the story of the professional services sector in the Tampa Bay region for 2020 and in 1Q21 is one that inevitably is about the opportunities, fallout and recovery from the COVID-19 pandemic. Despite the fact that the professional services are uniquely suited to the type of remote work that became normalized over the course

of the past year, it is also a sector that, in many ways, is reliant on the overall strength of the local economy.

The positive news on that front, as shown in the University of South Florida (USF) Muma College of Business 2021 E-Insights Report on the Tampa Bay region, is that the area was relatively less impacted by the pandemic than the Miami and Orlando MSAs. The analysis indicated that “the Tampa Bay region is on the path of recovery.” That can only benefit the area’s professional services. “Tampa is the third-fastest growing city in Florida and the ninth-fastest growing city nationwide. The demographics are solid. Anytime you are in a service industry like we are, you want to

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David Simmons Founding Partner DSK Law

What were some highlights and takeaways for DSK Law in 2020?

For us, it has been the challenge of maintaining our efficiency through the pandemic, though particularly at the very beginning, when all of our employees went off-site. There is a certain amount of loss of productivity that can occur. We have 130 employees. The challenge was the change and transition of making sure they were doing their jobs properly and working together, then juggling that with a core group of people in our offices, and then dealing with the issue of people actually getting sick. It’s a new world.

Have the businesses you work with changed the way they operate?

I would say that there has been an increased interaction with local governments in terms of how they are dealing with all this, especially in regard to eminent domain and inverse condemnation. I think local governments are doing things now that they probably weren’t doing recently. There are a lot of challenges and difficult decisions that local governments have to make at this time. With respect to businesses, it is too soon to see how this has affected the personal injury side of our firm, but likely it will, as there are fewer people on the road. We have a large defense practice and represent some very large insurance companies. We’ve seen the changes as far as the plaintiffs are concerned.

What makes Central Florida an ideal location for your firm?

Florida is the best place to live, not only in the United States, but the world. We don’t have an income tax; we don’t have the challenge of too much government regulation. We have a fine environment that we need to keep clean. One of the worst things a government can do is borrow, because borrowing puts the tax burden on the people, the people’s children even. Florida has a balanced budget and it is an excellent scenario for people.

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be in a growing market. In essence, that is why we are here, why we invested early on several years ago and continue to invest in this market,” said Michael Fichtel, CEO of Kelley Kronenberg.

Still, the pandemic did not leave the sector untouched: in Tampa Bay, employees at services firms were laid off due to the termination of client contracts, salaries were slashed, and, for a time at least, there was a crippling sense of uncertainty as to where the economy would go from one month to the next.

Now that the vaccine is beginning to bring the pandemic under control, the question becomes whether or not Tampa Bay will be able to leverage its strengths in a way that can transform its professional services offerings. In Tampa Bay (and all of Florida), one of the most important trends for business has been the arrival of companies from out of state, especially financial firms from the high-density and over-taxed Northern and Midwestern cosmopolitan centers like New York and Chicago. BelHealth Investment Partners, a $500 million healthcare private equity firm, exemplified this trend when it moved the entirety of its office to Tampa Bay from New York.

Already enticed by excellent weather and a businessfriendly environment — not to mention a reluctance by the state political leadership to close the economy at all — the shift to remote, at-home work was the straw that broke the camel’s back in terms of relocation. People largely working from home expect more out of their domicile than a shoebox apartment. They want outdoor space and an office that is fairly sequestered from the rest of the house. In this regard, Tampa Bay has proven to be an attractive alternative.

Another positive for the industry during the pandemic, was Florida Gov. Ron DeSantis’ declaration that the professional services — especially when needed to assist with legally mandated activities — were essential activities. Despite this allowance, the year saw innumerable firms move their operations away from physical office environments to online, remote work. Companies that invested in their digital strategies prior to COVID benefited substantially by being able to make the move from physical to remote work relatively seamlessly. The most serious drawbacks of this move have been the difficulty of doing team-led collaborative office work and, for law firms specifically, questions surrounding the efficacy of the remote work model in a trial setting.

On the whole though, the professional services lend themselves well to remote work, and, moving forward, many are wondering whether or not firms will keep their workers remote after the pandemic or have them return to the office. A consensus may be emerging ( )

Market voices: Legal focus

Jamie Lawless Executive Director Baker McKenzie

Our focus will remain on our clients and people. There will be no shift in our relentless pursuit to provide business-focused solutions for our clients across all of our practices while at the same time prioritizing the health and safety of our people as we emerge from this pandemic. What our in-house People Deal — our employee value proposition — suggests is that our goal is to be passionately client-centric and one high-performing team, as well as great global citizens. Everything we do is part of that mantra. It is intended to capture what it takes to be successful at Baker McKenzie. It’s about the expectations we have for our people and our firm and what that means for someone’s career journey here. The key to our success is rooted in maintaining the quality and commitment of our people, from lawyers to business professionals.

Maintaining the quality of our legal representation while growing the firm will be our top priority over the next many months and years. This year we plan to hire five to 10 additional employees, acquire more office space, build our social media influence in our respective fields, increase our organic ranking across the various web platforms, and continue to build our critical infrastructure to support our growth. I think we will start hitting the inorganic expansion very hard as well, including advertising and marketing.

Drew McCulloch

Attorney & Partner McCulloch Carter, PLLC

Fred Schrils

Managing Shareholder – Tampa GrayRobinson

One of the foremost factors that we’re looking at as a firm is the question of office space requirements and how to balance that with our technological capabilities. I believe that people need to be together and young lawyers working remotely miss out on a lot of valuable training that might be available in the office. However, remote operation is the future and people will no longer need as much office and conference space. Many law firms are looking at downsizing. At GrayRobinson, we have implemented a lot of health-related processes, which has freed up substantial office space and might provide an opportunity to reduce the significant overhead that comes with renting first-class city center offices.

One of the most challenging situations has been to preserve the vital, constitutionally-protected and often liberty-saving due process through Zoom and the like, including a quirk in Florida law that many courts and public bodies are both protected and encumbered by Constitutional and statutory protections of citizens’ rights to appear and observe the demeanor of their opponents, not to mention their evidence, in a legible and dissectible form.

Ron Weaver

Of Counsel Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

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PROFESSIONAL SERVICES OVERVIEW

Of the $6 billion in CARES Act loans that came into Tampa, $200 million went to 2,100 law firms ( ) that sees a hybrid model. While the verdict is still out, some early studies suggest that remote work does in fact lead to higher levels of productivity.

Another story emerging out of the 2020 pandemic year was the suffusion of federal stimulus money, passed by the CARES Act that came in the form of PPP loans.

Many in the professional services sector — accounting and law firms particularly — had a busy year helping their clients navigate the new rules surrounding how this money and relief could be accessed.

Professional services businesses also received these loans themselves to help prop them up through the hard times. Of the $6.6 billion in loans that came into the Tampa Bay region, $200 million went to the region’s 2,100 law firms alone. Eight out of the region’s 10 largest law firms sought PPP relief. Loans could range from $500 to over $5 million, and more than 87% of loans were less than $150,000. Financial services, as well, received $310 billion nationally.

All that said, the Tampa Bay region does face its share of problems that it will have to overcome in order to reach its potential as a major center of professional services. Analysts looking at what a post-pandemic Tampa Bay recovery might look like have underscored the fault lines in its economy. There is a paucity of highly skilled human capital in the region and although it has a highly educated population, it lags in comparison to other similar-sized metros in terms of educational attainment (30.18% of residents hold a bachelor’s degree or higher, ranking Tampa Bay 19th of the 20 metros studied), according to the Tampa Bay Partnership’s State of the Region 2021 report. While the job growth rate is a respectable 4%, much of this growth is lowerpaid jobs.

Finally, New York financial firms lean toward relocating to Florida’s eastern coast, where there is, historically, a stronger cultural affinity. That may be changing because as more firms move to eastern Florida, prices will go up. Already there are signs that people and companies realize that there is the same quality of life in Tampa Bay at a fraction of the cost. “Tampa Bay is well-placed to perform well next year. There is a great airport that brings people here from all over the world on a daily basis. We have a good workforce with great educational institutions at both the high school and university level. We have probably the best hospitals and healthcare in the state, while there are also certain tax benefits that come with living here,” said Luciano Prida, president of Prida Guida & Perez, P.A. Financial hub Why is the Tampa Bay region an emergent financial?

The story painted by statistics shows a business

PROFESSIONAL SERVICES OVERVIEW

Silvana Capaldi Founding Chair – Alliance of Merger & Acquisition Advisors of Tampa Bay There has never been a greater need to be creative with your marketing than now. Don’t stop marketing. Promote your company. People still need to know you exist, and to do that requires allocating money into advertising and marketing. I advise my clients to reallocate funds to short-term tactical marketing strategies from which there is a quick ROI. I also advise them to expand their data or analytical abilities to better identify and serve customers and clients. In today’s market, you need to be innovative while constantly monitoring and adapting to a changing landscape. Don’t live in today. Look to the future.

community, and an entire city, that is trending upward.

The region is one of the fastest-growing in the country and the city of Tampa is the ninth-fastest growing city.

In terms of job growth, it is preeminent: according to the Paychex Metropolitan Jobs Index, Tampa ranked No. 1 for small business job growth, and a study by IHS Markit found it to be the leading metropolitan area in the country in terms of job growth. In 2018, in the Tampa-St. Petersburg-Clearwater area, there were 119,000 workers in the financial activities sector, up 7.7% over the year before. This number is expected to have risen since then as it indicates that financial services is the fastest-growing sector in the area.

Fueling these high rankings is the state’s excellent business environment (as well as a willingness to stay open through the pandemic).

Also benefiting the region is its favorable year-round climate, diverse population, and excellent restaurant and entertainment options. The price of homes is not prohibitive, and people can enjoy outdoor activities with greater ease here than nearly anywhere else in the county. The area only continues to improve: the newly opened St. Pete Pier is garnering national attention, having recently been nominated by USA Today as one of 2020’s best new attractions.

By other metrics, too, Tampa Bay is an ideal place to do business. According to SmartAsset, a well-known fintech intelligence firm, the region is No. 6 out of 50 on a list of “Best Places for Female Entrepreneurs.” The region scored especially high on women-to-men pay ratio as well as for early startup survival rate. Twenty percent of businesses are women-owned, a significant improvement on previous years.

All of these trends are helping the region attract new

business: tech firms, financial services companies, company headquarters, incubators, investors, venture capitalists, and law firms are arriving in droves to take advantage of Tampa Bay’s salubrious environment.

Money is also being raised: in October 2020, Tampa Bay companies were able to raise over $64 million. In Florida at large, one report has found that the Institute of Florida Technology has created more than $740 million in economic impact on the backs of technology and startup companies. By one tally, in 2019, 10 technology companies came to Tampa Bay from other parts of the country, a trend that has only accelerated with the pandemic.

Accounting/advising/insurance A vibrant accounting industry is reliant on a vibrant economy. As seen, the Tampa Bay region is a growing financial and tech hub, activity which supports the city’s many CPAs. The Big Four – Deloitte, EY, PwC and KPMG – all have offices in Tampa, and there are many other smaller players in the field. The services offered by these firms include taxes, auditing, financial statements, anti-fraud work, money laundering, corporate accounting, management accounting and forensic accounting. According to one report, the market for accountants is so robust in the region, many are being recruited before they’ve even finished their college studies.

The pandemic helped ensure that the year would be a busy one for accountants in Tampa Bay: a raft of new rules from the government, PPP loans, tax planning, tax credits, solidifying shaky business financials, and navigating safety mandates were all among the help that Tampa Bay’s business community required of its www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

Perspectives: Professional services Stu Brown Office Managing Director – Tampa Bay, Accenture It’s hard to call COVID an opportunity but the big one was around driving the digital transformation of clients.

You’re going to have to do more with less and you’re going to have to do it flexibly. If you can do that, you’re going to come out of this growing. Helping clients transform toward a cloud-based ecosystem has really accelerated innovation.

Ronald Christaldi Tampa Managing Partner/President & CEO – Shumaker/Shumaker Advisors Florida, LLC My focus is truly threefold; our clients, our workforce, and our community. What I want to be able to do is solve any problem that comes up for a business in our community.

If you need something done, either on the legal side or on the policy side, Shumaker is a one-stop shop. We have an extraordinary team that we are continuing to grow.

Matt Crum President – FrankCrum People are getting increasingly comfortable with technology and are expecting more, wanting to do more self-service and leveraging technology. The partnership with EverythingBenefits streamlines our benefits election process for our customers and allows both our employees and our customers’ employees to manage their benefits easily through a cloud-based technology platform.

David Maddux CEO & CIO – Brightwater Advisory, LLC Regardless of the environment, more people are wanting to engage in financial planning, which is a core piece of what we do. You have more and more tools available to the individual consumer, as well as for financial advisers to be giving better advice. So I think that regardless of the economic environment over the next 18 months, it should be favorable for the financial services area

John Wilson CEO – WilsonHCG Because we’ve always had a large percentage of virtual workers, we understand the importance of engagement and embed it into our culture. There is so much an employer can do to influence this and it starts with showing people that the company cares – from addressing mental health concerns to over-communicating with everyone in the business.

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Accountants and CPAs were key in providing advisory and guidance during the quick roll out of government sponsored support programs.

accounting firms. Among the issues surrounding PPP loans was the fact that the law came out so fast, and neither businesses nor the government were quite sure how it would work in practice. Furthermore, both the state of Florida and the federal government extended the tax deadline to provide businesses with some respite from the difficulties of the pandemic year.

Accountants are also integral in helping businesses exploit the many incentives proffered by the city of Tampa and the state of Florida. Some of these incentives include the Capital Investment Tax Credit to grow capital-intensive industries in the state; the Community Contribution Tax Credit Program, which grants a credit of 50% of a private sector donation to community redevelopment projects; and the Qualified Target Industry Tax Refund, which refunds corporate income sales tax for companies that create high-wage jobs in high-value industries.

But accountancy is also a field in flux, and many of these changes are due to upend the industry in the coming years. The most obvious is directly related to the pandemic: the move to remote work. Accountants were among the jobs that could most seamlessly make the transition from in-office to at-home work. Companies such as PwC, which even before the pandemic had ( )

PROFESSIONAL SERVICES INTERVIEW

Ripe for growth Florida is no longer just for retirement as growth unfolds across the state and particularly in Tampa

Joel Stevens Senior Managing Director – Bernstein Private Wealth Management

How would you characterize Bernstein’s business approach and how does it relate to your Tampa return?

Coming back to Tampa was a conscious decision, and before arriving here last year, I had been working on it from New York City for a year and a half. On the business front, the city is ripe for opportunity. We noticed the growth that was unfolding throughout Florida in general and in Tampa in particular, including the number of people and businesses relocating, the focus of firms in our industry targeting the state, entrepreneurs and younger professionals. One of the biggest growth areas in Tampa is its entrepreneurial network. This is not your grandparent’s Sunshine State and not just for retirement anymore. It is a highly dynamic, bustling, startup scene that is expanding by the day.

Bernstein is truly distinguished and differentiated as a global boutique. We have the scope, breadth and depth common to the largest investment firms in the world yet our engagement and connection to our clients is very much like a boutique firm. We have a little over 200 advisers in the entire country. Moreover, while managing wealth is a very humbling business, the integrity of everything we do is unparalleled.

How has COVID-19 accelerated or disrupted wealth management industry trends?

The evolution of technology in our industry has accelerated. How you engage and communicate with clients has changed forever (for the better) and the transparency and efficiencies afforded us through the ease of these new platforms has forced everyone to raise their game. The focus on planning has been accelerated as well. In addition to the presidential election bringing tax law and legislation changes into focus, lower return expectations going forward are driving a new sense of

urgency for having a higher level of confidence in achieving your goals. Throughout the pandemic, people’s hearts and heads changed forever with more and more uniquely successful individuals and families grappling with what their success is all about. Surprisingly, in hindsight, all of the Zoom calls forced a certain authenticity and vulnerability and actually fostered more intimate and meaningful relationships with clients. Investors are wanting to see their wealth have impact while they are alive, and in the end, do well by doing good. We have seen a growing interest and demand for making a positive societal impact through your investments, and we are working hard to ensure that investors align investments made with the intention to generate a measurable social and/or environmental impact with their personal values, without sacrificing return. www.capitalanalyticsassociates.com

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®

oundtable:

Legal landscape Leading lawyers share their perspective on the impact of the pandemic on the sector and adjusting to a new reality.

Alan Higbee

Managing Partner Shutts & Bowen

What was a key takeaway for Shutts & Bowen from the past year?

Well, it has certainly been a different year. Shutts has been around for 111 years. During our last partnership meeting, some of our most senior executives walked through all the major events that occurred in the more than a centuryold history of our firm: the Great Depression, two world wars, the Korean War, the Vietnam War, the Cuban Missile Crisis, 9/11, to name a few. Through all of those events, the firm always managed to have an annual in-person partnership meeting – but that wasn’t possible for the first time in 2021 because of COVID-19. It has certainly been a different year, but we are nimble firm and were able to roll with the punches and we have continued to do well and grow. We now have approximately 300 lawyers in eight different offices across the state of Florida. I think our big takeaway for the past year is that you have to stay nimble and be able to deal with whatever comes your way!

What is your outlook for Shutts & Bowen?

The outlook is good for us. The one thing that we do know is that however the pandemic continues to unfold, we’re going to continue to be trusted and strategic advisers to our clients. We will continue assisting them in getting where they need to go. The world was a complicated place before we threw in a pandemic and it is likely only going to get more and more complex. So, more than ever, clients will need trusted advisers who understand their business and their goals, who can jump in and help them navigate a complex world. Trust is the key word there. Somebody they know is going to do whatever it takes to help them get through whatever the problem is.

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Kevin Johnson Shareholder Johnson Jackson

What do you think of the way the courts transitioned into the new reality brought about by the pandemic?

There are some long-lasting changes that will come out of this, particularly with the smaller, more routine matters such as hearings on discovery motions. Litigators were used to traveling, to sitting in chambers with judges to deal with short hearings. Now, it’s very likely that we’ll continue to do that via video. That will reduce the need for travel, which will be better for the clients and probably also better for the courts. What we don’t know is what the effect of all these delays will be in terms of the workload for the courts. They have a lot of criminal matters to deal with, they have to deal with other urgent matters and, eventually, they’ll get around to dealing with civil trials, but we think that civil trials will likely be backlogged for a while.

How did you help your clients adjust to the new normal of remote work?

From a clients’ perspective, a lot of them had to scramble to get set up and figure out how to maintain those connections, how they were going to hold meetings, what their workflow would look like. For all of our clients, there were many questions regarding leave, accommodations, employees who were fearful of having to deal with COVID, and what the risks were in the workplace. We had to be on our toes to give them good advice on how to deal with all of that because the requirements under federal employment law demand a lot of communication, a lot of interactive conversations with the employee. You can’t just set a one-size-fits-all rule, at least not very easily.

PROFESSIONAL SERVICES ROUNDTABLE

Bill Schifino

Managing Shareholder – Tampa Office Gunster

How did your client needs change over the past year and where have you seen the most demand?

Demand has not dropped at all. Last year, our private wealth practice group was as busy as it has been in a long time. People were at home and had time, so they were able to take a look at their financial matters and estate planning.

Florida has seen a huge influx of people and businesses, so our real estate lawyers and corporate lawyers have been very busy. The business litigation practice also saw one its busiest years in the last two decades.

How did the firm adjust its recruitment efforts during the pandemic?

We continued to hire and grow, and in many respects, this has been a wonderful opportunity. Gunster is a solid, established law firm so we continue to attract the best talent. We have continued to bring in associates through our summer programs. We had a new group join us in September. The hiring process has been relatively seamless but the issue has been in integration. Generally, we have a yearly firm retreat or we have meals together and lawyers would be in the office together. Now, we have virtual meet and greets and I think the social aspect of this has been very challenging.

What is your outlook for the Tampa Bay legal sector?

I am very bullish on the business landscape in Tampa Bay. I speak to my peers all the time and for the most part everyone is doing well in the legal profession and continuing to serve clients. There are certainly some pockets in the profession that have been more challenged than others but I think by the fall we will be a little more reintegrated.

Marie Tomassi

President & Managing Shareholder Trenam Law

How did Trenam Law close 2020?

In March and April, we were certainly worried because of the pandemic and many of our contemporaries and competitors were as well. There was prevalent uncertainty on how the economy would evolve and what the pandemic would mean not just for us as lawyers but for the more general business communities in Tampa Bay. We were expecting a significant downturn. It turned out that fortunately for us and the greater business community in Tampa Bay, several businesses that were serviceoriented, such as banks, real estate and work related to business transactions, proved highly resilient to the virus, in contrast to the travel, tourism and restaurant industries.

Much like our law firm did, these companies found ways to safely and effectively continue doing what needed to be done. In our firm’s case, we continued taking care of our clients and providing excellent legal work. We’ve seen an uptick in some service areas while others are somewhat less busy. On the whole, our business yearend in June 2020 was successful and looking from the end of December 2020, our first half of FY21 promises to be successful.

Which practice areas saw the most demand?

Since a slight slowdown in the first weeks of the pandemic, when everyone hit the pause button, our business transactions team has been extremely busy with deals on both ends of the buying and selling spectrum.

Our private client services, which has a lot to do with wealth and estate planning and other types of advice for closely held businesses and family businesses, has also been extraordinarily busy. www.capitalanalyticsassociates.com

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Natalie King Vice President & COO RSA Consulting Group

How has demand for your services shifted over the last year?

Our clients hire us as consultants to solve a problem. We read the tea leaves, analyze the landscape, and develop strategies in order to achieve these goals. This past year brought a lot of changes, and while we are still problemsolvers, our scope of practice has evolved. We became advisers and counselors to our clients on not just public policy concerns, but also the human element of their business. Our top priority is ensuring that our clients are successful and can prosper without compromising the safety of their employees. Last year, we spent a lot of time guiding our clients through executive orders, operational changes and response strategies.

Which legislative or regulatory changes have impacted your business?

As a small business, my team was able to adapt and transition into remote working fairly easily, and we returned back to the office when it was deemed safe and appropriate. We appreciate that not everyone’s shift was as smooth as ours. Our client roster includes over 60 organizations, ranging from schools to large sports venues and hospitals. Each of them faced a unique challenge and there were no roadmaps or blueprints to follow. At the start of the pandemic, we spent a lot of time working through the definitions of essential and nonessential to ensure that they were classified appropriately, and then we developed individualized strategies.

We represent community health centers, both at the statewide association level and locally in Tampa Bay. They are a great example that demonstrates how to absorb all the changes rapidly, respond, figure it out on the fly and be a partner to the community. They overcame the logistical challenges of offering testing and vaccines, and as a nonprofit had to find solutions to fund this. What is most exciting is that they have been recognized for the investment that they made, and what they were capable of doing: providing a safety net for our underserved communities.

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Tampa’s most prominent sectors include defense, healthcare, manufacturing and logistics, financial services and information technology.

( ) invested in their digital strategy, were able to make this move even more efficiently, something which is reflected on their balance sheets. Other emerging innovations include the automation of menial accounting tasks, the use of blockchain technology as a new type of accounting ledger, and fully transferring to a cloud-based system, which allows for a more rapid analysis of data. One example is Unbehagen Advisors, which implemented a secure client portal prior to COVID. “it has been a game changer from a standpoint of catering to our clients all over the United States,” said Todd Unbehagen, the firm’s president and CEO. “It provided us the ability to reach out to them virtually and securely. We were able to implement processes and procedures immediately for our clients’ benefit, because we already had them in place, even with an increased volume of new client interactions. We needed to have it

PROFESSIONAL SERVICES OVERVIEW

available and functional for every client immediately, once COVID started becoming a problem, and we did.”

With all the companies that are setting up shop in the Tampa Bay region, it’s no wonder that there is a vibrant financial advisory sector in the area. The top four financial advisers all manage, at a minimum, $200 million and include: Suncoast Equity Management, LLC, which manages $583,486,836; PSI Advisors, LLC at $354,561,511; Bayshore Capital Advisors, LLC at $280,950,730; and Wealth Advisors of Tampa Bay at $237,795,088.

In some cases, financial advisers had to be nimble to stave off catastrophe, especially in the early days of the pandemic when nobody knew how far the economy would fall before bottoming out. Within just a few weeks, there was a huge contraction of available cash, work was forced to go remote, and, soon enough, there was a slew of stimulus measures offered by the government that had to be navigated. Being able to predict the course of the pandemic early helped: one firm in Palm Beach, Dakota Wealth Management, had a medical professional on their board who saw the writing on the wall as early as February 2020. By March, the company had increased its cash holdings in its equity accounts and ETF strategies by five times and so were able to avoid the hit that the markets took in the middle of that month.

On the deals front, mergers and acquisitions posted one of the slowest years in a decade, with total deal value down by almost half a trillion dollars. That is directly attributable to market uncertainty stemming from the pandemic. That said, by the third and fourth quarter of 2020, buoyed by federal stimulus, a strong stock market, and the imminent reality of vaccination, things began ( )

Market voices: Adapting

Lee Bell

President Saltmarsh, Cleaveland and Gund

Many of our service offerings are consultative in nature, and they were developed in response to fit what legislative compliance has presented to our clients. Our business, no matter how we describe it, is compliance-driven. The way we distinguish ourselves is through the level of consultation in which we wrap that compliance. Our clients need us to deal with the regulators. Those that require compliance select us because we are providing deeper insights and service, more than they can get from another provider. That ability to provide more has increased in the last several months. Our people are more comfortable in providing more because they have more time to do so. Less travel means more time to be able to communicate directly with clients.

Risk assurance continues to be a huge piece of our growth, especially in the Tampa Bay area. Our risk assurance professionals are working at a national level with companies all over the country. It is not ideal to be doing it from a remote location but, between our professional staff and the staff of the clients we work with, people have adapted and continue to do the work. Our business has grown and we are highly cognizant that we are fortunate in that respect. In fact, the topic of risk is more on the minds of our clients and marketplace than ever as a result of increased dependence on technology and systems.

Richard Huckaby

Office Managing Member Warren Averett

Office Managing Partner Marcum LLP

We got really involved in the Paycheck Protection Program (PPP), becoming serious advisers. We spent a lot of time forming a firm-wide team of experts, produced a lot of content and we were able to generate new opportunities from companies all over the country, not just in Tampa. Our transaction advisory group probably slowed down a little bit compared to the last three years because a lot of deals were put on hold, although some still had solid growth. Our wealth management practice, focused on investing assets for our clients, had its best year in history.

In our advisory space, we were able to find new services in certain areas.

One was around the Paycheck Protection Program, helping to consult around the introduction and now with the forgiveness of the program. Cybersecurity has been an increased risk, with companies trying to go from their offices to a remote format and having a lot more shops to keep safe.

Another area that’s been interesting for us is data analytics, specifically around COVID. Our data science and data analytics team was engaged by our executive team to track the trends and build out data tools as we were contemplating which offices we could open and when. That was so successful that we were able to turn it into a service offering as well, where we were helping companies manage their own reopening process.

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Dan Dowell

| Invest: Tampa Bay 2021 | PROFESSIONAL SERVICES

Adam Thomas

Managing Partner Tampa Dixon Hughes Goodman

PROFESSIONAL SERVICES OVERVIEW

Harley Riedel Managing Partner – Stichter, Riedel, Blain & Postler. P.A.

I think the legal profession is always going to have the same general model. There will always be consolidation as firms merge and lawyers form partnerships. And, at the same time, there will always be lawyers leaving firms individually or in groups and going out on their own. I don’t see anything right now that will change this pattern long term. I do expect a more cautious approach on both fronts as firms and individual lawyers assess the long-term impact of the COVID-19 pandemic.

Our firm is a bit different because our insolvency lawyers get busier when the economy’s bad. That’s the reverse of a lot of firms and practice areas. And I do expect that we’re going to get busier.

For law students, insolvency classes should be a popular choice as a potential career choice or simply because bankruptcy can affect every area of practice ranging from domestic relations to personal injury to civil litigation to transactional law.

( ) to pick up. The Tampa Bay region started seeing some major deals occur across all sectors, including banking, software, architecture, insurance and infrastructure. For the year, the largest deal by far was in healthcare and was finalized at the beginning of 2020: it was the $17.3 billion acquisition of WellCare by Centene.

Prior to the acquisition, WellCare was the third-largest public company in the region and the sixth-largest in the state. It will be keeping its headquarters in Tampa Bay moving forward. The second-largest deal was Roper Technologies’ purchase of Vertafore for $5.35 billion.

Roper itself was involved in four out of the 10 largest M&A deals in the state in 2019.

Insurance has had a tricky year in the region. Faced with fallout from the pandemic, recent natural disasters, and property damages brought on by civil unrest over the course of the year stemming from police brutality, insurance companies are facing a difficult landscape, including potential credit rating downgrades. In early 2021, rating agency Demotech, which rates insurance companies in Florida, said it could downgrade up to 18 of 46 domestic insurers citing assignment of benefit claims and first-party litigation. Good news for the industry emerged later when Demotech affirmed the ratings of 37 insurers, leaving less than 10 subject to a potential downgrade.

Legal services

The legal industry has also had a busy year of adaptation, from creating a safer office environment to establishing decentralized work-at-home. Trial work stopped for three months at the height of the spring lockdown, but the sector, which is notoriously conservative, proved surprisingly nimble in implementing technology to facilitate remote depositions and other courtroom elements.

In fact, the digital strategies of law firms have been pushed into fast forward. Digital marketing has fast become the norm for firms that used to advertise their services in-person at events. “We are looking at ways to best use our marketing budget to further consolidate our Tampa footprint. Our marketing budget for 2021 matches that for 2020. Considering in-person networking events are off the table until further notice, we are looking at other inventive, effective ways to make our presence known and grow our client portfolio,” said Harvey Kauget, managing partner for the Tampa office of Burr & Forman, LLP. “Given the prevalent uncertainty that the pandemic has caused, our only certainty for the foreseeable future is to remain nimble and flexible to adapt and accommodate the changes in the market brought about by the dynamic and volatile nature of the virus and its effects across the economic, health and social spectrums both nationally and globally.”

Generally speaking, the shift to remote work did not adversely affect the amount of attention law firms can pay to their clients. In certain respects, the pandemic www.capitalanalyticsassociates.com

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V. Raymond Ferrara Chair, CEO, & CCO ProVise Management Group, LLC

Which trends have accelerated in wealth management because of the pandemic?

If you are just doing wealth management, if you are just doing investments, the interaction with the client is far more distant than it is when you are doing integrated financial planning, which we do. When you have a holistic view of a client, you’re in a better spot to help them than if you are just doing the investment piece.

In the financial planning industry, I don’t think we’ll end up continuing with virtual interviews and virtual conversations because of the trust factor that’s involved in our business. People want to see you for real, eyeball to eyeball, to say hello and shake hands and understand who we are, just as we need to understand who they are. We’re anxious to get back together again because we do our best work when we can walk down the hall and say, what do I do?

What opportunities do you see emerging from the pandemic?

One of the things that I try to mentor others in the business to understand is that people don’t change financial planners or financial advisers when things are going well because at that point, there’s no risk in the market and everybody is a genius. It takes an event like the pandemic, or like 2008. It’s at those times that opportunities are presented, that you can either shine or lose clients. Fortunately for us, we’ve shined. We’ve lost no more clients than we would normally lose within the year because of people dying or moving. But when advisers don’t communicate with their clients in an effective way, that’s when opportunity is presented to other wealth management firms to get an unusual number of new clients. When you look at it from a financial planning standpoint, I think the pandemic has caused a lot of people to all of a sudden wake up and say, “I really need to get off my butt and do something about my retirement plan.” People who got furloughed for two weeks and didn’t realize the impact that had on their finances might need to reassess how they are spending money.

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has already forever changed how firms conduct business, with many predicting that in-person closings for home purchases are a thing of the past, for example.

As the pandemic winds down, people are anticipating a glut of litigation stemming from the government’s coronavirus response and factors such as furloughs and other employment matters. Much of it will pertain to the rights of employees under the new laws. For example, how do you accurately record hours for employees working remotely and how are employees accommodated under the Americans with Disabilities Act, and how will this be navigated. “Our practice groups have remained busy and our litigators are no exception to that. We anticipate that there’s going to be a certain level of litigation coming out of the pandemic, potentially in respect to disputes because of unanticipated consequences regarding existing contracts or circumstances that weren’t contemplated in view of this unprecedented situation. Our litigators are busy and remain poised to handle those subjects as they arise,” said David Cellitti, Managing Partner, Quarles & Brady, LLP. Private equity In venture capital and private equity, 2020 was a recordbreaking year, which is reflected in Tampa’s own experience. Certainly, these are exactly the kinds of companies that are drawn to the region’s growth. Their concentration in the densely populated Northeast, combined with the pandemic and a welcoming business climate, is conspiring to bring many actors in the industry down to Tampa.

This is reflected in the size of some of the deals that happened this year: Weatherford Capital, which is based in Tampa, invested $22.5 million in SOMA Global, a technology company that is also Tampa-based. Osceola Capital, a private equity firm in Tampa, also made moves to become a major player in the specialty pharmaceuticals space. Through its newly formed Revelation Pharma Corp, the firm acquired Everwell Specialty Pharmacy. Osceola also said it was eyeing other transactions in the sector.

Looking ahead With the pandemic looking like it is on the wane, spirits are high in Tampa Bay. Many of the shocks and innovations and trends seen over 2020 are working in the region’s favor. More outsiders are moving in, drawn by good weather, open space and business-friendly practices.

With a new presidential administration bringing massive stimulus and investment, and with a state economy that is already robust, the region will continue to benefit, and so will its professional services sector.

Real Estate: No longer overshadowed by sister markets, the Tampa Bay region is buzzing with commercial and residential real estate growth, anchored by a growing business expansion culture and a high quality of life that is attracting new residents to the region. Coming through the COVID-19 recovery process, the market is expected to go from strength to strength.

www.capitalanalyticsassociates.com

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Resilient: Tampa Bay’s live, work and play offerings shine bright as the region emerges from the global pandemic Characterized by miles and miles of Gulf of Mexico coastline, sprawling downtowns teeming with commercial opportunities and quaint suburban areas offering a superb quality of life, the Tampa Bay market is West Central Florida’s place to be. Anchored by major cities such as Tampa, St. Petersburg, and Clearwater, and divided among Hillsborough, Pinellas, Hernando and Pasco counties, all with their own complementary identities, Tampa Bay boasts a growing population of approximately 3.2 million, creating a favorable investing landscape for developers, business owners and residents alike.

With deep historical and entrepreneurial roots that date back to 19th century Cuba, Tampa Bay’s penchant for attracting visionaries and business leaders is the cornerstone of the market’s foundation, which has only strengthened in the decade following the Great Recession. Prior to COVID-19, construction and development boomed in the region, attracting the likes of business magnates such as financier and Tampa Bay Lightning owner Jeff Vinik and Microsoft founder Bill Gates, who are betting on the future of the market much like Vicente Martinez-Ybor did circa the 1880s. Today, though still a major tourist destination thanks to its engulfing waters, the Tampa Bay region is 56

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a major destination for finance, technology, healthcare, agriculture and related industries, all of which are continuously attracting new businesses, investors and residents desiring a combination of a dynamic business environment and a high quality of life.

Buoyed by Florida’s tax friendly policies, growing population, currently exacerbated by the exodus away from higher tax states along the Northeast and the West Coast, and efforts to diversify away from the service economy, the same factors that strengthened Tampa Bay’s foundation prior to the coronavirus are allowing the market to successfully weather the ongoing health crisis, demonstrated by early 2021 unemployment rates. Though shaken by COVID-19, the region’s unemployment rate as of February 2021 stood at 4.2 percent, according to the St. Louis Federal Reserve, just slightly higher than a pre-pandemic low of 3.2 percent in February of 2020. While the post-COVID workplace will look much different in the new normal to account for health and wellness and remote working capabilities, thanks to its solid foundation, the Tampa Bay market is slated to continue to attract businesses and residents looking to live, work, and play in one of Florida’s most dynamic regions. ( )

REAL ESTATE INTERVIEW

Tenant factor The pandemic is favoring office tenants as landlords work to retain them, at least in the short term

Andrew Wright CEO & Managing Partner – Franklin Street

Has the pandemic influenced the market to be more favorable to tenants in terms of retaining them?

That is correct. There are a couple of factors there. In the next 12 to 24 months, there are a couple of things that will converge. One is that you have a lot of new supply being delivered, at a high cost per foot and high rent per foot. That’s being delivered, probably, at the worst possible time because you have all these businesses that are thinking about downsizing, not looking at spending top dollar in a pretty space Downtown.

The second part of that, in the short term, is that people will be looking for expense savings. There has been a large spike in subleased space. A lot of companies are putting their offices on the market, thinking about subleasing. There’s a lot of subleasing coming online, a lot of new product coming online, so the supply side of that dynamic is very much going to make it a tenant environment for the foreseeable future, at least from an office market perspective.

How has industrial space fared in the region?

You can’t talk about Tampa without talking about population growth. People continue to move here more than anywhere else in the country. You look at people, especially from New York and California, and I think Florida is going to be a net beneficiary. From weather to political climate, from taxes to environment, there are a number of things that work in our favor and you are already seeing that in the housing market.

The single-family market has been very strong during the pandemic. Florida is the No. 1 destination for one-way trips. That’s going to continue and that drives the overall gross regional product (GRP) and activity. That’s the starting point. Why is there a strong industrial market?

Because there are a lot of people coming here.

The second half of that equation is people’s buying patterns and trends. More and more they want convenience and if I can conveniently and costeffectively have something delivered to my home, versus driving somewhere to walk into a crowded store and wait in line, that is a global trend that is not going to slow down at all. The industrial market is underserved for the current population, let alone that future growth. There’s been a frenzy to build new or renovate those last-mile industrial spaces. That and multifamily have been the best performing products by far in this pandemic. The pandemic is really driving that industrial business.

I would say that if the United States is the best country in the world, and within the United States the Southeast, and within the Southeast, the I-4 corridor could literally be the best investment corridor in the entire world. www.capitalanalyticsassociates.com

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John Carey Executive Vice President VanTrust Real Estate

How did VanTrust become involved in the SkyCenter One office building project?

VanTrust opened it’s Florida office in Jacksonville in 2016.

Our company intended to pursue projects in the Tampa area and when we became aware that the airport authority was putting out a request for quotation (RFQ) to build SkyCenter One, it was the perfect opportunity. VanTrust is a private real estate developer with access to significant capital. Therefore, financial capability to execute was not a question. Ultimately, VanTrust was awarded the opportunity with building completion in June of 2021 and will act as one of VanTrust’s regional offices.

What makes SkyCenter One such a unique tenant experience is that it provides direct access, by SkyConnect, to the airport. For SkyCenter One employees or guests, they will cross the skybridge, check their luggage and then hop on the SkyConnect to take them directly to the airport terminal. The idea is to help with the traffic flow at the airport drop-off.

The SkyCenter One building will stand nine stories tall with over 270,000 square feet of class-A office space.

One of the unique things about this building is the upsized amenities such as the innovative fitness center with a wellness walking trail, the conference center, an onsite café with direct access to healthy meals and a 15,000-square-foot Atrium rooftop area.

How do you see the Tampa Bay office segment developing post-pandemic?

There has been a lot of discussion about how COVID is going to affect office space. Companies across the country are in an evaluation mode where they’re trying to figure out what they need coming out of this. Our personal view is that the suburban office market in Florida will become successful. This region will continue to see more companies move out of the Northeast into suburban markets that have a lower cost of real estate, labor and tax. For the same reasons that Tampa has been a great suburban office market for the last 20 years, it will keep on going.

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According to the Tampa Bay Economic Development Corporation, Hillsborough County is on track for 8.7% growth through 2024.

( ) Landscape Despite the prevalent uncertainty triggered by COVID-19, Tampa’s commercial real estate segment has maintained its strong market fundamentals since the onset of the pandemic in March 2020. Long-standing efforts to diversify the local economic base coupled with no income tax and the high quality of life the market provides fueled key economic development wins in a year marred by the pandemic. A testament to Tampa Bay’s appeal for business relocations and expansion can be seen in the number of companies that moved into the market in the last year.

From healthcare giants to maritime staples, the Tampa Bay market grabbed its fair share of economic development headlines throughout the pandemic.

Headquartered in New York, Pfizer announced this April plans to grow its professional services office in the Tampa Bay market. Via the consolidation of its finance, human resources and digital support functions, the big pharma giant is slated to need over 100,000 square feet of office space and create hundreds of jobs, the company

REAL ESTATE OVERVIEW

announced. Similarly, this February Suzuki Motors of America Inc. selected Tampa as the headquarters for its new watercraft company, Suzuki Marine USA LLC. The Japanese company lauded Tampa Bay’s collaborative business climate, high quality of life and strategic location as keys for its expansion into the market. These are two major wins during 1Q21. For 2020, Tampa saw approximately $595 million in capital investments, accounting for more than 2,600 new jobs in the market, according to the Tampa Bay EDC’s 2020 year recap.

More than 20 new projects materialized in the face of the global pandemic, the EDC reported.

Of note, the state of Florida experienced a 14.6% population growth over the last decade and has an estimated population of more than 21 million as of April 2020, according to initial 2020 Census data, the Tampa Bay Times reported. The city of Tampa saw a population growth of 1.7% last year and is expected to grow 3.3% annually, Roofstock reported. Similarly, population growth for the Tampa Bay MSA is projected at 25% with more than 3.8 million people living in the market by 2040, according to Roofstock. The solid ongoing and projected population growth coupled with a strong, diverse economic tax base that is not over-reliant on the tourism and hospitality sectors bode well for the local residential, commercial and industrial markets as Tampa Bay rivals sister markets such as Miami and Jacksonville as the top growing cities in the Sunshine State.

Chris Moench Founder & CEO – Directed Capital

It’s our contention that we’ll start to see more pressure for businesses across the commercial spectrum as government intervention lessens and subsidies run out. One thing we do know is the government can’t fill in all the potholes every business and every person has. They can’t cover every negative loss situation that has or will occur. It probably won’t be as large as the 2008 cycle but that remains to be seen because we don’t quite know the rate of the market recovery or the long-term efficacy of the current vaccines. It will take some time before we know how many problems exist and determine the real magnitude of the issues.

We do believe these market conditions will create a significant, outsized opportunity for our business model to step in and provide solutions to distressed commercial mortgage borrowers around the country.

www.capitalanalyticsassociates.com

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REAL ESTATE OVERVIEW

Patrick Richard CEO – Stoneweg We will continue to look for more properties in the St. Petersburg and Tampa Bay area. But prices in the region are high and we need to find a balance to be able to charge affordable rent to our tenants. We’re looking for deals that make sense for residents, investors, the community and, of course, ourselves.

We’ve started to do some ground-up development and we’re looking at a few properties to provide workforce housing. We want to build sustainable and durable projects that allow us to offer affordable rent. We hope to acquire a site early next year to start developing it from the ground up.

Residential Hyper-low inventory numbers, bidding wars and onthe-spot offers, sight-unseen purchases, homes that sell within hours after listing, all coupled with the influx of new residents fleeing high tax states characterize the dynamic state of Tampa Bay’s housing market. The current sellers’ market, driven by ambitious buyers seeking the Tampa Bay sun and employment opportunities, creates both challenges and opportunities for buyers, sellers, as well as developers, investors and homebuilders.

For sellers, 2021 is expected to be a repeat of 2020, a year characterized by home price growth, as well as sales growth. This year, the Tampa Bay market is expected to see a 7.5% price growth, outpacing major major metros such as Miami, Orlando and Jacksonville, as well as national projections, according to Realtors.

com’s 2021 Housing Market Forecast and Predictions.

The median price for a home in the Tampa Bay market is approximately $315,000 and sells on average nine days after being listed, according to online real estate brokerage Redfin. The rise in median sales prices is consistent throughout the Tampa Bay MSA. The median sales price for a single-family home in Pinellas County sits at $330,00, up 18% year over year, according to WTSP citing data from the Florida REALTORS® Association.

Pasco County is seeing a $275,000 median sales price while Hillsborough has a $300,000 median sales price, the news outlet reported. The local housing market frenzy is best exemplified by the rising percentage of above list price transactions. As of April 2021, Redfin reported 37.7% of homes sold above list price, a 109.9% year-over-year change.

CONSTRUCTION REAL ESTATE OVERVIEW

One factor behind the price gains is the inventory crunch in the Tampa Bay market that mirrors what other Florida and Sun Belt markets are experiencing.

As of March, the Tampa-St. Petersburg-Clearwater MSA posted a 0.7 months supply of inventory compared to a 2.2-month supply in March 2020, according to data from the Greater Tampa Realtors®. That is a 69.6% decrease year over year, the group noted. For buyers, the inventory crunch creates bidding wars that force them to significantly increase their offers to improve their chances of placing the winning bid. “The residential inventory’s near zero now,” Jonathan Levy, co-founder and managing partner of Redstone Investments, told Invest:. “There’s nothing available in a reasonable price range. At the very high end and at the very low end there’s a little product but you have to be willing to either remodel something or afford a big ticket home.

The number of people moving here is great,” he said.

The tight housing market is also inf luencing professionals in the industry to be more nimble and look for opportunities around real estate, given the tight inventory levels. For example, Katz Capital has focused more on the insurance and servicing of residential and commercial real estate assets. “Thinking back to March 2020 when everything shut down, our biggest fear was that we were going to see a broad-based government shutdown. Fortunately, the economy slowly came back to life between April and July 2020. Our revenues are up over 100% compared to last year, which is remarkable,” Founder & CEO Brian Katz told Invest:. “Over the last year, we have made a number of strategic acquisitions covering insurance agencies, home services businesses and some commercial real estate,” he said.

Still in acquisition mode, Katz Capital bolstered its insurance and asset servicing platforms as it navigated market uncertainty. “Our mindset has been more on the side of servicing real estate assets. Every building, every piece of dirt, needs insurance. If we can be the servicer of that client, that is what we are seeking. All of those buildings need a variety of home services, whether it is AC, plumbing or repairs. We have built up a platform to service the assets by being horizontally integrated through these acquisitions,” Katz said.

Despite the market challenges, many of the trends accelerated by the coronavirus pandemic, namely the influx of in-migration from the Northeast, Midwest and the West Coast, as well as the adoption of work from home capabilities, bode well for the real estate market, which means good news for builders, developers and investors.

The luxury market is directly benefiting from major business expansion and headquarter relocations

Bowen Arnold Manager & Principal DDA Development

What is the focus of the firm?

Our focus primarily is on multifamily developments.

We’ve done a little bit of everything, including marketrate housing, some affordable housing and some workforce housing. We did a condo project in St. Pete four years ago. We are also involved in mixed-use projects like the Orange Station in the Edge District of St. Pete. We really like urban deals, primarily in Tampa Bay and St. Pete. We’re at a point now where we don’t want to go to some of the more remote places in Florida. Our main focus is multifamily homes in the core of Tampa and St. Pete.

What is your view of the Edge District?

I think the Edge District is super exciting. If you look back six or seven years ago, there wasn’t much going on out there. Now, you have the new police station and you have restaurants and bars. There are five new multifamily developments that are ready to lease up right now.

We’re going to bring 100,000 feet of office space, 22,000 feet of retail, 30 more workforce apartments, a 600-space parking garage and about 60 upscale condos.

The city of St. Pete has recently released its request for proposals for the Tropicana Field site so we’re seeing developers from all over the country coming in. There are some big players coming in and it’s going to be interesting to see how it all plays out. This is all south of the Edge District. There’s huge potential in that area.

I think it’s almost become the center of St. Pete.

How are you preparing for the near term?

For us, it’s full steam ahead. We’ll be doing the same thing we did in 2020. We did have to adjust more than in the past but we’ve been pretty fortunate that we were never knocked off our stride. We consider ourselves lucky to be in that position. We’re moving forward with our projects and looking for new deals. We think that the economy in 2021 is going to be surprisingly good.

We’re excited and I think our markets are really strong. I think St. Pete is kind of a hidden gem as well as Tampa. www.capitalanalyticsassociates.com

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and permeating throughout Tampa Bay. A recent report from SmartAsset ranked two cities in the Tampa Bay market as the best places for remote work.

St. Petersburg ranked as the fifth-best city for working from home in SmartAsset’s 2021 Top 10 Cities to Work From Home report, the only Florida market to crack the Top 10. St. Pete’s high percentage of remote workers as well as low unemployment catapulted the metro to the top of the list. “As of October 2020, the greater Pinellas County unemployment rate was just 5.2%, which is 1.5 percentage points below the national average. Remote work has also grown more popular here over the years: The percentage of the workforce working from home grew by 4.6% in St. Petersburg from 2014 to 2019, the third-highest increase in the study,” SmartAsset noted about the Pinellas County city. Tampa landed a few spots behind St. Pete at No. 28. Like it’s counterpart, Tampa featured a high percentage of remote workers as well as a high percentage that could work from home.

The only other Florida market among the Top 35 was Jacksonville, coming in at No. 33.

Record-low interest rates and inventory of homes for sale have driven price increases.

happening in Tampa Bay. “There is a tremendous demand for custom luxury homes and Tampa Bay is one of the top markets in the country for this right now,” AR Franchising/AR Homes Jim Rosewater told Invest:.

“We’re seeing a steady influx of people from other markets who want to relocate. Furthermore, the whole remote working concept has changed things a lot. Many companies have been re-thinking how they’re going to operate going forward. The need for all employees to commute daily to big corporate offices is evolving, as businesses re-evaluate how to operate,” he said.

Traditionally, the workforce followed the employer; however, the COVID era served as a litmus test for the standardization of remote work, which combined with 365 days of sun and no income tax further fuels the desire to live,work and play in the Tampa Bay market.

“Many workers are opting to change their lifestyle. As a result, we’re seeing increased migration from the Northeast and Midwest. People are moving to where they want to live and they’re re-thinking the types of homes that they want to live in. They want to work from home, exercise from home and spend more time in their outdoor spaces,” Rosewater said.

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| Invest: Tampa Bay 2021 | REAL ESTATE

Commercial Tampa Bay’s geography, waterfront spaces and rising profile as a finance, technology, healthcare, life sciences and professional services hub in West Florida were fueling development activity in the decade leading up to the pandemic outbreak. Anchoring the transformation of Downtown Tampa is the Water Street Tampa development, a vision heralded by both Vinik and Gates thanks to their development company Strategic Property Partners. Five years in the making, the pandemic could not stop construction on the $3 billion project slated to be the centerpiece of Downtown Tampa. Developed in phases, the first phase will include new class-A office towers, hotels, including the first five-star hotel offering in the region, 70 restaurants and retailers and over 1,000 new residential units spread throughout multiple locations across 56 acres.

Construction of the first phase is slated for completion in 2022. A project of this magnitude fuels optimism for Tampa‘s future and cements the market’s place as one of the key business destinations in the Sun Belt.

“What’s happening Downtown with Water Street has a lot of promise, and you see all these buildings being done on Bayshore Boulevard that are beautiful and doing very well. The market here is strong and is going to stay strong,” Redstone’s Levy said. “We’re seeing a lot of businesses move here too. Especially with the amount of virtual businesses, Tampa becomes a much better option. Why work from home in a place like New York or Chicago where you are paying a fortune to live in

REAL ESTATE OVERVIEW

Stevens Tombrink Managing Director – Tampa – LandQwest Commercial Real Estate

We are going to be in “Orlampa” soon, Orlando and Tampa being all one place. It just keeps going farther and farther east. I’ve been doing this since 1985, and I actually live in the I-4 Corridor area, so I’m familiar with it. It used to be the industrial market in Tampa, went to 50th Street and then to Highway 301 and I-75. Now it’s out to the County Line Road. It just exploded to County Line Road and from Orlando they are coming west, and it just keeps coming.

Companies are going farther and farther out, and they’re going farther and farther north and south of the interstate. You’re starting to see warehouses being developed on Frontage Road, such as the Lakeland Interstate Commerce Park. Early on, people wanted to be at the interchange. But that barrier seems to be dropping and warehouses are being built farther and farther from the hardcore node intersection. That’s going to continue.

a small apartment and you’re working from home. This has provided a lot of opportunity for places like Tampa.

The pandemic will ultimately pass but this has given Tampa a clear opportunity to grow,” he said.

As one of the largest downtown development projects in the United States, Water Street Tampa is the tip of the iceberg in an active commercial development and construction market. The sudden jolt of the stay-athome measures and move away from the office space undoubtedly impacted the local office market. Deeming construction essential was a silver lining for the construction and development sector in a year marred by massive disruption.

As of May, total vacancy for office space hovers at 16.5%, according to JLL’s Q121 office report. A year into the pandemic, optimism is rising, JLL notes.

Currently, there are just over a million square feet of new office space construction in the Tampa Bay market. According to the report, direct and sublease asking rents have remained flat at $30.38 p.s.f and $25.97 p.s.f, respectively. The first half of 2021 is slated to be characterized by a rise in total vacancy in the market due to new construction delivered projected in either Q2 or Q3. Industry optimism is geared toward the second half of 2021. “Interest in the Tampa Bay area is at an all-time high as out-of-state tenants look for more cost-effective real estate options. While fundamentals may be strained over the next three-to-six months, confidence is rising for the latter half of 2021 going into 2022,” the report stated.

Water Street Tampa is a $3 billion project slate to be the centerpiece of Downtown Tampa Though Tampa Bay is one of the best markets in the nation for remote working, commercial real estate leaders believe that office space will continue to evolve while remaining an integral part of the business climate.

“We have had a few tenants who have chosen to stick to remote working. We are firm believers that office spaces will not go away, although many companies may move toward a hybrid model,” Cardinal Point Management Principal Gregory Williams told Invest:. “Many companies benefit from having a dynamic workplace.

It feeds their culture. We believe that office space in Florida is here to stay so we continue to own these assets and we will continue to invest in these assets.”

The historic low interest rate environment bolstered development deals in this cycle though underwriting ( ) www.capitalanalyticsassociates.com

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Market voices: Developing for future needs

William Bertolero Partner Vision Properties

Overall, in southeastern Florida, from Miami to West Palm, there has been a lot of high-profile relocations. Southeast Florida is more built out so the opportunity for land is much scarcer, pushing up cost. The cost of being able to relocate will weed people out because the expense of that area is much higher.

On the I-4 Corridor from Orlando to Tampa, there is much more opportunity for companies to build out. The area is continuing to grow, and connectivity is becoming much easier. From what I have already seen, I think Pasco County will grow as well because there is still the convenience of beaches, downtown and great connectivity, not to mention the spending power and increased quality of life relative to the more built-out areas.

The vision is to create resources to fully develop an urban innovation community out of what has been referred to as the University Area for many years. The “Area” has grown to be much more than that, and is truly meant to be a vibrant and nationally-recognized, innovation community. We have made key advancements in the midst of a tough year. The innovation community has been growing organically for the last 50 years and for the past decade the Innovation Partnership has been guiding the growth by providing direction, planning and resources to fully realize this community’s potential.

Nick Haines

CEO The Bromley Companies

Chief Development Strategist RD Management

Previously, Tampa as a business center attracted regional or back-office uses for larger corporations. However, I think that has and is changing quickly.

Employers will be increasingly less tied to a traditional corporate center and will be able to follow talent in a more flexible way. I think you see that in recent moves by companies like Blackstone and Goldman Sachs, which are opening larger hubs in Florida. Companies are beginning to realize that Tampa provides a great lifestyle and accessibility to a large, well-educated population. Tampa also is building up a tech base, especially in cybersecurity.

There has always been opportunity for redevelopment on the Pinellas beaches but, in many cases, the communities have not been so supportive of modifying their small-town character. The other areas of development are quite well known, with a lot of focus on Downtown Tampa and Downtown St. Pete. Westshore continues to be the largest office market in the region, but it may be getting a little dated, which could create redevelopment opportunities.

If the Brightline train is brought to Tampa as anticipated, that is a tremendous opportunity to see some high-density development around that terminal.

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Christopher Bowen

| Invest: Tampa Bay 2021 | REAL ESTATE

Jay Miller

President J Square Developers

REAL ESTATE OVERVIEW

( ) has become more stringent, leaders in the pressure on rates. However, rates could double and industry say. “Long-term interest rates are at historic they would still work for the real estate sector,” he said.

Other professionals did not experience changes in lows and there is more capital readily available for commercial and multifamily real estate than at any deal financing throughout this time. “I haven’t seen any time in the past,” NorthMarq Capital Managing significant changes in financing,” Domres Real Estate Broker/Owner Marty Domres told Partner Bob Hernandez told Invest:. “The developers I deal Invest:. “However, underwriting with receive their money from has become more restrictive and REITs, which are very stable. As the lenders have become more long as the property meets the selective in the transactions requirements of the REIT, the they pursue. This has led to financing is typically awarded, lower leverage, requiring more whether it’s a question of zoning equity for most transactions,” or location,” Domres said. he said. The low interest rate COV I D’s d isr upt ive force environment may potentially exacerbated concerns for industry lead to some overbuilding but Bob Hernandez leaders especially related to rent industry professionals will adjust NorthMarq Capital collection and asset management. accordingly, Hernandez said.

Government intervention via “Low rates could lead to some over-building. However, information is disseminated stimulus measures and Paycheck Protection Program so quickly that any softening in market conditions will (PPP) loans have been instrumental in helping ease be detected and capital will pull back in the location or market concerns throughout the pandemic. Industry sector. In addition, I don’t think there will be a backlash leaders placed a keen focus on asset management during from a regulatory standpoint, other than upward this cycle. For example, Cardinal Point Management

Interest rates could double and they would still work for the real estate sector.

REAL ESTATE OVERVIEW

Oversized lighting fixtures are on trend for kitchen design in Tampa Bay.

began 2020 with an $85 million dollar multifamily asset sale of The Slade at Channelside with a few other deals in transit prior to March of that year. The group paused its deal flow and shifted to asset management once the pandemic settled in the market, Williams said:.

“Initially, we were very concerned about collections and cash flow, so we are very pleased to report that the year ended better than we expected,” he said. “The government programs helped a lot and did the crucial job of supporting the economy. We have tenants that are very small businesses that do not have the working capital or balance sheets to weather the shutdown that occurred. Across all classes, our collections were at about 97-98% over the shutdown, which was a big relief for us.

When the PPP program rolled out, we started to see the light at the end of the tunnel and now with the vaccine program rolling out, we are optimistic. In Florida, we’ve been fortunate that we have not experienced lockdowns to the extent others have. We’re looking for opportunities in 2021,” Williams said.

Industrial and I-4 Corridor For those looking for opportunities all signs point to Tampa Bay’s industrial market and particularly 66

| Invest: Tampa Bay 2021 | REAL ESTATE

the region’s I-4 Corridor, a well-known interstate in Central Florida connecting the Orlando and Tampa Bay markets. Similar to the housing market, high demand, rising rent prices, not enough inventory and waiting lists characterize the local industrial sector.

“We are out of space,” John Burpee & Associates CEO John Burpee told Invest: in January when asked about the state of the industrial market. “We are managing roughly about 600,000 square feet of industrial space. We only have 2,000 square feet of vacant space. We have a waiting list on most of the properties that we manage. Rents have increased 25-40% across the board on industrial space.

We’re seeing rents from a year to two years ago that were $6 per square foot now well into the $8-$10 per sq. ft. range. The dynamics of the market have changed but its requirements have not,” Burpee said.

According to Colliers International, last year the Tampa Bay market registered a record number of new industrial deliveries. Over 5.8 million square feet of new industrial product was delivered to the market, the brokerage noted in its 4Q20 industrial report.

For 2021, there are just under 3 million square feet of new industrial construction underway in the market, Colliers International noted. Institutional and private investors are continuously flocking to this asset class as investment activity saw record levels in 2020. “In 2020, sales volume surpassed $1 billion in transactions for industrial and flex product, second only to 2019 levels when the market transacted over $1.1 billion in volume.

During the fourth quarter alone, nearly 50% of the year’s sales volume occurred, resulting in $495 million and over 6 million square feet of industrial product trading hands,” the brokerage wrote in its report. Unlike in the office sector, concessions in the industrial space are buoyed by the current demand of this asset class, Colliers International pointed out.

Much of this demand can be attributed to changing consumer habits and expectations. “Industrial surged and continues to be on fire for a number of reasons, including supply chain, the need to distribute to our growing population, and e-commerce growth.

Consumption has not changed in 2020, it has just shifted,” Fortress Commercial Real Estate Managing Broker Kostas Stoilas told Invest:. Irrespective of the asset class, growth is headed east as land availability is increasingly harder to find along the coast. “Everything is going east: Lakewood Ranch, Plant City, Lakeland, Wesley Chapel, to name a few. We are running out of land along the coastlines, between the coasts and the interstates. It is a case study on what to do next,” Stoilas said. “Land is running scarce so you either redevelop old buildings because you want to be infill or you ( )

REAL ESTATE INTERVIEW

Transformation Repurposing of older buildings is helping transform Clearwater as the development pace kicks into high gear

Brian Andrus Broker & Owner – Stonebridge Real Estate What is the future of Clearwater regarding development?

Repurposing is more the theme in our area. When Opportunity Zones came into being because of the legislative act it provided for a new investment option.

We engaged a business partner and secured a property that is now halfway through a full renovation. It will be a beautiful 30,000-square-foot office building. It was an old wreck that is being fully transformed. That redevelopment is a testament to what is happening in Clearwater, just one among many. We are partners in a 12-story office building, our main tenant being KnowBe4, a cybersecurity unicorn with a $1 billion-plus valuation.

Its upper floors remind me of the California West Coast office spaces in the “cool” factor, while some other floors provide a New York corporate feel. In Clearwater, I believe we’re slowly catching up to Tampa Bay’s growth.

A lot more has been happening in terms of development in the last few years than in the last two decades since we’ve operated in real estate here. Keep in mind that Clearwater has a population of 125,000 people who are somewhat spread out, so there are projects all over. The beach has newly completed projects as well as ones that are going to be started. The beach area has transformed over the past decade. Clearwater’s government and city personnel are highly proactive about moving the ball forward, evidenced by the Imagine Clearwater Project on the Downtown’s waterfront.

How do you see the Tampa Bay region capturing warehousing activity?

Tampa Bay’s Polk County, Lakeland and Plant City are bustling with warehouses, the size of which will surprise you. To see industrial assets extending over 500,000600,000 square feet in size is an impressive sight. We expect that trend to continue going forward, with the possible exception of Pinellas County, which lacks available space for new developments. That will require

repurposing of buildings and land, which I expect will continue. I am working on an industrial development now. Land is more the challenge than demand.

What are some of your near-term goals?

In 2021, we’ll be completing our latest project called Marina Bay 880 and move onto the next one. We will work to enable our staff and their families to continue to do well. That means I have to work so that each one sets realistic goals, makes progress on those goals and reaches them. I want them to sharpen the edge of their skill sets. To succeed in real estate and development, you need to be a quick study, be able to pivot well and be professional at what you do. I plan to continue to work with the large number of very smart and very professional business individuals in our area. www.capitalanalyticsassociates.com

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®

oundtable:

Commercial real estate The future of the office remains a hotly debated topic. Here, market leaders provide their view along with other factors that are impacting the sector.

David Bradley

Regional Manager – Tampa Marcus & Millichap

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Mike Griffin

Senior Vice President & Market Leader Savills – Tampa

How strong was the commercial real estate market in Tampa before the pandemic?

Whenever we look at the health of a market and its longterm prospects, it really boils down to one metric, and that’s job growth. Whenever jobs are being created, it has a positive effect across all the product types that we service. We work with all the main commercial products: multifamily, office, industrial, retail, and some more niche areas like self-storage, hotel and senior housing. If you look at those markets that are healthy and growing, it all ties back to whether or not companies are choosing to invest and put people to work in that local marketplace.

Or, is there a natural outflow of population and stagnant job growth? One of the most appealing things about Tampa is the plain and simple fact that it offers a lot of opportunities for a variety of businesses.

How did the pandemic accelerate change?

Savills globally does virtually everything. It’s a Top 6 firm. Structurally, we are financially sound and have no meaningful debt compared to our competitors. It gives us significant opportunity to go after talent, whether it be businesses or individuals. From our position, our focus is primarily on the office and industrial sides. Since offices and commerce shut down in March, rolling back to the offices has been highly gradual. We also have certainly seen a change in how people are working and going back to work. Statistically, C-suite executives and the lion’s share of business leaders are anticipating that roughly 30% of their workforce is not coming back to the office. The implication for physical workplaces is going from dense, efficient layouts toward a space planning and design of office spaces that takes into account more distancing.

What might office space look like going forward?

I think that office assets are primed for the reimagining of what to do with the space. Throughout this disruption and these changes, creative people, smart people are going to put their heads together and find new ways to utilize the buildings we have. I think we will see office space itself be reconfigured in a way to make it more pleasing and inviting. The overall floor plate and space that people will occupy will probably see some downsizing. That trend could continue for the immediate future. Long term, I think that there will be a reshuffling in terms of how to organize the space but that can ultimately result in higher net dollars per square foot and rent, with commercial landlords being able to come out in a similar or better position than where they are now.

How would you assess Florida’s industrial market?

It’s just incredible, transformative, when you look at even the retail space getting more involved in the supply chain aspect of how they’re using their vacant big boxes for supply chain work. COVID-19 brought about a perfect storm in a good way in the sense that for the past 20-plus years there was a strong emphasis on investing heavily in the I-4 Corridor. We had all the pieces in place to support this, whether it was truck, rail or air cargo. The one thing that worked even better was our availability and cost of land. That is all changing. Deals are getting done, land is trading hands and that is creating a value proposition.

We are similar to other Southeastern markets that have a port facility. We cannot build the logistics and distribution facilities fast enough.

| Invest: Tampa Bay 2021 | REAL ESTATE

REAL ESTATE ROUNDTABLE

Danny Rice

Managing Director & Market Leader – Central Florida Colliers International

How has Colliers managed the different conditions imposed by the pandemic?

There was a great deal of momentum in the Tampa Bay market coming out of 2019 in all assets: industrial, office and retail, and even in our specialty groups such as student housing, senior housing and leisure properties. When the entire economy went into halt mode, all asset types and decision-making paused. By October, almost all asset types had begun their rebound. I wouldn’t say everything is back to normal, but industrial is nearly back to where it was, if not above pre-COVID conditions. E-commerce obviously is driving a lot of that story. As confidence in the market returns, our clients are looking at this as an opportunistic time to secure “A” locations that may not have been available when the market was really coming on strong. Retail has bounced back. Office space has definitely seen some activity coming back.

What is your view of the I-4 Corridor?

Nearly 5 million square feet of new industrial product has been delivered to the Tampa Bay market this year. A significant amount of the new development and activity has happened in the East Tampa area and in the Polk County and I-4 corridors. Deal-wise, the number of transactions, especially on the industrial side, is slightly up as compared to previous quarters. The total industrial square footage being leased per quarter is greater than before the pandemic. When you think about the Tampa and the I-4 Corridor markets, a large deal five to 10 years ago was 300,000 to 400,000 square feet. Today, we’re experiencing speculative development on buildings of a million square feet.

Larry Richey

Florida Managing Principal Cushman & Wakefield

What changing trends regarding the future of office space are you observing?

Cushman & Wakefield has been somewhat of a thought leader on the question of office space. What began as a required work from home situation for most companies could end up doubling the people working permanently from home, from an estimate of around 5-6% today to 10-12% in the long term. But there will still be a large population in offices and clients going to the office every day. When we ultimately put COVID-19 behind us, we think that there will be a large number of people who will go back to work at the office full time. Others might split that. But we don’t think that it will necessarily reduce the square footage of office space occupied because there’ll be greater distancing. We believe that the net result of that is that over the next few years, we’ll get back to where we were and beyond in terms of occupancy before COVID. How do expect rent levels to develop?

We’ve seen companies that have decided to work more from home on a more permanent basis, shedding office space by not renewing their leases. There is short-term pressure for office rates to decline. We think it’s temporary but we’ve seen declines of 10-15% in many projects. The problem is not as much the price as it is the uncertainty of when the pandemic is going to allow higher occupancies and safe desk-sharing, which is all having an impact on demand. If we look at the office market, over 95% of tenants in the U.S. office market are paying their rent. So, even though that’s less than 100%, we don’t think that we will see many defaults on mortgages as a result of that. www.capitalanalyticsassociates.com

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( ) go east to where there is land and be more of a pioneer waiting for demand to come out to you. The I-4 Corridor is going to win from that because you are connecting two major cities in Tampa and Orlando and some great communities in between,” he added.

Whether for industrial purposes or commercial development opportunities, the I-4 Corridor is a modernday Fertile Crescent for industry leaders. “When you think about Tampa and the I-4 Corridor, a large deal five to 10 years ago was maybe 300,000-400,000 square feet. Today, we’re doing speculative development on buildings of a million square feet,” Colliers International Executive Managing Director for Central Florida Danny Rice told Invest:. “There’s a night and day difference in terms of the growth around the I-4 Corridor, especially around industrial, and it has everything to do with the population growth that we are seeing, the accessibility of the I-4 and its connections to the I-25, the turnpike and over the I-95 means all the major markets in Florida can be connected pretty quickly. That has not slowed,” he said.

Looking ahead After more than a year under the pandemic landscape, the Tampa Bay market is positioning itself to be among the top destinations for living, working and leisure in the state, rivaling Florida heavy hitters such as South Florida, Orlando and Jacksonville. Construction and development activity are slated to be major tailwinds as the market continues its recovery process. The dynamic housing market is expected to stay vibrant in 2021, challenged by an inventory crunch and rise in prices.

Major commercial development projects such as

Water Street Tampa are still a few quarters from completion but such a massive Downtown development further cements Tampa Bay’s place as a top business destination. “We are feeling confident about the state of affairs for real estate in general,” said Bob Gries, founder and managing partner at Gries Investment Funds.

“Low interest rates in the 3% range make projects a lot easier to finance. Second, always focus on keeping debt reasonable. If you can be properly capitalized and interest rates remain low, we should be able to weather just about any type of cycle. Historically, people have gotten in trouble by borrowing too much and did not have enough cash on hand when they were hit with a curveball. We will remain highly selective regarding the opportunities and deals we’re looking at, with a goal of purchasing six to eight properties a year.”

COVID-19 forced businesses, corporations, industry leaders, individuals and families alike to rethink their use of real estate space, accelerating nascent trends in the process. The adoption of remote work will further change the dynamics of the office and corporate settings while influencing designs of new dwellings and apartments well after the coronavirus is contained.

The eastern growth of the Tampa Bay market, specifically along the I-4 Corridor, creates excitement for industry leaders. As Andrew Wright, founder of Franklin Street, told Invest: “I would say that if the United States is the best country in the world, and within the United States the Southeast, and within the Southeast, the I-4 Corridor could literally be the best investment corridor in the entire world. I really, strongly believe that.”

Construction & Infrastructure: Housing and industrial constitute the tide that lifts all boats in the Tampa Bay region’s construction sector, despite a slowdown in the office segment. Even in that space, however, there is optimism that the pandemic hype calling into question the very existence of the office has been overdone. Overall, the question is, can the sector stay apace of demand?

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Keeping up: Residential and industrial construction demand continues to rise, creating its own challenges The Tampa Bay region is among the fastest-growing in the United States. Prior to 2020, the population was expanding, and companies were relocating.

These trends have only accelerated with the COVID-19 pandemic as more people seek out less dense living environments, more value for their money and lower taxes. Tampa Bay fits all these criteria, and the result is a residential construction boom in line with the hot housing market.

On the industrial front, the demand for e-commercerelated warehousing has outweighed concerns in the office segment that saw the biggest impact from the pandemic but which still remains an area with a great deal of optimism for the post-pandemic era.

The building demand in the Tampa Bay region, however, is such that the sector is struggling to keep up, and that’s a problem. The pandemic has made life more difficult for developers and contractors with supply chain disruptions and a shortage of labor that is hampering the industry, alongside higher material costs, such as lumber. “Regarding challenges, currently, it’s hard to find people and in addition to that, there are supply chain disruptions. We had to stock up on material like all the lumber for a building for the next 72

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eight months, spend all that money upfront and have it sit at the project site. These challenges increase the costs and time of construction. As we overcome that, I’m really confident for the coming months,” said Eric Collin, owner and president of Firmo Construction, in an interview with Invest:.

Landscape The COVID-19 pandemic has been the great disruption of 2020/2021 against which progress in any sector must be measured. For the construction sector, the pandemic served to accelerate trends that bode well for future success. The desire to be in an area that is open for business, a business-friendly tax environment, good weather, and far more space commensurate with the working-from-home model have sent both people and companies to the region in droves.

No doubt, people were already arriving before the pandemic — there was a net population gain of 151,000 residents just in Hillsborough County from 2010 to 2018 — but COVID-19 served as a further boost. Population growth was at 1.7% in 2020 and is expected to grow 3.3% annually over the next three years, with more than 126,000 new residents forecasted to move to the ( )

CONSTRUCTION & INFRASTRUCTURE INTERVIEW

Busier than ever Lower tax revenue will likely hurt public projects but residential continues to soar

Brian Diehl Regional Vice President – Pennoni

How how have you seen demand develop in the past year?

We’ve been very lucky in that we’ve been busier than ever in the past year and I don’t see that slowing down. But in Florida, the No. 1 revenue generator was tourism and there was a downturn starting last March.

The tax revenue going to the government agencies will certainly be less than in the last few years, so we expect some impact on public projects. That being said, the residential market is getting hotter and hotter. We can’t keep up with the residential work that is coming in throughout the state. This will probably balance the work we potentially lose in the public sector. I think between low interest rates and low taxes in Florida, people can now afford things that maybe they could not previously, so this is also bolstering demand for our services.

What areas of Tampa Bay are seeing the greatest new development activity?

Pinellas County is pretty built out, so it’s more redevelopment activity taking place here. Pushing out the I-4 Corridor from Tampa to Orlando, there’s a lot of room for new development. This means infrastructure along this corridor, including transit, transportation, water and sewer, will also need to be added or upgraded.

Some towns along this corridor are building master plans where they envision doubling the size of the towns in the next few years. We’re having to hire additional crews and environmental scientists for these residential projects and we see this continuing in the years to come.

What are the major trends in the market and what are your top near-term priorities?

We have a group at Pennoni that handles sustainability

and resilience. In Florida, sea level rise is a big factor that we already design for and it will continue to be a major factor in development. Municipalities are amending their codes to account for this. The FEMA floodplain maps are being amended again as well.

My top priority is diversification between public and private work. As a company, we’re around the 50-50 mark.

During economic downturns, the public work typically gets us through this. It could possibly be different in the next few years. We’re very excited that we’re not seeing a slowdown in our proposals, which demonstrates that there is no near-term downturn. We’re getting new requests for proposals every day and the developers want to move fast, especially with over 1,000 people a day moving here. The engineering firm that can meet the developer’s needs is the one that is successful. www.capitalanalyticsassociates.com

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CONSTRUCTION & INFRASTRUCTURE OVERVIEW

( ) metropolitan area by 2024. In the next 20 years, there will be 25% population growth. This should benefit the construction sector. Of the 30,400 private sector jobs added in 2020, 8,000 were in construction. The effect of this population growth can be seen in the housing market, where sales are expected to grow by 8.7% in 2021 while prices are due to rise by 7.5% year-over-year, according to the Tampa Bay Business Journal.

In addition to people, companies are also eyeing the Tampa Bay region. Tech companies, such as CodeBoxx and JustProtect, are moving to the area to such an extent that Tampa is developing the appellation “the Austin, Texas of the East.” Financial firms, too, are seeing Tampa as a viable alternative to colder Northern cities. All of this economic activity equates to a need for more housing.

Indeed, in the booming multifamily market, the effects of the pandemic were hardly felt at all.

All told, over $13 billion in building projects are underway, putting the region (according to a 2018 PwC survey, among others) in the Top 10 locales in the country for real estate investment. Much of this development has been seen along the waterfront, which was under-used until relatively recently. Among the premier projects is the $3 billion, 50-acre Water Street

Tampa Bay real estate agents have seen a mass exodus from the Northeast to Florida’s mild climate.

CONSTRUCTION & INFRASTRUCTURE OVERVIEW

Perspectives: Outlook Jon Paul Bacariza Vice President & Tampa Market Leader – Ryan Companies We continue to maintain that nimbleness and awareness to make sure that we are flexible for potential crises in the future. We’ve been blessed to be able to have great teammates and a highly diverse platform that allows us to take advantage of industry shifts.

Ward Friszolowski President – Harvard Jolly Architecture Construction costs are not going down, that is the only challenge we always have. We will continue working with our clients to determine what is the right budget for their projects and checking the crystal ball out there. But the construction sector as a whole is not slowing down.

Chris Kirschner President – BDG Architects

Tampa mixed-use development, developed by Strategic Property Partners, just outside the Downtown Business District. This development’s first phase is slated to be completed by early 2022 and will consist of 10 buildings.

Its construction has even caused the city to realign some of its long-standing infrastructure: an old railway has been removed and some streets adjusted in the hope that this car-centric dead zone will become a vibrant area for pedestrians consisting of 70 street-level restaurants or retailers, 1,300 rental units, and Tampa Bay’s first fivestar hotel. As well, developments such as these give lie to the notion that the pandemic has been the deathblow to physical office space. In Tampa, office construction has slowed but not stopped, and according to Colliers’ 21Q1 Tampa Bay Office report, the market’s “fundamentals remained optimistic as companies focused on regaining traction after the pause in activity during the pandemic.”

Other developments of note include Midtown Tampa, a mixed-use estimated at $500 million that is going up between Downtown Tampa and the Westshore Business District; the Channel District Vision Plan, a mixed-use development estimated at $1.5 billion that is being put up by the Port of Tampa and partners; the St. Pete Pier, a $92 million tourist attraction on the waterfront; and, as if to meet the coming demand, the Tampa International Airport is undergoing a $150 million renovation. ( )

I’m so excited for the Tampa Bay area, I’ve never seen it hitting on all cylinders like this before. There was a huge real estate boom in 2007 but it was mostly relegated to the residential sector, fueled by easy mortgages. I haven’t seen the level of activity I see now since then.

Jake Nellis Vice President – JE Dunn Our portfolio has a healthy balance between K-12, student housing, and several healthcare projects. Additionally, if we can work hard to create a niche for ourselves in the area of renovations, it will be a way to differentiate ourselves in the market.

Mauricio Ramos Area Manager – PCL Construction There are many opportunities in this business, and we’re focused on the Greater Tampa Bay area. There’s growth coming. It feels great that now that there are more projects, our locally-based staff can see the ways in which they’re helping their communities.

Grayson Silver Managing Principal – Baker Barrios Architects Tampa Bay is probably the strongest of all the Florida markets. Our job loss during the downturn was around 6-8% compared to 12-14% nationally. The same is true for property values. Tampa Bay has sustained its property values while other areas are seeing a predicted 5-10% loss.

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®

oundtable:

An atypical year Construction sector leaders discuss working in the past atypical year and provide their outlook and key priorities post-pandemic.

Doreen Caudell

President D-Mar General Contracting

What has been D-Mar General Contracting’s focus in this atypical landscape?

We have been diversifying our customer base due to COVID-19. Prior to the pandemic, we were heavily involved in the airline industry, one of the virus’ first victims business-wise. We now have a new and different set of customers, having acquired some military and government contracts that we are excited about. These are with the U.S. Air Force and the Florida Department of Transportation (FDOT). It has also brought our team together in a much different way. We were working on all the different airlines projects we had all over the country, whereas now that we are here, we are looking to build a different type of team to diversify into the government sector, which has proven to be a highly rewarding experience.

What type of projects are you developing with FDOT? FDOT is not only bridges, roads and infrastructure; although we do have the ability to do that. The types of services that D-Mar is providing is along the lines of a design-build. FDOT has conference rooms, buildings, infrastructure projects, transit centers, to name a few.

What are your main priorities for 2021?

Continuing to grow. We want to be there for these design-build projects, working with many partnerships throughout the country. There are a couple of new projects coming online, some of them touching on transit, that we are excited about because that will help the city on several fronts, including but not limited to safety, mental health, air control and carbon footprint.

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Troy Hernly

Vice President & Principal Stevens Construction

How did Stevens Construction fare in 2020?

The good news for Stevens is that we are still going to be profitable and meet our revenue and profit goals for 2020. However, the healthcare and hospitality sectors that Tampa specializes in were impacted due to COVID-19.

This was a change compared to years past as traditionally these markets sustained us during every other economic downturn. We saw numerous jobs have funding pulled or not move forward to the next phase as priorities were shifted. This has given us the opportunity to work on diversifying our local portfolio.

What healthcare sector opportunities do you see emerging?

The healthcare sector is going to create some new and exciting opportunities. One of the things that it has amplified is the need for hospitals to care for acute patients.

Isolation wings are going to be needed for hospital care, whether it is this pandemic or the next. That need is going to drive off-campus developments, whether it is medical office buildings or standalone emergency departments and ambulatory surgery centers. Telemed is another trend.

The healthcare delivery system in five years is probably going to look very different from what we have today.

Which areas of Tampa Bay are positioned for growth?

The short answer is all of them. More and more people have “discovered” Tampa and they want to live here. If I had to pick one area, I would say Pasco. Pasco’s pro-business environment and availability of land make it very attractive to companies and individuals who are looking to leave bigger cities and come to Florida.

CONSTRUCTION & INFRASTRUCTURE ROUNDTABLE

Frank Musolino CEO Power Design

How did your use of technology evolve during the course of the pandemic?

We’ve done a lot with electronic document management and our ability to work in a virtual, collaborative design environment through coordination. On the field side, we’ve been utilizing technology such as OpenSpace. PreCOVID, we used OpenSpace on about 10% of our projects and within a month that 10% became 90%. Now, all of our projects are using OpenSpace. OpenSpace is a company that uses a hard-hat-mounted camera to provide tapand-go passive image capture and photo mapping that allows us to see progress on our construction sites. For example, we do progress walks, inspection walks and prework walks, where we have someone walk the site, then our management teams, QC teams, or even myself can virtually walk that job site and see what’s going on.

What is your outlook for the company and the industry?

We have long-term goals in our business that we think differentiate us. We are pushing to become a fully integrated MEPS (mechanical, electric, plumbing and systems) company. Long term, I see all of these components coming together as technology starts to integrate. The historic division between these trades will be challenged going forward and you won’t be able to have these individual trades anymore. From an industry standpoint, people see the light at the end of the tunnel.

They know they need to start building, especially in the multifamily space. While it’s sometimes difficult to ignore the struggles of the present, we are building projects that won’t deliver until two to three years from now when this pandemic will be in the rear-view mirror.

Andy Park

Partner Park & Eleazer Construction

What are some of the takeaways and benefits stemming from 2020?

The first thing that comes to mind when thinking of 2020 is the financial impact but we may not be the best candidate to speak to that. Our revenue was up 300% over the last 24 months and we had our highest revenue and profitability in 2020. We feel pretty blessed because we weren’t affected by the pandemic. I believe being in West Florida specifically plays a big role in our success.

As we continue to grow, people are taking us much more seriously and we are now getting invited to sit at the table for these bigger projects. From a leadership standpoint, we learned the importance of people and we doubled down on investing on our current staff while aggressively ramping up external recruitment.

Which sectors will stay strong in the near term?

From an economic standpoint, there are sectors we believe will continue to stay strong, both because of the pandemic and the geography we live in. Industrial is one of the sectors that will continue to see momentum, while self-storage and brick-and-mortar retail are expected to struggle. Senior living and student housing will continue to evolve given the demographics of the state. I think the restaurant world will continue to change and we have invested a lot in grocery but that could also change.

How how do you view the local talent pool?

There is definitely a labor shortage in the trades. This will get worse in the coming years because so many people overlook these career paths due to a push toward fouryear college degrees. www.capitalanalyticsassociates.com

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CONSTRUCTION & INFRASTRUCTURE OVERVIEW

The rise in lumber prices has added $16,000 to the price of a home and $6,000 to the price of an apartment ( ) These are only the tip of the iceberg in terms of the development this boomtown is attracting. As well, such marquee projects do not take into account the amount of housing and industrial space that is going up to meet the demands of a growing region that is seeing expansion beyond the city of Tampa itself.

“The Tampa Bay region has good land available for development. Traditionally, Hillsborough County has

been the focal point for suburban development in the region, but we are now seeing neighboring areas like Pasco and Polk increasing their permit counts,” said Jim Harvey, president of Kolter Land. “These areas are becoming more attractive for new homebuyers. We have made a substantial investment in north Manatee County, where we have seen strong demand recently.

The pandemic is exacerbating the already significant demand for the Tampa Bay region. As well, growth of the Tampa Bay region will increase the demand for residential development over the next few years.”

Performance If there is one area in which the pandemic has adversely affected the construction sector, it is in the disruption of the supply chain and the availability of labor. The closing down of a sheet metal factory in North Carolina on account of a COVID scare will have an effect three weeks later if a site in Tampa cannot easily access the material it needs. Furthermore, once the plant is back up and running, it will have to follow social distancing protocols, limiting productivity, and forcing it to play catch-up with demand.

The cost of materials also is going up. The price of

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steel rose by nearly 10% from August to December 2020. In the case of lumber, the rise in price was enough to add $16,000 to the price of a home and $6,000 to the price of an apartment. According to one study, 41% of contractors stated that the paucity of materials was among the most debilitating outcomes of the pandemic, while 71% said they experienced at least one material shortage. “The big challenges have been related to supply chain,” said Jason Rossi, owner of Rossi Construction. “We are also stuck waiting on products, from appliances to fixtures, like HVACs and plumbing fixtures, which come from China or overseas, where most things are made, and the delay on that has been tremendous as well. We’ve been fortunate that, as a whole, things have been extremely busy, so that the backlog work has been steady and we’ve been able to increase it to account for the delays from the building department as well as from products.”

Such shortages have led to a reevaluation of issues concerning supply chains. The scare surrounding the availability of personal protective gear at the beginning of the pandemic, called into doubt the wisdom of global supply chains. Added to this are what many see as the long-overdue application of digital technologies — such as blockchain or RFID (Radio Frequency Identification) systems — which will allow goods to move more seamlessly along its route from manufacturer to purchaser.

As 2020 gave way to 2021, the supply chain issue waned somewhat, and some industry insiders like Todd Fultz, managing director for the Central Florida office of Plaza Construction, say there was even a silver lining. “The supply chain settled out somewhat.

Building-permit applications in Tampa Bay rose 24% over last year.

John Bowden Senior Vice President, Mid-Florida – Moss Construction

From a subcontractor, tradesmen point of view, for the most part, we worked around any (labor) shortages. If we lost half of a crew or crews, we would just re-sequence the work. We didn’t try to replace people who were going to be off the job for 10 days. On the management side of our operations — superintendents, project managers — we have started to see some real talent become available in the market. There is an enormous number of projects in our pipeline that are teed up to go. Talent is going to be needed.

The issues during the pandemic were rather short term. They were sharp when they happened but we were able to roll with them and figure out how to mitigate them as they occurred.

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James Fox President Maddox Group

What is your take on the future of office space in terms of layout and design?

In my world, we rely on brokers, so we have a lot of commercial brokers that we use as resources and we speak to all of them often. These are big companies, the CBREs, the Cushman & Wakefields and the JLLs of the world. They have their research teams doing their due diligence because this is their life. What we are hearing is that the percentage of people who want to work from home after this pandemic is behind us is not as high as people may think. Most people want their teams back in the office. They want that team camaraderie back. As a business owner myself, we went through that in the office portion of things. We had 20 people in the office, and we were rotating. Every third or fourth week there would be a team in there, then they would work from home for a few weeks. Since then, we have all been back in the office. Home office works better for the employee, obviously, but as an owner, I want my team there. I like to see the teams bonding and I like the team synergy.

On the flip side, there will certainly be some downsizing of space because maybe not everybody needs to be in an office. It all depends on the nature of each business.

However, I am sure we will see some tenants giving space back to the buildings in 2021.

What are the main priorities for Maddox Group in the near term?

From a company standpoint, we always want to accomplish more than we did the year before. All things considered; we had a good year in 2020. The largescale picture is to build off that. Opportunity is afoot if you have been standing strong throughout, just as we are.

Equally as important is to continue operating with the highest of construction safety standards and following protocols under the CDC guidelines during these unprecedented times. Maddox Group will adapt accordingly to the changing times, taking care of all staff and clients present and future.

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One study showed that 71% of contractors had experienced at least one material shortage There is enough supply in the United States on the construction products front. Most of our materials suffered no delays. We had a few things, such as electrical switchgear coming in from Mexico, that got delayed. The same with elevator parts. We needed to ensure we were tracking them early enough to make sure they got here. We had to do a good job of calling our vendors, making sure they were on top of the delivery time frames to avoid any delays. Opportunities to prove ourselves and get things done also presented themselves amid these supply chain pressures,” he told Invest:.

One more related issue that resulted from the pandemic was a decline in skilled labor in the industry.

Already there was a dearth of capable workers in the construction sector nationwide. This was not helped

by COVID and, in some cases, closed borders. What developers are now facing is a reluctance to get back to work after spending the year at home, living off money from PPP loans. There is concern that, if unemployment benefits in the state remain as high as they are, people will continue to be unwilling to show up at the job.

Another challenge faced by the construction sector in Tampa is the availability of land. Certain government actions are seeking to address this issue. One is creating a more streamlined system for issuing permits that allow development on Florida’s wetlands, much to the anger of local environmental groups. There has also been a backlash by developers against the board of county commissioners for their implementation of new growth restrictions and high impact fees.

Still, despite all these obstacles, the industry is positioning itself to take advantage of what is widely expected to be a post-pandemic boom. There is a widely held belief that mixed-use developments are going to be more in demand from buyers. The Rome Yard site ( )

Market voices: Engineering services

Pat Gassaway President Heidt Design

I’m always amazed at our customers and how well they do. Nobody ever envisioned that we’d have to have hand-washing sinks and sanitizers on construction sights. But when you are faced with a business that can only work if those vendors, providers and subcontractors continue to go to work, being safe and helping those small businesses that help provide what ends up being a home is very important. And the builders haven’t missed a beat. They are having their largest year ever while they’re learning to sell virtually. We have several national builders that are closing hundreds of homes a month. Getting that kind of traction by multiple builders is remarkable.

We’ve always specialized in the private sector and we saw a big shift last year. There was a decline in the office-space and restaurant segments. We also started doing a lot of industrial space for companies like Amazon, as well as emerging sectors like medical marijuana becoming more prevalent in the state of Florida. We’ve also found ourselves doing more multifamily buildings than in the past. Since more people are working from their homes, and with more people moving into the area, the requirement of more multifamily apartments and condos represents new opportunities.

Mark Hardy

Vice President of Forensics and National Accounts Universal Engineering Sciences

Joseph Girgenti

President Wilson & Girgenti, LLC

There are a couple of game changers out there. We’ve seen some conceptual plans for commercial developments that are meant to be launched once the new I-275/I-4 interchange is concluded. One project that will be starting soon is the increase of general use capacity of I-275 north of the I-4/I-275 interchange. We’ve also seen some projects get pushed back a bit, by maybe a year or so. State Road 60, as you come over the Howard Frankland Bridge, is always a bottleneck. It will be tremendous once they get that going and online. We’ve also heard that possibly there will be light rail coming from Orlando over toward Tampa in the near future. We could see that in the next two to three years, which would be another bonus.

In terms of trends, I’d point to the rapid rate of construction of large footprint industrial distribution centers and growing attention to the firstand last-mile distribution facilities. It is not limited to million-square-foot big boxes; it extends to mid and smaller size facilities, targeting infill sites as much as possible. It will be challenging to co-locate some of those types of uses into mixed-use projects but there’s going to be an effort to try to do just that, leading to ways to start to push the envelope of historically keeping those uses separate. We can see that trend happening.

Dave Kemper Senior Principal Stantec – Tampa

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Mark Metheny President – Tampa Division Lennar

What is your assessment of inventories and pricing in the Tampa Bay market?

Inventory right now is very low. At Lennar, we tend to build a lot of inventory homes. It allows us to provide that brand new home for people who are looking to move relatively quickly because they are new to the area, leaving an apartment or just want to start enjoying their home sooner. We are not the only builder that does that, but we are by far the largest that uses that approach.

What shifts from multifamily assets are you seeing?

It doesn’t look like the multifamily rental product is going away anytime soon; there are a number of large apartment projects underway throughout Tampa. From a rental standpoint, we are seeing a trending preference for the more traditional, single-family detached homes, and we are delivering quite a few homes that will be for rent.

Large, private equity groups are investing in that space.

What are the main projects or communities you are most excited about?

We have two age-restricted, highly amenitized, lifestylefocused communities. One is in Southshore Bay and the other is in Mirada. They both include resort-style pools and clubhouses extending over 15,000 square feet and are among the first communities to have a worldrenowned amenity: a Metro Lagoon by Crystal Lagoon.

These two communities are great for snowbirds or those looking to leave the Northeast for better weather and resort style living.

We also have an exciting community in Pasco County called Angeline. It’s a large-scale project of up to 10,000 homes at a variety of price points. It will feature some innovative amenities for those homeowners.

Additionally, we sold a parcel of land there to Moffitt Cancer Center to build a research campus. It will be exciting to see the impact of the community and the Moffitt facility on job growth and innovation over the next 10 to 20 years.

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More than 3.2 million square feet of industrial space was under construction in Tampa Bay as of May 2021.

( ) is a case in point. As this was city property, deciding who would develop it was left up to Tampa’s mayor, Jane Castor. She awarded the contract to Related Urban Development Group who, partnering with the Tampa Housing Authority, proposed a mixed-use development for the 18-acre location: apartments, townhouses, commercial space, parking, outdoor gathering areas, a small park, a fitness trail with distance markers and an enormous pool. Part of the logic in this choice was that the pandemic has shifted consumer demand: people need outside space with the capacity to socially distance.

There has also been progress in the integration of smart technology into building. As the pandemic made it more difficult for managers and clients to visit building sites together, programs such as the contractor Suffolk’s Computer Aided Virtual Environment

CONSTRUCTION & INFRASTRUCTURE OVERVIEW

allowed clients to don a pair of 3D glasses and inspect the construction progress of their property. The hope is that similar technology will make the building process more efficient and collaborative.

Sustainability and green technology has also become a force in construction, both in spurring new building as well as being integrated into design. A new paper manufacturing plant is going up on a 37-acre site at the Port of Tampa Bay, the latest in a string of projects that promote cleaner consumption. In a similar vein, Duke Energy announced plans to invest $1 billion in solar plants across the state, with the hopes of turning the Tampa Bay region into a national leader for solar energy production. This comes on the back of other projects such as Florida Power & Light’s battery facility in Manatee County, slated to open at the end of 2021, which will store solar energy and will be the largest such battery facility in the world.

Financing The first months of the pandemic saw something of a freeze in lending for real estate projects, as bankers were forced to shovel funds into their reserves and also turned their focus to processing PPP loans. Lending institutions, like everyone, also felt uncertain about whether the economy would bounce back or stay in a rut for the long term. By and large, there was a reluctance by major institutions to serve as lenders on projects.

During the lockdown, 65% loan-to-cost was the norm, down from 70% six months before the pandemic.

Given the strange circumstances of the pandemic, lenders and borrowers entered a delicate dance to get deals done. At the height of the outbreak, lenders were more tolerant of restructurings involving SWAPS ( )

®

oundtable:

Powering the community From solar to natural gas, energy generation is evolving. Tampa Bay utility leaders discuss the challenges and changes in the industry.

Archie Collins President & CEO Tampa Electric

What is the government’s role in developing solar energy?

The way I look at renewable investment, which is a central element of TECO’s strategy, is that customers want us to do this, provided that it is done at a pace they can afford.

Socially, it is the right thing to do, and it falls upon private companies like Tampa Electric to determine how to make these projects cost-effective. The investments we have made – and will continue to make over the next three years – are cost-effective because they are done at scale.

Having said that, the federal government can play a role in helping support innovative new technologies, including energy storage, which can further improve the economics and efficiency of renewable investments. And at the state level, a stable regulatory environment is always important to the overall health of the electricity sector.

What are some of the biggest challenges facing Tampa Electric and what is your outlook for the energy industry?

Climate change is certainly a worry, and as a result we are working hard to strengthen and modernize our system.

Fuel supply is another concern because it all comes from out of state, and pricing can be unpredictable. This is one of the many benefits of investing in solar energy. I also think we need to improve the diversity of our workforce at all levels, so that we do a better job of reflecting the community we serve.

That said, I am very optimistic about the future. This community remains a destination of choice, it is growing quickly, and the employees at Tampa Electric are proud to do their part to support and enable that growth.

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CONSTRUCTION & INFRASTRUCTURE ROUNDTABLE

Anddrikk Frazier President & CEO Integral Energy

How will the Biden administration impact your business?

We know this administration has a keen awareness of climate change and sustainability. From the energy standpoint, that plays to our advantage. I think we’ll see some regulations put in place and diversification of energy systems. Investment in technology, whether by subsidy or by grant, will be important to make us more self-sustaining and create jobs. There is the notion that getting rid of fossil fuels will destroy jobs and the reality is the opposite. The biggest challenge to renewable energy is cost, especially now with the pandemic’s influence.

There will be price increases for all utilities and this will impact people’s pockets. People are also resistant to change. Generationally, there is a large proportion of the workforce that is still resistant to new developments. This is why it’s so important to have a smooth energy transition as well as diversification of energy sources.

How well positioned is Tampa’s energy infrastructure to handle population growth?

The infrastructure definitely needs some hardening, from transportation to energy and water. As we get further from the city, natural gas is not as readily available. I think there will be a bigger focus on that. There has been a lot of emphasis placed on solar from the utilities in Florida but one of the problems is the location scouting for a solar plant. Micro grids and distributed generation may start to come into play. Pasco County is very well positioned for growth, as is the I-4 Corridor between Orlando and Tampa. We have opportunities to be a smarter version of Atlanta and if we don’t take the opportunity, this could be a mess in the coming years.

Melissa Seixas

President – Florida Duke Energy

What is Duke Energy’s approach to clean energy and sustainability?

One of our priorities is generating greener energy.

Between 2018 and 2022, we are adding 700 megawatts (MW) of solar to our Florida generating capacity, which brings us to 900 MW of solar in service or under construction right now. A megawatt serves about 1,000 residential homes. Additionally, we are committed to building another 750 MW, that’s another 10 sites between 2022 through 2024. We have strong momentum, and our goal is to ensure that we’re delivering on sustainability and a greener future.

How do you prepare for extreme weather?

The cold snap in Texas this year put a lot of attention on the generation and delivery of power. Users don’t usually think about the technical operational pieces that happen behind it but, like a lot of other utilities, we spend 365 days a year focusing on extreme preparation. For us, it’s usually not cold, it’s more about hurricanes and tropical storms, so we must plan for all of it. We do that through a diverse generation mix. We also have a demand-side management program in which customers can voluntarily participate. The program allows us to interrupt service to a pool pump, air conditioning or heat, to decrease the demand and allow us to continue to provide service without any type of major interruption, like blackouts.

The case of Texas was more of a generation challenge than it was the recovery from damaged poles, wires and similar equipment. We are also part of a nationwide interconnected power network that enables power to be exchanged between utilities. www.capitalanalyticsassociates.com

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( ) and interest rate floors. As well, lenders asked that borrowers enter into Pre-Negotiation Agreements, or set limits to construction dollars on in-process deals, as a way for them to shore up reserves. In return to putting these burdens on borrowers, lenders considered waiving fees to exit.

As normalcy returns and the economy booms, as expected, so too should construction lending return to previous levels.

Residential In Tampa Bay, as with the rest of Florida, there is a persistent seller’s market, which has been driving up home prices in the region. This is due mainly to the inflow of new residents snapping up single-family homes. While prices are still low, comparatively, they are expected to continue rising, which brings hope of strong appreciation in the next few years, a plus for investors. In fact, Tampa is in the Top 10% percent for home appreciation value, and since 2012, the median home price has appreciated about 124%, from $112,000 to 251,387.

In the entire Tampa Bay region, there is less than two months of available inventory, down by 21% from last year (5.5 months inventory is the benchmark for a balanced market, anything lower indicates a seller’s market). Of the homes available, one and two-bedroom detached single-family homes are the most popular in the region, though apartments, duplexes and townhouses are also popular.

While in the long term, Tampa is predicted to remain a safe bet for homeowners, there are some who predict a market correction. In a Forbes report, real estate billionaire Jeff Greene said that the high prices are

One of the greatest challenges to the construction industry is the current state of the global supply chain.

CONSTRUCTION & INFRASTRUCTURE OVERCONSTRUCTION OVERVIEW VIEW

Fred Lay President & Founder Construction Services, Inc.

What are some of your major takeaways from 2020 regarding the local construction sector?

Eighty percent of our work is in Tampa Bay, although we work throughout the state of Florida. We do a lot of industrial and medical facilities. Last year was teed up to be a great year and by all accounts it would have been one of the best years we’ve had as a company. The onset of the pandemic certainly slowed us down, although as a general contractor we were still considered essential, so we never stopped. Having said that, many of our projects were put on hold but we were able to make it through the year without any layoffs. Revenue was down, which was disappointing. Last year, we learned how to manage a crisis because nobody had been through this before.

We were making the best decisions we could with the information we had. I think the main thing that kept us going through last year was our reputation, maybe not for a $10 million job but certainly for $3 million jobs.

unsustainable and that, by autumn 2021, when the pandemic has by-and-large ended, people will return to their homes in New York, California, and other cities, tempering prices.

Also, Tampa does not appear to be as popular among millennials homebuyers as other parts of the country. Among the leading metros selling homes to this coveted cohort, Tampa ranks near the bottom of the list (44.54% of homes sold in Tampa are sold to millennials).

One by-product of the pandemic is the boom in multiuse construction, not just in Tampa but across the country. But such construction is facing an imminent challenge in the Tampa region as a new ordinance is being discussed by city authorities that could limit the number of apartment buildings constructed. Driven by fears surrounding the ability to evacuate the city

How have labor and construction costs weighed on your bottom line?

Pre-COVID, there was so much construction work going on that we could not get enough workers to do what subcontractors could ultimately do. We did not see as much of that last year because, especially with Orlando’s amusement parks being closed down, we had 5,0006,000 construction workers come to the Tampa Bay market. The cost of materials probably stayed consistent throughout the pandemic. Toward the fourth quarter of last year, we had to work around some supply chain issues.

HVAC units were sitting in warehouses that needed a $5 component but we simply could not get that component because it was from another country.

What is your focus for the near term?

With some of the sectors coming back, my focus is trying to get ready for that. Some of that is through recruitment and I think we will have to bring on more staff to manage the new demand. This is a good economic indicator for the Tampa Bay area. www.capitalanalyticsassociates.com

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Tyler Kovarik Vice President – Florida Operations Schaefer Construction

What supported your decision to make Tampa Bay the first area to target outside of Kentucky?

We’ve worked in Florida for nearly 20 years, sometimes as a general contractor and sometimes as a contract manager for existing clients. We pride ourselves on the fact that we have 86% returning-client business; however, it was getting to the point where servicing those clients in this area was becoming too large to manage.

We work statewide, and at the time, we had projects from Jacksonville to Fort Lauderdale and everything in between the East and West Coast. When we researched Florida, Tampa Bay seemed to be a promising up-andcoming area for future growth. It was also a great cultural fit for us and a good central location for our Florida operations.

Are there specific geographic areas with an increased demand in the Tampa Bay region?

Schaefer has projects throughout Florida in the senior living and commercial markets. While there is a lot of demand in the Tampa Bay area, we are also seeing it expand to the areas surrounding it. That seems to be where a lot of the new construction of healthcare facilities and other new construction of commercial projects are being developed. This development will help serve the needs of individuals who are moving to Florida and better service the communities in and around the Tampa Bay region.

What technologies are most in demand in regard to sustainability?

The construction industry has adapted well. Several aspects of green building and LEED that were huge 12 years ago are now naturally incorporated into projects.

Many new developments will be powered by solar. While solar continues to have storage problems, there has been a great deal of advancement in that technology.

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Tampa was among the fastest-growing multifamily markets in the United States when the COVID-19 pandemic began.

in the event of natural disasters, the city would stop accepting rezoning applications for multifamily developments. As of April 2021, this ordinance was working its way through the approval stages at city council.

Whatever obstacles the future may hold, there are already some impressive residential structures going up. The Alabama-based developer Daniel Corp is building an $80 million, 19-story high rise in the Channel District that will consist of 324 housing units, a mix of studio, one, and two-bedroom apartments.

Brasfield & Gorrie is the general contractor, and it is slated to be completed by fall 2022. At Orange Station in St Petersburg, J2 Developers and DDA Development are putting up a mixed-use complex in the DTSP Edge District, featuring 56 condominiums, 30 workforce apartments, as well as office and retail space.

CONSTRUCTION & INFRASTRUCTURE OVERVIEW

Commercial & industrial The Tampa Bay region is seeing a surge in commercial construction. Industrial, hospitals, infrastructure and tourism projects are all in the works. The fears that the pandemic would slow down office construction appear to have been unfounded, at least in Tampa. What the pandemic has caused is a precipitous rise in the use of e-commerce, something reflected in the growing importance of logistical sites around the city.

On the much-discussed office front, Colliers’ 21Q1 Report said that rather than abandon their offices, many tenants have taken the pandemic as an opportunity to renegotiate lease provisions, with many staying in their current space, providing cause for optimism. Still, net absorption in the first quarter of the year was negative compared to the year before (-618,382 square feet) due to more sublease space hitting the market as well as an increase in new office completions last year (442,147 square feet). The report said that in 1Q21, there was 520,200 square feet of office space under construction in the Tampa Bay region, well below the 962,347 square feet under construction in the same quarter a year prior. Inventory totaled 70,026,796 square feet in the first quarter.

Industrial, however, shows no sign of slowing down. In fact, in its Industrial Report for 4Q20, Colliers reported 5.8 million square feet of industrial space was delivered in 2020. It was the highest number of new deliveries on record, the report said, citing the accelerated growth of e-commerce as a result of the pandemic that spurred industrial demand. “Sales volume surpassed $1 billion in transactions for industrial and flex product, second only to 2019 levels when the market transacted over $1.1 billion in volume,” the report stated. Most of the new

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Brian Sudduth President – Miller Construction Company The main gateway for technology into the industrial market is e-commerce. We’re building facilities right now that have miles of conveyors that run hundreds of feet per minute. We see distribution companies relying on unmanned forklifts and robots. When you start having all those components, many of the buildings that we’ve traditionally built can facilitate them, but they can be better facilitated if it’s planned upfront. I really believe the biggest development we’ve seen in the community is how these companies are moving, how they’re sorting and handling their products internally when the goals are next-day or same-day delivery. The last-mile distribution for that is also driving an increase in technology because user interfaces have changed shopping. The industrial growth has been big here in South Florida for the last five or six years, with the widening of the Panama Canal and the expansion of the Port of Miami as well as Port Everglades.

product was added in East Side Tampa and the Lakeland area of Polk County.

Opportunity Zones Opportunity Zones were a program approved by Congress in 2017 that aim to increase private investment and development in economically distressed communities through the use of tax incentives. The hope is that, by harnessing the strength of private capital, impoverished neighborhoods will become revitalized. This program has not been without controversy (it was a part of then President Trump’s controversial Tax Cuts and Jobs Act of 2017) and many detractors claim that investors are using it as a way to avoid taxes and expensive housing without benefit to the existing community.

Whatever their benefits or detractions, the Tampa Bay region has taken to Opportunity Zones with great avidity. Hillsborough County can count several of them, especially around Tampa International Airport, Ybor City, Palm River, Port of Tampa, and the University of South Florida. Cushman & Wakefield, the Chicago-based real estate firm, analyzed 45 markets and determined that Tampa Bay was the fourth best in the country as a destination to invest in Opportunity Zones. The Sun Belt generally led the charge, with its business-friendly tax environment and growing population.

An example of this program at work would be the development on Hank Ballard Street. The Central Park Village housing project was demolished in 2007 and 90

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the whole area lay unused for years until it became an Opportunity Zone. Now, cranes dot the skyscape and there are 500 market-rate apartments under construction.

Infrastructure With a growing population and plenty of construction, there is concern that the Tampa Bay region is not meeting its evolving needs. There are many questions surrounding the feasibility of the status quo. As well, past experience — from failed transit proposals to stalled highway initiatives — does not provide for optimism.

Recently, the Biden administration gave the entire state of Florida a “C” on its infrastructure report card, released for every state in the run-up to its $2.3 trillion spending plan. According to the report card, commute times for Floridians have risen by 11.6% since 2011, 408 bridges and over 3,564 miles of highway are in bad condition, 16% of trains are past useful life, non-white households are 3.5 times more likely to use public transportation, and drinking water infrastructure will require $21.9 billion in extra funding over the next two decades.

“Infrastructure is a big deal in Tampa,” Conn Crabtree, business unit leader for Tampa at Batson-Cook. “We’re looking to attract young talent and new corporate headquarters but it’s hard to do that with a quality of life that involves commutes of 45 minutes to one hour for everybody. There are a lot of infrastructure projects going on right now. If you look at Tampa and St. Pete,

CONSTRUCTION & INFRASTRUCTURE OVERVIEW

we have three routes to get across the bay. which are at capacity. Continuing to link the different communities and expanding even beyond that by linking Tampa to Orlando, and having those two markets feed more off each other, would benefit both areas tremendously.”

One area on which Floridians are beginning to agree of the existential threat is climate change. The state is particularly susceptible to hurricanes and rising sea levels. In what has huge implications for infrastructure, the coming years will require bold action to protect against natural events. In Tampa, for instance, in response to the growing intensity of seasonal storms, there is a growing effort to move power lines underground. All of the major providers in the area — TECO, Duke Energy, Lakeland Electric, and Withlacoochee River Electric Cooperative — are working on this with varying degrees of progress.

Looking ahead By all accounts, the Tampa Bay region is primed for continued growth in the near term and the construction sector is expected to be busy, despite the ongoing challenges. “If someone says anything negative about the construction outlook in Tampa Bay, they’re probably

According to Cushman & Wakefield, Tampa Bay is the nation’s fourth-best market for Opportunity Zone investment doing something wrong. It is true that there’s a shortage of materials, people and quality subcontractors, but if you have deep roots in the area and maintain quality subcontractor relationships, you can complete your job on schedule. It’s all about the relationships and trust level you’ve built with folks you’ve worked with for 25plus years. They will bend over backwards to help you,” said Robert Healy, president of iConstructors.

CONSTRUCTION & INFRASTRUCTURE INTERVIEW

Vital solution Natural gas will continue to play a key role in meeting energy needs and reducing carbon emissions

T. J. Szelistowski President – Peoples Gas part of the energy solution in Florida.

Direct use of natural gas also is a very efficient way to satisfy energy needs, resulting in a lower carbon footprint as well as cost savings for the end user. The three main reasons people use natural gas are cost, reliability and environmental responsibility. In terms of making natural gas even cleaner, there is opportunity on the horizon including the development of renewable natural gas. We’re working with a number of farms and solid waste and water treatment facilities which produce methane that can be captured, cleaned and injected back into the pipeline.

How will the Biden presidency and its policies impact your natural gas business?

Environmental policy and a commitment to the environment will certainly be big with the new administration and we see ourselves as a huge part of that commitment. In Florida, per capita CO2 emissions have gone down 26% since 2005 – while the state has experienced significant population growth – and the reason for that reduction is natural gas. Not only has there been a reduction of coal generation in Florida because of natural gas, but we are also seeing the environmental benefits of using natural gas for vehicle fuel. Natural gas is a cleaner fuel source and electric utilities across the state are converting to natural gas. Until there is much more widespread renewable energy and the viability of cost-effective batteries, natural gas will be an integral 92

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What is your outlook for the utility and for Tampa Bay? I think we’ll see some shifts due to people working from home, so we see the potential for people to use more natural gas in their homes and use more electricity generated by natural gas. As an essential service, we are critical to commercial and residential customers. A combination of that and the growth in Florida as well as some of the challenges across the rest of the country really positions us well.

One of the things that is getting more attention across the industry is liquified natural gas (LNG), which is commonly used in long-haul transportation and shipping. The use of natural gas for transportation is interesting because while we have been a big part of large-vehicle alternative fuel, the demand for natural gas with passenger vehicles has been minimal. But when you consider that 70% of electricity is generated from natural gas, even electric passenger vehicles are in reality fueled by natural gas. In terms of shipping, new IMO (International Maritime Organization) regulations were rolled out last year and this mandated that in the short term, vessels needed to either install scrubbers or use ultra-low sulfur oil. For the future, the best option will be for those vessels to continue a transition to LNG.

Transportation & Logistics: Tampa’s car-centric culture and funding issues related to providing a diversified, multimodal mass transit landscape could make for a bumpy ride as the region comes out of the pandemic. In contrast, the region’s solid logistic and distribution environment has proven to be pandemic-resilient and all signs point toward sustained growth.

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Conundrum: Mass transit remains a key hurdle, in contrast to the region’s welloiled logistics and distribution machinery Transportation and logistics go hand in hand, providing mobility across varied demographics and ensuring products and supplies reach people and businesses. In the case of Tampa Bay, there is divergence between the two, with a thriving logistics sector and an overburdened transportation system that is feeling the strain of the region’s growth.

With transportation, the fact is that the more people Tampa Bay attracts, the greater the weight on its already strained system, and the projections are worrying. The region’s population is expected to reach 4.65 million by 2045, a 34% increase from 2018 for the five-county area defined by the Tampa Bay Area Regional Transit Authority (TBARTA). This is in addition to the millions of visitors that come to the region each year.

One indicator of the hurdle facing transport authorities is that both Tampa Bay and St. Petersburg are rated among the worst cities for public transportation in terms of accessibility and convenience, safety and reliability and public transportation resources.

It comes as no surprise then that 78% of workers 16 years and over in the Tampa-St. Petersburg-Clearwater metro area drive alone to go to work. Still, public transportation plays a crucial role as an economic 94

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mobility equalizer, which partly explains why Tampa’s public transit authorities received $30.8 million of COVID-19 relief to avoid worker layoffs and maintain service operations across the different transportation modes available.

In stark contrast to the reality of its public transportation, Tampa Bay’s logistics sector, also reliant on transportation, is a thriving growth engine that capitalizes on two of its major assets: Port Tampa Bay and Tampa International Airport. The port alone employs 85,000 people in both direct and indirect jobs, generating $17.3 billion in overall economic impact.

Tampa International Airport employs more than 7,500 people and generates a yearly economic impact of $7.1 billion.

Transportation To address its public transportation deficiencies as well as its traffic problems, Tampa is relying on two critical and comprehensive programs: TBARTA’s Envision 2030 and the Florida Department of Transportation’s (FDOT) Tampa Bay Next.

With more of a regional focus, Envision 2030 is spearheading regional transit planning efforts for its ( )

TRANSPORTATION & LOGISTICS INTERVIEW

Silver linings Reduced passenger traffic allowed the acceleration of essential projects at Tampa International Airport

Joe Lopano CEO – Tampa International Airport What positives emerged from the pandemic in 2020?

The silver lining in all of this is we were able to accelerate some essential projects, especially those that were roadway-related. One such project is our main terminal curbside expansion, which will now include express curbs. We were able to build that much more efficiently, taking advantage of reduced passenger activity. Our roadways coming into the airport also were going to be widened and this was a perfect time to do that because there was not a lot of automobile traffic coming in. Then we have our Central Utility Plant and our SkyCenter office building. We have been able to keep those projects on schedule. In parallel, all of our contractors operated in a safe environment. We’re elated with what we could do in this terrible time.

What does the SkyCenter office building mean for Tampa?

The fact that you can work in the morning, leave your office at noon, have dinner in Chicago with a client and be back in your office the next day without ever moving your car, without ever driving in traffic is a unique kind of experience. There are only a few office complexes around the world where you can say that is the case. It’s a unique property. It has a unique selling proposition and we are confident it’s going to be a highly successful real estate investment. It’s slated for delivery in the summer of 2021 and we plan to move into our three floors in the spring of 2022.

How do you see the acceleration of e-commerce impacting your cargo operations?

FedEx, UPS and Amazon are important business partners and play critical roles at TPA and in our community.

Cargo is growing steadily in the airport, primarily due to the Amazon effect. We actually have Amazon’s own airplanes, Boeing 767s and 737s that have been converted

to freighters, flying into the airport. The e-commerce giant has also purchased a fleet of Mercedes-Benz delivery trucks. We have had more meals delivered and products brought to the front porch than I ever dreamed possible. It’s going to continue and all airports are going to be essential distribution points.

The revenues we get from cargo operations are limited, however. That is because boxes do not eat hamburgers or read magazines. Only one quarter of our revenues come from airlines paying us to use our infrastructure. Cargo carriers only pay a landing fee and some facility rentals.

It’s not a tremendously profitable airport operation but it is a tremendously profitable operation for the community in the sense that they employ a lot of people, including truck drivers and warehouse workers. It’s critical for major economic centers such as ours to remain vital. www.capitalanalyticsassociates.com

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Brad Miller CEO Pinellas Suncoast Transit Authority

In August, the groundbreaking of the SunRunner BRT line occurred. What’s the timeline for that project?

The SunRunner BRT line was an incredible accomplishment. The Tampa Bay region’s first rapid transit line is finally under construction, after 30-plus years of talking about it. We’ve completed about five of the 30 stations along the line. 2021 will see most of the construction accomplished, we’ll get the vehicles delivered to us, and then we’ll start early next year with the rapid transit. We are hoping that this will all be a catalyst for expanding the system. From the one line we have now, we are hoping to expand across the whole Tampa Bay region and are looking forward to it being a very big success.

What are Tampa Bay’s plans for the autonomous vehicle (AVA) pilot program?

We’re very proud of our openness to new ideas and we’ve built our reputation on that. So, as of now, we have a driverless bus, a vehicle with no steering wheel, operating in our county. I think a lot of people didn’t think that would ever happen. AVA is really exposing the extent to which transportation is changing everywhere.

It’s right in a big tourist area, right down on the waterfront, making it the most observed autonomous vehicle program in the entire country. People are loving it so far. All of that is what we wanted out of the pilot program and that is what we are getting out of it.

What are your near-term goals and priorities?

We’re always going to be focused on keeping our reputation for innovation and looking to the future, whatever that might bring. That means more work with the autonomous vehicles and ferry transportation. Also, we’re looking to be more sustainable, such as by tripling our electric bus fleet. We just placed an order for two more electric vehicles. We’re going to need more power, so we’re working on a solar panel project to power up our new electric fleet.

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25 minutes is the mean travel time to work in Tampa Bay.

( ) coverage area (the counties of Hernando, Hillsborough, Manatee, Pasco and Pinellas). The overarching goals include a safe, sustainable and efficient regional transit system; securing sustainable funding sources and moving toward a seamless regional travel experience for all users.

Tampa Bay Next has a more localized focus, prioritizing safe and efficient means of transportation for both goods and people, creating meaningful opportunities for public input, balancing regional needs with community concerns and committing to sustainable infrastructure decisions. The program looks do develop a comprehensive and multimodal transportation system that includes interstate modernizations, bicycle and pedestrian facilities, transportation innovation, freight mobility, transit options and the development of complete streets, a policy committed to prioritizing the safety of the most vulnerable people who use the street in any and all future transportation projects.

In another important addition to Tampa Bay’s mass transit expansion, the Sunshine State awarded Tampa more than $67 million for the Tampa Streetcar

TRANSPORTATION CONSTRUCTION & LOGISTICS OVERVIEW

Thomas Jewsbury Airport Director St. Pete-Clearwater International Airport

How did the challenges of 2020 affect the airport’s operations?

We finished 2019 with 2.4 million passengers, continuing to break records year over year. Going into January and February 2020, we continued to see that upturn. Then, like the entire industry, we saw it fall out from under us thereafter. Immediately, we put in the measures universally encouraged: extra cleaning, social distancing, trying to create a safe environment for those passengers who were continuing to travel, as well as for the sake of our employees.

Without knowing what the rest of our year would look like, we used the opportunity to take a look at our budget and capital improvement program, what to scale back, while also thinking about what the recovery would look like. We were in a good financial position, confident that we’d get through the crisis, and we did.

Extension Project through the state’s New Starts Transit Program. With a competitive Downtown in mind, the project includes the modernization of the operational 2.7-mile TECO streetcar line as well as a 1.3-mile fixed guideway extension.

Despite Tampa Bay’s ambitious plans, funding remains a prevalent issue that further puts back the area’s transportation infrastructure pipeline. Hillsborough County’s one-cent transportation surtax to fund transit transport, an All for Transportation citizen group-led initiative, was passed in 2018 by Hillsborough County voters. As of January 2021, the tax had raised more than $450 million, yet the entities entitled to use those resources cannot touch them because the tax has been challenged as illegal and is now in the hands of the Florida Supreme Court. The funds will remain locked until the court announces its decision in the matter The uncertainty related to the surtax funds has not discouraged the development of innovative solutions to transportation issues, however. In November 2020, the Clearwater City Council greenlit a study meant for a two-mile gondola system, for example.

Has the airport achieved its maximum potential for growth?

We have a great investment opportunity for the community. We have 130 acres at this airport that is currently unused. The area was previously a golf course. What is significant about it is that it is, in fact, the largest piece of undeveloped land in Pinellas County. We’re working with our economic development team to strategize, site plan and determine what this development can look like. In the next couple of years, that’s going to provide a great opportunity for development, both aeronautical and non-aeronautical.

What are your main near-term goals and priorities?

For the short term, we’re going into our budget plan for FY22 and trying to make the necessary financial projections, to see what they look like and what the recovery might be. We’re being very cautious as far as expenditures. Where can we find efficiencies? What will our future construction plans look like? www.capitalanalyticsassociates.com

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Only 1% of total commutes in Tampa Bay are by public transit, according to TBARTA figures Initiatives and Investments Despite the hurdles, the region continues to look forward. One example is a project by the city of Tampa, FDOT District 7 and the Center for Urban Transportation Research at the University of South Florida, which teamed up to create the Tampa Bay Smart Cities Alliance.

This cluster of stakeholders is looking to materialize the vision of a regional group dedicated to short-term operational goals in the Tampa Bay area to propel the region through cutting-edge, multidisciplinary technologies, including transportation, energy infrastructure and health. Two of its most recent initiatives include enhancing cybersecurity in public transportation and the development of an effective truck route signing program for the city of Tampa.

And while the devastating ripple effects of COVID-19 were felt throughout 2020 and into 2021, Tampa Bay was not without its wins throughout the year. The most notable initiatives and investments for the area include $30 million to add two lanes on the Howard Frankland Bridge to address the long-standing bottleneck that has been a constant source of dismay and delays for commuters. Although the lanes were completed ahead of schedule, they are only an interim step in the more ambitious and onerous project of a new span for the Howard Frankland Bridge to provide a more long-term solution. Valued at $864 million, the eight-lane bridge is slated to open by 2024 and broke ground in 2020 to capitalize on the lack of traffic resulting from the pandemic measures, accelerating the work.

2020 also welcomed driverless shuttles into Tampa Bay, courtesy of self-driving shuttle operator Beep, which launched its pilot shuttles in Tampa and St. Petersburg during the fall of 2020.

Finally, after bolstering initiatives and programs to make Tampa Bay’s streets safer and usable for both pedestrians and cyclists, the city of Tampa invested $10,000 in additional bike parking, adding 98 bicycle parking spaces in its downtown garages.

Bus and rail The Tampa Bay region is in dire need of a stronger regional commuting profile, especially considering only 1 percent of total commutes in the area are by public

Beth Alden MPO Executive Director – Plan Hillsborough

I think we have a great opportunity to create our first bus rapid transit line between Downtown and USF. In the last year, the Pinellas Suncoast Transit Authority got funding for the Central Avenue Bus Rapid Transit project in St. Petersburg, the first FTA capital investment grant project in this region. It’s very costeffective, repurposing some road lanes that aren’t heavily used, and we’re hoping to do something really similar on Fowler Ave and Florida Ave. You don’t need eight lanes on Fowler Avenue. The idea is to reconfigure that and have more boulevard space and trees, have a trail side path, a dedicated bus lane, safe crosswalks.

There’s room for all of that, and the combination of public and private investments in places like Fowler Ave and University Square Mall is changing Tampa. It’s becoming a different place, growing up into a city, and we’re all pulling together for that.

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transit as per TBARTA’s latest figures. While average daily commutes by car totaled 1.2 million, average daily commutes via transit only reached 19,500.

TBARTA’s Envision 2030 plan includes new express bus routes across county lines as well as between residential areas parallel to major activity centers that will operate in mixed traffic and offer fewer stops. The success of the program will be tied to available funding considering there are about $42 million of existing resources for the next 10 years, while the full extent of the program is calculated to require $89 million in operating costs and $403 in capital expenses.

In parallel, Tampa Bay’s Regional Rapid Transit (RRT) devised a Regional Transit Feasibility Plan (RTFP). By the summer of 2021, the project is expected to be submitted for an FTA Capital Investment Grant program rating.

Tampa Bay also began the construction of its very first rapid transit route, in May 2020. The region was awarded a $21.8 million grant for the route linking St. Petersburg to the beaches. The 10.3-mile SunRunner route is slated for inauguration in early 2022.

On the rail side of things, the city of Tampa only offers the TECO line streetcar, which is far from a highspeed solution and has a limited reach, leaving room to further Tampa’s rail infrastructure. As of April 2021, rail operator Brightline was engaged in active discussions with Tampa officials, covering potential rail station sites for a Tampa-to-Orlando route, including a connection to the TECO Line streetcar system.

Aviation Necessity is indeed the mother of invention. The aviation industry across the United States witnessed a wave of innovation and accelerated technological improvements in the face of COVID-19 and the urgent need for customer confidence to return. To that end, in September 2020, Boeing unveiled a portable wand slated to become available for all airlines in late fall 2021. The ultraviolet wand is designed to rapidly sanitize passenger planes in between flights to prevent COVID-19 contagions. Tampa Bay’s skies may also soon be dotted with air taxis. Munich-based Lilium Aviation is eyeing Tampa as a testing ground for its 100 percent electric, five-passenger eVOTL aircraft toward 2025.

In another win for Tampa Bay, the Federal Aviation Administration (FAA) greenlit Florida Metroplex, the state’s plan to modernize air traffic procedures for 21 airports in the southern region of the Sunshine State. It is rooted in satellite-based procedures that will enhance safety and efficiency in Florida’s commercial airplane routes, including new arrival and departure lanes for

Miami, Fort-Lauderdale-Hollywood, Palm Beach, Orlando, Tampa and St.Pete/Clearwater international airports.

Despite the crippling effects of the pandemic, several new route announcements were welcomed throughout 2020 and 1Q21. Silver Airways returned to the Jacksonville market in late 2020 announcing nonstop flights to Tampa and Fort Lauderdale. Spirit Airlines is poised to launch a new nonstop service from Kansas City International Airport to Fort LauderdaleHollywood International Airport, Tampa International Airport, and Southwest Florida International Airport.

St. Pete-Clearwater International Airport is a 2,000-acre fully certified facility with 2 runways.

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TRANSPORTATION & LOGISTICS OVERVIEW

Mike McLamb Executive Vice President & CFO – MarineMax, Inc.

Tampa Bay offers a great boating environment for anyone wanting to enjoy the boating lifestyle. The places available to visit by boat, the restaurants that are on the water, the islands that are all around Tampa Bay, the water, the fishing all make Tampa Bay a great place to enjoy the boating lifestyle. When you think about the west coast of Florida, most of the islands from north of Tampa Bay all the way south to the Keys are lightly inhabited. They offer beaches to go to, drop anchor and enjoy boating to its fullest extent.

Airline industry challenges After a meteoric rise in passenger traffic from 16.6 million to 23.3 million between 2010 and 2019, Tampa International Airport officials are anticipating 15.7 million passengers for 2021, the lowest headcount since the Great Recession, while operational revenues are budgeted at $219.4 million for 2021, an 18.6% contraction compared to 2020.

Despite drastic measures implemented to reduce costs, the airport closed FY20 with a $40 million loss, to be offset by the $81.2 million CARES Act federal grant resource the airport received. To support the airlines, concessionaires and rental car companies that resorted to layoffs and furloughs, the airport waived rental fees for 16 tenants throughout 2020, amounting to $16.2 million from rental car companies and close to $11 million from concessionaires. The waivers have been extended for 2021.

COVID-19 also hurt the links of Tampa’s aviation value chain. GE Aviation, a global airplane engine supplier with two facilities in Tampa Bay announced it would be cutting 25% of its global workforce to create $1 billion in cost savings and $2 billion in cash actions for 2020.

Public-private partnerships Given the prevalent need for funding relating to sustainable transportation in Tampa Bay, public-private partnerships are gaining popularity to help the area fulfill its transportation and logistics ambitions. The New North Transportation Alliance is the region’s longstanding example of the success of such a structure.

Established in 1994, it offers a forum for businesses, local governments, residents and commuters to establish the agenda of priorities surrounding the dire need for improvement in the transportation options within the New North Area.

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Airport officials in the region feel traveler confidence is on the rise and air travel is making a comeback.

TRANSPORTATION CONSTRUCTION & LOGISTICS OVERVIEW

More recently, public infrastructure developer Plenary Americas US Holdings Inc has been looking to partner with local city officials for its most ambitious transportation project yet: a 8.25-mile, $70 million streetcar line connecting Tampa International Airport, Downtown and Ybor City. It’s called the CrossTampa Transit Connector.

Port-side, the U.S. Army Corps of Engineers, FDOT, Tampa Electric Co. and global fertilizer company Mosaic Co. banded together via a public-private partnership agreement to develop a $60 million widening and extension of the Big Bend Channel.

Technology Tampa Bay is a top tech market in the United States and technology is the cornerstone for improving user

Karl Kaliebe Executive Director World Trade Center Tampa Bay

What are some of the intricacies of translating operations online for small businesses?

There has been massive progress in videoconferencing technology. I am working with a startup called Flipsetter, which came out of an incubator at the University of Florida. This is a social, digital media tool that does not require cellular data, so the entrepreneur is getting more and more demand for testing the platform and serving the underserved. The people who have been able to cope well are those with more resources and more education.

The people caught in the lower socio-economic base are the ones that took the brunt of lockdowns.

How will workforce efforts evolve?

I think it will be a mixed bag depending on what industry we are talking about. Some are still demanding skilled employees but some are still cutting back. Whenever there is uncertainty in business, that keeps people from pulling the trigger on capital investment.

What are some of the changes in tariffs expected under the Biden administration?

A lot of the rhetoric was around the traditional items in international trade. I think both the Democrats and Republicans will continue the shake-up in the supply chain that showed we need some resilience in some sectors. This is not isolated to the United States. Japan just announced a significant investment to overhaul its own supply chain and to break down some of its dependence on China. China is taking the brunt of this event.

What are your near-term priorities?

We have a pretty limited outreach program, so we want to continue building our brand awareness. Miami has a much bigger footprint internationally. The World Trade Center was much more important before the internet but since the world has this increased connectivity, our role is to create value for our customers, both local and international. I deal with a lot of startups and a lot of them are starting to ramp up activity now. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

Pre-pandemic, more than $160 million worth of goods flew through Florida’s airports annually experience and transportation options across the area. To that end, HyperloopTT, a concept proposed by billionaire Elon Musk that envisions capsules moving through magnetic tubes at hypersonic speeds, has stepped up to pitch its very own bullet train via a Tampa-St. Pete tunnel.

Looking to further promote the novel concept of micromobility, the city of Tampa has enlisted the services of four of the country’s most prominent micromobility companies: HOPR, BIRD, LIME and SPIN. The objective? Ready a fleet of bicycles and e-scooters for use in Tampa’s Downtown and adjacent neighborhoods.

Logistics Tampa Bay’s bubbling demographics make it a boon for the logistics industry. Pre-pandemic, more than $160 million worth of goods flew through Florida’s airports on a yearly basis. While passenger flights took a massive

dive throughout 2020, Lakeland Linder International Airport generated $1.5 billion of economic impact in 2020 alone, a dramatic surge compared to $575 million one year prior. It also doubled its workforce year-onyear, counting 3,200 employees in 2020. The airport has Amazon Air as one of its tenants, which invested $100 million last year to establish its largest air cargo hub in the Southeast, which translated into 1,100 additional jobs. The airport’s success is even causing a pilot and mechanic shortage due to the overwhelming demand for their services.

Tampa International Airport’s cargo operations remained steady throughout 2020 due to the busy activity of FedEx and UPS, fed by the Amazon effect.

President Joe Biden’s “buy America” campaign to jolt local economies is poised to inject new life into the area’s already thriving logistics industry.

Global trade Acting as a gateway to Latin America and armed with a busy airport and a highly active port, it comes as no surprise that wholesale trade in the Tampa-St. Petersburg-Clearwater area was quick to recover its employment figures. After a significant dip from 55,800 professionals in March 2020 to less than 53,500 people in April 2020, the stress caused by COVID-19 on the value chain required more manpower, meaning that

by January 2021 the industry was already near March 2020 levels in January 2021 with 55,000 employees.

The silver lining from the pandemic is that companies have all hands on deck looking to strengthen their supply chains: diversified points of supply closer to home after China’s lockdown dealt a massive blow to critical merchandise supply around the world, whether that ( )

TRANSPORTATION & LOGISTICS INTERVIEW

Winning formula Port Tampa Bay is eyeing a broader cargo mix, container terminal expansion as part of its diversification efforts

Paul Anderson President & CEO – Port Tampa Bay How has 2020 altered the trajectory of the port’s master plan Vision 2030?

We continue to focus on diversification of our cargo mix. We’re one of the most diverse ports in the United States, certainly the most diverse in the state of Florida.

During the black swan event that is COVID-19, that diversification has proven to be a true winning formula.

Construction projects by departments of transportation were accelerated because of the virtually nonexistent traffic. We saw steel, cement and lumber pouring in. We launched a new lumber service during the pandemic that we had been working on for several years. The same can be said for aggregate and cement.

Our business plan always considered expanding our container terminals, which is what we’re doing. We’re focused on Latin American trade, which explains our fresh Mexican service. Mexico is already the secondlargest trading partner for the United States and with twoway trade in goods totaling over $665 billion annually, we think that’s going to grow significantly. Traditionally, the only option for Florida has been to get goods by rail and then by truck. So, we’re now a new option. With the new USMCA trade agreement, the United States is in a better position with its trading partners, which is bolstered by global sourcing strategies resulting in nearshoring manufacturing and distribution points for e-commerce and continued growth and expanded trade with Mexico.

on both sides of the aisle can agree. If you improve our roads, bridges, highways and mass transportation, the end result is more efficient connectivity. We’re optimistic that the Biden administration will focus on some of these areas. While we have yet to see a formal infrastructure budget, the messaging that we’re getting is positive.

How do you expect the Biden administration to impact your business?

Our presence on a couple of national boards relating to freight mobility and expansion of freight infrastructure, as well as in the American Association of Port Authorities and the big freight coalition, the Coalition for America’s Gateways and Trade Corridors, has sparked several discussions on the matter. There is opportunity for the infrastructure to grow. That’s one area where people

What is your overall outlook for Port Tampa Bay? We are highly bullish on the future of Port Tampa Bay as a regional and statewide commerce and transportation facilitator. We’re an economic development engine for our entire state. With the growth of the container business, all the commodities, the construction materials that we handle, our future is bright. Adding cruise into the mix, we’re going to see our eighth record level of revenue in the nine years that I’ve been here. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

( ) was personal protective equipment or computer chips. There is a growing call for reshoring in more than one industry, which could further spur local manufacturing.

What is more, the Federal Emergency Management Agency, recognizing the solid logistics and distribution ecosystem available, named Tampa, Jacksonville, Miami and Orlando as top COVID vaccine logistics hubs.

To further strengthen the cogs of its logistics and distribution machinery, Tampa Bay has unveiled a series of initiatives to guarantee its resilience going forward. As part of its Vision 2030, Port Tampa Bay will be looking to develop an on-port logistics park to inject renewed operational efficiencies to the benefit of both users and tenants. This bolstered logistics park will include 300,000 square feet of additional facilities to accommodate the area’s supply chain growth needs.

Port Tampa Bay Port Tampa Bay is a major lifeline for Tampa Bay’s economic activity, although the pandemic stressed supply chains across the globe, slowing activity at the port last year. Port Tampa Bay moved 5% less cargo in FY20 compared to FY19, totaling 32.85 million net tons versus 34.46 million net tons, respectively. Only dry bulk cargo managed to snatch a 3% uptick, going from 12.08 million net tons to 12.41 million net tons between FY19 and FY20.

A new weekly cross-Gulf container shipping service operated by Work Cat made its way into the port’s service portfolio, which is sure to enlarge its container handling capacity as early as 2021.

Another item of good news for the port is the agreement with the city of Tampa after two years of negotiations over the Channelside Drive improvements proposal from port authorities. Both parties had struggled to reach an accord between the city’s objective of improving pedestrian safety and the port’s concerns over hampered logistical efficiency.

The port also saw the approval of a lease agreement with California-based Celadon Development Co. to build a $160 million paper fiber manufacturing plant.

Moreover, Sesco Cement Co. is looking to amend its lease to include a 6.8 acre expansion to its current 7 acres.

Tampa International Airport A logistics and transportation crown jewel in the region, Tampa International Airport is turning 50. After five decades of operations, its activity has never been more important for Tampa Bay. The airport provides 7,500 direct jobs, which rise to 121,159 jobs taking into account the multiplier effect inherent to airport operations and community support. The airport also generates 104

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Expansion of transit options will be key in ensuring Tampa Bay’s longterm success.

$14.45 billion of economic impact, ranking fourth only behind Orlando ($41 billion), Miami ($33 billion) and Fort Lauderdale ($20.1 billion). Its impact climbs to $19 billion within including the airport’s impact on Tampa Bay District 7 aviation.

The airport is undergoing a massive rejuvenation that includes an aggregate $971 million in upgrades and expansions that began in 2018. The airport’s 2020 shutdown allowed work to advance at lightning speed to prepare the airport for the future of air cargo and travel. Recent advances include 16 new express passenger curbsides, a 35-acre SkyCenter commercial development and a central utility plant to be used as the main terminal.

Looking ahead Tampa Bay’s buoyant population and economic growth

TRANSPORTATION & LOGISTICS OVERVIEW

Port Tampa Bay moved 5% less cargo in FY20 compared to FY19, totaling 32.85 million net tons doubtlessly calls for disruptive, outside-the-box measures to introduce new, efficient solutions to longstanding problems. Local officials face challenge of not only finding the adequate resources to prepare the area’s mobility future, they also will need to tackle the court of public opinion, which according to recent surveys, wants better roads more than mass transit. Progress will be difficult unless residents get on the side of improved, multimodal transportation. For the longest time, Tampa Bay has been a car-centric community and COVID-19’s dampening of consumer confidence in mass transit use due to the heightened risk of contagion certainly hasn’t helped improve the situation.

On the logistics and distribution side of the ledger, Tampa Bay is expected to continue to ride the wave of the Amazon effect and the ongoing shift in the global supply chain. Critical investments to bolster efficiency, capacity and technological penetration for both its port and airport will prove critical in driving growth going forward.

David Green Executive Director – Tampa Bay Area Regional Transit Authority

We’ve been very pleased with working remotely. As an agency, we had a telework policy already established in 2019. We had it in place but no one was really taking advantage of it. The traditional way of thinking is you can’t work without being in the office. COVID has taught us that we can be productive while working at home. It wasn’t easy. Not everyone hit the ground running and weren’t as productive on day one as they are now. But we learned how to communicate, interact, have meetings and conduct all of the work that we previously completed in the office. It’s been very successful and effective for us.

I can see us continuing this moving forward.

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Banking & Finance: Bolstered by federal aid programs and looking to technology and disruption to bring about new levels of growth, Tampa Bay’s banking and finance sector carved out major victories in 2020 with a sunny outlook for 2021 and beyond.

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Financial magnet: Strong market fundamentals point to future growth Tampa Bay’s “Wall Street of the South” moniker is well deserved, and not just as a result of the existing business-friendly tax structure, which no doubt is a key attractor. Long-standing financial centers — New York, Chicago, Boston — are also getting a run for their money from Tampa’s low cost of doing business, skilled labor force and competitive pricing within its class-A office space compared to the rest of South Florida.

The success the sector has generated in the Tampa Bay MSA is clearly evidenced in the numbers. Banking and finance employed close to 592,400 financial services professionals as of November 2020, and employment growth remained strong despite COVID. The local presence of financial industry heavyweights is another testament to the health and robustness of the region’s financial sector. Raymond James Bank, Bank of America and Truist are the Top 3 household names in terms of local deposits and market share. Total 2020 deposits amounted to $64 billion in 2020, an 11.45% increase compared to 2019’s $57.4 billion. The three top institutions alone represent 47% of Tampa’s financial market. Rounding out the Top 5 in terms of deposits are Wells Fargo ($16.6 billion) and JPMorgan Chase Bank ($7.12 billion).

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Landscape Ranked by asset value and looking only at Tampaheadquartered lenders, the Top 3 largest banks and credit unions — Suncoast Credit Union ($12.32 billion), The Bank of Tampa ($2.7 billion) and GTE Financial ($2.51 billion) — held assets valued at $17.53 billion in 2020. Despite the pandemic, the region’s financial institutions saw asset value growth across the board compared to 2019, ranging from 12.16% for Tampa Bay Federal Credit Union to 30.83 percent for the Bank of Tampa.

Although experiencing a COVID-induced slowdown compared to previous years, Tampa’s M&A market was still able to make some noise in 2020 and early 2021, totaling $35.5 billion just in 2020. Health insurance company Centene Corp took the acquisition crown with its $17.3 billion cash and stock deal for WellCare Health Plans Inc. The second-biggest deal was software developer Roper Technologies’ $5.35 billion all-cash deal for private equity-owned insurance software vendor Vertafore Inc. Rounding out the Top 3, IT products and services company Apollo Global Management unwrapped $5.2 billion for arts retailer Michaels to help get 2021 rolling. Considering healthcare and ( )

BANKING & FINANCE INTERVIEW

Safe and healthy Welfare of personnel and clients has been a key theme throughout the pandemic

Jim Daly Regional President, West Florida – Truist

How has demand for your services shifted over the course of the past year?

We had to take a couple of things into consideration. No. 1 was keeping our teammates safe and healthy, as well as our clients. We have over 100 locations in Tampa Bay and we had to make sure that we continued to do business while keeping that personal touch. We’re amazed at our teammates in our retail branches and their capacity to continue to make connections, even in a drive-through environment. The demand for connection was off the charts. That extended to our outreach. In addition to providing financial advice and accommodations from a financial perspective, our teammates made a myriad of phone calls, texts and WebEx outreaches to reinforce that personal touch. Truist can play the role of contingency financial plan advisers for those who have been lacking one throughout this atypical experience.

That part of our business is going gangbusters. We also have real depth in industry advisory services in a lot of different verticals. Many business owners are looking to either diversify or shift their core business toward other verticals. There’s significant capital out there looking to invest in businesses from an ownership perspective.

We’re advising business owners on how to optimize their enterprise value with either private equity or other companies that are looking to grow through acquisition.

On the family front, they are either trying to put their kids through college, save for retirement, get a handle on their budget and strategically move forward as a family.

How important is sustainability and corporate responsibility for Truist?

COVID-19 really brings perspective, well beyond your corporate life. You take stock of your own narrative, your own story and use that to then continue to

connect as an organization and really lift everybody in the community. Part of our role is to learn. Our social responsibility philosophy is pretty simple: make sure everybody in every community that we serve has our advice and our guidance allowing them to achieve their hopes and dreams. In doing so, we are living our purpose to inspire and build better lives and communities. The primary part of that journey is the learning and then the action. The learning is understanding, identifying, asking people about their background and what their challenges are. The action is targeting areas where predominantly low- to moderate-income folks live, including small, undercapitalized and underserved businesses. We focus on how we can truly play a meaningful role in bringing opportunities to those communities as we go forward. www.capitalanalyticsassociates.com

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Damon Moorer President & CEO TCM Bank, N.A.

How does TCM Bank fit into the community banking sector?

The credit card market is highly competitive. A credit card program requires a highly specialized skill set to offer and manage. The recent adoption of mobile, contactless and other payment features has also accelerated.

A community bank that wants to offer a competitive and dynamic credit card program may not have the resources to do so. This is where TCM Bank comes in. TCM is a credit card-only community bank that offers customizable credit card programs to community banks across the country.

Our solutions provide our clients the ability to compete directly with national issuers while providing the hightouch customer service community banks are known for.

What is the impact of the historically low interest rates for banks and how is TCM dealing with that?

The low interest rate environment compresses net interest margin, highlighting the need for a diverse product suite.

Many payment products meet consumer needs and generate non-interest income. Utilization and spend can help offset the deficit created by the current low rate environment. Banks and merchants have the ability to reduce friction and increase customer satisfaction by supporting Account on File transactions (card stored at a merchant). Merchants offer the ability to authorize recurring payments at a set frequency and dollar amount.

This allows a consumer or end user to set up a payment once, and future payments will automatically take place without further intervention.

How important a role did community banks play in the PPP loan program and its impact?

During this pandemic, community banks have been the nation’s economic first responders. The community bank industry quickly moved funds to where they were needed to get the economy afloat. We were able to respond to the needs of local businesses because as relationship lenders, we have a deep understanding of our clients and communities.

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Florida’s no state income tax coupled with Tampa Bay’s high quality of life bode well for the future of the banking and financial sectors.

( ) high-tech verticals were two of the high-performing sectors throughout the pandemic, it comes as no surprise that Tampa’s top acquisitions revolved around that space.

On the venture capital front, Tampa Bay was experiencing an exponential rise in the number of deals closed between 2015 and 2018, increasing by 115 in only four years. In 2020, the Tampa Bay region raised close to $186 million from 41 venture capital deals, as outlined by the Pitchbook and National Venture Capital Association report. Even though 2019 performed better at $198.5 million in venture capital deals, the 2020 figure was still a significant jump from 2018’s $129.4 million.

The Federal PPP loan program rolled out throughout 2020 also helped push up bank deposits across the board despite the downturn, and despite the challenges of the ever-changing landscape. “The first (takeaway from the PPP program) was that it was a necessary tool and we are glad it was put together because COVID-19 had no bias over who or what it affected. When the government came out with it, however, some of the rules were unclear and we worked to find clarity. In my quarter century of banking expertise, there has never

BANKING & FINANCE OVERVIEW

been a greater time than during the PPP process,” Ken Ronecker, President, Commercial Banking, Florida North, Bank OZK, told Invest:.

Last year, Tampa ranked fourth in Florida overall in terms of PPP loan allocations, with 18,782 loans representing $1.93 billion. Across the Tampa Bay region, more than $6.6 billion was injected through these loans.

Bank of America and Truist were neck and neck as the largest PPP providers in the area, with BofA proving $555 million and Truist at $599 million.

Historically low mortgage rates are showing a slight uptick in the area, although they remain nowhere near unaffordable. On Dec. 31, 2020, Freddie Mac’s 30-year average mortgage rate stood at 2.67%, increasing to 3.18% in April 2021. The rate was back down below 3% by May but is forecast to end the year higher but still affordable.

Cost-effective interest rates enable first-time buyers and young professionals to capitalize on the opportunity to become homeowners. For banks, however, it leads to margin compression that impacts revenues. Despite the squeeze, many bankers like Allen Brinkman, market president for West Florida at Seacoast Bank, see it as a glass half-full situation. “We look at it as a moment in time that is great for the consumer. From that lens, our long-term view is for the bank to focus on building great customer relationships cemented on the delivery of solutions that are highly favorable to them. If you are an organization that is short-term focused, it ( )

Timothy Schar President, Tampa Market – Truist

The pandemic has presented atypical economic headwinds that we’ve never seen before. For instance, usually in a downturn the car industry struggles. In this downturn, it flourished. During a recession, municipalities would typically delay projects, and instead we’ve seen projects completed that weren’t supposed to be built for another two years. There was a mindset of using this time to prepare for the recovery, and we were able to provide support. The ability to plan for a post-pandemic environment with our clients was the most unexpected outcome. As well, some of our clients used this as an opportunity to expand their business or make acquisitions, and we’ve provided financing for them to do that. For example, we provided additional working capital when more inventory was needed to meet greater demand than expected. There were many needs that we weren’t expecting but for which we were able to extend additional capital.

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®

oundtable:

Community banks Community bank leaders discuss their milestones and highlights from the previous year, while touching on areas including technology, areas of growth and tackling low interest rates.

Jack Barrett

President & CEO First Citrus Bank

How did the First Citrus Bank perform in 2020?

We surpassed half a billion dollars in assets on the balance sheet, so that was a seminal moment for our company.

We surpassed over a billion dollars in loans in Tampa Bay. Reflecting on 2020, it was one curve ball after another in terms of acclimating, adapting, reconfiguring and moving X’s and O’s on the organization chart between telecommuting and COVID testing. The PPP was really the opportunity to deliver growth capital and blow it out on a massive scale to small businesses that were struggling.

Sometimes, adversity really shows your true character.

I think we’re the seventh-largest lender in the state of Florida for PPP as quoted by the Hovde Investment Bank out of Chicago, based on the percentage growth in our loan portfolio. We did a lot of the smaller ones too. We really helped the little guy. Even though there was a lot of uncertainty in the market and that breeds anxiety, it was our best year ever in terms of earnings and asset growth.

What do you think the impact of low interest rates will be?

It really depends on how COVID gets knocked out and if other mutations of the virus become more pronounced throughout society. The sooner that stabilizes, in terms of the healthcare pandemic implications, and the more you let a few quarters pass under your belt, that’ll be the harbinger for rising rates. We don’t see this as any type of quantitative easing infinity as we saw during the Great Recession. We see the economy becoming very resilient.

But then again, we have a new administration, so there’s a lot of uncertainty as to the fiscal policy implications that could come about as well.

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David Moore

President Bank of Central Florida

What were some of the highlights and milestones for the bank in the past year?

One of the things we are most proud of is that we had the ability to participate in the PPP program and deliver critical funding to clients and the community. There was so much uncertainty, and information was coming fast.

We were not an established SBA lender, so we had to start from zero and get to 100 in a very short time frame. We did 550 loans in 10 days, which is the equivalent of three years’ worth of work in normal times. The other highlight was our growth of about 40%. That was unexpected. It is a testament to the work of our staff and the value our clients place in us.

In which areas have you seen the greatest growth in the last year?

We’ve seen a great acceleration in technology adoption.

Banking has a very traditional legacy, and the embracing of technology has taken a lot of time. Fintech companies have pressed banks to embrace change. Our older clientele was still very much rooted in the habit of coming to the banking offices. But last year, people who had been resistant to download the app, or even pick up the phone, started using online banking. For us, it’s helpful because it’s a more economical service delivery model. We already had in place most of the technology. We want people to do business with us in whatever way they choose, whether online or in the office. We’re a very fast follower of new banking technologies. Our technology offering is very robust. The main challenge is educating clients and bringing awareness to the advantages of using it, but the pandemic accelerated the adoption.

BANKING & FINANCE ROUNDTABLE

John Thompson President & CEO Central Bank

What have been some of the successes and accomplishments for Central Bank in Tampa Bay? We grew during 2020 even though we had to move to a different form of operations in March due to the pandemic.

We quickly pivoted to a remote desktop approach for 50% of the staff, and we limited access at our three offices, although they were never closed. We allowed limited access to the lobby by appointment only, with unlimited access to the drive-throughs, ATMs and on-line access. We grew our deposit accounts during this time and our residential lending business has really taken off because of low interest rates and the resulting pandemic-related increase of in-migration to Florida. Except for a brief period during the lockdown, the residential sales/lending market has been at record levels.

We also participated in CARES Act PPP1 and PPP2, making a total of about $60 million of these loans. We received a lot of deposits related to this lending, and our asset size increased to just under $300 million.

What actions should the Biden administration take to regulate credit unions?

The credit unions pay no federal income taxes, yet minority financial institutions and community banks do.

The original mission of credit unions is long gone and their services are now just like those of a commercial bank, which makes commercial loans. Pressure is increasing on Congress, especially now that there is a need for more federal tax revenues. That has been a difficult political subject in the past but this will perhaps make it more of an issue. It’s hard to believe that the average individual pays personal federal income taxes but credit unions pay none.

Bill West

CEO The Bank of Tampa

How is The Bank of Tampa tackling the low interest rate environment?

It’s at least as big a challenge or a bigger challenge than the COVID-19 situation because it is going to be longer lasting. The Fed has given some guidance that this rate environment is likely to remain in place until at least 2023. We need to figure out what to do about this. First, we are controlling our expenses where we can. We are going to do as best we can but not at the expense of the longer term. We are going to invest smartly for the future, knowing that we want to be ready to go full speed once on the other side of the pandemic. Our digital strategy is a perfect example of that.

How are you tapping into the fintech community to your bank’s advantage?

It is the No. 1 issue on our mind: delivering a digital banking experience and making it relationship-oriented. Most of our effort of growing the bank over the next five years is going to be solely focused on developing our digital strategy. We have created an Innovation Council within the bank and brought together a small group of people who are most likely to be the thought leaders within our bank regarding how to innovate. We are working on ways to reduce friction and make it easier to do business with our bank. We are paying attention to fintech incubators aimed at supplying products and services to community banks. We are going to work with some consulting firms to help us develop our digital strategy. It needs to be the most important thing we do because if we dismiss it, by 2025, we would be fighting a difficult uphill battle with banks that did figure out their digital strategy. www.capitalanalyticsassociates.com

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BANKING & FINANCE INTERVIEW

Better terms SBA lender is focused on helping business owners prosper

Bill Habermeyer President & CEO – Florida Business Development Corporation utilization of our loan program, second only to California.

Texas is the second-most populated state in the country and program utilization is nowhere even close to the level of utilization in Florida. This is largely due to our ability to administer the programs we offer with greater cost and certainty.

What role does the Florida Business Development Corporation play in the Tampa market?

We are a Small Business Administration (SBA) lender.

We administer the SBA 504 loan program. It’s primarily used for the acquisition of commercial real estate, as long as that acquisition is going to house the employees of that business. The main focus is helping business owners obtain better terms than those available from conventional credit markets. Our focus in Tampa, is to ensure the small business and lending communities are utilizing these programs. As it is a national program, you can identify real, deep disparity between certain parts of the country that use the SBA programs and certain others that do not. A lot of times, it comes down to who is administering it in those local areas. For instance, the state of Florida, and Tampa specifically, has widespread 114

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How did your program handle the need among small businesses for outside funding?

Ever since the pandemic kicked into high gear in March, our core business has increased in volume exponentially, outside of PPP loans. It is one of those instances where our COO and I were looking at adjusting our budgets for the next half of our fiscal year, worried no one was going to get loans or buy real estate. It turned out to be the exact opposite. We’ve seen a sizable increase in loan volume and demand for us despite the pandemic. Commercial real estate rates are at their lowest since at least 2003.

Our government-guaranteed rates are lower than the cost of funds at a bank. Some businesses are going to gain from this and be able to pick up a piece of real estate at a better deal.

What is your near-term focus?

Our constant focus is on doing a better job providing access to capital with the 504 loan program. When we realized we could execute remotely, we started hiring people in analytical roles from across the country. We added three employees in California and one in Chicago.

It enabled us to constitute an all-star team so that we can meet our drastically increased demand. We’ve invested heavily in remote technology so we don’t lose our sense of corporate culture, togetherness and working for one another. Our challenge will be finding ways to remain cohesive and implementing the right tools via technology will help us conquer that challenge.

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Angel Gonzalez Regional President – SouthState Bank

Our expectation at this point is to grow our market share within the communities we serve. We are well positioned to gain market share given the efficiency that our new combined company offers along with our investment in technology. It is going to be a race with all the incoming residents to the Tampa Bay market.

The EDCs throughout our MSA have done an exceptional job of attracting great companies, headquarters and talent to our area and the question now is how to take advantage of this. We feel well positioned to be one of the leading financial institutions to garner that market share in the area.

( ) probably does not seem like the best strategy but we continue to do the right thing for our clients, our shareholders and it works out. There are ups and downs in our business as there are in any. As long as you are prepared for those and have been running your business conservatively and thoughtfully, getting through these times, while tough, is manageable.”

Top banks Although Tampa Bay’s financial fabric has demonstrated strong resilience to COVID-19’s ripple effects, the sector has not been without its challenges. Amid market uncertainty and volatility throughout 2020, deposits leader Raymond James Bank reported a $109 million loan loss provision that caused a quarterly earnings dent. Moreover, its own balance sheet was hit with private equity asset revaluation. On the plus side, Tampa Bay’s leading bank showcased a record top-line revenue, close to $2.1 billion in 2Q20, an 11% increase year-overyear. All in all, the bank is poised for growth in 2021.

BofA, another major Tampa Bay player, temporarily closed 60 of its branches, or close to half of its total 121 branches in the region due to the pandemic. The locations were selected based on their low foot traffic and insufficient staffing. Despite following the trend toward digitalization and technological innovation, BofA was still able to make some brick-and-mortar deals last year. In July 2020, it signed two new tenants — Banyan Street Capital and Carollo Engineers — for its Bank of America plaza, located in Downtown Tampa Bay. The new tenants are taking up 24,000 square feet and 11,418 square feet of office space, respectively.

As per its 4Q20 reports, Truist seemed on a roll even amid the prevalent uncertainty surrounding COVID-19.

In 2020, the Tampa Bay region raised close to $186 million from 41 venture capital deals The major Tampa Bay financial player announced a net income of $1.2 billion, up 74.9% compared to 4Q19.

Earnings per diluted common share stood at $0.90, a 20% increase compared to 4Q19. The strong results stemmed from a steep decline in the provision for credit losses and buoyant results on its noninterest-generating business income.

The community bank segment in Tampa Bay also performed extremely well in the past year, partly because it took up the slack during the PPP process to accommodate clients that the bigger banks turned down as they were left flat-footed by the rapid stimulus rollout. “Demand has significantly increased, which was unexpected,” said Dalila Rouri, head of Retail Markets for the Florida Region at BMO Harris Bank.

“In difficult times such as these, though, businesses find that they need to rely more on financial institutions and their trusted advisers. We started to see the increase www.capitalanalyticsassociates.com

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in demand slowly but surely. I think it happened as people realized that this was not going away. Going into a pandemic, no one really knows how long it’s going to last. It gets to the point where there is a renewed focus on the part of customers on how to navigate the shifting tides of finance.”

As of December 2020, total community bank assets amounted to $75 billion, a close to 57% increase from December 2019’s $47.87 billion. South State Bank, Raymond James Bank and the Bank of Tampa sat at the very top with $37.72 billion, $29.07 billion and $2.51 billion, respectively. Community bank deposits totaled $61.85 billion, while net loans and leases in 2020 considerably outperformed 2019 results, with $52.7 billion against $2.7 billion, respectively.

CARES Act and PPP loans On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed into law.

The $2 trillion stimulus bill to counter COVID-19 included a first round of Payment Protection Program loans to the tune of $349 billion for small businesses across the United States. Two weeks later, those resources were already claimed. A second round was scheduled, totaling $320 billion, which concluded in August 2020. Still a third round was programmed by the end of December 2020 for $284 billion. The deadline to apply for the third round was extended to May 31, 2021 via the PPP Extension Act, through which businesses to whom the loan could apply extended toward contractors and businesses with no employees.

Zooming into Tampa Bay, by December 2020, the Small Business Administration (SBA), which was in charge of rolling out the loans, reported 42 active

Tampa Bay is home to seven Fortune 500 companies.

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Rita Lowman President Pilot Bank

How successful was Pilot Bank in administering PPP loans?

We helped over 800 clients. We wanted to assist as many in the community as we possibly could, and this helped us grow relationships. However, all of the banks did a great job on PPP. We had weekly calls with the American Bankers Association, Florida Bankers Association and various regulatory agencies updating all of our banks on what was happening regarding the pandemic and PPP. Communication was a key to the success of the banking industry and administering PPP loans.

How did your aircraft financing division perform in 2020?

We finance owner-owned, owner-flown planes only, so we’re not doing corporate jets or anything along those lines. Our aircraft division did a record year in 2020. It’s a great portfolio and we will continue to work with these clients. An aircraft is not a necessity for someone but they enjoy it. It’s part of their lifestyle and they maintain their finances to support that lifestyle.

loans in the Tampa Bay region beyond $5 million, with four businesses having applied for the maximum $10 million. In aggregate, there are more than 80,000 active PPP loans in the region, totaling more than $6.6 billion.

Florida as a whole generated close to 404,000 loans worth more than $31 billion.

The PPP loan forgiveness process stipulates that loans can be forgiven if it can be proven that a certain percentage was indeed spent on what those resources were meant for: payroll and other employee-related costs.

The four companies that went for the maximum allowable $10 million loan were Tampa-based nonprofit Lutheran Services Florida, which provides assistance to children, families, the elderly, refugees and natural disasters victims; Tampa-based vocational rehabilitation service company TrueCore Behavioral ( )

How is Pilot Bank helping to improve financial literacy?

We visit schools and provide financial literacy lessons.

We will continue to do that. It’s not only elementary and high school that we are assisting though; we’re also teaching adults. There are a number of people who don’t know how to write a check. Our team also serves as mentors. There are many ways to be successful in society but you need to understand the financial component of it.

What legislation are you hoping to see?

A big concern to me is that credit unions, the 10 to 15 largest ones, do not pay taxes. They’re not helping to pay for the roads, military or our education system. A family of four pays more in taxes than they do. As well, we’re hoping for simplifications regarding the Bank Secrecy Act and anti-money laundering legislation. www.capitalanalyticsassociates.com

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Market voices: Financial services

Drew Catanese Managing Director Coastal Wealth

The field of behavioral economics exists because people as a whole are rational but people individually, when it comes to their finances, let their emotions into it too much. We set expectations with clients. We like to set strategies when times are calm, not when there’s a hurricane on its way. We find a plan, develop our strategies and put the right things in place now so when that black swan event happens, we have the plan in place already and know why it’s there. People hire professionals because we can help them take the emotion out of investment decisions and help make them rational decisions, both in good times and bad.

I would say that 90% of our job is to shape behavior. For many years, the financial planning community said that one could expect to withdraw about 4% of your capital that invested 60% equity/40% fixed income. They came back and revised that — now it’s at about 3.89% return. That’s because bond interest rates have gone down. Do I think we’ve fundamentally changed? I would say, no, we’ve stayed the same; however, we’re trying to elevate income. You may do more preferred equities as opposed to being heavily laden with bonds. Bonds are there, really, as a ballast for risk.

Terry Igo

CEO Tampa Bay Trust Company

Founder & CEO Continuum Wealth Partners

We remain highly positive for the 2021-22 time frame. We cannot look past 2023 with the financial tea leaves. We don’t see any major obstacles considering the unique physical location of being in Florida and its west coast, added to corporate profits and the outlook for corporate profits being strong with interest rates being low. Some people make a lot of noise about administration changes. Time will tell you it doesn’t matter who the president is as far as managing money goes. There are definitely going to be some changes, as happens on a four to eight-year basis. There’s always enough time to react to those changes. We don’t see it affecting us at all.

Low interest rates affect the future growth of investment opportunities and have forced us to go back to studying low interest rate environments around the world; Japan in particular. When you see a scenario like that play out, you look to incorporate that into the investment recommendations you make so that you don’t get caught in a similar trap. The goal is to shield our investments, our clients from suffering as a consequence. We correlated that in-depth analysis to previous examples we have around the country and then used it to navigate the national and local low interest rate environment.

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Travis Jennings Founder & CEO Finance CAPE

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( ) Solutions; Florida Medical Clinic; and McDonald’s restaurants operator for the region, JTS Enterprises.

Regulations Pressured to become remote by force and bolster their digital banking systems to accommodate both the surge in online banking and PPP loan applications, concerns over increased fraud and cyberattacks within the online financial network rose as feeble safeguards opened finance outlets to attacks.

This concern gains all the more relevance considering that pre-COVID, Florida ranked 10th in Wallethub’s most vulnerable states for identity theft and fraud, in a report released in October 2019.

Banking is already a heavily regulated sector in the country, particularly due to the fallout from the 20089 crisis, which means that financial players, whether big commercial banks, community banks, small local banks or startups, are engaged in a constant, complex and often resource-consuming process of continuous regulatory framework monitoring. The increased relevance of cybersecurity, added to the burgeoning fintech sector and the acceleration of innovation trends triggered by COVID-19 could likely result in added layers

of regulation that financial entities need to be on the lookout for.

Increased reliance on AI, machine learning, digitalonly banks, blockchain, omnichannel strategies, enhanced data analytics, fully mobile banking and regtech (regulatory technology) are but a few of the trends that will continue consolidating and cementing a new era of growth and expansion for financial activities.

Regtech itself is poised to become a welcomed solution to liberate the use of financial entities’ resources in terms of time, capital and manpower dedicated to ensuring compliance across jurisdictions.

The dampening effect of regulatory compliance on financial entities’ growth bodes well for the future prosperity of the global regtech market, estimated at $6 billion in 2020 and projected to grow toward the $13.4 billion mark by 2025. Widespread adoption of these technologies across Tampa Bay’s financial players should therefore be expected as it constitutes a major competitive advantage of ensured compliance and costefficiency.

Moreover, Tampa Bay’s financial ecosystem and corporate fabric might want to review their ESG policies and portfolios. Tampa Bay area-based Climate First Bank

Brooke Mirenda President & CEO Sunshine State Economic Development Corporation

Will demand for SBA loans increase going forward?

Yes, I believe companies will look at SBA as a source of funding their business ventures due to the allowances our borrowers have received during the pandemic.

There is certainly an awareness of SBA that didn’t exist in years past due to the pandemic. With the legislation that passed at the end of the year, there are even more advantages for small-business owners, including more robust refinancing options and temporary fee relief.

Certified Development Companies (CDCs) around the country and our industry as a whole are seeing record numbers of new applications.

To obtain an SBA 504 loan, you must have a CDC partner. It is a two-part loan with a lender and a CDC/ SBA where we finance fixed assets (commercial real estate, machinery, and equipment). There are many advantages of SBA 504 financing. For a 504 loan, the standard down payment is 10%. CDC’s like SEDCO have an economic goal, with one of them being job creation.

When you only have to put 10% down, you can utilize that additional capital to create jobs. For conventional financing, the standard down payment is 20% to 25% and many of them balloon after so many years. With the SBA 504 loan, the rates are lower, fixed for the life of the loan and the terms are longer than conventional financing.

There are very few disadvantages of going SBA. What are your main near-term priorities?

We’re really watching our portfolio and it’s performance.

In the 504 loan program, we need to be cognizant of the fact that we are lending SBA money, not ours. While we do have other lending programs, our primary focus is the SBA 504 loan. Additionally, with all the legislative changes, we envision our portfolio will continue to grow with additional program offerings like debt refinance.

We are certainly geared up and prepared for growth.

Growth is good, but we also want to ensure we are setting up our small businesses for success as they continue to be the driving economic force in the US economy.

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For the banking sector, the pandemic highlighted the importance of having strong client relationships.

startup is ready for launch and has made a commitment to be carbon-neutral from the day it opens its doors. Not only that, it will ensure its vendors are strictly evaluated based on their ESG goals and will provide its customers with climate-focused services, such as “solar loans” in its capacity as a full-service community bank.

Mortgages Tampa Bay’s mortgage market is a double-edged sword.

On the one hand, historically-low interest rates have driven demand for the already limited housing supply after an initial pause stemming from the arrival of COVID-19 to the United States and the resulting market uncertainty. By July 2020, however, the home purchase pace had accelerated by a record-breaking 24.7% compared to the month before. On the other hand, at the end of May 2020, the percentage of Tampa Bay’s

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homeowners incurring delinquencies grew by 5.3%, the 10th-highest increase across the United States.

Strong demographics may push for increased mortgage demand and residential developments, however. According to the Tampa Bay Economic Development Council, the Tampa MSA ranks fifth across the nation in net migration since 2018 with a total gain of 41,800 people, equivalent to 115 people per day.

This means that more people are coming to the Tampa Bay metro area than to Miami, Fort Lauderdale or Palm Beach. Furthermore, the Tampa MSA’s population is projected to increase 25% over the next 20 years.

While there are concerns of a housing bubble given the accelerated appreciation of homes across Tampa Bay, median housing prices are projected to stabilize throughout 2021. What is more, Realtor.com anticipated a return to normal seasonality in housing prices by April 2021. “Access to capital is always extremely important for the economy but an excess of access can create greater problems. Our role is to continue to be a stable and steady source of capital to the market. We do not need to be something we are not, manufacturing solutions.

We see that will happen sometimes when banks act like they are not necessarily banks to avoid any type of problem, creating feeble fixes to keep everybody feeling good for a while. What we hope as an industry is that we can continue to be safe, steady, secure sources of capital to support projects that should get done,” Porter Smith, market president for Tampa Bay at American Momentum Bank, told Invest:.

Competitive landscape Even in the face of adversity such as that caused by COVID-19, Tampa Bay continues to capitalize on its

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The increased adoption of remote work will change the dynamics of the banking industry’s workforce well into the future.

competitive advantages such as cost-effective real estate compared to its Florida sisters — Miami and Fort Lauderdale — its extremely friendly business climate, its geographical location and weather.

Several financial household names already call Tampa Bay home, after all. They also house sizable back-office operations in the Bay region. Success stories in the financial services space abound in the area. Citigroup counts more than 8,100 employees at its Brandon campus for instance. What is more, it created 700 additional jobs throughout the pandemic. London-based Wise, an international money transferring company formerly known as TransferWise, was looking to set up a Tampa footprint with 40 professionals in December 2020. Fee-only investment adviser Fisher Investments opened its first East Coast office in the Tampa Bay Park corporate center. It is expected to gather 600 employees. This arrival concluded in June 2020 adds to the long list of newcomers that Tampa can boast of having attracted in the midst of a challenging pandemic setting, including USAA, Depository Trust & Clearing Corporation, MetLife, Baker McKenzie and even pharmaceutical heavyweight Amgen.

Formerly New York-based tech-enabled tax company CrossBorder Solutions made the move to St. Petersburg, which has been racking up a continuous stream of relocations since October 2019, including Ukraine-based tech company NIX United, Baltimore-based Madison Cloud and Canadian-based CodeBoxx Technology.

The region is also spearheading the development of blockchain-enabled startups by providing a business and tech environment in which to thrive. Notable local blockchain players include RB Technologies, Real ( )

Market voices: Banking outlook

Marty Lanahan Regional President IBERIABANK-First Horizon

When people received CARES Act money, they deposited it in their checking accounts. Some saved more. Some debts have been forgiven. As a result, our balance sheets today look different than last year and will continue to look different a year from now. Current insights indicate that there is a pentup demand. People are beginning to realize that it’s time to start doing that renovation or that expansion. We’re focused on growing. We have a strong reputation that has only improved as word gets out about how well we took care of our clients. We’re already seeing growth in certain sectors.

Now the election is behind us, the market is indicating that rates will begin rising this year, albeit at a modest pace. This will be in conjunction with the economy improving and the rollout of the vaccine program. The more heated the economy gets, the higher the rates will rise. This will have the effect of separating the stronger projects from the more marginal projects.

The opportunities will have to be that much more solid to be successful in a higher rate environment.

Al Rogers

Executive Vice President & Chief Lending Officer FL & AL Valley Bank

Steve Schultz

Toward 3Q21 and beyond, our outlook is positive in terms of what we think will turn around. We’re already starting to see the first signs of this, seeing business pick up a bit. We’re starting to see our branches certainly get busier than they have been in the past or are getting back to some of our previous levels before the pandemic. The housing market also continues to do good things here and we’re excited about people moving into Tampa Bay. In terms of the regulatory environment, we remain optimistic but cautious.

Region Bank President Wells Fargo

The banking sector has played an integral role in the economic recovery process. That is one of the many things we enjoy about being bankers and a rewarding aspect of the lending process. Our team is active in the community, with boots on the ground, meeting and talking to our clients to assist where needed. This has been our approach before the pandemic, and especially so now. We provide financial solutions that help companies grow and become more efficient. Tampa Bay has experienced significant growth and we are thankful to be a banking partner with so many local businesses.

Chris Stewart

Market President – Tampa Bay Region Centennial Bank

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Sean Simpson Division CEO Synovus Bank

How is Synovus Bank bolstering its digital capabilities?

The whole dichotomy between digital and physical comes up in a lot of industries, including banking.

COVID-19 has accelerated adoption of online and mobile banking, but we’ve also heard from customers that being able to speak to a local banker — about fees, payments, loans, or anything else on their mind — is tremendously reassuring. While the adoption and enhancement of digital channels will continue, we believe customers still want a bank that’s relationship-focused and offers hightouch services, consultation and advice. We also know the way we provide these services will have to change to a more proactive approach and through multiple channels, especially including digital and mobile banking. We are investing aggressively in both, and we’re excited about our new digital and commercial banking platform, Synovus Gateway. With Synovus Gateway and all of our digital offerings, the overarching goal is to make it easier to do business with us.

What was Synovus Bank’s approach to the PPP rollout?

On Friday, March 28, the day after the CARES Act was signed into law, our team stood up an online PPP expression-of-interest form. One week later, with the official launch of PPP on April 3, we began accepting applications. The PPP application process was laborintensive, requiring extensive documentation and other steps that could not be automated or run through an API. With no precedent and very little guidance from the SBA, our team built a PPP processing system within a week.

For the next six weeks, stopping only for Easter Sunday, 500 Synovus team members worked practically round-the-clock, communicating with customers early and often to ensure timely documentation, processing, underwriting, and funding of PPP applications. In Tampa/ St. Pete, Synovus made 1,400 Paycheck Protection Program loans totaling $228 million, which is equal to around a third of the PPP loans we made statewide.

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Banks are now shifting focus to begin the forgiveness process in relation to the various roll outs of the PPP program.

( ) Random, ProCredEx, TrustLayer, SkuX and eNotaryLog. Out of Tampa’s 45 fastest-growing startups, 31.1% were in IT Consulting, 24.4% in SaaS, 13.3% in Marketing, 11.1% in IT Security, 11.1% in Defense and the remaining 8.8% in Recruiting.

Tampa, St. Petersburg and Clearwater had the advantage of standing on solid ground pre-pandemic, coming off of sustained growth from both an economic and demographic standpoint. Construction permit revenue decreased only slightly below 2019’s $14 million in 2020 and is expected to regain 2019 levels by 2021.

The same can be said about occupational license taxes and local business taxes, which stabilized around $11 million for 2020-21 compared to 2019’s little more than $10 million.

What is more, Tampa’s general fund balance amounted to $109 million. Preparing for the future, Tampa is expecting a $5.5 million revenue decrease in its budget for services and fines from FY20, mainly due to a drop in the number of solid waste commercial customers because of COVID-19 stay-at-home restrictions.

Moreover, Tampa’s budget for FY21 is expected to

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Perspectives: Wealth management Jim Barnish Founder & Managing Partner – Orchid Black There is this whole concept that everyone in the tech community praises around unicorns. Everyone wants to be the next unicorn, raising hundreds of millions of dollars to get to a billion-dollar valuation, oftentimes leaving the founder(s) with very little equity in their own company.

Our philosophy is that not everyone needs to be a unicorn.

Growing fast is important but growing smart is critical.

Devin Farrow Regional Vice President – Mercer Advisors I think investor confidence levels are still high. There is also a caveat to that: part of why the market is moving up is because there are few alternatives. There are many people, especially retirees, who are invested a little heavier in stocks than they would have been in the ‘80s and ‘90s because of where interest rates are at. Generally, though, overall confidence is high among our client base.

Ray Ifert President & CEO – REI Wealth Management

increase $212.7 million totalling $1.25 billion compared to FY20 which amounted to $1.04 billion. The increase stems from general and enterprise fund increases, partly due to wastewater, water and solid waste capital project funding, as well as more resources directed at stormwater, parks and facilities capital projects. What is more, Tampa will be dedicating US$3.1 million in new funding relating to sustainability and resiliency goals. All told, the region is on firm footing for a strong recovery, although there is still a ways to go. “Overall, this region has started to rebound but that does not mean we are out of the woods by any stretch of the imagination.

As Tampa Bay recovers, confidence starts to build. As confidence builds, fear dissipates and no longer drives decisions. As the business community in Tampa becomes more comfortable and confident, we are able to see with a bit more clarity,” said Bank OZK’s Ronecker.

Insurance The Sunshine State’s property insurance market was dealt a complicated hand in the pandemic, navigating several fronts to ensure it came out on top of COVID-19’s

We strongly believe in asset allocation and keeping an eye on how much risk is in each of our portfolios. We are not big believers in hedge funds because we saw what happened in 2008. People were led to believe that they were going to get equity-based returns with bond-like risk, which could not be any further from the truth.

John McDonald Senior Managing Director – Hyde Park Capital Half of our clients are sold to private equity buyers and the other half to corporate strategic buyers. Most of our client companies are owned by aging baby boomers who are looking for investors/partners to provide shareholder liquidity and fund the future growth of their business.

Most of these companies end up staying in the city but now have much more capital to grow than before.

William Sanders President – Palma Ceia Wealth Management The vaccine has been embraced more than I initially anticipated. As a result, it sounds like we may experience herd immunity quicker than anticipated and from a portfolio perspective, we need to respond to that. We are currently focused on what we are calling “post pandemic” companies, with strong sustaining growth as we strive to arrive at some level of normalcy as a country.

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Cary Putrino Regional President, North Florida – Fifth Third Bank

North Florida is considered a high growth market for Fifth Third Bank. We believe in this region, and I’m so excited about our opportunities going forward. We have hundreds of people moving to the Tampa Bay region each day to enjoy the sunshine, the affordable tax environment and our friendly communities.

We remain 100% laser-focused on taking care of customers and building relationships with new commercial, business banking, wealth and retail clients through our One Bank delivery model.

Despite ongoing digital evolution in the sector, retail branches will continue to be key in meeting the dynamic needs of consumers.

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ripple effects. 2020 brought about the convergence of long-term issues that the pandemic jolted to create a perfect storm. Reinsurance rose considering insurers used to purchase this coverage via insurance-linked securities. These funds are running scarce, meaning private reinsurers are claiming increased market shares.

The latter absorbed losses by maintaining prices low for years to compete with securities and are raising prices now to recover those losses.

The increased number of hurricanes in recent years doesn’t help, either. Although a markedly seasonal phenomenon, 2020 was a record-breaking year for hurricanes in the Atlantic. Florida’s coast witnessed 30 storms, of which 13 land-falling storms evolved into hurricanes. That surpassed the 2005 record of 28 named storms, making it the highest number of hurricanes on record since 1900. To date, insurers are still paying coverage costs from hurricanes Irma (2017) and Michael (2018). Added to that, insurers in the Sunshine State have spent the better part of a decade criticizing how Florida law enabled fraudulent or excessive claims for damages unrelated to storms.

The industry was not lacking success stories, however.

Tampa’s technology-based, HCI Group subsidiary specialized in flood insurance, TypTap, is finally profitable after its launch in 2016. The favorable setting comes from a Congressional revamp of flood insurance — the National Flood Insurance Program — which triggered a premium hike. The firm provides 9,400 policies and generates more than $12 million per year in premium revenue.

The local insurance industry also witnessed a solvency-maintaining merger between Southern Fidelity and Capitol Preferred. The two domestic property insurers are joining forces after reporting multimillion-dollar losses for several years.

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Despite a challenging matrix of a deadly virus and increased tropical storm activity, Tampa Bay’s 10 largest property and casualty (P&C) insurance brokerages managed to write local P&C premiums totalling $1.35 billion; $2.4 billion in total local premiums written, and employed 1,677 people locally as of May 2020. The Top 3 insurance brokers are Bouchard Insurance, A Marsh & McLennan Agency LLC Company, with $228.5 million of local P&C premiums; followed by Stahl & Associates with $211.3 million; and Baldwin Risk Partners at $200 million.

Looking ahead Undoubtedly, COVID-19 will continue to have lasting effects on Tampa Bay’s banking and finance landscape.

Mortgages, delinquencies and insurance premiums will need to be closely monitored as the region prepares for a strong rebound on the back of its strong fundamentals. Moreover, the impact of the CARES Act and the PPP loans will go a long way to securing the business and economic activity that fuels the need for extra capital for growth. One key, which Bill Lutes, market president for Tampa Bay and Southwest Florida at Ameris Bank, said was highlighted by the pandemic is leadership. “The pandemic really unveiled leadership or lack thereof. It is a black swan the likes of which we have not seen in recent history,” he told Invest:. “For every one of us in the enviable position of growing during this turbulent time, there are five others that have had to make some tough decisions.

Our recommendations are to look in the mirror, be honest, soul search, be candid and try to think outside the box. We have an opportunity to get rid of old

paradigms, try out and adopt new ones. That is the overlying theme that many of my conversations with clients seem to center around.”

The pandemic has also had an impact on financial behavior as lockdowns and stimulus money put more cash in savings, while also demonstrating the need to reduce lavish lifestyles to secure future wealth, said Jorge Blanco, president of Success Wealth Management “People have figured out a way to lower their sometimes-lavish lifestyle. Having good cash reserves is the foundation of any solid financial plan.

It’s not about how much investment, but having a solid cash reserve of three to six months. If you are in a position where you rely on commissions, people should maybe think about having six months to a year for expenses. If you don’t sell a house for months, you don’t want to fall into debt, or start selling investments that are for the longer run.”

In a survey conducted by LCG Advisors and covering 17 Southeast middle-market private equity firms, 65% believe 2021 will be a year of significant opportunity.

The latter stems from the region’s achievement of consolidating a favorable environment and sturdy ecosystem for the effervescence of fintech and banking startups looking to bring Tampa Bay’s financial landscape to the next level. The level of optimism is also directly correlated to the vaccine rollout. Should the pace be maintained, that will act as a prelude for recovery and rebound. The bullishness in the private sphere is mirrored in the public sphere. Tampa and St. Petersburg’s mayors both expressed at the end of 2020 that they were optimistic about the future normal their respective cities were preparing for.

Phil Dingle Managing Partner – HealthEdge Investment Partners

The last data I saw, probably pre-COVID, mentioned 1,000 people a day moving into Florida. And I think half of them were coming to the Tampa Bay area, which is exceptional. We have to continue to make it an attractive place, not just for people but for businesses to relocate. This means we need to continually work to be the best in class in terms of our education system, our regulatory environment and our infrastructure. As a deeply entrenched member of the local community, I’m proud to see what we’ve accomplished in recent years, and I believe this will only accelerate in years to come.

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Healthcare: As the COVID-19 pandemic slowly winds down in the United States, the health sector in the Tampa Bay region has a bright future. The pandemic itself has resulted in a shift in dynamics across the area at large, with telehealth a key emerging trend. Challenges remain, and how these are tackled will have an impact on future growth.

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Growth despite limitations: The pandemic put unprecedented pressure on the healthcare sector but the future is bright All across the country, there has been renewed interest in the healthcare sector as a result of the COVID-19 pandemic. The limitations of the nation’s health systems came under unprecedented scrutiny as they were tested to an incredible degree, with hospitals facing an onslaught of patients suffering from the virus.

The heightened focus has also spurred investors and industry leaders to look for ways to make the system more efficient and equitable.

The sector in Tampa Bay has been among those that have stepped up to the challenge. The region’s large medical institutions showed that they were nimble in adapting to the pandemic’s challenges. New technologies have emerged, new hospitals and clinics have opened, and there is a renewed interest in research.

The biggest medical success story in 2020-21 was the vaccine’s development and the subsequent vaccination drive, which in Florida remained a few paces ahead of national performance by mid-May. Still, there is more work to be done. Florida could 130

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do more to insure it’s lower-income residents, which is an area that the government could address more aggressively. These are pressures that it will have to keep in mind as the state’s population continues to grow and its economic base becomes increasingly diverse.

Landscape The healthcare landscape for 2020-21 was inevitably marked by the extraordinary circumstances surrounding the pandemic. Altogether, as of April 2021, Florida had had 2,148,448 cases of the virus and 34,907 deaths. Looking past the largest public health emergency in a century, there are other concerns. For one, compared to the rest of the country, there are, on average, a slightly greater number of people without health coverage. Additionally, the cost of healthcare has been creeping up in the past few years, and the state of Florida ranks 22nd in the country for the most money spent on healthcare.

In the Tampa Bay region, 87.9% of people have ( )

HEALTHCARE INTERVIEW

Tele-impact The acceleration of telehealth has been ‘invaluable’ and its further integration along with other technologies is in the cards

Dr. Patrick Hwu President & CEO – Moffitt Cancer Center

How did the pandemic disrupt Moffitt’s operations?

It was a year that no one saw coming. We didn’t know much about the virus at first, so it was a huge challenge. At Moffitt, we initially reduced our level of operation but this quickly picked back up as we learned how to continue providing cancer care safely during a pandemic. This has been vitally important for our patients because the sooner a cancer is detected, the sooner it can be effectively treated. We are dedicated to providing the best possible care for our patients.

We weren’t drastically affected by the drop in elective surgeries during the pandemic because cancer surgeries are, generally speaking, not optional.

What impact is the advancement of telemedicine and other technologies having in the cancer field?

Telehealth has been invaluable during the pandemic as it has allowed us to keep in touch with our patients.

At the height of the lockdown, we used it for around 20% of our patient visits. That has now fallen to around 10% as we have ramped up our normal operations. As we continue to grow our operations, we will definitely integrate telemedicine, and other digital technologies, further into the business. In the future, for example, we might be able to procure detailed information on a patient’s condition remotely thanks to a wearable device, while artificial intelligence will soon be able to help us predict when and where a person might develop a cancer. There are exciting times ahead.

Where are the best opportunities for cancer research?

The basic science when it comes to understanding cancer is extremely advanced and now we need to translate this knowledge to our patients and their treatment plans.

Moffitt has been focusing on immunotherapies — using

the immune system to fight off cancers — and that includes cell therapy. This is proving to be an effective lung cancer treatment in ongoing clinical trials we are conducting. I would love to see Tampa Bay become the cell therapy capital of the world. There is a great opportunity to build a robust biotech corridor in the region.

What are Moffitt’s near-term goals and objectives?

We are building a new hospital because there is strong demand for our services. We want to give more patients the opportunity to receive Moffitt-quality care. We will also continue to focus on research to get better at preventing and treating cancer. Science is advancing so fast that one day we can live in a world in which people no longer die of cancer. I really think that is possible. www.capitalanalyticsassociates.com

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Ravi Chari, MD President & CEO HCA Healthcare-West Florida Division

What did HCA West Florida learn from COVID-19?

What we learned from COVID-19 can be broken down into three areas. First, care like family. Our people are our greatest asset and we had to make sure we protected them through this by creating a pandemic pay model, not furloughing anyone and guaranteeing we had the appropriate PPE available. Second, unlocked possibilities. One of the things we did early on was analyze how we use PPE and then we created a better process around preservation and distribution of these valuable resources. We accelerated our implementation of telemedicine throughout the organization and also expanded access to care, with the opening of two new free-standing emergency rooms in south Lakeland and Wesley Chapel. We initiated a heart transplant program and advanced extracorporeal membrane oxygenation (ECMO) at Largo. We started a ventricular assist device program there as well. We also started new programs in MitraClip for advanced heart care and launched a lung nodule program. In spite of the COVID-19 overlay, we moved forward with clinical program advancements to ensure we are improving how we deliver care. Third, raise the bar. In a lot of ways, what COVID-19 caused us to do is question everything. Things we thought were tried and true now are not so much. In our organization, we challenged our team to live our common purposes, making a difference by providing compassionate care to those we are privileged to serve.

What partnerships with local higher education institutions have you established?

We have the Galen College of Nursing on campus at Northside. We’re going to expand with them to other campuses in our footprint across the West Florida division. We continue to work closely with all of the colleges and educational institutions, from Fort Myers all the way up to Inverness. That continues to be a high priority for us across all specialties, not only nursing but also other areas, including respiratory therapy and radiology technologists.

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In Tampa Bay, healthcare and social assistance account for 13.7% of the total workforce

( ) health coverage, according to DataUSA statistics, leaving 12.1% without coverage, slightly higher than the 10.9% nationally (2019 numbers), according to the PolicyAdvice website. Of the number of insured, 43% receive it from employee plans, 19.7% from Medicaid, 8.52% from Medicare, 14.4% from nongroup plans, and 2.4% from military or VA plans. The number of uninsured people appears to be on the rise: between 2016 and 2017, the percentage of uninsured grew by 4.38%, from 11.6% to 12.1%.

In terms of approving its citizens for social security disability, Florida is slightly below the national average: 12.2% are approved in the state against 13.7% nationally.

These rates have improved slightly in recent years. The total per capita spending on healthcare was $8,076; per enrollee with private insurance, it is $4,606; and per enrollee using Medicaid, it is $5,175. These numbers, too, are on the rise.

Healthcare is big business in the Tampa Bay region. By number of employees, healthcare and social assistance is the most common industry (26,224 people, or 13.7%), followed by retail and technical services. It is also the highest paid sector when seen by median earnings: people working in health diagnosing, as treating practitioners, or other technical occupations earn, on average $86,881 per year. And these workers are kept busy, in no small part the result of a large number of retirees who live in the area: in 2018, the ratio of primary care physicians to patients in Hillsborough County was 1 to 1,189, an .834% decrease over the previous year. The ratio for dentists is 1 to 1,769 patients a year, and for mental health specialists, 1 to 613 patients.

The COVID-19 pandemic laid bare some of the longsimmering fault lines in the aforementioned statistics.

With the onslaught of the health emergency, followed by massive unemployment and economic dislocation, ( )

Market voices: Keeping Tampa Bay healthy

Danielle Drummond

President & CEO Lakeland Regional Health

We’ve been working for several years on plans to become a teaching hospital. We anticipate being able to have residents on our Lakeland campus next year, and facility enhancements will be required for that. There is a physician shortage in Polk County and we feel our new residency programs will allow us to meet some of these needs. This should have a significant economic impact on our region. Now that we are getting over the brunt of the pandemic, we can also return to focusing on our behavioral health project. We have very robust services here, but our overarching goal is to ensure we are continuing to meet patient needs and continuing to adopt technology to allow patients to access the healthcare they need in the most appropriate way.

I believe that we’re at the dawn of a new age in healthcare. It’s the massive acceleration of home-based care that the pandemic reinforced. I think, looking at Empath and Stratum, we are incredibly well-positioned to execute on a hospice/ home-based care strategic plan. A lot of people don’t realize it, but 90-plus percent of hospice care is provided in the home. That’s where the hospice work was started in the 1940s and that’s where people prefer to die: in their homes with their loved ones and spiritual advisers. Because Stratum and Empath have been home-based care organizations for over 40 years, we are well positioned to take that expertise and expand it into other healthcare services.

Jonathan Fleece

President & CEO Stratum Health System

So much of our care, which previously was based on touch alone, is now including technology in a very efficient and effective way. Our caregivers, whenever necessary, use telehealth and then balance that with providing care in the home or our care centers. We care for many people at the most vulnerable point in their lives, when they’re sick or dying. We’re using telehealth to bring families together when they would not otherwise be able to.

Rafael Sciullo President & CEO Empath Health

Telehealth remains critical, and we’ve gotten questions from clients around payer rules and reimbursements. In fact, this was cited as the top operational challenge related to telehealth in a recent MGMA Stat poll. Right now, it’s all a bit of an unknown but we’re helping our clients navigate these waters and we’re working with them to ensure they receive telehealth reimbursement, as there are three types of virtual care services currently outlined by CMS: the classic telehealth visit, virtual check-ins, and e-visits. These differences influence coding, as well as which patients can be seen, who can provide telehealth services, and how they can provide these services – so it’s important to understand the different types.

Pratap Sarker President Greenway Health

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HEALTHCARE INTERVIEW

Getting ready The pandemic put a spotlight on infectious disease and Tampa General Hospital is working to prepare for similar future events

John Couris President & CEO – Tampa General Hospital Rehabilitation Hospital, which we moved inside the main facility on our campus because we’re building a new acute care rehab about a mile away. The institute is primarily focused on three pieces of infectious disease. First, it’s where most if not all of our COVID-19 patients are placed. It is clinical care, both inpatient and outpatient. Second, it’s focused on research. Third, it’s focused on education. It is a collaboration between Tampa General Hospital, the University of South Florida (USF) and our private practice physicians. The idea around it is to find ways to get highly proactive with infectious diseases, learning from the pandemic, taking those experiences and applying them on a goforward basis so we are ready for what could be the next epidemic or pandemic. In essence, we are establishing ourselves as a leader in infectious disease.

What areas of demand have come to the forefront compared to pre-COVID? Infectious disease obviously is now at the forefront of a lot of what we do. Hospitals have always dealt with patients who have an infectious disease. Across the country, we’ve dealt with people with MSRA, the flu, chicken pox, smallpox, to name a few, but we have not dealt with anything quite like COVID-19. It showed us that infectious disease is something that we need to spend more time on. It’s probably here to stay and it’s taking different forms, given what’s happening around the world.

Tampa General Hospital is just one example among many but we built a new service line called the Global Emerging Diseases Institute. It’s an 80,000-square-foot facility that was Tampa General Hospital’s Acute Care 134

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How has telehealth played out for Tampa General Hospital and where do you see it going?

Telehealth has been wonderful. This is another example of a silver lining from COVID-19. Telehealth has been ready for prime time for several years. COVID-19 made it a necessity, the government funded it and continues to fund it and insurers funded it as well. The adoption of telehealth was almost instantaneous across the country. We are no different than any other major system or large decision group. We had a telehealth platform, we migrated to it easily and the transition was made overnight. We made the switch and it has worked beautifully. Hundreds of thousands of visits have been done on telehealth.

Our fear with telehealth is the reimbursement going away because its utilization will automatically dwindle.

We really hope the government and our payers continue to fund telehealth. The technology works and people like it.

HEALTHCARE OVERVIEW

( ) there was an enormous spike in Medicaid enrollment applications, a 16.5% increase over the year before. The agency charged with vetting these quickly became swamped just as application reviews were put on hold as a result of the health emergency. To assist with the influx of applicants, the state staffed call centers. The federal government, too, helped through its Families First Coronavirus Response Act, passed in March 2020, and designed to help states access Medicaid money (which for Florida meant $1.2 billion extra in federal dollars). Florida Gov. Ron DeSantis found his willingness to work with the federal government tested after power in the executive branch transferred from the Republican Donald Trump to the Democrat Joe Biden.

DeSantis, along with a slew of Republican governors nationwide, have shown hesitancy in accepting the Biden administration’s move to expand Medicaid.

Health infrastructure Locally, the Tampa Bay healthcare sector has a sizable infrastructure and vast resources to offer patients. The region’s largest hospital, Tampa General Hospital, can boast 1,007 licensed beds, $1.31 billion in net operating revenue and 7,548 employees. Not far behind is St. Joseph’s (897 beds, $1.34 billion, 5,839 employees), and in third is Lakeland Regional Medical Center (864, $723.33 million, 4,219).

The numbers on Tampa Bay’s physician groups are similarly impressive: the region’s largest, BayCare Medical Group, has 776 physicians; this is followed in second by Moffitt Medical Group (637 physicians) and then USF Health (428). The state’s largest managed care providers are all headquartered in Tampa and include, at the top, WellCare of Florida Inc. with 1.13 million enrollees statewide, followed by Humana Inc. (with 985,205 enrollees), and then Health Options Inc. (830,159).

In a further sign of growth for the sector, throughout the pandemic, the construction of new medical buildings continued apace in the Tampa Bay region.

In September 2020, St. Joseph’s Hospital completed a four-year, $126 million expansion that saw an added 90 private rooms as well as a pedestrian bridge. Even with this huge amount of work, the hospital was able to expedite its opening in order to accommodate the influx in COVID-19 patients. In other news, AdventHealth announced plans to invest $400 million in its West Florida division. This includes $220 million spent on a hospital in Hillsborough County with 80 beds and 100,000 square feet of medical office space.

Elsewhere, Tampa Memorial Hospital (owned by HCA) will be investing $19.5 million to expand and consolidate into what will be the Tampa Community

Perspectives: Innovation Steven Achinger Managing Partner – Watson Clinic Early on, it was noted that there were some people with some fairly significant symptoms that lingered following COVID-19 infection. Our assumption is that there will be more clinics sprouting up out of the need to cater to the lasting effects of the virus. We’re seeing decent demand for that service.

Dave Rich Founder & CEO – Ensurem One of the changes within the federal scope was a long time coming and should have happened sooner, which is telehealth for seniors. That is a critical component that aids in unlocking physician access to people in nursing homes.

David Whitney Chief Innovation Officer & Partner – Health Innovation Partners Telehealth is the new normal in healthcare for 2021 and beyond. Providers, payers, and patients have embraced the future that telemedicine and telecare represent.

Hospital, which will notably feature the most advanced adult behavioral health program in the county.

Finally, AdventHealth’s Taneja Center for Innovative Surgery is slated to open in fall 2021. At the hefty price tag of $256 million, it will be the largest surgical tower in Tampa. These three projects are only a fraction of the medical construction occurring in the region at the moment.

Telehealth In a mirroring of society’s movement toward remote work, one of the major new trends in healthcare has been the rise of telehealth, or the use of video conferencing and mobile applications to address health problems.

The use of this relatively recent technology has helped to replace many in-person consultations, quotidian check-ups, or at-home visits.

The benefits of this technology as the pandemic spread — the first time when its adoption became economically viable — are obvious. Not only were hospitals overloaded at the height of the pandemic, with severe stress placed on a doctor’s time, but clinics were also closed and people were strongly encouraged to stay at home. After all, a hospital waiting room is not a good place to be during a pandemic. Telehealth www.capitalanalyticsassociates.com

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Krishna Nallamshetty, MD President – Radiology Associates of Florida

The main challenge we face is the psychology of going from this extreme to returning to a new normalcy. Many people are comfortable going back to normal but that does not mean everyone is. This last year has really opened our eyes to doing things differently from what we’ve done for years. I don’t think we will return to exactly the way we worked pre-COVID-19. Rather, we will continue to embrace and incorporate the technology we gained into a new normal workflow. Technology in healthcare has always lagged compared to other industries. Being forced to use telemedicine made people realize its benefits and potential. That only makes access to healthcare greater and improves the patient experience.

The pandemic solidified the accessibility and adoption of telehealth platforms across the sector, a fairly new development prior to the onset of the pandemic.

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was the great equalizer that allowed doctor “visits” to continue, and its benefits are still evident more than a year into the pandemic.

Another added benefit of telehealth is that it can make seeking treatment a more benign experience for marginalized communities. There has been a efflorescence of telehealth services for the LGBTQIA+ community, Black and brown communities, women, and many others.

Still, with all of this development and innovation, the consensus among doctors is that telehealth is a way to augment traditional medical practices, not to replace it altogether.

Companies and groups in Tampa also have positioned themselves to take advantage of trending innovation.

In March 2021, it was announced that Tampa General Hospital would be partnering with TytoCare to create the first AI powered, at-home telehealth kit. The TGH Virtual Health Kit, as it is known, will be able to administer ondemand virtual medical examinations. The kit includes a high-resolution camera, a thermometer, an otoscope for ears, a stethoscope for heart and lungs and a tongue compressor for the throat.

Elsewhere in the region, telehealth has been applied to solve problems inherent in mental health treatment.

There was a spike in mental health distress calls over the pandemic, and to help alleviate the situation, the Pinellas County nonprofit Directions for Living created TRACE, a telehealth program that offers mental healthrelated crisis evaluation. It has since been adopted successfully by the Belleair Police Department.

CONSTRUCTION HEALTHCARE OVERVIEW

Challenges The health sector in the Tampa Bay region is the largest employer and in a time of pandemic — and an outpouring of sympathy toward overworked health workers — job security among those in this industry would not appear to be an issue.

But the truth is more complicated. While this year has ushered in new interest in lab-based, infectious disease research, the hard facts of the pandemic have made it a difficult year for some workers.

Again, Tampa General Hospital is paving the way as a regional leader. It recently opened the Taneja Family Global Emerging Diseases Institute in part as a response to the pandemic. At one point, over $8 million was invested to transform a former rehab building into a COVID-19 care unit.

Moving forward, the new Institute will be a forum in which Tampa General, University of South Florida Health, and private physicians will be able to work together on clinical trials and research. So far, Tampa General has done promising work on in-house sequencing that could rapidly identify new variants of COVID-19 as they emerge.

Besides areas such as this though, it has been a tough year for medical workers. The sector was second only to the restaurant industry in terms of layoffs.

An order by Gov. DeSantis to stop all non-emergency elective surgery, as well as a steep decline in in-office consultations — both a financial lifeline for clinics and smaller practices — has put serious strain on the industry. The Watson Clinic in Lakeland, for instance, saw a drop of $600,000 a day after the restriction on elective surgery came into place, and, as a result, it had to furlough over 388 employees and slash salaries for senior administrators, the Tampa Bay Business Journal reported. Across the nation, where healthcare is generally regarded as a business, billions were lost due to similar strictures.

Added to these stresses are the long-term effects of burnout and overwork among medical staff. There was a paucity of medical supplies and beds which forced frontline workers to make difficult decisions when executing their tasks.

Adding to the stress of frontline workers’ situation is the fact that, on account of the contagious nature of the virus, no loved ones were allowed to visit ICUs, meaning that one’s role as a nurse or doctor could quickly evolve into something more akin to hospice care and grief counselling. The strain on medical workers has been addressed by programs such as the Hillsborough County Medical Association’s Physician Wellness Program.

Al Hernandez Public Sector VicePresident – Florida Humana

How has the demand for telehealth evolved over the course of the pandemic?

A few years ago, Humana launched our partnership with Doctor on Demand to provide our members with virtual access to U.S.-based, board-certified physicians.

At the time, we saw minimal utilization of the program.

However, with the onset of the COVID-19 pandemic, we’ve seen significant growth in telehealth, with up to 30-40% of Humana members utilizing virtual care. This has created a significant shift in the way we do business, and we believe telehealth will continue to play a postpandemic role.

How does your partnership with Accolade improve your offerings?

Employers typically provide benefits that include offerings like medical, dental, vision and life insurance, as well as other products. However, let’s face it, insurance can be confusing. Employees may be able to understand some of the components of their benefits but may struggle to find the best care and coverage. Humana Impact with Accolade is a navigation tool that allows us to aggregate all of these benefits under one umbrella, creating a holistic approach. Employees have access to a Healthcare Support Specialist to help them optimize their benefit programs, find the best quality healthcare providers and clinical programs, and minimize their out-of-pocket expenses. So far, we’ve had phenomenal feedback.

How is Humana using data-driven technology to improve its services?

Artificial intelligence and data-driven technology are playing a huge role in our services. The reality is that everything we’re doing, from a claims perspective down to the individual calling in to express their needs and desires, goes into a database that we constantly analyze.

We’re utilizing technology to help provide personalized healthcare experiences for our members. We’re extremely proud of our back-end tools that allow us to provide a unique, personalized experience to our members. www.capitalanalyticsassociates.com

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FY21 Florida budget: $2.8 million to combat HIV/AIDS, $9 million for minority health infrastructure, $4 million to improve services Public policy In terms of public policy, the pandemic has shifted focus to the vaccine rollout on the federal, state and local levels. The effort to contain the spread of the virus has resulted in the unprecedented vaccination drive that is unfolding in the United States at a rapid rate when compared to the rest of the world.

On the federal level, the Biden administration is

expected to reverse many of the Trump administration’s cuts and rollbacks. Trump made deregulation and cuts a signature aspect of his presidency and, over the course of his four years in power, chiseled away at the Affordable Care Act, reduced access to Medicaid, and did away with other consumer protection measures.

As part of his signature infrastructure plan, Biden has also displayed an interest in investing more in research and development, something which bodes well for the medical research and life science sectors.

On the state level, government action alternates between forward thinking on the one hand and totally absent on the other. There has been a raft of legislation in the pipeline that will affect Florida’s healthcare professions, including the establishing of standards of practice for telehealth, measures that will counter the opioid epidemic, and continuing education for dentists.

Among DeSantis’ budget proposals for 2021 are $2.8 million for combatting the HIV/AIDS epidemic in Florida, $9 million for strengthening minority health infrastructure and $4 million to improve the services offered by healthcare professionals. There is a drive to increase the health of mothers and newborns through encouraging healthy living. ( )

HEALTHCARE INTERVIEW

Preventive care Elements such as screenings and mammograms to get in front of disease progression is ‘mission critical’

Nathan Walcker CEO – Florida Cancer Specialists & Research Institute What were some of the biggest takeaways from 2020?

We serve cancer patients in nearly 100 locations across the state of Florida. If we’re not open or have staffing problems, that has direct downstream implications on patient care. In 2020, we saw, across our network of cancer specialists, roughly the same number of patients on a year-over-year basis. Given cancer incidence rates and demographic growth in Florida, the fact the volumes are flat, and in many cases down for providers, shines a bright light on the importance of preventative care. Doing things such as screenings and annual mammograms to ensure we’re getting in front of the disease progression is mission critical.

FCS adopted telehealth and made a sharp pivot to how we operate fundamentally, soup to nuts, across our business. Systematic, repeatable processes ensure that every person coming into our clinics is safe and feels comfortable doing so. We then took that shift and operationalized it at scale for all our patients to continue having a rewarding experience in 2021.

How is Medicare’s oncology care model making a difference?

The oncology care model is essentially a demonstration project, or pilot, from CMS. The Centers of Medicaid and Medicare Innovation (CMMI) ultimately is tasked with supporting what has been happening across healthcare for the past several years, marching toward value and quality, moving away from volume to a value-driven model. It boils down to demonstrating not just real return on dollars spent providing care, but also advancing quality for patients and efficiency for the system. At FCS we are fortunate to participate in the oncology care model and many other value-based arrangements. We perform well given that we’ve made the right and the smart investments infrastructure-wise to help support the patient. We have a care management team and a

fully dedicated support infrastructure squarely focused on our patients and their extended care teams.

What are you watching out for in terms of legislation?

Late last year, the Trump administration brought forth an approach to drug pricing called Most Favored Nation.

Had that been enacted, community oncology practices across the country would have gone out of business overnight. Whether this carries forward into the Biden administration is something that we’re watching closely.

We’re focused on making sure that our state legislators, senators and people on the Hill who are representing the great state of Florida know how big of an issue this is; and that they’re doing the right thing to make sure that patients continue to have a choice for convenient, high-quality care close to home. www.capitalanalyticsassociates.com

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HEALTHCARE OVERVIEW

David Pizzo Market President – Florida Blue

We are becoming a lot more locally focused. We have had more offices, employees and engagement centers around the state than other insurers but throughout 2020, we have further concentrated on a hyper-local approach. We are looking at our customer base demographics, county by county if not neighborhood by neighborhood, to see how we can better serve the community and deliver against our mission of helping people and communities achieve better health. We have been developing a new working model within the company to do so, which includes staffing up. There are a significant number of nonprofits we can work with to reach the desired local depth for our services. This hyper-local approach and mindset is going to take us not only toward a significant culture change, but also into the future in a big way.

( ) The coronavirus laid bare some of the inadequacies of the longer-term care for the elderly, as well. Elderly rights groups such as the AARP are proposing programs that they are hoping the legislature will adopt that will bring such care into the 21st century but there has yet to be any substantial movement from lawmakers.

Additionally, the pandemic caused a renewed interest in mental health, as legislators on both sides of the aisle feared an uptick in mental health and addiction problems. Florida already is the state that ranks last in the country for per capita mental health funding.

Unfortunately, the measures proposed, such as more accurately accounting for citizens’ dissatisfaction with mental health offerings, were widely considered insufficient. That said, the suicide rate in the country has been on the decline in spite of the pandemic.

Insurance An integral element in healthcare is the insurance market, and here too in Florida, the industry has not been without its problems. As mentioned, there is a 12.1% uninsured rate, slightly more than the national average. Using the federally run exchange, Florida has the highest enrollment on it than any state in the country, 17% of all enrollees in 2021. In terms of lower income residents, Florida has a Medicaid coverage gap, in large part due to the state government’s refusal to accept federal funding, and, as a result, people below the poverty line are not automatically eligible.

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Florida also has a very high rate of people who receive medical insurance through their employers. States in such situations faced a precipitous disaster when the pandemic struck, the economy cratered and millions of jobs were lost virtually overnight. Such is the rate of job-based insurance that an unemployment rate of 10% translates to 646,000 people losing their coverage, and 25% can lead to almost 2 million without coverage. In Tampa, there was an especially high risk of job-based insurance loss, as the city ranked 11th in the country for jobs at a high risk of being deemed unessential and so affected by the pandemic (such as hospitality and retail). While the Florida economy recovered relatively painlessly from the initial shock of the pandemic, it still laid bare some major instabilities in the state’s insurance market.

Thankfully, on the whole, the Tampa Bay region is fairly healthy. In fact, it is slightly healthier than the national median. This is based on a number of metrics, including life expectancy, smoking rate and obesity levels. In terms of public health crises, besides the obvious once-in-acentury pandemic, the opioid crisis continues to be a scourge on the land with deaths from Fentanyl having risen exponentially over the last decade. Added to this issue is the lack of access to care for lower-income residents that has been mentioned already.

Vaccination campaign If the pandemic was the largest public health story of

Shane Donaldson CEO Pinnacle Home Care

What is Pinnacle Home Care’s key mission?

The Mission of Pinnacle was born out of an obsession I had for the patient care experience while I was still practicing as a physical therapist in the early days of the organization. Our mission is: Changing Lives Through the Art of the Experience. Here at Pinnacle, we believe that although “what” we do is important, “how” we do it is equally if not more important. Creating an exceptional experience for a patient is an art that is only fully appreciated when you have the heart to serve. Beyond our patients, we recognize three other “stakeholders” for whom the experience is equally important: our staff, our referral partners and the communities we serve.

How will the development of telehealth disrupt your operations?

We were already working on a telehealth platform when the pandemic struck, so we were in the right place at the right time when it came to our deployment phase. We accelerated our rollout plans and began to implement videocall technology throughout our operations where possible. This platform proved to be incredibly beneficial as it allowed us to maintain close contact with our patients during the pandemic at a period of time where there was understandably heightened concern for any face-to-face contact.

What challenges is the homecare industry facing?

One of the major recent changes has been a modification in the way we are compensated for our work. Until the end of 2019, we were responsible for the care of a patient for a 60-day payment period. We would receive approximately 40% of that payment up front, based on the patient’s anticipated needs, to cover our expenses.

We would then receive the rest of the payment on conclusion of the treatment period.

In 2020, the upfront payment dropped to 20% and as of 2021, we no longer get paid anything up front.

This creates significant cash flow issues for many organizations.

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Tampa Bay’s healthcare system consists of world-class hospitals, research institutions, specialty centers, physicians and staff, all of which are paving the way in the advancement of medicine and health.

2020, then the largest for 2021 has certainly been the rollout of the vaccine. The state was able to make the vaccine available to all adults, several weeks ahead of Biden’s goal of doing so for the entire country.

That said, the vaccination drive has not been without its issues, such as local skepticism of vaccines generally.

The state is also taking pains to vaccinate communities that have been disproportionately burdened by the pandemic. Black residents have been underrepresented among those who have received the shot, and to counter this, the state government is partnering with community organizations, such as Historically Black Colleges and Universities, to engage those underserved. The state has also allotted $200 million to help with minority outreach.

Another issue facing vaccination efforts has been the eligibility of seasonal workers and immigrants.

Toward ensuring these groups get vaccinated the state has provided translators at vaccination sites and reduced the threshold for identification: a resident of

HEALTHCARE OVERVIEW

Florida normally has to produce a Florida state ID, but in the case of seasonal workers, two pieces of lesser identification, such as a work permit and a utility bill, will suffice.

Looking ahead As the COVID-19 pandemic slowly winds down in the United States, the health sector in the Tampa Bay region has a bright future. The pandemic itself has resulted in a shift of dynamics across the area at large.

For one, the economy in Florida looks stronger than the rest of the country. This is in large part due to the reluctance of the governor to close the economy as well as other pro-business policies, such as a friendly tax structure.

More importantly, though, have been the relocations: people and companies who are moving to Florida, and Tampa Bay especially, to set up shop. The growing diversity of the economic base and the influx of population, means more traffic for medical businesses as well as a better talent pool to staff such businesses.

Add to this the technological advances spurred by the pandemic, such as the rise of telehealth, and the coming years in Tampa are due to be exciting indeed for the healthcare sector.

The one area that Floridians should keep in mind as wealth and economic activity rise are the inequalities built into the Florida health system. The hope is that politicians and industry leaders do not lose sight of this as the recovery continues.

John Moore President – Bayfront Health St. Petersburg

The healthcare industry as a whole had been seeing an increased use of telehealth but COVID caused an explosion in demand that I believe will continue post-COVID as we move to a more positive phase. It has shown people the possibilities and given them the opportunity to try out the technology. From our experience, patients love the accessibility and efficiency. In a lot of cases, it creates a more efficient and effective method of providing care.

The pandemic has reduced the unknown factor and potential intimidation of using telehealth. Previously, we saw hesitance among some in using telehealth systems but now there has been a tremendous positive response. We look forward to growth in this area and will be rolling out a new electronic medical records system that will aid Bayfront Health St. Petersburg in this direction.

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Education: Education at all levels faced an unprecedented challenge in early 2020 with the emergence of the pandemic. Since then, all institutions have pivoted to remote learning or some form of hybrid while also dealing with declining revenues. What the future ultimately looks like remains to be seen but the landscape has been permanently altered.

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Altered landscape: Education in Tampa Bay is poised to recover, although what that looks like remains unclear At the end of 2020, Tampa was named the ninth-fastestgrowing city in the United States and the Tampa Bay region itself is growing by about 2% per year, outpacing the 1.5% national average. There are a number of reasons for that strong population expansion but one key factor is education and in Tampa Bay, education is world-class.

Furthermore, the cultural dynamism and probusiness ethos of the community means that many graduates are able to remain in the region after college to enter high-paying jobs. Tampa’s diverse economy also ensures that college is not the only option, with ever more opportunities for workforce training, trade schools and apprenticeships.

But education at all levels faced an unprecedented challenge in early 2020 with the emergence of the COVID-19 pandemic. Since then, schools have pivoted to remote learning, have dealt with declining enrollments in some cases, although not as severe as many had expected, and are now preparing to move back to inperson learning. What the future ultimately looks like remains to be seen but the landscape, nonetheless, has been permanently altered.

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Landscape The Tampa Bay region has a variety of four-year colleges, two law schools, four community colleges and a state-run primary and secondary education system.

According to Niche, the Pinellas County Schools District in Largo is No. 1 in Tampa Bay, followed by Hillsborough County Public Schools and Pasco County School District in Land o’ Lakes. In terms of further education, most bachelor’s degrees are awarded in Business, followed by Health, Social Sciences, Biology and Psychology. Almost half of all associate degrees awarded in the region are in Liberal Arts and Sciences.

Like all economic sectors, the education sector found itself having to deal with the fallout from the pandemic.

With students across the board forced to suddenly learn from home, barriers such as lack of equipment, lack of focus and even staff burnout plagued the system in the early months of the outbreak. While some K-12 students have since switched from public to private school or even to permanent home schooling, a February report by the Tampa Bay Times said that around 90,000 Florida students simply dropped off the system, with no education provided to them at all. ( )

EDUCATION INTERVIEW

Consolidation Having one single accredited university provides greater synergies, permeability for students and faculty

Steven Currall President – University of South Florida

How does consolidation of USF’s three campuses benefit students and faculty?

Consolidation enables us to combine all three of our campuses into one single accredited university. Prior to consolidation, we had three separately accredited universities, which are now merging into one. The advantage of this strategy for our students is that it allows greater permeability across the campus boundaries to provide new opportunities to take courses and get access to degrees offered at either one. It is highly synergistic for them. It also provides opportunities for our faculty to do interdisciplinary research that spans the boundaries of those campuses as well. The key implication for consolidation is greater permeability. It is the ability to move knowledge, information and people across those three geographical locations in a way that promotes new opportunities and new collaborations.

What does it mean that the university was selected for the Novavax COVID vaccine trials?

This is just one more example of the extraordinary partnership that we have with Tampa General Hospital (TGH). We worked in collaboration with them on the Novavax vaccine and we will be distributing that in a joint effort. TGH serves as our teaching hospital for the Morsani College of Medicine and it is an amazing partnership that has deepened recently. We signed an enhanced affiliation agreement with TGH over the summer. It was a result of lengthy collaboration and negotiations between the hospital and USF. In some ways, that new arrangement with TGH was nearly as complex as our consolidation efforts. We have had long-standing clinical activity at USF Health but this deeper relationship with TGH allows us to advance the idea of an academic medical center that combines both the university and medical school

elements and the clinical and hospital aspects that TGH contributes. We are excited about this new era in the history of the relationship between USF and TGH. What are your near-term priorities?

Looking forward, one of the things we have learned during the pandemic is the ability of the university community to pivot quickly and develop innovations that meet a societal and public health need such as COVID-19. One primary example is the Morsani College of Medicine’s work with the College of Engineering and TGH to develop a model for 3D-printed nasal swabs for COVID-19 testing.

The university worked quickly. Within two weeks it developed the framework for 3D-printed swabs, printing them by the tens of thousands and distributing them across the Tampa Bay area, the country and the world. www.capitalanalyticsassociates.com

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Anne Kerr President Florida Southern College

How was enrollment impacted as a result of the pandemic?

While the national landscape for higher education has really been struggling to make those shifts that would allow it to move forward, Florida Southern College has been blessed. Our enrollment has been stronger than our projections. We have been very fortunate. The retention of our fabulous faculty has been strong, as has the retention of students progressing from first year through senior year. So, we have not experienced what others may have experienced in higher education. I would say, our budgeting has been challenged because we have had to make many more investments on campus to ensure the health of our students. It has all been enormously expensive — COVID test centers, adding Plexiglas in labs and classrooms for social distancing, temperature controls, air filtration systems – the list goes on and on. Since we are the kind of institution that typically emphasizes face-to-face learning, we have also invested in new technology to offer to our remote-learning students. We are proud of the fact that our students are taking the same classes and working with the same faculty as they would have been without COVID. What programs are seeing the most demand?

I am excited to share that our business programs — at our remarkable Barney Barnett School of Business and Free Enterprise — are thriving. We see many students attending the Barnett School studying finance, marketing, management, data information systems, all of those important aspects of business. Our enrollment is strong and growing. I believe we will continue to see that trend going forward. We have also made some adjustments to the curriculum to try to help students.

We have a 4+1 program, so students can complete four years of undergraduate study and then get an MBA in the fifth year. Students are paying more attention to earning two degrees by getting graduate degrees in a faster format. We have a similar program in education as well as.

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As educational institutions plan a return back to the classroom, the hybrid approach to education is likely to remain a key tool for educators in a post-COVID future.

( ) Additionally, both school districts and community colleges in Tampa Bay have seen declines in enrollment.

In Hillsborough County alone, around 7,000 students were “missing” as of November. St. Petersburg College faced a 9.9% drop in fall enrollment compared to 2019 figures and Hillsborough Community College faced a 16% drop. For some students, the decision regarding inperson or online classes deterred them from returning to college and others are facing family and financial challenges.

Funding Of course, a drop in enrollment has far-reaching consequences in the form of budget shortfalls. In response, some higher education institutions have been forced to re-evaluate their footprints and shed some noncore assets in a bid to generate liquidity.

EY-Parthenon says there is a more flexible learning environment ahead, which could mean that universities have too much capacity for their intakes. According to the Business Journal, about half of U.S. schools reported net tuition losses in fiscal year 2020, exacerbated by a drop in endowment balances and uncertainty over the viability of welcoming international students.

EDUCATION OVERVIEW

Additionally, college sports hung in the balance, which accounts for substantial revenues for institutions. In fiscal 2018, the University of Florida’s revenue from sports was $143.6 million.

As the pandemic hit budgets, some institutions were also forced to let go of staff members. The Hillsborough County School District said in early 2021 that it would cut about 1,200 positions after cutting 600 in September. The district lost around 3,000 students to charter schools, home schooling or other institutions.

At the university level, Florida state issued a directive instructing all universities to cut 8.5% of their stateallocated general revenue and lottery funds budget.

This meant a cut of around $36.7 million for USF, which was forced to cut support units, academic support units and staffing, travel and academic costs across its various schools.

The Tampa Bay education system, however, received a lifeline from the federal stimulus packages, the most recent of which was allocated in January. The previous administration agreed to $22.7 billion in emergency funding for universities and colleges and hundreds of smaller colleges qualified for PPP loans. There was greater flexibility on spending of the funds than in the

The Hillsborough County School District lost 3,000 students to charter schools, home schooling or other institutions in 2020 previous funding round, allowing the institutions to offset lost revenue, offer financial aid and pay operating expenses.

By February, lobbyists announced they were seeking a further $97 billion in stimulus from President Joe Biden’s latest financial package, which would average around $27 million per school. The lobbying group, Association of Public and Land-grant Universities, said www.capitalanalyticsassociates.com

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EDUCATION OVERVIEW

its members had reported funding shortfalls of $15.1 billion since the beginning of the pandemic.

COVID recovery A glimmer of hope has also been seen in the vaccine and mass testing rollout across the state. And although universities are not widely demanding that students be vaccinated just yet, this could be a requirement in the future to return to campus. Already, Nova Southeastern is mandating that all students must be fully vaccinated before returning to classes in August. Other universities around the country are taking a hard-line stance when it comes to virus spread, with some students suspended over large gatherings. And houses of residence are opening up again, which is sure to alleviate some of the burden on university budgets. Some, such as USF, are waiving early arrival fees for students, hoping to stagger arrivals as much as possible and avoid large crowds on Grand Opening Week. USF hopes to return to its full level of in-person classes this fall, as well as continuing to offer further courses online.

In a bid to bring in new revenue, colleges and universities also are increasingly turning to nontraditional sources of revenue, including outreach to

There is a strong collaborative spirit between private and public institutions as many of them share articulation agreements streamlining the student transfer process.

EDUCATION OVERVIEW

Perspective: Growth strategy Keith Wade President & CEO – Webber International University One of the conversations that you have as a college president is that there’s an expectation that you will be somehow expanding, and I’m not sure that we want 5,000 people on this campus. It’s not challenging to pull off but, at some point, you lose your uniqueness.

The professors know their students here. They will walk into the cafeteria and connect. I don’t think our desire is to be huge, and everything to everybody. We’ve added some degrees that are within our competency to do and that have been demanded by the general public.

more mature and career-advanced students. According to data from the National Student Clearinghouse Research Center, fall enrollment for women over 30 years in undergraduate programs fell 3.3% and for men over 30, enrollment fell by almost 7%. Several institutions have since confirmed plans to enhance or deliver new adult education programs.

And higher education institutions are playing to their strengths to continue generating new revenue to stay afloat.

At Saint Leo University in Pasco County, a new esports team and designated esports area have been launched, recognizing the potential of the multibillion-dollar industry. An inherently innovative institution, the university has also launched an autonomous vehicle and two new STEM degrees for programming and robotics. Sticking to a more traditional route to increased funding, USF is relying on its healthcare research and was recently awarded a national grant of $44.4 million by the National Institutes of Health’s National Institute on Aging for the school’s Alzheimer’s study. The University’s College of Engineering also signed an $85 million contract with U.S. Special Operations Command last February. And in February both the Hillsborough County School District and Hillsborough Community College received funding from a $10 million grant program to start expanding apprenticeship programs.

Higher education Florida’s higher education system is made up of about 230 colleges and universities, of which about half are for-profit private institutions and 18% are public institutions. In 2019, just under 50,000 degrees were awarded by universities in the Tampa-St. PetersburgClearwater area. By far, the most degrees were awarded

by USF, accounting for over 26% of degrees awarded.

Public education is favored in the area, with public four-year and two-year colleges accounting for about 63% of the student body. The student population that year totaled around 165,000, with around 65% of the student population being women. About 50% of those students graduating from universities in the area were white, followed by around 18.5% Black or African American and 17.2% Hispanic or Latino. The median tuition costs in the area are just over $23,000 for a private four-year college, just over $3,000 for a public four-year college for an in-state student and just over $12,000 for an out-of-state student. Florida has the second-lowest in-state college tuition fees in the country at an average of $6,360.

In Tampa, about 40% of the population has a bachelor’s degree or higher, around 25% has graduated high school or has a GED and about 24% has some college or associate’s degree. The proportion of Tampa residents who hold a bachelor’s degree is higher than the U.S. average of 32% and the state average of 30%.

The Tampa Bay metro area is home to some of the most prestigious colleges on a national level, including the University of South Florida, ranked 103 nationally, the University of Tampa, ranked 13 in southern regional universities and Saint Leo University, which comes in at No. 26 in southern regional universities.

Saint Leo University is also ranked by Niche as the third-most diverse college in Florida and USF comes ( ) www.capitalanalyticsassociates.com

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oundtable:

The future of higher ed As the education landscape transforms in the wake of the pandemic, one factor is certain: online learning will have a bigger role.

Ken Atwater

President Hillsborough Community College

Where do you see online learning moving from this point?

You would be surprised at the number of people who were skeptical about taking online learning classes prior to the pandemic. We’ve learned what we need to do to make those classes more interactive and engaging in order to provide a greater chance for people to be successful. We’ve also learned that interaction, whether virtually or in-person, makes all the difference. All of our classes have to be engaging and we’ve learned how to do that in our online environment. We are retrofitting over 200 classrooms at the college for hybrid, synchronous, in-person and online classes.

How has the pandemic translated into a push toward talent upskill, reskill and career change?

Anytime you look back after a recession or a downturn, the country’s community colleges, which already play an essential role in sustaining the community’s economic engine, are critical in helping people recover from these difficult times and in this case, the pandemic. We see ourselves playing a leadership role in this recovery as well. In the Tampa Bay area, for example, if you look across all segments of the transportation sector, there are about 15,000 jobs that perform an important role within the supply chain. If you look at what is necessary to fill those jobs, such as diesel and automotive technicians and welders, all require advanced skills from programs that we offer. We graduate over 220 technicians every year, with an average salary of $40,000 per year, and their economic impact is valued at over $600 million on an annual basis.

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Timothy Beard

President Pasco-Hernando State College

What is your outlook for the next year?

We have a lot on the table. The college received $6.6 million from the first stimulus package. Half of that went to student scholarships. The other half to support the transition to full online education during the pandemic and to build future online capabilities. The second stimulus provided us with $14 million. We are injecting $3.3 million into student scholarships and the remaining $10.7 million will be used to continue enhancing the delivery of online courses, support services, campus safety and to offset the college’s loss of revenue. The state has held back 6% from our 2020-2021 budget, which was a big hit for us. We are still unsure about how much of that will in fact be held back because the legislature has to hold a special session to decide on the matter. Despite that, with the decrease in adjunct faculty cost due to a decline in enrollment, cost savings from unfilled vacant positions, use of CARES funds, and reduction in administrative costs, the college is working to minimize the effect of using reserves to cover any budget shortfalls if the 6% holdback remains.

What programs are seeing the most demand?

Nursing and healthcare, primarily. Nursing has been a signature program here for some time. It is a tough, highly rigorous program, designed under high standards. PHSC’s Licensed Practical Nursing (LPN) program was ranked No. 1 out of 164 public and private programs in 2019 by the website NursingProcess.or. We also offer a Bachelor of Applied Science in Supervision and Management degree and an all-online Bachelor of Science in Nursing degree. Radiology is also in high demand, as well as our Emergency Medical Service (EMS) program.

EDUCATION ROUNDTABLE

Kent Ingle

President Southeastern University

Larry Thompson

President Ringling College of Art and Design

What are the university’s main near-term goals?

In early January 2021, we conducted gateway testing as the students came back to campus. We are once again operating in a hybrid format for the spring semester. We are hopeful that the vaccine will help us to get to a fall 2021 that will be somewhere close to normal again. In 2021, we are focusing on expanding our online delivery with more affordability, more accessibility and more innovative programs targeted to helping adult learners adapt to the changing landscape. We are also expanding our partnership model outside of the nonprofit landscape and into the corporate world. Our goal is to partner our ability to provide accreditation with the knowledge and expertise of some of the greatest teachers and experts in the corporate world.

What technological trends are you looking at to improve your curriculum?

Just about two years ago, we started a major in virtual reality. We were the first art school to do that. One of the initial partnerships we did was with the Moffitt Cancer Center, where our students and staff created an immersive virtual reality experience for people going through cancer treatment, so they could familiarize themselves with the environment and understand and feel what it was going to be like to undergo their care.

We also used technology to create another major called entertainment design. It focuses on theme environments, which include theme parks but also things like restaurants and hotels and rock concerts – any kind of environment that’s themed.

What is the university’s vision for its donated land parcel?

Future development on that piece of property will be dedicated to athletic facilities. Some of the things we are considering include a championship tennis facility, soccer fields and the site of a future baseball stadium. There are a lot of things we are looking at as we solidify strategic plans with these kinds of gifts and investments. Another great gift we received was a $2.1 million grant from The Kern Family Foundation to develop an innovative accelerated degree program for ministry students in which they can earn both a bachelor’s and a master’s degree in only five years instead of the traditional seven. Programs like this help make education more affordable and provide an earlier entry to the workforce.

How is the college preparing students for the current, uncertain job market?

We’ve created a program called the “Collaboratory” in partnership with the Patterson Foundation here in Sarasota to guarantee every student an opportunity to gain realworld experience. Now, we have clients coming to us who want us to help them solve some of their problems, using the creative energy of our students. Over the past seven years, we’ve been working with General Motors, which wants our students to look into the really far future, to look 20-plus years ahead and envision what automotive could look like and how it might function then. Many of the auto design people get caught up on the engineering limitations of the present, and General Motors ended up recruiting several students every year for full-time positions at its Detroit Design Center. www.capitalanalyticsassociates.com

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Perspective: Lessons learned Tim Pernetti COO – IMG Performance – IMG Academy We learned the power of virtual and digital products.

Since we have a finite in-person capacity, that opens up a whole new audience for us, particularly as it relates to camps. We learned in this environment that demand was higher for in-person and safe education and we could have admitted more students into the prep school if our COVID-19 protocols didn’t prevent it.

The combination of robust public institutions and private, usually smaller institutions afford students in the Tampa Bay region a bevy of options.

( ) in fifth. After the death of George Floyd in June 2020, leaders of Tampa Bay’s five institutions gave statements, and some expressed the need for change on their campuses.

Of the Top 5, USF, University of Tampa, St. Petersburg College, Florida Polytechnic and Hillsborough Community College, all have a senior staff team that is at least 70% white, with University of Tampa’s team recorded as exclusively white, as reported by the Tampa Bay Business Journal. The only institution at which women outnumber men on the senior leadership team is St. Petersburg College. All of the institutions are taking steps and launching new diversity and inclusion initiatives, including appointing diversity officers and working groups, launching research projects examining racism and racial justice and diversifying suppliers.

But the pandemic has impacted some groups more than others, including women and minorities. Often bearing the burden of the domestic situation in terms of child and elderly care, women have been under more pressure than ever this year. Northwestern’s female faculty have been pressing for change with limited success. According to research, men are substantially more likely to receive tenure than women. This can be seen in enrollment figures for all-women’s colleges, which were posting declines even pre-pandemic. These colleges are now pushing for curriculums that are more in line with employer needs to tempt women back into education.

Given the new landscape, it has never been more

Michele Alexandre Dean & Professor of Law – Stetson University College of Law

We had a productive year. We’re excited to share that our three core goals — educational excellence, national prominence and comprehensive advocacy — advanced significantly throughout 2020, our 120th year. The pandemic did little to stop our push for progress as we maintained our top status in the advocacy space.

The big watershed moment for us this year is that we had our largest class in 10 years, enrolling in excess of our prediction. Our goal around our metrics was aggressive; we wanted to increase our GPA and get to the top of the 155 bracket for the LSAT, which we did with a larger class. We are at 90% employment for the seventh year in a row. For a law school, that is critical, particularly in Tampa Bay.

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EDUCATION OVERVIEW

Tom Rametta President – Ultimate Medical Academy

There are unique differences and challenges in healthcare accounting that vary depending on whether you’re accounting for a local pharmacy, a doctor’s office, a small clinic or a hospital. There is specific terminology and different methods that apply in different environments. We are training our students to understand and work across those areas. This is certainly our most mathematical program, and it is preparing students for opportunities in an important administrative element of healthcare. Among our most popular programs is our Pharmacy Technician program. There is a high demand for pharmacy technicians in the United States, and we have a great program.

Another one is medical billing and coding.

important for universities to demonstrate a tangible return on students’ investments. And even though the pandemic has complicated a lot of higher education issues, some have been simplified, including physical access to education. Students now can have their pick of universities without being constrained by geography.

As student debt balloons, students are also evaluating the real need for a degree. According to McKinsey, student debt levels in many cases are outpacing the value of a college education. For students attending an MBA course, networking is the major attraction, which means many are rethinking the value of a virtual degree.

Workforce preparation The main goal of any university or higher education institution is to match the skills of its graduates with the new demands of the job market in the region.

Although COVID complicated matters, Tampa’s institutions remained nimble, aiming to quickly reduce unemployment rates through swift retraining and reevaluation of current curriculums. And employment rates are gradually ticking up month on month. In March, the number of people employed was up 0.3% compared to February at 1.4 million in the Tampa-St. Petersburg-Clearwater area. This was almost on par with March 2019, although it was down 2% on March 2020.

Several institutions are working across the state to try to get Floridians back to work. St. Petersburg College, for example, is trying to determine a new curriculum that works for everyone, aided by major

employers Powertown Line Construction and Duke Energy. Graduates of the college have an average salary of $51,000.

As the pandemic revealed, some of the most important jobs in the economy do not require a college education, but rather a trade school. The top trade school in Florida is the Ultimate Medical Academy in Clearwater, which provides courses in medical administrative careers and promises a starting salary of $20,000. The Concorde Career Institute in Tampa is a for-profit college specializing in medical assisting, dental assisting and pharmacy technician trades.

The institution provides an accelerated program with hands-on lab time. And the Florida Career College provides a range of training from medical assistant to HVAC and refrigeration engineering. ( )

Perspective: Teacher burnout Glen Cornwall Dean – Galen College of Nursing During the initial onset of COVID-19, it took a while for the faculty to adapt, as expected. But Galen College provided the resources they needed. We did that by reaching out to faculty and getting their first-hand input on the possible ways that their teaching experience could be made easier and more tolerable. Thanks to this direct feedback, we are providing those resources, including tablets that can use a digital whiteboard function through Zoom.

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Market voices: Colleges of USF

Robert Bishop Dean USF College of Engineering

Public education is a relatively inexpensive education, and in my opinion, a degree in engineering is an excellent return on investment. Our graduates get good high-paying jobs. The world needs more engineers because they are problem solvers. However, much of the infrastructure that we’ve built up in academia is repeated across many campuses. It’s not clear to me that we must continue to duplicate efforts across campuses. We might be able to deploy our resources more effectively across the state because the location of the instructor doesn’t matter as much as it used to with the effective use of technology and updated teaching methodologies.

We want to be among those who learn and adapt from the pandemic.

We are rethinking our curriculum to bring it up to date with the most important concepts. We started a new school on risk management. We will be offering a global master’s degree in business analytics, which will be synchronous. The focus now has to be on flexibility; students will not come to class from 8 a.m. to 5 p.m. anymore. We are going through the major consolidation of three campuses at USF, which has worked well for students because they can take classes from any campus. I think the result of this pandemic will make us stronger, more resilient and more innovative and creative.

Charles Lockwood

Moez Limayem

Lynn Pippenger Dean USF Muma College of Business

We’ve embraced this because it is the right thing to do. It is the right thing to do not only because patients have the rights to their records, but because it makes healthcare much more efficient. Revolutionizing record access through the patient was brilliant because it increases the interoperability, which should increase the value of healthcare. The information is also portable. Patients will be able to access their records wherever they are, creating that bridge that we were not able to do at the corporate level.

Senior Vice President/Dean USF Health/ Morsani College of Medicine

There’s going to be demand for both nurse educators and for programs to be more flexible because students now know we can do that. That’s going to change the nature of how we offer courses. It will be a big adjustment for our faculty. The outlook for nursing itself is positive. We do not see enrollment dropping at our college. More people have become interested in the profession.

People have a newfound need to go out and be trained to be able to provide care. That said, for nurses working in the midst of the pandemic, there is also burnout, depression, the stress of working conditions to deal with, and we don’t really know what the long-term effect will be on our profession.

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Usha Menon

Dean, Senior Associate VP, USF Health, USF College of Nursing

CONSTRUCTION EDUCATION OVERVIEW

( ) The construction boom is also creating more demand for construction-related professions, which were relatively understaffed pre-pandemic. ABC Florida Gulf Coast is a construction trade association that provides training in eight fields and is now seeing many four-year college graduates change tack and seek a career in a construction trade.

Remote Learning While remote learning has been a concept that has been floated for some time, when the pandemic struck and schools closed, virtual learning became a priority.

Schools had to scramble to ensure that they and their students had the materials at home to access classes, which created a new problem for schools: the digital divide. According to the Tampa Bay Partnership’s 2020 Regional Equity Report, the Tampa Bay area comes in at the bottom of a list of 20 comparable cities in

Almost three-quarters of teachers say workloads have increased since March 2020 the percentage of households with a computer and a broadband internet subscription. This meant that for some of the most disadvantaged families, the learning disparity was exacerbated. Solutions were quickly rolled out to ensure students had access to the tools they needed, with agencies like Computer Mentors Group and Digital Inclusion St. Pete working to close the gap. Pinellas County Schools provided students with devices and mobile hotspots and Digital Inclusion St. Pete partnered with several internet providers to offer service at reduced rates. The Tampa Housing Authority and PBX-Change also offered access to data for residents.

But the digital divide was not the only problem teachers and students faced. Maintaining a child’s attention in class is very different from doing so in person, and so teachers had to become more creative with their lesson content. Evidence shows COVID-19

Frank Ghannadian Dean Sykes College of Business-University of Tampa

What are your expectations for the future of digital learning?

I think there will mostly be a return to the classroom. We have a new Master of Science in Business Analytics that is completely online and this can be taken on demand.

Virtual classes stick to the in-person timetable but students can plug in remotely. I think that going forward, we’ll see around two-thirds of learning taking place face to face, with the remainder broken up between online and virtual. Some of these courses lend themselves to staying in this format because it can be more efficient in some cases than others. We like to have the students work in groups and the technology enables this.

How does the college contribute to the economy of Tampa Bay? We have several outreach centers at the college. We have the TECO Energy Center for Leadership, which focuses on making sure our graduate students receive the leadership material they need for their careers.

We also have the Entrepreneurship Center, which is a 30,000-square-foot plus facility with incubators and accelerators. We also have the Naimoli Institute, which connects with over 300 businesses. Every student graduate at the College of Business needs to work with a real company before they graduate. Groups of graduates go to companies and solve some of the problems they are facing. That is something we do that no other business school we know of does.

Do you expect any regulatory changes from the Biden administration?

Regardless of who is in power, I don’t foresee any regulations changing drastically. After 2025, we will have a reduction in 18–22-year-olds around the country, which will affect the whole of the education sector. I think we need to get ready for that coming up in the next five to 10 years. Some institutions will not survive as a result. Unless we can attract more foreign students, that will hurt us as institutions. www.capitalanalyticsassociates.com

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Angela Falconetti President Polk State College

What impact has the Open Educational Resources initiative had on student tuition?

This was an initiative that our faculty led along with our instructional technology area at the college to reduce textbook costs. The faculty worked together to be able to provide the resources that were needed for students without there being a strong requirement for textbooks, which are prohibitively expensive. We’re proud of the creativity of our faculty and staff. We also have a couple of other grants relating to rapid credentialing.

We have an initiative in which we’re partnering with the Florida Department of Education, the Fast Forward program, which is emergency education relief. We were provided approximately $600,000 to implement rapid credentialing for areas including technology, bookkeeping, web production, logistics and machining.

has led to an exponential increase in teacher workload since March 2020, with almost three-quarters of teachers saying workloads have increased and more than half say they are going without regular breaks.

So not only were children becoming more preoccupied with out-of-school responsibilities and distractions during school hours, but their teachers were facing burnout. Even with access to a laptop or internet connection, for some students it was also impossible to find a quiet space in the house to study. For others, parents’ inability to afford childcare meant that they were often babysitting siblings.

Another trend of “learning pods” has emerged during the pandemic, where parents hire teachers for smallgroup in-home tutoring. It has become incredibly popular, according to a report in Tampa Bay Business Journal. However, the trend again risks marginalizing the worse-off students economically.

What makes your healthcare program stand out?

First is the quality of the faculty. We have great content specialists who lead our healthcare program. At the end of the day, it comes back to leadership. The connections that the leader makes, the people they hire, seeing the student from start to finish and employment or to pursue another degree. The other piece that is critical to highlight are the great relationships with our healthcare professionals at the area’s healthcare entities.

What is your outlook for Polk State College?

We believe the outlook is positive regardless of the pandemic. We’re going to have some challenges ahead, which I believe in the end will translate into opportunities.

But the challenges are going to be primarily, in our estimation, financial. The state shortfall from COVID in early March 2021 was close to $3 billion. We expect that we’re going to be impacted. A 6% holdback of funding was instituted for all state agencies beginning this new fiscal year. We’ve been operating with 6% less budget. We remain concerned about the preparation of our students, specifically just because of the remote environment.

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41.1% of Tampa Bay residents have a Bachelor’s degree or higher.

EDUCATION OVERVIEW

Alfonso Gutierrez Institutional Dean of Academic Affairs – The Art Institute of Tampa (Miami International University of Art and Design) The type of education we provide prepares our students to successfully address industry needs, not only in the short term, but instilling a long-term mentality too. This year, we have been structuring a new initiative called the Miami International University of Art and Design - Global Campus, which is a platform with 100% online programs, where our students will be able to receive all the high-quality education that we have been providing, with an added element of flexibility at the on-ground level. They can take their classes online or at any of our campuses, combining the options.

These types of programs offer two key components to be successful: flexibility and adaptability, without sacrificing quality.

K-12 Around 86% of Tampa Bay residents have completed at least a high school education, which is a number on par with the national and state averages. But still, about 1.5% report no schooling and 10.6% have less than a high school education. The vast majority of the area is enrolled in public education, at 77% compared to 23% private school enrollment. Berkeley Preparatory, a private school, is the best elementary and middle school in Tampa, according to Niche, followed by fellow private school Shorecrest Preparatory.

As well as Berkeley and Shorecrest, five more Tampa Bay K-12 private schools rank among the top 1% in the country. Unsurprisingly, the Top 11 schools in the area are private, but at No. 12 is Dayspring Academy, which operates under the Pasco County Schools District.

Similarly, private schools take the Top 5 spots for high schools but are followed by St. Petersburg Collegiate High, which belongs to the Pinellas County Schools District. Strawberry Crest High and Plant High, both in Hillsborough County also make the Top 10. Hillsborough County comes in seventh place in Florida for the amount it pays its teachers. The median salary is just over $50,000 and the county employs just under 14,000 teachers.

When the COVID-19 vaccine was rolled out, there was debate over where teachers should stand in the priority line. On the one hand, teachers generally do not fall into the vulnerable categories and the virus affects children less severely. On the other hand, allowing children to get back to school was seen as a jumpstart for the economy, allowing parents to get back to work and for normal life to resume. www.capitalanalyticsassociates.com

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Jeffrey Senese President Saint Leo University

How do you keep up with the changes in the job market?

The person fresh out of high school needs the deep experience and knowledge-base of a degree. But most of us over the long period of our careers need just-intime education and refreshers. For example, I spend way more time fundraising than I did as a provost. As a result, I want to know more about planned giving.

I don’t need to go get a degree for that. I can go get just that little piece of knowledge. What we’re going to see in the future is lots of little pieces of education that professionals will need to collect over the course of their careers. You may not get a master’s degree or a doctorate. You’re just going to get what you need.

At Saint Leo we created what we call the Center for Alternative Pathways and Programs that offers these just-in-time educational experiences. We can talk to a business, such as a business that does elder care facilities. We can help them to educate their distributed employees across many locations across the country.

We can provide online training for handling a particular issue they need to address or with the latest knowledge.

That educational experience may only last four weeks, so they take this online period, they get a certificate that shows the company that they’ve successfully completed it, and they move on. The idea is less about certifications and more about dealing with those different platforms and understanding them. It’s about making professionals that much more valuable by offering incremental education along the way of their careers.

What is your outlook for higher education?

I think what we’ve got to focus on as we move forward is making sure the value proposition is in line with what people want. Higher education, especially communities like us, need to remember that we’re 24/7, 365-day communities: we don’t need to make all our revenue through tuition. We should be looking at other ways we can serve the community, whether that be providing public service or having retirement villages.

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Community colleges will be instrumental in helping displaced workers pivot into new career paths.

Although some states ensured teachers were eligible to receive the vaccine as early as January, Florida’s eligibility opened up in March and as of April 5, all Floridians aged 18 or over were eligible.

Looking ahead The last year has brought about significant change for the education sector, and Tampa’s institutions are no exception. The transition to virtual learning and back, the heightened risk of teacher burnout and an ongoing rethink of grading and testing will all be ongoing issues that school districts and universities will need to contend with going forward.

Some experts believe that full-time in-person learning will never resume, to be replaced by a hybrid, blended learning style. This in turn will force universities to evaluate revenue streams due to the risk of less demand for halls of residence.

EDUCATION OVERVIEW

About 86% of Tampa Bay’s residents have graduated from high school; over 30% have a BA However, with challenges come opportunities and the fact that learning barriers have disappeared globally could allow colleges and universities in Tampa Bay to tap into new prospects that were previously off limits due to a geographical barrier.

As the spring 2021 semester began, the big question surrounded schools’ abilities to contain the spread of the virus with students gathered together again.

CDC research suggests that colleges and universities cannot effectively contain COVID-19 cases on campus despite precautions such as mask mandates and social distancing in classrooms.

Whatever the outcome, campuses are changing.

Those institutions that are able to efficiently consolidate assets, maintain a strong vision and focus, remain nimble and that are willing to make change as required are the ones that will flourish post-COVID.

EDUCATION OVERVIEW

2021 Regional Competitiveness Report Rankings (20 MSAs): Tampa Bay

United States

Rank (Previous Year)

Educational attainment rate: AA/AS+ 40.11%

41.7%

19 (19)

BA/BS+ 30.18%

33.13%

19 (19)

Graduate/Professional 11.20%

12.79%

19 (19)

BA/BS+ (Aged 25-34) 30.51%

36.94%

18 (19)

Share of population (16-24) neither employed nor enrolled in school: 12.36%

N/A

18 (17)

STEM degree production per 10,000 residents: 36.10

40.97

9 (9)

High school graduation rate: 86.08%

N/A

15 (15)

High school graduation rate (economically disadvantaged): 80.54%

N/A

13 (11)

Source: State of the Region: 2021 Regional Competitiveness Report by the Tampa Bay Partnership Foundation in collaboration with the Community Foundation of Tampa Bay and United Way Suncoast.

Tourism, Arts & Culture: 2020 was a tough one for tourism, leisure and the arts all across the world but in Tampa Bay’s case, it looks like the bounceback is happening quicker and stronger than in other regions. If 2020 was about the small wins, the Super Bowl and Stanley Cup notwithstanding, it appears that 2021 will offer much more to celebrate.

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Eye on the future: Tampa Bay was tested but not broken in 2020 and promising signs abound Due to its privileged location in the Gulf of Mexico, with clear blue waters and barrier islands – not to mention its proximity to the three largest cruise ports in the world – the Tampa Bay region’s tourism sector has long been one of its strongest GDP generators. In 2019, tourism in Hillsborough County alone brought in $6.9 billion from 24.5 million visitors, according to a study by Tourism Economics. Pre-pandemic the sector supported over 54,000 jobs and generated $2.5 billion in wages. Around $840 per household was saved in taxes due to the sector.

While the full impact of the pandemic on tourism, arts and culture remains uncertain, it is clear that these were the main casualties of the 2020 COVID-19 crisis.

Preliminary figures show that Pinellas County took a $2 billion economic hit in 2020 as the tourism industry was disrupted, with Visit Tampa Bay’s tourism tax dropping by more than 40% year on year in October. Florida’s tourist numbers declined over 10% year over year in the first quarter of 2020, with air travel down 10.3% and hotel occupancy dipping over 15%.

Nevertheless, the tourism sector in Tampa Bay has displayed resilience and is already well on its way to recovery. And there are plenty of reasons to remain optimistic, with the region having pulled off a successful 164

| Invest: Tampa Bay 2021 | TOURISM, ARTS & CULTURE

Super Bowl at the beginning of February and several more high-profile events for the year including the Sunset Music Festival in May and Tampa Bay Comic Con in July.

Landscape The biggest learning curve in 2020 for Florida’s hospitality and tourism industry was when the shelter in place order was issued by the governor in March.

Having been poised for a banner 2020, with a slew of high-profile events that included WrestleMania, March Madness and SuperBowl LV, the industry was left reeling from the prospect of months without any form of income. Job losses were unavoidable as airlines were grounded and faced disruption in services for over a year. At the beginning of 2021, both American Airlines and Southwest Airlines had lost about 35,000 employees and United notified about 14,000 employees of impending furlough plans.

Tourism-exposed businesses were luckily able to mitigate some of the losses through government assistance programs, including small business loans, the PPP loan program and the Main Street Lending program. A long-awaited second stimulus totaling ( )

TOURISM, ARTS & CULTURE INTERVIEW

Still busy Record-setting pace for tourism stalled, but overall 2020 figures reflect strong marketing impact

Santiago Corrada President & CEO – Visit Tampa Bay What helped Tampa become the busiest travel destination of the year in 2020?

This is a testament to hard work. Going into the pandemic in February, we were setting records in terms of tourism numbers and we had a huge year ahead of us hosting major sporting events and conventions. We were undaunted in making sure we could get back to the business of righting the economy through safe and responsible travel. The numbers that came out at the end of 2020 were not so surprising because we were very intentional in trying to market the destination. Many of the events that were supposed to go ahead in 2020 have rescheduled with us. Obviously, our industry has suffered tremendously and we are nowhere near our historic record-setting pace.

Given the aversion to large gatherings, what is your outlook for the convention industry?

In the short term, we will see these hybrid events and we’ve been able to adapt to that. We offer a hybrid grant for those meetings that cannot go ahead in person and did not count on the added expense of the technology.

Our incentive is based on subsidizing the technology provided the event has an in-person component. That will be the norm in the short term until the pandemic begins to slow but just like with travel, I see this pent-up demand for people to get together in person. Selling and marketing is still a very face-to-face, relationship-based occupation. We’ve landed some major conventions for the years to come, even at the height of the pandemic.

How do you expect the increase in the minimum wage to impact Tampa’s key industries?

There has been some criticism regarding the fact that hospitality is traditionally a low-wage industry. We have seen many people move through the ranks of these industries and come out the other end with extremely

high-paying jobs. The rise in minimum wage is helpful but there has always been a career trajectory within these industries with a lot of opportunity for growth.

What is your near-term outlook and what changes from 2020 will become permanent?

We were never a place that suffered from “over-tourism,” where it is very overwhelming to visit a place because of overcrowding. This could be a positive for us in the future, especially given the new focus on open spaces.

People do not want to be trapped with a million other people anymore and Tampa Bay offers the typical Florida East Coast lifestyle without the huge crowds.

We will see how it shapes up in terms of tourism as people start to feel more comfortable with national and international travel. www.capitalanalyticsassociates.com

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Jackie Mangar General Manager The Hotel Zamora

How did you weather the pandemic?

When COVID-19 hit and the shutdown went into effect, we had to close down our own restaurant while maintaining the hotel’s flow. Most nights, we had extremely low occupancy, ranging from five to 15 rooms.

This property took advantage of the time to greenlight several renovation projects we had in mind. We took advantage of that time with significant reconstruction efforts, changing all of our carpet floors to hardwood flooring, for instance.

Our property has been extremely fortunate because once the region started going into phase two and phase three of the reopening process, we were doing a lot better than several properties in the area with 40 to 50% occupancy or higher and even close to selling out.

What tourism and travel segments do you expect to recover first?

In general, we anticipate that corporate travel will be probably the last to recover. In the case of our property, the banquet section of our hotel is poised to recover first. In October, we held an event for the first time since February, with 100 people, in line with strict safe distancing and other health and safety protocols as outlined by the CDC. What is the near-term outlook for The Hotel Zamora ?

Upper management is getting the details in place, planning for the worst and expecting the best. No one wants another shutdown but we need to be prepared for it in case it happens. Our award-winning rooftop bar sells itself for regular service, birthday events or wedding events and our banquet section is poised for a quick comeback.

During this time, we were grateful and fortunate to have the business we had. We saw numbers that actually improved compared to 2019, even with the ongoing pandemic. We remain an up-and-coming property and we’re highly optimistic about what is coming.

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( ) almost $1 trillion arrived in December and a third $1.9 trillion bill was passed in March. Airlines received $14 billion in payroll support and airline contractors $1 billion, among other payments.

When restrictions began to be lifted, many hospitality and restaurant venues quickly pivoted to the new reality. Restaurants, cafes, delis and bars that previously had been dine-in only began to offer food takeaway or collection services. The city of Tampa promoted the Dining at a Distance program, which publicized a list of outlets offering takeaway and delivery services. When restrictions were finally lifted in September as part of the phase 3 reopening plan, restaurants were able to operate at a minimum of 50% capacity and had to ensure social distancing and sanitation procedures were followed. But even then, the authorities were strict on those locations breaking the rules, with St. Petersburg issuing 200 citations as of December against businesses flouting the rules.

No doubt, 2020 was a challenging year for all cities and companies exposed to the tourism and leisure sectors.

According to early projections, Clearwater’s COVIDrelated losses could total $9.4 million in 2020 and Delta reported its toughest year in history with losses totaling $15.6 billion. Tampa International Airport’s budget was slashed dramatically in 2020 to $195 million and, although the 2021 budget increased slightly to $219 million, this is still a far cry from the $270 million 2019 budget.

Recovery Closing out the year, the industry saw a pickup in activity, especially surrounding the Thanksgiving and Christmas holiday period, although passenger numbers remained low compared to previous years.

In December, total international passenger numbers at Tampa International Airport were down by 55% on the year to 964,000, and domestic passenger numbers were down 53% to 950,000.

But by March 2021, the travel numbers at the airport were surpassing the previous year. March saw 1.4 million domestic passengers pass through the airport, up 25% on the year, while international passenger numbers were up by 19% on the year to almost 1.5 million. Spring Break saw a spike in visitors to Tampa Bay, with the airport projected to see a 60,000 passenger per day increase.

And many airlines were caught off guard by the sudden uptick in numbers. Delta found itself short-staffed and was forced to reopen some middle seats when faced with the increased demand. American Airlines expects to reactivate its parked jets between April and June to keep up with increases in demand.

The recovery of the sector was underpinned by federal government funding, which allowed companies to keep

TOURISM, ARTS & CULTURE OVERVIEW

doors open, defer taxes, furlough workers and take advantage of tax breaks. But throughout the recovery process, there was tension, particularly between the cruise industry in Florida and the federal authorities and CDC. In April, Gov. Ron DeSantis announced that the state would sue the federal government over the ongoing no sail order, impacting the cruise industry, which contributes about $1.2 billion in onshore spending alone to the state. In the first six months of the pandemic, Florida lost $3.2 billion due to the shutdown of the industry, according to a September 2020 report from the Federal Maritime Commission. The governor also signed an order to ban vaccine passports. In February, the federal government considered intervening to impose restrictions in the state given surging cases of virus variants with potential resistance to the vaccine.

Florida’s authorities spent the year stuck between a rock and a hard place. On one hand they had to ensure the virus did not spread to uncontrollable proportions and overwhelm hospital systems, but on the other the economy was at risk of collapse due to the failure to collect tourism revenues. In September, hotels in the region were still hovering below half full and tourismrelated businesses were forced to lay off employees en

masse. Port Tampa Bay was significantly impacted by the loss of the cruise industry, with operating revenue from January to June 2020 down by about $3.45 million, with operating income down about $2.3 million.

Faced with an absence of international travellers, Florida attempted to draw in more domestic visitors in the absence of international travel, promoting the state in the East Coast markets, especially in the colder states in the north of the country. Still, in December, a Destinations Florida survey projected that full recovery was about a year out. Nevertheless, Florida’s tourism industry is expected to pick up ahead of other states in the nation. A September TripAdvisor study found that both St. Pete and Clearwater were on the Top 10 list of U.S. travel destinations for fall 2020.

One of the silver linings for Tampa Bay was its position as a boating and yachting hub. In the midst of the pandemic, U.S. boat sales surged to $47 billion in 2020, a 13-year high according to the National Marine Manufacturers Association. Powerboat sales were up 12%, while wakeboard sales were up 20%. As people became more conscious about the kind of lifestyle they wanted to live amid the restrictions in place, boat sales, RV sales and luxury home sales all surged, and

TOURISM, ARTS & CULTURE OVERVIEW

Tampa Bay was one of the winners as a result. Tampa was named by 26 North Yachts as the third-best city in the world to live in for yachting enthusiasts, behind only Miami and Fort Lauderdale. And in June, the Tampa Bay Boat Show will take place in a socially distanced format, attracting about 15,000 visitors to the region.

Hotel performance According to HVS, pre-pandemic, the St. PetersburgTampa hotel market had posted nine consecutive years of growth in revenue per available room (RevPAR). Although the region’s lodging RevPAR in 2020 hit its lowest point in April, some areas of the market have recovered much faster than others. The region is also outperforming other markets , with the highest occupancy among the Top 25 markets at 51% in 2020 according to STR. HVS predicts that in 2021, occupancy will reach 61%, before climbing to 68% in 2022 and 72% in 2023. The average rate and RevPar are expected to climb steadily before surpassing 2019 levels in 2023, at $134 and $97, respectively.

The hotel industry was helped in part by regional travel, providing some weekend occupancy, and the government support packages. According to data, Florida’s hotels were among the biggest beneficiaries

of the PPP program, taking in $581 million in funds and in Tampa a portfolio of 10 hotels that includes the $175 million Wyndham Grand in Clearwater, received more than $19 million. Some experts argue that the PPP program is not sustainable for hotels, with research group Trepp revealing that as of August 2020, 23% of hotel properties were more than 30 days late on mortgage payments. About $20 billion CMBS loans were delinquent as of July. Instead, some experts argue for a system similar to TARP, which was rolled out during the Great Recession and provided the government with ownership of assets and therefore a return on investment.

Visitors continue to visit Tampa Bay, but there are also more options than just a hotel stay. Data shows that Airbnb visitors paid over $140 million in Hillsborough, Pinellas and Polk counties for lodging in 2019. Polk, Pinellas and Hillsborough attracted the fifth-, sixth- and seventh-most visitors in the state with a combined total of around 911,000.

Despite the downturn, new hotels also have been completed during the pandemic, including the JW Marriott Tampa Water Street, the region’s first fivestar hotel, which opened its doors in January 2021.

Dual-branded Hyatt House and Hyatt Place opened

TOURISM, ARTS CONSTRUCTION & CULTURE OVERVIEW

in February 2021 as the only Hyatt product in the Downtown submarket and the Tampa Edition hotel will also open in 2021. Hotel Haya is a newly opened 178-room four-story boutique hotel on Seventh Avenue. Other recent openings include a Home2Suites and Hampton Inn, Hyatt House on Avion Park and the Hotel Alba, which replaces the old Crowne Plaza Westshore.

Arts and culture The Tampa Bay region has always been known as a city of culture. The St. Petersburg-Clearwater area is the top tourist destination in the Gulf of Mexico, drawing in over 15 million visitors per year. The nonprofit arts and culture sector is a $241 million industry in Pinellas County, supporting over 7,000 fulltime equivalent jobs and generating $29.8 million in local and state government revenue. The region has a variety of cultural and arts-related offerings, including museums, performing arts halls, cultural events, theme parks, zoos, aquariums, botanical gardens and notable public parks. The Florida Museum of Photographic Art preserves and exhibits works by nationally and internationally recognized artists and the Straz Center for the Performing Arts brings Broadway tours to Tampa Bay. Art in Tampa Bay can be seen along the 2.6-mile Tampa Riverwalk and the Latin and Cuban influence of the city’s early cigar workers can be found in Ybor City, complementing the hustle and bustle of the famous GaYbor District.

In terms of recovery, Tampa Bay has been slightly better positioned than other regions given the state government pushing ahead to reopen the economy as quickly as possible. As a result, residents were allowed to safely go back to work,while shopping and leisure activities opened with fewer restrictions than some other cities. Financial support also was made available to the sector, including the Hillsborough Artist Relief Program, which provided emergency funds.

Still, there were many setbacks for the sector in 2020.

One blow was delivered in April when Hillsborough County authorities announced they would delay the construction contract on the new $7.3 million Tampa Performing Arts Center. And shrinking state budgets often mean that the first casualty will be arts and culture spending. The final $92.2 billion 2021 budget approved by Gov. DeSantis includes $13.6 million for arts and cultural affairs, down from $21.2 million last year.

Events and festivals Tampa Bay saw most of its events in 2020 either (

)

Benjamin Tran Owner Representative West Wing Boutique Hotel

What role does the West Wing Boutique Hotel play in Tampa Bay’s hospitality industry?

Our facility used to be a vacant building and we did a full renovation in 2017. We were trying to create something different for the community so we went with a more boutique, modern style that reflects a lot of the design characteristics seen in Asia, pushing the design envelope in the smallest footprints. We also tried to launch several green initiatives and technology. Some of the key elements we implemented include Tesla chargers and a robotic butler that delivers products to the rooms.

What opportunities has the pandemic unlocked for the hospitality sector?

We definitely see 2021 being a year in which there will be several distressed or heavily leveraged properties coming onto the market at a discounted rate, which will unlock significant opportunities otherwise unavailable.

In terms of new development, COVID-19 has highlighted where a lot of the strength in the market is. Markets such as midscale and extended stays weren’t as heavily impacted as the luxury or upscale market. We have been looking at the extended stay market as well as core brands in different chains.

How does a hotel like the West Wing Boutique prepare for the unknown?

We have our sales managers and teams out there in the market listening in and participating in the platforms provided by different organizations and associations to consolidate a boots-on-the-ground perspective and remain alert to ongoing developments.

Based on that intel, we relay information to our operations team so they can better prepare themselves for any events. Information around events such as the Super Bowl is highly tight-lipped but we are looking to ensure everyone is cross-trained in matters of cleanliness and safety so they can best assist the confidence-building process for our guests. By doing so, we can shift our manpower as needed once demand comes back. www.capitalanalyticsassociates.com

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®

oundtable:

‘Champa’ Bay ‘The future ain’t what it used to be,” baseballer and manager Yogi Bera famously said. COVID has proved his point. Thankfully, winning can make the unbearable bearable, and in Tampa Bay, there has been a lot of winning in the past year.

Brian Auld

President Tampa Bay Rays

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Neill Collins

Head Coach Tampa Bay Rowdies

How significant has success in sports been for Tampa Bay? Our organization excels in the face of adversity, in no small measure due to its strong sense of community. We have come together in the wake of hurricanes and hunger crises and any number of other things over the years. One of the secrets of our organization is that our people love to rise to the challenge. I don’t think it is all that surprising that both the Rays and Rowdies had really good seasons during this particular year, because in our competitive advantages, organization almost gets augmented when the pressure gets turned up. The same applies to the Buccaneers, the Lightning and this whole region. We have a can-do spirit and it shone through in this particular year.

All of us who were fortunate enough to get feedback on the team level — the text messages, social media, the Facebook sharing of our games — during this time and hearing about how much it meant to so many made our work feel really important.

What impact did the last season have on both the team and the region as a whole?

During the past year, there was so much uncertainty about what the season was going to look like. We did our best to make a point of doing everything we could to be as prepared as we possibly could. I take my hat off to the players themselves. Their attitude and that of the staff through that period was exemplary. Even amid certain limitations — the weather, COVID, the financial climate — our staff just raised their game. The whole experience was a real learning curve. It was great to show our resilience for the whole of Tampa Bay to see. We were the first professional sports team to start playing again and have some fans in the stands. By the end of the season, we were able to have a couple of thousand fans at our games. One thing we all realized was how much we missed being able to go and watch live sports and being able to interact. There were just some really great memories in an otherwise difficult year.

What is your outlook for the organization and the role of sports in the recovery?

Sports will set the tone. At some point in 2021, we will open our stadium to full capacity. At that point, because we are a trusted source in our community, it’s going to make some people think that it must be OK now; it’s going to confirm that, maybe it’s alright for us all to start doing things. We will not necessarily be the first to go full occupancy and we are not going to change that many minds. But we will certainly be one more thoughtful organization on the pathway to recovery. That is going to give folks a window into what is going on in the greater world.

How has interest in and engagement with the Rowdies grown within the community?

The Tampa Bay Rowdies are an iconic brand, one of the most iconic soccer teams in the United States. Brand recognition is huge for us and over the past three years, we have been able to start rebuilding that with the product that we’ve been able to put on the field.

Ultimately, that is what people are always looking for. As a club, we really made a conscious effort in terms of being that focal point for elite soccer in our area, because there is a significant contingent of people who play soccer in Florida, especially in Tampa.

| Invest: Tampa Bay 2021 | TOURISM, ARTS & CULTURE

TOURISM, ARTS & CULTURE ROUNDTABLE

Brian Ford

COO Tampa Bay Buccaneers

What were the biggest takeaways from the last year?

If 2020 taught us anything, it’s that anything is possible.

Listen to people. Be flexible; don’t be a stop sign, figure out a way forward. We all have different objectives in our business models, and 2020 could’ve been a stop sign for us in terms of trying to achieve different things for our customer and employee base. It’s a matter of how you adapt and overcome. That’ll be the biggest takeaway. A year ago, if any of us saw somebody out to dinner with a mask on, you would’ve asked yourself, why was that?

Today, if we all went out to dinner and you saw somebody without a mask you’d say, what is that person doing, how inconsiderate. That transition took less than a year to take place. That shows how we’ve adapted as a society and those who are successful are adapting quicker and more efficiently. There’s a difference between being forced into adapting and being proactive to adaptation. I think the biggest takeaway is to be proactive in adapting.

How important will continued investment in technological advancements be to the future of sports?

It will be critical. I don’t want to say people are used to and expecting it but it’s a way of life. For example, we implemented a state-of-the-art phone system with videoconferencing capabilities. When we implemented that, we didn’t know that we’d take advantage of it to the level that we have. It’s something that we all have to take advantage of and be receptive to in the future. This is today’s technology, what will there be tomorrow? You can’t sit still. You can’t be a stop sign. As an organization in the entertainment industry, we have to continue to maintain an interaction with our fanbase in a way that is convenient for them.

Steve Griggs

CEO Tampa Bay Lightning

How significant is sports in the Tampa Bay region?

By August of last year, it really looked like we were going through three pandemics at the same time: a health pandemic, a financial pandemic and the social divide and unrest. Sports is a uniter of people, a uniter of cities.

When we won the Stanley Cup championship, it helped the psyche of our community. It gave them something to celebrate. It was great for our brand, the city’s brand and the community’s brand. It allowed people to come back together. It provided a sense of joy that had been missing for a long time. Then the Rays went on to win the American League and the Bucs won the Super Bowl.

Sports is all about hope. Just the glimpse of normalcy has allowed us to continue to move forward versus being stuck or moving backward.

What is your near-term outlook for the team?

The great thing about our organization is that we have an incredible core of players and that core has been locked up for a long time. The team is going to be good for the foreseeable future, which is really exciting. The window is open. Like every other sports team at the moment, our focus is on maximum recovery. As we consolidate it, it will enable the recovery of other parts of the community, especially tourism. Our organization has always been community-first. We understand the ethos of our brand and how it can change a community, both on and off the ice. Our focus is on recovering the core, elevating our brand and content, continuing to give back to the community, enhancing our guest experience, having the safest and healthiest arena in North America and leveraging our Stanley Cup win. www.capitalanalyticsassociates.com

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TOURISM, ARTS & CULTURE OVERVIEW

Perspectives: Growth outlook Aaron Hoefen General Manager – AC Hotel Marriott Tampa Bay Those that are the quickest in safely getting back to the experience that feels like the past, an authentic hotel and dining experience, will be the ones that recover the fastest. At this point, guests are back out and traveling again. Those who are out are doing so on a consistent, weekly basis. If they go to a location that still feels closed off, they are unlikely to go back there. They are looking for a return of the experience.

Pablo Molinari General Manager – The Hotel Haya Sometimes I see this like a house of cards. It takes an hour to build a house of cards; it only takes a second and everything falls down to the ground. To rebuild, you have to dedicate that time you spent before. There’s no question that we are starting to turn the corner, but I think 2021 is going to be a year of transition.

Brian Schneider General Manager – The Westin Tampa Waterside It’s hard for us to pinpoint where there will be growth first. We are starting to see some uptick in group business and business travelers returning. When COVID first hit, many businesses put corporate-wide holds on all business travel. Now some executives are able to visit client sites as long as social distancing is being followed.

Rate recovery may not happen anytime soon. From what I see, we are looking at Q3 2021 for the real rebound, but it could be as late as 2022.

( ) canceled or pushed back. The Sunset Music Festival saw its 2020 edition canceled, with the next event scheduled for Memorial Day 2021. But as vaccines become more accessible, Tampa Bay hopes to capitalize on pent-up demand for live events and entertainment.

Already, schedules are filling up for 2021 with the likes of WrestleMania, a variety of Pride festivities in June and the 2021 Franchise Show in September. The annual Tampa Gasparilla Pirate Festival was canceled in February 2021, but two alternative events went ahead in Hillsborough Bay instead in April.

According to experts, one of the last sectors that will recover is business travel as companies cautiously eye liability when sending employees on trips. At the outset of the pandemic, convention centers were predicted to suffer greatly, but, thanks to a great deal of ingenuity, this scenario has not played out as expected in the Tampa region. Early on in the pandemic, virtual events began springing up. Break Tampa Bay was one of the first such events, hosted by startup platform Lunchpool, and the platform went on to host a variety of other events across Florida, including Startup Week Tampa Bay. The attraction of virtual events is that they fill the craving for engagement and can handle a high capacity compared with in-person events, which have tight restrictions. The platform’s demand skyrocketed by 600% last year.

But the question hinges on if and when in-person conferences will be back or whether the future of the conference relies on Zoom. In Tampa, there is no question that conventions will be back given the huge demand seen at the beginning of the year. Tampa Bay is already planning to host at least 25 events between April and December 2021 with an economic impact of $75 million to the area. Visit Tampa Bay is promoting ( )

TOURISM, ARTS & CULTURE INTERVIEW

New focus The unprecedented shutdown during the pandemic has forced a rethink of business models and messenging

Steve Hayes President & CEO – Visit St. Pete Clearwater What were your major 2020 takeaways?

Our communities here in Pinellas have weathered many different crises over the years. The travel industry had never seen a complete shutdown such as this. For us, it meant rethinking the model at its core, even the messaging. The great part about our destination that helped us is the vast number of outdoor activities we offer, with the beaches at the very top, walking and biking trails, and water trails. This area has fared so much better than other places. It boiled down to adapting and finding ways to do things differently. We relied more on technology than ever before, creating a video campaign on how to experience our destination and what we offer. Prior to the pandemic, we had never done a webinar. We looked at ways to get more creative in reaching out to people and with the content that we were putting out there. The last thing you want to do is be insensitive to what folks are going through, whether they are in Tampa, Orlando or Chicago. We were using research to judge when we needed to be back in the marketplace with a visitation message.

The other aspect to that is how could we message our visitor that we were creating a safe place to visit, while in parallel letting locals know that we were making visitors aware of what the expectation is in terms of safety protocols. We got great leadership here in the county that insisted on the importance of following CDC guidelines.

What steps are being taken to prepare the region for pent-up travel demand?

First and foremost, we will continue with targeted messaging while being able to accommodate the demand as well. That approach will continue to be critical even after we recover. What you do not want to do is have overcrowded areas due to this pent-up demand. It would be detrimental to the effort of creating the best experience.

What are the main priorities for Visit St. Pete Clearwater in the near term?

Our major priority is our strategic plan, setting the course to where we want to be toward 2026 and how we want to shape the industry in that timespan. We’re talking to business and community leaders, elected officials and tourism stakeholders to set that stage.

Another major focus will be content development and finding the best ways to create content that tells the stories and the experiences that we offer. We’ve always talked about the beaches but now we want to raise awareness of our arts and culture environment and our other outdoor options. We will also be looking forward to working more with our community partners. www.capitalanalyticsassociates.com

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Market voices: Tampa Bay hotels

Kevin Kennedy General Manager Streamsong Resort

COVID was unexpected globally. Unfortunately, it’s a very sad situation.

However, if you’re looking for any silver linings that came out of it, I would, in fact, point to our ability to close two of our courses. We were able to take advantage of the time it was closed in 2020 to take two of our great golf courses and revamp them. We had already been researching and testing many different types of grass to determine the ultimate putting surface for our customers. With all that testing and then COVID’s arrival, the opportunity came to regrass the greens with Mach-1 Bermuda grass. That was a tremendous opportunity for the resort. The grass was able to grow in very well, and it still has another year of solid growth. Next year, we will have one of the best putting surfaces in the United States.

When we are selling a meeting or travel offering, we lead with our Safe Meetings Program. We branded it in a similar way that any and every major hotel chain is doing as each has its own tailored safe travel program, including Marriott and Hilton. For our company, the Safe Meeting Program is a package we put together to raise awareness about how we set up our meeting space with socially distanced meeting room sets. We took pictures and designed animations to show how meetings in our hotel previously looked, with a standard meeting room setup, and contrasting that with a space that continuously reminds guests of our safety provisions, including compulsory masks, setting for social distancing at all times, sanitizer stations, hand sprayers and electrostatic cleaning, along with other visual representations of a safe, clean environment.

Tabish Siddiquie

General Manager The Vinoy Renaissance St. Petersburg Resort & Golf Club

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David Rowland General Manager The Westshore Grand Hotel

One of the advantages of being in Florida is that leisure travelers and those in our drive markets are probably still traveling more than other types of travelers. As stay-at-home restrictions lifted this summer, the travel industry has seen an uptick in leisure travel within drive markets. The nearby airlift and the fact that The Vinoy is in a big drive market from Orlando, Miami, Fort Lauderdale and other major cities has helped us quite a bit.

We are seeing predominantly leisure travelers, small meetings and social events that are still booking. Large groups are not booking right now because extensive business travel has been temporarily reduced, as travelers who used to do face-to-face meetings are now hosting them digitally. The Vinoy’s marketing efforts have always had a focus on digital and social, and we’re placing an emphasis on that now more than ever.

| Invest: Tampa Bay 2021 | TOURISM, ARTS & CULTURE

TOURISM, ARTS & CULTURE OVERVIEW

( ) a return of conference traffic with enhanced health protocols and mask rules through financial incentives based on attendance figures. And the region is even taking market share away from the likes of New York and Chicago, including national trade show Connect Marketplace, which is usually held in Washington D.C. Comic Con, WrestleMania and MetroCon will also return to Tampa Bay. ‘Champa Bay’ Although not quite the event that the region had envisioned initially, Super Bowl LV was allowed to go ahead at the Raymond James Stadium. While there were some doubts over safety and the ability to socially distance due to the capacity of 22,000, the event did not seem to cause an apparent spike in COVID-19 numbers. According to health experts, Hillsborough County saw a slight uptick in its positivity rate but no large superspreader event was detected at the Super Bowl celebrations, with only 57 cases linked to the event.

The event itself was a roaring success, bringing hotel occupancy to 92.1% for the weekend, outperforming the 2009 Super Bowl Weekend. Hotel revenue totaled $14.29 million and although the economic impact on the

Tampa Bay is planning to host 25 events between April and December 2021 with a $75 million economic impact region is thought to have been less than the usual $300500 million brought in by Super Bowl celebrations, airport traffic and media exposure gave a boost to the tourism industry. Initiatives such as The Business Connect program were set up to promote diverse-owned businesses across the area and the host committee and NFL donated $2 million to invest in the needs of the Tampa Bay community. To top it all off, the Tampa Bay Buccaneers won.

Joe Collier President Mainsail Lodging & Development

What new developments are you working on in Tampa Bay and the surrounding area?

We are expanding Epicurean Hotel. We have acquired the property across the street and we plan to start building an additional 51 suites in 1Q21. The AdventHealth Sports Arena, which encompasses nearly 100,000 square feet of indoor space, is now open, and we are building a Residence Inn hotel adjacent to the sports complex with a rooftop bar that should open in the fall of 2021.

Which segments of the travel industry do you expect to recover quickest?

Small gatherings, both for leisure and business, will likely continue to take place. Weddings are back, and while limited, we see this segment exploding due to pent-up demand for Q3 and Q4. People still want to get together, and it’s difficult to form strong personal bonds over video calls, so corporate travel will eventually come back once the vaccines are further distributed.

What impact will the minimum wage increase have on the industry?

In general, I am not a fan of the government becoming directly involved in these market issues as it could stifle the development or hiring of young workers. However, it will help to increase standards of living, so I have mixed feelings on the issue.

What are the company’s near-term goals?

First and foremost, we are looking forward to moving away from the COVID landscape and beginning the next chapter. Given our planned growth and hotel openings, we expect to double our staff so we will be looking to bring exciting young talent on board. Our investors and lenders have provided great support throughout the year.

The Super Bowl was a big opportunity for Tampa this year.

Our Epicurean Hotel was chosen to host the block of vaccinated healthcare workers who were able to attend the game as guests of the NFL. That was a huge honor for us and a memorable moment for the country.

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| Invest: Tampa Bay 2021 | TOURISM, ARTS & CULTURE

Tampa Bay’s sports scene is in position for a strong rebound as vaccine distributions ramp up and restrictions on venue capacity are increasingly lifted.

And it wasn’t just the Bucs lifting hardware as Super Bowl champions. Hockey’s Tampa Bay Lightning won the NHL’s Stanley Cup, and baseball’s Tampa Bay Rays won the American League title, although the team fell short in the World Series.

Despite the highlights, COVID did put a damper on the overall sports landscape in 2020. The USL Championship Final between the Tampa Bay Rowdies and Phoenix Rising FC was canceled in October due to positive COVID-19 tests. In fact, all professional sports leagues faced delays and shortened seasons, as well as revenue losses due to lower-capacity venues amid the pandemic, if fans were let in at all.

Looking ahead The year 2020 was a tough year for tourism, leisure and the arts all across the world but in Tampa Bay’s case, it looks like the worst is over and the bounce back is happening quicker and stronger than in other regions.

If 2020 was about the small wins, in 2021 it looks like there is much more to celebrate. Thanks to its ability to adapt, visitors can now continue to flock to Tampa Bay in a way that makes everyone safe, and efforts to attract tourists back to the region already seem to be paying off. Not only this, but new innovations such as a partnership between Visit Tampa Bay and Entrada Insights will allow the region to track the sector much more closely, providing more scope for future growth.

There is certainly plenty to look forward to in 2021, with the U.S. Travel Association set to host its board meeting in Tampa, prevailing business-friendly policies that support a return to normalcy and innovations at Tampa International that allow more contact-free travel.