N OV E M B E R 20 - N OV E M B E R 26 , 2015 | TH R E E D O LL A R S
FLOR IDA’S NE WSPAPER FOR T HE C - SUI T E
Economy | Real estate is getting crowded — in deals and agents. PG.13 PASCO • H ILL SBOROUG H • PIN ELL AS • P OLK • M A N ATEE • SA R ASOTA • C H A R LOT TE • LEE • COLLIER
economic forecast SPECIAL SECTION: PAGES 7 THROUGH 19
SWEET OUTLOOK Agriculture faces a rough patch. But to see how other industries will fare in 2016, just follow the rooftops. PAGE 10
Bill Olson | President, Olson Family Groves TECHNOLOGY
FORECAST
COMMERCIAL REAL ESTATE
Calling all Cards
Spring Birds
Full of Life
FORECAST
EMPLOYMENT DATA
COMMERCIAL REAL ESTATE
Island Time
Builder’s Grade
Top Transactions
Tech firm SavvyCard projects 2016 will be a good year for raising capital and increasing visibility. PAGE 10
The economy on some of the region’s barrier islands has a booming vibe, says one veteran restaurateur. PAGE 12
Employment projections for the next decade show a classic Florida story: Construction leads the way. PAGE 17
The recession didn’t cripple the region’s most affluent city. That’s a bonus for the recovery. PAGE 20
Commercial land in Naples boasts the biggest sale of the week, selling for more than $35.99 million. PAGE 22
More Tampa office projects will come soon, says one executive. 20 Buzz percolates over mall’s movie theater. 20 Law firms, health care companies active for new leases. 21
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22 Urban business districts attract a shift in strategy. plumbing-today.com
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DON’T MISS
The winter season is growing longer for tourists and part-time residents. That’s a boost for area businesses. PAGE 14
REAL ESTATE
BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015 Vol. XIX, No. 46
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“The road is cleared,” said Galt. “We are going back to the world.” He raised his hand and over the desolate earth he traced in space the sign of the dollar. Ayn Rand, Atlas Shrugged 169110
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NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
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CoffeeTalk A centre for business and leisure Centre Club, an all-purpose location for business people in Tampa, has invested $1.8 million for renovations to spruce up life at the club. The renovations come from an indepth look by the club at the habits and behaviors of its members, says Tim Jarrett, the general manager. Club officials came up with five key reasons members use the facility, and they catered the renovations to meet those ideals. The list includes: n For an office away from the office to have coffee, informal meetings or do other work; n To entertain clients and have personalized, upscale meals; n To host private events; n For networking and connecting with other businessmen and businesswomen; and n To have a place to go while traveling (Centre Club is owned by Dallasbased ClubCorp, which has more than 200 locations nationwide.)
The Tampa Centre Club, in the Westshore district, has 720 members, who now have plenty of options. Leisurely activities at the club include shuffleboard, a ping-pong table that doubles as a conference table, and a newly constructed bar featuring local craft beers and a wide variety of whiskey, Jarrett says. The TV count was increased from one to 13. For members strictly focused on business, Centre Club added places for phone calls and emails, Jarrett says. Three newly designed meeting spaces were put in and are themed after the local sports teams: the Buccaneers, Lightning and Rays. Overall, the four-month-long renovation was about adapting to the changing ways of today’s business crowd. “How it was constructed over 30 years ago was not fitting with how members use it now,” Jarrett tells Coffee Talk. “It’s more relevant to how people do business nowadays.”
FILE PHOTO
Gregory Yull
Rico Boeras, Broker includes: the firm should boost debt to repurchase additional shares, improve disclosure of capital expenditures, pursue a listing on a U.S. stock exchange and add independent packaging experts to the board of directors. The letter got Yull’s attention. Intertape issued a press release in response to the shareholder activists with a comment from Yull saying the company has “clearly demonstrated” attention to enhancing shareholder value by repurchasing millions of shares and paying dividends. “The board will continue to exercise its fiduciary duty by actively working to create long-term shareholder value and remains open to constructive discussions with all of our shareholders,” the response says.
See COFFEE TALK page 5
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out Florida is a magnet for seniors, but opportunities abound. “What drew us to Florida is a lot of business,” he says. “Even though it looks crowded on the surface, there are so many potential customers.” Competition isn’t Verkhoglaz’s biggest concern, however. It takes about two years to build up each franchise because finding qualified staff can be difficult. “That’s the challenge of this business,” Verkhoglaz says. To help recruit and retain employees, Verkhoglaz says it’s important to measure their employment satisfaction as well as those of his customers. The firm surveys employees as frequently as customers to make sure they’re happy.
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Sarasota executive Gregory Yull received the kind of letter recently no CEO wants to get, much less be widely distributed to the public. In another sign shareholder activists are getting bolder in their public criticisms of executives, FrontFour Capital and Zelman Capital teamed up to write a public letter to Yull, the CEO of Intertape Polymer Group. Headquartered in Quebec and Sarasota, Intertape manufactures tapes, film and packaging for industrial and retail use. The company’s stock is publicly traded in Canada and it has 2,000 employees in 17 locations, including 12 manufacturing facilities in the United States. Together, Front Four and Zelman own 6.5% of Intertape shares. The private equity funds say they believe the company’s shares should trade at 52% higher than the recent price. “While we acknowledge that IPG’s operations and financial position have significantly improved over the last five years, the company’s shares now trade at a significant ‘management discount’ and the stock has become a ‘show-me’ story,” the letter reads. “This dynamic exists due to recent company missteps, including the downward revision of fourth quarter 2014 earnings stemming from manufacturing issues and the more recent delay of full production by 12 months at the Blythewood, S.C., tape production facility.” The private equity funds drop several requests on Intertape. The list
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Activists agitate for more
4 topstories from BusinessObserverFL.com
BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
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TAMPA BAY
London company to hire 250 TransferWise, a London-based financial technology company, chose Tampa for its first location in the United States. The firm plans to hire up to 250 employees within the next three years, according to a statement, and has already hired nearly 50 people. Founded in 2011, TransferWise is an international money transfer company that handles more than $750 million a month worldwide. The company utilizes peer-to-peer technology and software for its financial transactions.
Three attorneys bolt to new firm
quote of theweek We love to see cranes in the sky. That bodes well for us.
CHARLOTTE-LEE-COLLIER
Rail firm acquires manufacturer Progress Rail Services acquired Haynes Corp., a Naples company that manufactures fuel-injection systems for locomotive engines. Terms of the deal were not disclosed. Haynes is a closely held company owned by the Dixon family of Naples and in 2010 the company consolidated its manufacturing operations in Collier County. Albertville, Ala.-based Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., provides locomotive, railcar, engineering, tracks and services for the global railroad industry.
Lorna Nagler | President, Bealls Department Stores SEE PAGE 12
Burr & Forman, a regional law firm with nine offices in the Southeast, poached three area attorneys to work for its creditors’ rights and bankruptcy practice. All three attorneys, according to a release, previously worked in Arnstein & Lehr’s Tampa office. The lawyers include Ronald Cohn, onetime office managing partner
what do you think? O V E R
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Y E A R S
Food distributor plans sale Bonita Springs-based Innovative Food Holdings plans to spin off a subsidiary, The Fresh Diet, into a separate public company. Innovative Food provides chefs nationwide with specialty and artisan foods and its Fresh Diet subsidiary delivers fresh meals to consumers in 44 metropolitan areas. Innovative Food CEO Sam Klepfish, in a statement, says the move “provides the best opportunity to maximize shareholder value.” Shareholders agreed with the decision. They drove up Innovative Food’s stock price by 13% Nov. 12. (symbol: IVFH; recent price: 85 cents). SARASOTA-MANATEE
Investors close deal for Main Plaza A local investment group with ties to PGA golfer Greg Norman acquired the Main Plaza/Hollywood 20 complex in downtown Sarasota for $18.1 million, with an aim of reviving the aging office and retail center.
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Last week’s question:
The group, comprising entrepreneurs Jesse Biter, Eric Baird and David Chessler, say they have no set plans for the property. The deal closed Nov. 12. Connecticut-based Paragon Realty Group LLC had owned the 8.6-acre site, which includes Regal Cinema’s Hollywood 20 theater, a YMCA branch and a Ker’s Wing House, since 2005. Paragon paid $40 million for property.
Hotels pick up boost from sports business The Sarasota County Sports Commission posted a considerable year-over-year increase in sponsored events in fiscal year 2015. For the year ended Sept. 30, the sports commission, a division of Visit Sarasota County, sponsored 112 events. That’s a 57% increase over 2014, according to a new report, and led to 101,310 room nights in the region. The strong year was capped by a few significant events, including the Sarasota Superboat Grand Prix Festival, which generated $31 million in economic impact and 15,000 room nights.
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Sarasota Memorial Hospital. The goal of the partnership, which will start in 2016, is to make it easier for patients to get to their medical appointments, says Lauderdale. The program will combine Uber’s Internet-based scheduling services with Voalte Platform, the firm’s newest communication system. The system will help users schedule rides to appointments. Family members of a patient will also have the capability to schedule a ride on the platform to ensure they make the appointment on time. Lauderdale announced two more plans for the company at VUE15: Voalte Insight and Voalte Story. Voalte Insight will provide clients with data and analytics on communication throughout the organization. The tool, which will be available in the first quarter, can show communication volume, patterns and trends. Voalte Story is like Facebook for the health care industry, where messages and activity between a patient and the caregivers are put onto a wall page and can be viewed by other staff. Voalte Story will also be launched in 2016.
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Trey Lauderdale has sought ways to transform mobile health communications since he founded Voalte in 2008. The Sarasota-based firm has done that through software that helps nurses and other medical caregivers communicate with each other faster and easier. Voalte is one of the fastest-growing businesses in the region and has raised LAUDERDALE nearly $60 million in funding in three years. Now Voalte plans to tackle what he calls a $45 billion health care conundrum in the United States: How to transport some elderly people and others with a lack of transportation to medical appointments. Lauderdale announced his plans recently at VUE15, Voalte’s inaugural client conference. “Can we think of any company that can help us solve that issue?” Lauderdale asked the audience. He joked about it being a “little startup out of San Francisco.” Then he pulled up the Uber logo. The ride-sharing giant and taxi industry disruptor is working on an initiative that includes Voalte and
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When Jonathan Rector started to offer seaplane service from Naples to Key West last winter, he figured it would take a season to become established. But by February, the route was profitable. “We actually did much better than we had anticipated and budgeted,” Rector says. Now Rector is considering expanding Salt Island Seaplanes by adding a second amphibious plane that would take off from the Caloosahatchee River in downtown Fort Myers. Rector has been exploring waterfront locations and one site he says may fit is an empty building that used to house an art museum and sits on the edge of the river. “We’ve got another pilot coming on in December and we’re desperately trying to get a second airplane,” Rector says. Already, winter business travel from Naples to Key West is busy with early visitors. “We’re booked every day this week,” Rector says. And it’s not just leisure travelers who are using the seaplane service. “I’m kind of surprised at the number of business people we’re getting,” says Rector, who recently flew lawyers to Key West for depositions. One-way fares
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BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
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CoffeeTalk
datasnapshot
FROM PAGE 5
Where Canadians buy homes in Florida, by region
Mom bests daughter Sara Rose Bytnar, a Naples-based auctioneer who won the Florida auctioneer championship in 2014, passed her title recently — to her mother. Bytnar and her mother, Beth Rose, are auctioneers and partners in Beth Rose Real Estate and Auctions. The company has offices in Naples, Maumee, Ohio and Birmingham, Mich. Beth Rose won the state championship held recently at the Florida Auctioneer Association convention in Titusville. Daughter Sara, who won in
2014, handed mother Beth the award, the first time a mother-daughter duo took the championship. Both mother and daughter will now compete for the 2016 international auctioneer championship in Grand Rapids, Mich. Both women have been runners-up in the past. Bytnar says the rivalry is goodnatured. But we can’t help but wonder who will get the last word around the Thanksgiving table.
of backgrounds and expertise will don festive holiday socks at the party, the organization says in a statement. The YTP-Tampa board includes: n Nicole Gibson, sales manager at Holiday Inn-Westshore Tampa; n Kira Solomon, owner of My Paradise Planner; n Robert Solomon, co-owner and travel consultant at My Paradise Planner; n Camille Gomez, vice president of marketing at Travel by Appointment; n Rachael Emmerich, travel consultant at Advantage Cruises & Tours; n Jake Coldiron, senior business development manager at Sandals and Beaches Resorts; and n Seth Grunes, business development manager at Carnival Cruise Line. For more information on the Young Travel Professionals go to youngtravelprofessionals.com.
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Naples-Marco Island
13%
Cape Coral-Fort Myers
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Orlando-Kissimmee
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Bradenton-Sarasota Fort Lauderdale
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Tampa-St. Petersburg-Clearwater
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Palm Beach
5%
Deltona-Dayton Beach-Ormond
2%
Jacksonville-St. Augustine
2%
SOURCE: CONSULATE GENERAL OF CANADA
Canucks connect with Florida Any doubts that Canadians go gaga over the Gulf Coast are rejected in a new study from the Consulate General of Canada. The report, the 2015 CanadaFlorida Economic Impact Study, breaks down a variety of ways Canadians’ spend money in the Sunshine State. In total, according to the report, Canadians, on average, stay in Florida for 20 days a year and spend an average of $62 a day. Beyond cash, Canadians bring some clout. That includes the Canadian Snowbird Association,
a nonprofit lobbying and advocacy arm for Canadians travelling abroad. The group hosts the annual Snowbird Extravaganza, an annual lifestyle fair in Polk County that draws 35,000 Canadians. In real estate, the median value of properties Canadians purchased in Florida in 2013 is $195,174. That’s close to $600 million in property taxes a year, the report states. More than 90% of Canadians pay cash for their Florida homes, the report adds, and four of the top six metro areas statewide for Canadian homebuyers are on the Gulf Coast.
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Have youth, will travel The Young Travel Professionals, a networking group specifically for the next generation of travel industry executives and leaders, has opened a Tampa chapter. The chapter is 13th for the millennial-fueled organization, founded in 2011. Others chapters are spread worldwide, including locations in Boston, Chicago, Dallas/Fort Worth, London, Los Angeles, Miami, New York City, Seattle and Vancouver. The mission of the group, with more than 10,000 members, is to connect young and up-and-coming leaders of hotels, travel agencies, tourism boards and other hospitality and travel sectors. Membership is free. The YTP-Tampa branch has scheduled a launch party for 5:30 to 7:30 p.m. Dec. 17 at Bar 700 inside the Holiday Inn-Tampa Westshore. Travel industry professionals from a variety
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BusinessObserverFL.com
economic forecast Unleash the Potential
“There are some promising things in the works, but what we really need is a miracle.” Bill Olson, president, Olson Family Groves
This is a milestone of sorts for the Business Observer’s annual economic forecast issue: It’s the second year in a row that cautious optimism isn’t the overriding theme of the day. Sure, the phrase pops up now and then among conversations with more than a dozen business owners and executives from the greater Tampa region through Naples. That’s natural, considering many of those people remember the recession, and the tough times it left. So, while the caution has mostly fallen away from the optimism, no one is looking to the future with “unbridled optimism.” And in one case, with Bill Olson, president of Olson Family Groves in Polk County, the outlook is so gloomy there’s neither caution nor optimism. A third-generation grower, Olson’s business, and other family-run farms state-
“I think [2016] will be as good as this year if not better.”
wide, are in serious jeopardy because of greening disease that’s wrecking trees. “There are some promising things in the works, but what we really need is a miracle,” Olson says. Leaders in other industries, from coffee to insurance to hospitality, foresee better days for businesses in 2016 — even without divine intervention. Aashish Patel, who runs a Collier County-based business that uses airboats to ferry tourists into swamps in Everglades City, says the economy has rebounded well. So well his company recently bought three more airboats. Then there’s the big-picture view taken by Haley Crum Blanton, a vice president at Clearwater-based human resources outsourcing firm FrankCrum. She likes what’s on the horizon in 2016 because the entire region can benefit from corporate
growth, such as an Amazon distribution center or new retail plazas. Those developments give the region jobs, plus a jolt of credibility. Another company that projects a robust 2016 is Sarasotabased Environmental Pest Services. That firm has posted significant sales growth in the last five years through a strategy of piece-by-piece acquisitions. There’s more of that to come, but CEO Joe Finney says there’s also an opportunity to grow organically in many Gulf Coast markets, through new clients and new services, because of the economic rebound. “I really like the Florida market,” Finney says. “We see a lot of potential here.” So do many others — caution be damned. — Mark Gordon
“I don’t have a crystal ball, although I wish I did. But if we continue along this trajectory, there’s a very bright outlook for 2016.”
Gerri Moll, president, Southwest Florida, Bank of America
Elizabeth Rose, Realtor, Coldwell Banker
“We love to see the cranes in the sky. That bodes well for us.” Lorna Nagler, president, Bealls Department Stores
“I think we’re all damn glad that we put down our roots here 30 years ago.” Ed Chiles, restaurateur
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economic forecast BY JEAN GRUSS | EDITOR/LEE-COLLIER
BRIAN TIETZ
RANDY THIBAUT, president and CEO of Land Solutions, says homebuilders are being careful to avoid a repeat of the boom.
FOLLOW THE
ROOFTOPS If you want to know where the Gulf Coast’s economy is headed in 2016, follow the homebuilders and residential land developers.
I
t all starts with the rooftops. homes has created the right the Bureau of Economic and based GL Homes will sell more To get a sense of where the Gulf Coast’s economy is headed in 2016, consider homebuilding and residential land development. Everyone watches this barometer closely because it points the way to future commercial growth. From Tampa to Naples, builders are pushing boundaries north and east. In Pasco County, many people are watching a 6,400-acre parcel of land for sale at State Road 52 and the Suncoast Parkway. In Collier County, the best-selling community is Ave Maria, a town in the eastern part of the county that attracts buyers from Naples and Broward County. Population growth combined with shrinking inventory of
mix for the recovery in homebuilding and residential land development. “What I would say is we’re going to have an economic boom superimposed over a population boom,” says regional homebuilder Pat Neal, CEO and founder of Lakewood Ranch-based Neal Communities. “I think we’re going to sell a lot of homes.” In a presentation to investors recently, Florida homebuilder WCI Communities CEO Keith Bass put the state’s current population growth in perspective: It’s the equivalent of adding a city the size of Orlando every year. As of Sept. 30, WCI’s backlog of orders has surged 41% to 646 homes compared with the same time a year ago. According to estimates from
Business Research at the University of Florida, the state added 282,256 people or 773 people a day from 2014 to 2015. The bureau estimates population will continue to grow at the same rate for the next five years. Buyers hail from a broader geography now, too. “It’s no longer the I-75 corridor comes to the West Coast of Florida,” says Bob Vail, president of Kolter Urban, developer of 41-story downtown condo tower One St. Petersburg, where the average price is $1 million. “We’re also seeing a pretty high number of Northeast buyers.” The west coast of Florida is benefiting from the fact that there are fewer land opportunities for builders on the east coast. For example, Sunrise-
homes this year on the west coast of Florida than in its home territory on the east coast, says Patty Campbell, president of the homebuilder’s west coast operations. “We’ve had a stellar year,” says Campbell, who expects a repeat in 2016. Still, not every area of the Gulf Coast is created equal. Neal says job growth has been disappointing in the Tampa area, and buyers of moderately priced homes have relatively high cancellation rates because of mortgage qualification issues. “We’re not building a whole lot of entry level product,” says Tony Polito, director for Tampa See ROOFTOPS page 16
EXECUTIVE SUMMARY Industry. Homebuilding Trend. Development pushes east and north. Key. Homebuilders are confident demand will remain strong.
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
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BILL OLSON
President, Olson Family Groves | Agriculture Company: Olson, a thirdgeneration citrus grower whose grandfather started the business in the 1920s, expects to lose 25% of fruit production due to greening. It’s a disease caused from bacteria spread by the Asian citrus psyllid that ruins the taste and appearance of the fruit. “That’s just the way it is unless you have a ton of money to fight greening,” Olson says. Greening and its impact has forced Olson to go from eight full-time employees — plus up to 50 seasonal workers — to one over the last decade. Profits have been cut in half. Olson no longer can afford seasonal workers, so he and his one employee take care of the grove work. Industry: The USDA’s second forecast of the 2015-16 season, released Nov. 10, projects citrus production to reach 74 million boxes. That’s a decline of more than 74% since the peak of production less than 20 years ago, when it was at 244 million boxes. “To me, that’s not enough product to even be considered an industry anymore,” Olson says. And with the expense required to fight greening, many small growers such as Olson are either selling to developers or abandoning the property. Says Olson: “There are some promising things in the works, but what we really need is a miracle.” The closest he will get to that in the short-term is a pair of new fruit varieties, the Tango and Sugar Belle. Both are sweet tangerines and are said to be greening-resistant. Region: In an effort to help save growers, the federal government, as well as some juice plants and co-ops, created tree programs. These programs offer new trees and removal of infected ones. But requirements are stringent and once the trees are in the ground, there are still maintenance costs. “There’s just no way me and other small, family-owned growers can pay for the care for the trees,” Olson says. “It takes twice as much of everything – chemicals, fertilizer and water.” Many growers have turned to alternative crops such as peaches and blueberries. Olson says planting peaches was an effort to generate revenues, but also to save face as a farmer. “Personally,” he says, “I wanted to grow something I could be proud of again.” — Anita Todd
HALEY CRUM BLANTON Vice president of client services, FrankCrum | Human resources Company: The rollout of the Affordable Care Act has been the biggest challenge for FrankCrum, a professional employer organization and human resources consulting firm. “Being able to act as a consultant to navigate through ACA would be a very valuable skill,” Crum says. The next big thing, says Crum,
economic TAMPA BAY
BILL OLSON, president of Olson Family Groves, is adding peaches and blueberries to his farm’s fruit mix. tors know each other well. It makes the region somewhat “cannibalistic” at times, she says.
MARK WEMPLE
HALEY CRUM BLANTON, vice president of client services, FrankCrum is developing a solid benefits platform, especially one that will avoid issues with ACA. Despite the health insurance-related challenges FrankCrum had a strong year in 2015, growing gross revenues 13%. FrankCrum, unlike some of its competitors that only do business in Florida, has a national focus. Industry: The struggle with ACA is hardly unique to her firm, Crum says. But the same can be said about opportunities to capitalize on that challenge. Currently, the market penetration rate of PEOs is about 5%, she says, and it
should be “a lot higher, but it’s not an easy sell and it’s hard to get people to wrap their brains around it.” There is a bright side, however. Because keeping up with ACA is the biggest challenge for the industry, it also presents the biggest opportunity for growth, Crum says. “Reaching a penetration rate of about 15% to 20% in the next 10 years doesn’t seem far-fetched,” says Crum, “especially with ACA because it’s constantly like a sprint.” Another industry challenge: Florida has a heavy population of PEOs, Crum says, which means competi-
Region: Courtesy of the rebound in the economy, businesses are hiring again, increasing payrolls and offering incentive plans, Crum says, “which is great.” From a national perspective, “Tampa is hanging in there,” with other big metro cities FrankCrum is associated with, Crum says. The entire region benefits from the expansion of large companies, such Amazon and Whole Foods, that come to town and hire hundreds of people. – Steven Benna
DAVID ETHEREDGE CEO and co-founder, SavvyCard | Technology Company: Customers, says Etheredge, rave about the capabilities of SavvyCard, a software product that allows users to create their own personal mobile Web application. It’s similar to a digital business card with features that include call, text and email buttons; business profiles; and a share compo-
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
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RAPHAEL PERRIER Owner, Kahwa Coffee Roasting | Coffee, retail
Company: Perrier says the St. Petersburg-based retail and wholesale coffee company is “exceeding goals,” ending the year with $3.9 million in revenues. He expects the company to reach $5 million to $6 million in 2016 sales. Growth expectations stem from several big upcoming deals: a partnership with the NewsLink stands at the Tampa International Airport for brewed coffee and beans; wholesale deals with HSN; and an upcoming order for 35 grocery stores. There’s also a retail expansion, with a Westchase store and St. Petersburg drive-thru café — the company’s seventh and eighth locations — opening in the last few months and a Sarasota location by December. Perrier is also finalizing a franchise deal in Sarasota for four additional locations.
forecast
Industry: The coffee industry is booming. Says Perrier: “Just look at Peet’s Coffee, buying everybody. Everyone is healthy and doing well.” Brazil is producing really good coffee, despite the scare about its crops, Perrier says. “The demand is there, the crops are there,” he adds. Coffee prices are the lowest in more than four years, meaning coffee companies have more money to invest in retail or wholesale. “It frees up capital for expansion,” he says.
CINDY SKOP
and public relations firms and hopes to hire one soon. “It’s just like anything else,” says Etheredge. “We need our brand and company to be seen as something indispensable.” Industry: Etheredge, who previously worked in senior management roles at Walt Disney Interactive and Hasbro, says two of the main topics people talk about in the industry are what’s not here. Namely, that’s a lack of solid senior managers to hire or poach from another firm, and a funding gap for middle-stage tech companies. The hiring side, he says, requires diligence and patience. The funding side goes back to awareness. “Raising the capital can be pretty easy if you are in front of the right people,” he says. “So it’s a visibility thing.” FILE PHOTO
DAVID ETHEREDGE, CEO and co-founder, SavvyCard nent, where SavvyCard can be a landing page in a marketing campaign. Yet Etheredge says the business, founded in 2010, will only break out nationally in sales with a tipping point in visibility. Etheredge says 2016 will be a big year for that goal: He’s currently meeting with several national marketing
Region: Residential real estate is SavvyCard’s first market for sales, so the company has deep connections there. Etheredge says he hears companies in real estate and related industries are doing well, and hiring, which he expects to carry over to 2016. “There is a general sense of well-being with the economy,” he says. — Mark Gordon
Region: More coffee companies have entered the Tampa market recently. “Competition is healthy,” says Perrier. “It pushes people to the best — best for the company and also the customers.” Sometimes Perrier believes there is too much rivalry among the smaller shops, when those businesses should be focused on the No. 1 competitor, Starbucks. He doesn’t see the other local coffee companies as having similar business models, because it is rare that a company competes in both the retail and wholesale markets, like Kahwa does. — Traci McMillan Beach
FILE PHOTO
RAPHAEL PERRIER, owner, Kahwa Coffee Roasting
MARK WEMPLE
BRIAN MANNING, CEO, The Carpet Store
BRIAN MANNING CEO, The Carpet Store | Flooring, home services Company: Manning says the solid economy has been pivotal for The Carpet Store. “It’s allowed us to invest more without having the concerns of falling,” he says. The Carpet Store recently opened its fourth location, called Your Flooring Warehouse, in Sarasota and looks to open one more location in the next year. Getting that new retail location will be a challenge, Manning says, because finding enough space is difficult and there is high competition in strip malls. “They’re either old, dying eyesores or new and looking for the big name players,” Manning says of strip malls. Industry: The biggest obstacle with the flooring industry, Manning says, is the inability to be completely in control. The ups and downs of the industry as a whole are correlated with the housing market. Fortunately for Manning and The Carpet Store, the housing market has improved, and he says sales grew as a result. The outlook for 2016 and beyond is positive, Manning says, especially if the middle class continues to get stronger. Retailers in the flooring industry, he says, “lost their middle class customers when the economy took a hit in 2008. But as salaries go up again, we should improve.” Region: Florida as a whole, and specifically the Sarasota and Tampa regions, has a “phenomenal outlook,” Manning says. Aside from the housing market and the rebound in the economy, each region is especially ripe for the retirement community, which is expected to grow considerably, Manning says. The benefit will come in the form of increased stability, which bolsters The Carpet Store’s long-term outlook. “I really cannot imagine too many areas that are better to be in,” Manning says. – Steve Benna
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LORNA NAGLER
President, Bealls Department Stores | Retail Company: Nagler expects a strong year for the chain’s department stores, which have locations in nearly every market in Florida. One reason for optimism is a slew of new brands and products, from Under Armour to new Tommy Bahama offerings. A revamped women’s shoe section is also upcoming. “We’ve curated the best of the best,” says Nagler. “We want to surprise and delight.” Another reason for optimism: The 2015 debut of Bunulu, a millennial-focused chain with a concentration on athletic clothes and active wear. There are three stores so far, including one in Estero, and Nagler says inventory buyers for Bunulu continue to refine the right mix of fashion and function. There are no plans to open a store in 2016, yet, but Nagler says a site selection process is ongoing.
BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
economic forecast SARASOTA-MANATEE
Industry: Retailers are at a crossroads in 2016, says Nagler, in the escalating battle for customers’ attention, given the increase in gadgets people can buy and life-experience trips people can take. That means companies that sell clothes are competing not only against each other, but also against where people spend their money. Nagler, for example, considers Amazon and Apple competitors as much as Kohl’s or JC Penney. “Share of wallet is something we really worry about,” says Nagler. “That’s why we work so hard to be special and unique.” Region: Outside retail, Nagler especially watches what happens in housing and tourism. And the news there, in her view, is great. Nagler says the influx of tourists and snowbirds, combined with the increase in housing starts, should be a boost for 2016, and maybe beyond, for many businesses and industries. “We love to see the cranes in the sky,” says Nagler. “That bodes well for us.” — Mark Gordon
ED CHILES Owner, Beach House, Sandbar and Mar Vista restaurants | Hospitality Company: Business has been solid for Chiles’ restaurants, mostly because of the prospering economy. Fall 2016 will bring some major improvements, too. Chiles says the company is continuing with the remaking of its restaurants, which started in 2011. Building a culinary team has been another focal point, and that will continue into 2016. Health care coverage poses an enormous challenge for the company, much like other industries. For Chiles, he chose between restructuring the amount of full-time employees or eating a large companywide cost to cover everyone through the Affordable Care Act. He opted for the latter and says health care costs increased $100,000 as a result.
FILE PHOTO
Bealls Department Stores President LORNA NAGLER is optimistic about 2016 for the company, and the economy.
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
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JOE FINNEY
CEO, Environmental Pest Services | Pest control, home services
COURTESY
ED CHILES, owner, Beach House, Sandbar and Mar Vista restaurants Industry: In the food and beverage industry, risk is always a major factor, Chiles says. And the industry faces the possibility of another hurdle: minimum wage increases. “To give you an honest answer, I don’t know,” says Chiles on how an increased minimum wage would impact the industry. “I think the good operators will get through. But a lot of people go out of business in this industry.” The key, he says, is intensely monitoring costs and holding tight to a budget. Region: Chiles and his restaurants “have some incredibly good things going for us,” he says. Most notable to Chiles is the “booming island economy,” which is based on a great quality of life and a strong marine environment, he says. Despite the recession in 2008, “we’re one of the few places that wasn’t hurt business-wise,” Chiles says. He adds that there is a sense of vitality now that wasn’t present 20 years ago because the region is attracting people worldwide. “I think we’re all damn glad that we put down our roots here 30 years ago,” Chiles says. — Steve Benna
CRAIG JOHNSON, LISA KROUSE CEO; Executive Vice President and Chief Human Resources Officer, FCCI Insurance Group | Insurance Company: Johnson is excited about 2016, coming off what he says was an outstanding 2015 for the firm, which handles commercial property and casualty insurance in 18 states, mostly in the Southeast and Midwest. The firm will finish 2015 with $740 million in written premiums, up 10.4% over 2014, when it had $670 million. Johnson and Krause say they want the payroll to stay ahead of growth trends, and expect to hire 90 people in the next 18 months. At least one-third of those will be based out of the firm’s Lakewood Ranch headquarters, adds Krause. One of the largest private employers in the Sarasota-Manatee region, FCCI currently has around 760 employees. Johnson says the growth comes mostly from the sales
FILE PHOTO
CRAIG JOHNSON, CEO, FCCI Insurance Group
FILE PHOTO
LISA KROUSE, Executive Vice President and Chief Human Resources Officer, FCCI Insurance Group force outworking the competition and FCCI’s stellar customer service reputation. “We are getting more penetration in our markets,” Johnson says.
Company: Environmental Pest Services, formerly Arrow Environmental Services, has been on a grow-by-acquisition strategy since 2010. It’s acquired around 70 firms since then, in Florida and Georgia, and has become one of the top 25 pest control companies in the country based on revenues. While several more acquisitions are forthcoming, says Finney, the company will also focus on organic growth in 2016 through new clients and more services for current clients. That includes lawn care. Part of the strategy to boost organic growth next year, says Finney, is the debut of an internal training program called We Care. It’s where field technicians and service reps will share experiences and learn new techniques about how to improve service. “We want people to treat our customers like it’s their grandmother’s house,” Finney says. Industry: The pest control sector is relatively stable, says Finney. He expects the industry to grow around 3% to 4% in 2016. A looming obstacle to growth, he says, is something that confounds executives in many other fields: hiring talented employees. “The biggest challenge is people,” says Finney. “We always say our most important assets drive home every night.” Region: Finney believes the Florida economy will grow faster than the rest of the country in 2016. He sees that happening in several areas, including real estate. Finney says that will trickle down to Environmental Pest Control, which targets areas such as Ocala and Gainesville for acquisitions. “I really like the Florida market,” Finney says. “We see a lot of potential here.” — Mark Gordon
Industry: One theme for 2016 in insurance, says Johnson, will be a rate battle. He predicts some carriers and underwriters will drop prices so low to undercut competition, which happens sometimes in the cyclical industry, particularly in a rebounding economy. But if prices go too low, says Johnson, it has the potential to erode profitability. “They are trying to generate business,” Johnson says of companies that lower rates. “But we think it’s an unwise move.” Region: Krouse, recently named chairwoman of the board of the Greater Sarasota Chamber of Commerce, says she hears positive vibes from multiple businesses and executives in the area. Johnson also sees good things in 2016 — though he has some caution given it’s an election year. Says Krause: “There is a general feeling of optimism for what’s happening in the community.” — Mark Gordon
FILE PHOTO
JOE FINNEY, CEO, Environmental Pest Services
LORI SAX
ELIZABETH ROSE, Real estate agent, Coldwell Banker
ELIZABETH ROSE Real estate agent, Coldwell Banker | Residential real estate Company: The rebound of the housing market has been good to Rose: She had six closings in November — the most she’s ever had in a single month during her seven-year tenure as a real estate agent. Rose is hopeful the market will stay as strong as it is. “I don’t have a crystal ball, although I wish I did,” Rose says. “But if we continue along this trajectory, there’s a very bright outlook for 2016.” Industry: An increased emphasis on technology and photography has completely changed the industry, Rose says. Buyers used to completely rely on agents to pick out homes based on predetermined interests. But technology and photography have become key to the process because now “buyers can search and give Realtors a list of specific properties they want to see, not the other way around like it used to be.” With that, buyers can now search almost in real time, Rose says. Another industry trend to note, says Rose: A lot more people are getting into the profession. Whether they obtained their license in the past or are interested now, “it’s definitely a good time to be in this industry.” Region: Sarasota-Manatee is in the middle of a strong sellers market, Rose says. Home prices are higher, while the number of available listings and average amount of time a property stays on the market is down. “People are more willing to pull the trigger with an offer,” Rose says. “And now that the market has gained momentum, people are giving stronger offers to avoid losing out on a property that they love.” — Steve Benna
“I don’t have a crystal ball, although I wish I did. But if we continue along this trajectory, there’s a very bright outlook for 2016.” Elizabeth Rose Real estate agent, Coldwell Banker
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BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
economic forecast CHARLOTTE-LEE-COLLIER
DAVID DALE
President, Owen-AmesKimball Co. | Commercial construction Company: David Dale says his commercial construction company likely will post revenues of $50 million, roughly the same as 2015. “We’re doing a lot more infrastructure, aviation, heavy civil work than we have traditionally in our mix,” Dale says. “We’ve always done that, but our balance is a little more there because there’s still a lot of commercial property that hasn’t been absorbed.” Existing buildings need to fill up with new tenants paying higher rents to justify new construction. “We’re doing a lot of tenant finish and build-out work.” Industry: The commercial construction industry has recovered from the collapse. “I would think everyone is doing fairly well and the folks who are left are very busy,” Dale says. That has put pressure on the availability and cost of labor for commercial contractors, especially if they’re competing with active homebuilders. “Masons and drywallers are in very high demand right now because we share the same resources with the residential guys,” Dale says. Meanwhile, subcontractors are reluctant to hire more people because memories of the downturn remain fresh in their minds, he says. Region: The challenge of regional growth is keeping up with it. “One of the restricting factors is to get some of the infrastructure pushed out. Roads and bridges have to be in place and in good shape,” Dale says. “We’re a bit behind the curve on some of that.” Still, he’s encouraged by projects such as widening Interstate 75 from the northern area of Lee County to Charlotte County. Together, Charlotte, Collier and Lee counties have a population of about 1 million people, which should continue to attract companies from outside the region. “I know the economic development office and the regional group that’s been put together have really been trying hard,” Dale says.
GERRI MOLL President, Southwest Florida, Bank of America | Banking Company: Gerri Moll oversees $4 billion in deposits at Bank of America’s Lee and Collier offices and she says strong loan production will likely continue next year. “It’s across the board,” Moll says, ticking off the industries that are borrowing for expansion: health care, real estate, manufacturing, hospitality and tourism. “I think it will be as good as this year if not better.” In addition, Moll oversees
FILE PHOTOS
DAVID DALE, president of Owen-Ames-Kimball Co. in Fort Myers and a private pilot who used to fly crop dusters, says existing commercial space needs to be absorbed before new buildings can be built. AASHISH PATEL, CEO of Madhav Group, says he’s purchased more airboats to ferry tourists into the swamps of Collier County.
the overall recovery in Florida,” she says. However, Moll notes that bank valuations still remain lower than they were during the boom years.
GERRI MOLL, president of Bank of America’s Southwest Florida region, says loan demand will remain strong across all industries next year. a combined $6.5 billion in assets under management at related wealth management firms Merrill Lynch and U.S. Trust. Combined, the financial giant operates 47 offices in Lee and Collier so Moll has a good perspective on hot areas. She says growth is especially strong in the area between Fort Myers and Naples, which includes Estero, Bonita Springs and North Naples. Industry: The consolidation in banking will likely continue into 2016, as evidenced recently by Bank of the Ozarks’ proposed acquisition of C1 Bank in St. Petersburg. “I certainly understand why they would want a foothold in Florida. The demographics are attractive,” Moll says. “We expected to see increased consolidation including in banking and that’s starting.” Interest by out-of-state banks in Florida is a positive sign. “It’s a strong statement about
Region: Strong demand for residential real estate will continue to drive regional growth in 2016. “Demand seems to be outstripping supply, particularly along the coastal corridors,” Moll says. “There’s not a tremendous amount of development land, especially in Collier. We’re reaching the boundaries of the urban area.” That’s pushing growth north of Collier into Lee County. Moll is especially enthusiastic about Florida Gulf Coast University on the east side of Interstate 75 in Fort Myers. “The university has been a great catalyst for growth,” says Moll, who was a founding trustee of the university. “I remember being there for the groundbreaking [in 1995] and it felt like the middle of nowhere.”
the economy has rebounded well,” Patel says.
CEO, Madhav Group | Hospitality
Industry: The hospitality outlook remains bright, but Patel says he’s concerned about forecasts of a warmer winter in northern states. “Weather is a huge, huge part of it,” he says. “If we see more El Niño, we may have a warmer winter up north which would translate to a less than impressive season.” To a lesser degree, Patel says he’s also concerned that Easter will be celebrated March 27 next year, earlier than April 5 this year. “We always like to see a late Easter,” Patel says. “It extends our season.”
Company: Aashish Patel says his company recently purchased three airboats and a swamp buggy to its fleet in Everglades City to handle what is likely to be another strong year for tourism. In addition, he anticipates another strong year of occupancies and rate growth at the four hotels he and his family operate in the Lee and Collier areas. “It’s looking like a strong year and
Region: The presidential election should help boost the region’s fortunes next year. “Florida is a key battleground state,” Patel says. “Get ready for a busy year because a lot of money will be pouring into Florida because of the election.” In addition, early indications of airport traffic and visitation projections show another strong year for the region. However, Patel is more
AASHISH PATEL
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
tions next year and the pace of the recovery concern Sandelli. “I still think the economy is moving in the right direction, but it’s still painfully slow. There are so many issues going on in the world,” he says.
RAYMOND SANDELLI
LEN ZAISER IV
Managing partner, CRE Consultants | Commercial real estate Business: Sandelli forecasts continued strong demand for commercial real estate in Southwest Florida as the recovery continues. “On the leasing side we’re anticipating it will be as good as or better than this year,” he says. Sandelli says 2016 sales could be as strong as 2015 if there’s inventory for sale. “There’s so much money chasing so little product, are you going to see the opportunities present themselves?” he wonders. Industry: Commercial real estate will continue to attract attention, especially with large users of corporate office space expanding in the area. Companies are scouting sites outside first-tier markets such as Miami. “That validates the fact that people are looking at a third-tier market” such as Naples, Sandelli says. Still, Sandelli doesn’t expect new commercial real estate firms to plant their flags in areas such as Fort Myers and Naples that are already well served by local commercial brokerages that work with national firms.
RAYMOND SANDELLI, the managing partner of CRE Consultants in Fort Myers and Naples, says companies will continue to absorb the existing commercial space in the region, driving down vacancies and boosting rents.
Region: Areas such as Fort Myers and Naples continue to attract year-round residents and companies, boosting the economy during the traditionally slow summer months. “What that’s doing to our economy down here is we’re morphing into a fulltime operating community. That creates opportunities for business,” Sandelli says. “We’re seeing existing tenants that are expanding. Some of these are solid companies are looking to grow within the market.” That has attracted deep-pocketed investors, too. “In our market, we’re seeing more institutional influence but a lot of the properties are owned by individuals with wealth.” The national elec-
Company: Weapons manufacturer Azimuth Technology says it expects to increase sales by 60% next year as it doubles the size of its manufacturing facility in Naples to 46,000 square feet. “The outlook is extremely positive for us,” says Len Zaiser IV, president and co-founder of Azimuth Technology. Azimuth manufactures precision parts for handgun and rifle producers, and Zaiser says the prospect of tighter weapons laws in the U.S. likely will push sales. “The second driver is all the instability around the world,” Zaiser says. “A lot of our products go overseas for our allies.” Besides, European countries have made it harder for weapons manufacturers to operate there because of the unfavorable political climate. “It’s driving business our way,” he says.
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Region: Collier County’s manufacturing economy is running into the same challenges that face most growing firms: the lack of land for development. “My biggest concern in Naples is room for future expansion,” says Zaiser. “There are so many companies that want to and could move down to this area if there was room, land and buildings for them.”
Industry: Manufacturing on the Gulf Coast is centered on specialty parts and Zaiser says his industry peers are seeing strong demand for
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their precision products. “The concerns for many is recruiting skilled labor and talent,” Zaiser says. A strong dollar is not as much of a handicap as some have suggested because there are currency advantages now to buying manufacturing equipment overseas. If the Florida Legislature approves extending the sales-tax break on manufacturing equipment, Zaiser says that could further boost capital spending and job creation.
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concerned about 2017 and 2018 because hotel executives have indicated to him that the economy may experience slower growth.
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CONSTRUCTION PERMITS
ROOFTOPS from page 8 and Sarasota for Metrostudy. “Most of the homes being built are bigger and more expensive.” Nevertheless, Polito expects housing starts to grow between 8% and 12% in the Tampa and Sarasota areas next year as wealthier baby boomers drive demand for pricier homes. SPEC IS BACK One indication of homebuilding’s outlook is the fact that speculative building has returned. That’s when builders are confident enough to start building a new home even without a buyer. For example, Neal says he’s doubled the number of specs he’s building to 120 homes, which is about 10% of total sa les. In many markets on the Gulf Coast, the inventory of homes for sale is below the current demand. “We think inventory favors sellers,” he says. At Stock Development in Naples, the company has 175 speculative homes under construction at any given time. “We’re starting to build specs on Marco Island,” says Brian Stock, the company’s CEO. Large national builders are building spec, too. For example, D.R. Horton is building an undisclosed number of spec homes in 50 communities from Tampa to Naples. “Many people believe we compete with other new homes, but most of the housing transactions are with used homes that are becoming old and dated,” says a company official in an email response to questions. “We believe that offering a brand new home that is available now and is comparably priced with older dated homes is appealing to prospective buyers.” Spec building is occurring at price levels that previously were the province of customhome builders. For example, Stock plans to build 10 furnished speculative homes in Lakewood Ranch for $1 million to $2 million each. “They want these to move in,” says Stock. Randy Thibaut, CEO of Fort Myers brokerage Land Solutions, who recently presented a market trends analysis to the Lee and Collier building industries, says he’s not concerned about speculative overbuilding. “Although there’s inventory, it’s nothing even close to the kinds of inventory we were building in 2005,” he says. “What we see here is very controlled speculative building.” Thibaut forecasts 12,200 residential units will be pulled this year in Charlotte, Collier and Lee counties, on par with the
I think we’re going to sell a lot of homes.
If there’s one metric that reveals the economic conditions on the Gulf Coast, it’s construction permits. The general sentiment is residential building leads the way, and commercial building usually lags about 18 months behind. In the data below, Lee and Collier counties continued to lead residential construction on the Gulf Coast, with 23% and 27.5% increases, respectively, from 2013 to 2014. Meanwhile, Hillsborough and Manatee counties saw a drop in residential permits. In commercial building, Sarasota saw the largest percentage increase in permits during that time, at 80%. Pasco and Manatee counties also saw large increases, 59% and 46%, respectively.
Pat Neal | CEO and founder, Neal Communities
ANNUAL RESIDENTIAL BUILDING PERMITS County Hillsborough Pinellas Pasco Sarasota Manatee Charlotte Lee Collier
2014 3,120 403 1,711 1,676 2,238 602 2,383 2,287
2013 3,361 318 1,522 1,462 2,254 485 1,938 1,794
2012 2,832 251 1,182 994 1,588 297 1,455 1,338
2011 2,291 210 1,003 623 1,103 292 983 813
2010 2,069 170 1,048 535 1,161 291 850 756
2009 1,764 121 991 358 835 225 700 567
ANNUAL COMMERCIAL AND MULTIFAMILY BUILDING PERMITS County Hillsborough Pinellas Pasco Sarasota Manatee Charlotte Lee Collier
FILE PHOTO
early 2000s but nowhere near the 44,000 permits pulled in 2005. For the next 12 months, Land Solutions forecasts a 7% to 11% increase in residential permits. “The bigger problem is going to be supply-related in this cycle,” says David Cobb, South Florida regional director for market tracker Metrostudy. Overbuilding isn’t a threat in Tampa, either. According to market tracker Metrostudy, Tampa is building about twothirds of the average annual 20-year volume of homes. Polito says high land prices and a shortage of construction labor will keep builders disciplined. Besides, the buyers today aren’t likely to flip their homes for a quick profit and many of them pay cash. “We’re not getting speculators and investors,” says Vail, who notes that condo buyers will live in the units that are selling at One St. Petersburg. “We’re getting real people.” LAND PLAYS The boundaries of Southwest Florida and the Tampa Bay region are pushing north and east as the supply of large tracts of available land become harder to find. “The bank-owned land business is way behind us, but there’s still lots of capital looking for land deals,” says Tampa land broker Bill Eshenbaugh. In the Tampa Bay region, the hot areas of residential development include south-central Pasco County and south Hillsborough County, says Bruce Erhardt, executive director with Cushman & Wakefield in
2014 188 111 116 108 105 11 134 108
2013 161 118 73 60 72 18 114 97
2012 159 109 59 59 61 11 114 49
2011 165 62 64 52 40 11 80 49
2010 149 81 61 47 42 7 59 80
2009 147 72 61 46 35 22 71 51
BRIAN TIETZ
Randy Thibaut
Tampa. Developers a re scout i ng other areas of the Tampa Bay region, too. “People are looking at Plant City and Polk County,” Erhardt notes. Further north there’s a 6,400acre tract dubbed “Angeline” at the corner of the Suncoast Parkway and State Road 52 in Pasco County. Jay Ziv, senior v ice president w ith Av ison Young, the commercial real estate firm marketing the land, says there are plans for twolane State Road 52 to be widened, opening up a new eastwest corridor in Pasco. The parallel east-west artery to the south, State Road 54, is seeing strong activity in communities such as Trinity and Starkey Ranch. “Starkey Ranch is really hopping,” says Erhardt. In Southwest Florida, Ave Maria is the top-selling singlefamily residential community, according to Land Solutions. The new town is located 30 miles inland from Naples, but moderately priced homes have attracted buyers from the east coast. Indeed, the east-west artery of Immokalee Road that joins Ave Maria and Naples has seen a surge of new residential developments. “There will be thousands of new-home opportunities in the next three years,” Thibaut says.
Estimates for population growth show that Lee County will lead the Gulf Coast in growth, increasing population by 64% over the next 25 years. It will also add the second-highest number of people, 420,381, during that time. Hillsborough leads the list in the number of people added, at 581,236, but it is estimated to have growth on track with many other counties percentage-wise, including Collier, Manatee and Pasco. Pinellas is projected to add the fewest amount of people, and is estimated to grow by less than 5%. Charlotte also is projected to grow slowly, adding 33,097 people in the next 25 years. *April 1, 2014 164,467 336,783 1,301,887 653,485 339,545 479,340 933,258 623,174 387,140
2015 166,083 343,236 1,328,225 670,419 345,734 489,693 941,195 634,555 390,490
2008 195 103 172 70 90 49 197 104
SOURCE: HBW (HBWEEKLY.COM), DEBARY
POPULATION
Charlotte Collier Hillsborough Lee Manatee Pasco Pinellas Polk Sarasota
2008 2,068 165 1,280 498 952 277 982 766
2020 174,224 376,142 1,463,205 758,272 377,335 543,038 948,798 693,095 412,873
2025 181,503 406,905 1,586,418 845,908 406,879 595,361 956,577 750,240 433,621
2030 187,521 435,424 1,697,593 928,622 434,327 645,371 964,092 805,761 452,848
2035 192,578 461,680 1,796,204 1,003,956 460,707 692,278 971,455 856,073 469,462
2040 197,564 487,259 1,883,123 1,073,866 484,984 733,885 978,541 901,077 484,253
SOURCE: SOURCE: FLORIDA DEMOGRAPHIC ESTIMATING CONFERENCE, FEBRUARY 2015 AND THE UNIVERSITY OF FLORIDA, BUREAU OF ECONOMIC BUSINESS RESEARCH, FLORIDA POPULATION STUDIES, BULLETIN 171, APRIL 2015 * ESTIMATES
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
BusinessObserverFL.com
economic forecast: by the numbers
17
FLORIDA JOB PROJECTIONS BY INDUSTRY
These two sets of charts show estimates of jobs produced by industry. Agriculture and information were the two industries projected to lose jobs over the next seven years, while construction is the clear winner as the industry projected to gain the most jobs during that time. In all counties, construction is expected to increase by more than 25% by 2022 compared with 2014. Other sectors that continue to see rapid growth are projessional and business services, education and health services and leisure and hospitality.
CHARLOTTE, COLLIER, GLADES, HENDRY AND LEE COUNTIES MANATEE AND SARASOTA COUNTIES Employment Industry 2014 2022 Total, All Industries 460,799 539,940 Agriculture, Forestry, Fishing and Hunting 11,969 11,165 Mining 216 251 Construction 33,474 48,549 Manufacturing 9,421 10,484 Trade, Transportation and Utilities 83917 94,903 Information 5,189 5,094 Financial Activities 20,450 23,080 Professional and Business Services 49,012 59,843 Education and Health Services 54,527 68,944 Leisure and Hospitality 68,406 78,147 Other Services (Except Government) 17,596 19,577 Government 59,797 68,136
Annual Change Total Percentage 79,141 17.2 -804 -6.7 35 16.2 15,075 45.0 1,063 11.3 10,986 13.1 -95 -1.8 2,630 12.9 10,831 22.1 14,417 26.4 9,741 14.2 1,981 11.3 8,339 13.9
HERNANDO AND PASCO COUNTIES Industry Total, All Industries Agriculture, Forestry, Fishing and Hunting Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Education and Health Services Leisure and Hospitality Other Services (Except Government) Government
Employment Annual Change 2014 2022 Total Percentage 293,318 342,646 49,328 16.8 5,114 4,839 -275 -5.4 80 92 12 15.0 18,032 26,122 8,090 44.9 15,044 16,322 1,278 8.5 51,724 58,376 6,652 12.9 3,396 3,295 -101 -3.0 14,970 17,082 2,112 14.1 33,357 40,133 6,776 20.3 47,170 59,027 25.1 38,072 43,552 5,480 14.4 11,023 12,416 1,393 12.6 26,591 29,636 3,045 11.5
PINELLAS COUNTY
Employment Annual Change 2014 2022 Total Percentage 155,313 176,480 21,167 13.6 723 745 22 3.0 140 140 0 0.0 9,134 12,486 3,352 36.7 4,692 4,970 278 5.9 33,326 35,946 2,620 7.9 1,315 1,278 -37 -2.8 5,199 5,800 601 11.6 13,229 15,631 2,402 18.2 28,397 34,907 6,510 22.9 18,553 20,353 1,800 9.7 5,910 6,413 503 8.5 23,063 25,213 2,150 9.3
HILLSBOROUGH COUNTY Industry Total, All Industries Agriculture, Forestry, Fishing and Hunting Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Education and Health Services Leisure and Hospitality Other Services (Except Government) Government
Industry Total, All Industries Agriculture, Forestry, Fishing and Hunting Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Education and Health Services Leisure and Hospitality Other Services (Except Government) Government
Industry Total, All Industries Agriculture, Forestry, Fishing and Hunting Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Education and Health Services Leisure and Hospitality Other Services (Except Government) Government
Employment Annual Change 2014 2022 Total Percentage 447,011 504,633 57,622 12.9 90 91 1 1.1 11 12 1 9.1 17,270 23,271 6,001 34.7 30,834 30,872 38 0.1 72,191 78,117 5,926 8.2 7,779 7,193 -586 -7.5 31,425 36,008 4,583 14.6 69,154 81,588 12,434 18.0 73,469 90,544 17,075 23.2 50,708 55,099 4,391 8.7 17,096 18,773 1,677 9.8 44,092 47,362 3,270 7.4
POLK COUNTY Employment Annual Change 2014 2022 Total Percentage 699,877 789,163 89,286 12.8 10,130 10,127 -3 0.0 309 314 5 1.6 29,641 39,681 10,040 33.9 24,474 24,802 328 1.3 119,121 128,003 8,882 7.5 17,580 16,812 -768 -4.4 63,558 72,901 9,343 14.7 122,160 144,507 22,347 18.3 83,879 102,803 18,924 22.6 67,217 73,594 6,377 9.5 22,105 24,829 2,724 12.3 83,122 89,982 6,860 8.3
Industry Total, All Industries Agriculture, Forestry, Fishing and Hunting Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Education and Health Services Leisure and Hospitality Other Services (Except Government) Government
Employment 2014 2022 228,559 252,300 4,263 4,065 N/A N/A 10,309 12,934 16,177 16,272 48,926 53,787 1,572 1,539 14,792 15,902 27,276 30,744 30,790 37,209 20,305 22,077 7,594 8,153 28,034 30,165
Annual Change Total Percentage 23,741 10.4 -198 -4.6 N/A N/A 2,625 25.5 95 0.6 4,861 9.9 -33 -2.1 1,110 7.5 3,468 12.7 6,419 20.8 1,772 8.7 559 7.4 2,131 7.6
SOURCE: FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY
INDUSTRIES GAINING THE MOST NEW JOBS CHARLOTTE, COLLIER, GLADES, HENDRY AND LEE COUNTIES MANATEE AND SARASOTA COUNTIES Industry Construction Education and Health Services Trade, Transportation and Utilities Professional and Business Services Leisure and Hospitality Government Financial Activities Other Services (Except Government) Manufacturing Mining Information Agriculture, Forestry, Fishing and Hunting
Employment 2014 2022 33,474 48,549 54,527 68,944 83,917 94,903 49,012 59,843 68,406 78,147 59,797 68,136 20,450 23,080 17,596 19,577 9,421 10,484 216 251 5,189 5,094 11,969 11,165
Annual Change Total Percentage 15,075 45.0 14,417 26.4 10,986 13.1 10,831 22.1 9,741 14.2 8,339 13.9 2,630 12.9 1,981 11.3 1,063 11.3 35 16.2 -95 -1.8 -804 -6.7
HERNANDO AND PASCO COUNTIES Industry Education and Health Services Construction Trade, Transportation and Utilities Professional and Business Services Government Leisure and Hospitality Financial Activities Other Services (Except Government) Manufacturing Agriculture, Forestry, Fishing and Hunting Mining Information
Employment 2014 2022 28,397 34,907 9,134 12,486 33,326 35,946 13,229 15,631 23,063 25,213 18,553 20,353 5,199 5,800 5,910 6,413 4,692 4,970 723 745 140 140 1,315 1,278
Annual Change Total Percentage 6,510 22.9 3,352 36.7 2,620 7.9 2,402 18.2 2,150 9.3 1,800 9.7 601 11.6 503 8.5 278 5.9 22 3.0 0 0.0 -37 -2.8
HILLSBOROUGH COUNTY Industry Professional and Business Services Education and Health Services Construction Financial Activities Trade, Transportation and Utilities Government Leisure and Hospitality Other Services (Except Government) Manufacturing Mining Agriculture, Forestry, Fishing and Hunting Information
Employment Annual Change 2014 2022 Total Percentage 122,160 144,507 22,347 18.3 83,879 102,803 18,924 22.6 29,641 39,681 10,040 33.9 63,558 72,901 9,343 14.7 119,121 128,003 8,882 7.5 83,122 89,982 6,860 8.3 67,217 73,594 6,377 9.5 22,105 24,829 2,724 12.3 24,474 24,802 328 1.3 309 314 5 1.6 10,130 10,127 -3 0.0 17,580 16,812 -768 -4.4
Employment 2014 2022 47,170 59,027 18,032 26,122 33,357 40,133 51,724 58,376 38,072 43,552 26,591 29,636 14,970 17,082 11,023 12,416 15,044 16,322 80 92 3,396 3,295
Industry Education and Health Services Construction Professional and Business Services Trade, Transportation and Utilities Leisure and Hospitality Government Financial Activities Other Services (Except Government) Manufacturing Mining Information
Annual Change Total Percentage 11,857 25.1 8,090 44.9 6,776 20.3 6,652 12.9 5,480 14.4 3,045 11.5 2,112 14.1 1,393 12.6 1,278 8.5 12 15.0 -101 -3.0
PINELLAS COUNTY Industry Education and Health Services Professional and Business Services Construction Trade, Transportation and Utilities Financial Activities Leisure and Hospitality Government Other Services (Except Government) Manufacturing Agriculture, Forestry, Fishing and Hunting Mining Information
Employment Annual Change 2014 2022 Total Percentage 73,469 90,544 17,075 23.2 69,154 81,588 12,434 18.0 17,270 23,271 6,001 34.7 72,191 78,117 5,926 8.2 31,425 36,008 4,583 14.6 50,708 55,099 4,391 8.7 44,092 47,362 3,270 7.4 17,096 18,773 1,677 9.8 30,834 30,872 38 0.1 90 91 1 1.1 11 12 1 9.1 7,779 7,193 -586 -7.5
POLK COUNTY Industry Education and Health Services Trade, Transportation and Utilities Professional and Business Services Construction Government Leisure and Hospitality Financial Activities Other Services (Except Government) Manufacturing Information Agriculture, Forestry, Fishing and Hunting Information
Employment 2014 2022 30,790 37,209 48,926 53,787 27,276 30,744 10,309 12,934 28,034 30,165 20,305 22,077 14,792 15,902 7,594 8,153 16,177 16,272 1,572 1,539 4,263 4,065 2,251 2,158
Annual Change Total Percentage 6,419 20.8 4,861 9.9 3,468 12.7 2,625 25.5 2,131 7.6 1,772 8.7 1,110 7.5 559 7.4 95 0.6 -33 -2.1 -198 -4.6 -93 -4.1
SOURCE: FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY
18
BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
BusinessObserverFL.com
economic forecast: by the numbers NEW COMPANIES
The state welcomed more than 120,000 new companies in 2014, the most rapid growth it has seen in new entity filings in the past decade.
ENTITY FILINGS STATEWIDE Domestic Limited Liability Company Domestic Profit Fictitious Names Domestic Nonprofit Trademark General Partnerships Alien Business Organization/ Designations of Agent Declarations of Trust TOTAL
2014 197,286 102,412 202,195 11,664 1,396 657
2013 178,585 102,305 97,478 11,448 1,257 657
2012 162,219 104,490 95,950 11,962 1,226 975
2011 145,780 109,022 97,619 11,777 1,251 1,254
2010 132,487 103,868 94,105 11,836 1,310 1,991
2009 123,458 103,113 98,159 12,227 1,359 2,135
2008 118,021 111,449 107,054 11,549 1,417 3,673
2007 128,350 135,240 116,775 12,249 1,775 3,047
2006 123,044 157,310 112,972 13,058 1,631 3,559
2005 123,445 168,182 111,355 12,918 1,270 5,377
2004 94,348 170,207 105,435 11,912 1,325 4,806
105 31 515,746
96 38 391,864
79 38 376,939
79 23 366,805
118 120 345,835
82 22 340,555
90 35 353,288
57 2,806 400,299
52 1,675 413,301
57 188 422,792
78 248 388,359
SOURCE: FLORIDA DEPARTMENT OF STATE DIVISION OF CORPS.
EMPLOYMENT All metro areas on the Gulf Coast continued to add workers in 2014. The Cape Coral-Fort Myers area added the highest percentage, 6.5%.
AVERAGE NUMBER OF PRIVATE NON-AGRICULTURAL JOBS, IN THOUSANDS Cape Coral-Fort Myers Naples-Marco Island North Port-Bradenton-Sarasota-Venice Punta Gorda Tampa-St. Petersburg-Clearwater Lakeland-Winter Haven Florida (not seasonally adjusted)
2014 191.9 117.2 242.5 38.1 1,055.10 201.5 6,749.80
2013 180.2 110.2 229.8 37.3 1,024.30 197.3 6,506.30
2012 171.8 105.4 219.5 36.3 996.5 192.6 6,317.40
2011 166.3 101.5 213.2 35.5 970.1 190.1 6,158.80
2010 161.3 97.8 210 35.1 951.1 191.1 6,060.60
2009 164.5 97.7 213.7 34.4 963.1 195.9 6,117.70
2008 179.7 107.5 232.4 36.5 1,035.20 206.7 6,588
2007 194.7 116 244.9 38.5 1,078.90 210.1 6,875.70
2006 198.8 119.5 252.1 38.6 1,083.10 210 6,883.70
2005 189.1 113.1 246.7 36.4 1,059.70 205.5 6,700
2004 173.4 105.7 234.5 33.6 1,022 193 6,414.80
SOURCE: FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY
WAGES All counties’ wages grew by less than 3% in 2014 compared with 2013. Pinellas County workers saw the biggest increase, at 2.9%.
AVERAGE ANNUAL WAGE County Charlotte Collier Hillsborough Lee Manatee Pasco Pinellas Polk Sarasota
2014 $34,563 $43,939 $48,392 $39,619 $37,936 $35,318 $44,759 $38,514 $41,605
2013 $34,046 $43,220 $47,410 $38,883 $37,313 $34,545 $43,496 $37,484 $40,564
2012 $33,218 $41,779 $46,895 $38,629 $37,000 $33,764 $43,960 $36,952 $39,907
2011 $32,835 $40,974 $46,084 $38,193 $36,952 $33,345 $42,388 $36,183 $39,167
2010 $32,382 $40,807 $45,111 $37,605 $35,965 $32,975 $41,098 $35,656 $38,660
2009 $32,580 $39,813 $44,722 $37,638 $35,743 $32,349 $39,957 $35,476 $38,456
2008 $32,935 $40,186 $43,334 $37,881 $34,930 $32,625 $39,264 $35,183 $38,255
2007 $32,848 $41,280 $41,762 $37,677 $34,812 $31,862 $38,007 $34,406 $37,762
2006 $32,387 $39,338 $40,392 $37,093 $33,801 $31,075 $36,981 $33,540 $37,376
2005 $31,907 $38,175 $38,486 $35,647 $31,918 $29,434 $35,581 $32,201 $35,453
2004 $30,025 $34,874 $37,501 $33,969 $30,565 $28,726 $34,315 $31,189 $33,338
SOURCE: FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY, BUREAU OF LABOR MARKET STATISTICS, QUARTERLY CENSUS OF EMPLOYMENT AND WAGES PROGRAM
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economic forecast: by the numbers
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TAXABLE SALES
The latest data available for taxable sales go through July 2015, but these numbers show that in all counties and for all categories, taxable sales are surpassing their totals during the same time frame in 2014. Tourism and recreation continues to lead the gains in most counties, which helps fuel other sectors in the economy. Other big-ticket categories, such as autos and accessories and consumer durables continue to grow, which are indicators that consumers have more confidence in the economy moving forward.
Taxable Sales by Major Category ($ Million) Cape Coral-Fort Myers Total Autos & Accessories Consumer Durables Tourism & Recreation Consumer Non-durables Construction Business Investment
2015 (Jan.-July) $7,931 $1,536 $515 $1,963 $2,296 $558 $1,063
2014 $12,216 $2,239 $843 $2,772 $3,815 $875 $1,672
2013 $11,129 $2,039 $753 $2,493 $3,581 $774 $1,490
2012 $10,233 $1,767 $697 $2,317 $3,435 $656 $1,362
2011 $9,647 $1,564 $681 $2,175 $3,327 $600 $1,301
2010 $9,131 $1,463 $632 $2,033 $3,164 $577 $1,262
Naples-Marco Island Total Autos & Accessories Consumer Durables Tourism & Recreation Consumer Non-durables Construction Business Investment
$4,845 $638 $405 $1,387 $1,474 $353 $587
$7,632 $1,030 $664 $2,075 $2,372 $551 $939
$6,873 $943 $571 $1,874 $2,168 $472 $844
$6,221 $825 $491 $1,733 $2,002 $387 $781
$5,906 $790 $452 $1,627 $1,917 $343 $778
$5,572 $751 $434 $1,523 $1,814 $326 $724
Punta Gorda Total Autos & Accessories Consumer Durables Tourism & Recreation Consumer Non-durables Construction Business Investment
$1,461 $265 $114 $294 $489 $132 $168
$2,306 $396 $182 $427 $826 $197 $278
$2,146 $365 $165 $388 $784 $183 $261
$1,996 $336 $151 $375 $738 $164 $232
$1,898 $309 $149 $353 $707 $164 $216
$1,860 $296 $146 $342 $696 $160 $220
Bradenton-Sarasota-Venice Total Autos & Accessories Consumer Durables Tourism & Recreation Consumer Non-durables Construction Business Investment
$7,649 $1,300 $530 $1,736 $2,359 $552 $1,172
$12,101 $2,079 $838 $2,532 $3,838 $794 $1,921
$11,142 $1,904 $775 $2,347 $3,599 $785 $1,733
$10,275 $1,699 $704 $2,188 $3,406 $653 $1,624
$9,701 $1,556 $676 $2,037 $3,266 $587 $1,579
$9,237 $1,471 $647 $1,895 $3,152 $558 $1,515
$27,268 $5,438 $1,742 $5,602 $8,274 $1,679 $4,533
$43,637 $8,220 $2,929 $8,527 $14,008 $2,596 $7,367
$41,165 $7,538 $2,771 $8,013 $13,420 $2,466 $6,957
$38,953 $6,896 $2,434 $7,687 $12,992 $2,209 $6,734
$36,985 $6,284 $2,315 $7,242 $12,553 $2,099 $6,492
$35,507 $5,890 $2,192 $6,833 $12,312 $2,063 $6,216
Tampa-St. Petersburg-Clearwater Total Autos & Accessories Consumer Durables Tourism & Recreation Consumer Non-durables Construction Business Investment
SOURCE: OFFICE OF ECONOMIC & DEMOGRAPHIC RESEARCH
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BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
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Development drumbeat grows louder
K.L. MCQUAID
Put JLL Senior Vice President Brent Miller firmly in the camp that believes new office development in Tampa will be a reality sooner rather
than later. Miller, who heads tenant representation services for JLL, contends that over the next 18 months there will “have to be” new development. “Either on a speculative basis or by being largely pre-leased, there will have to be new product to meet demand given current trend lines,” Miller says. “There’s already a lot of demand now.” Miller adds that the real driver will be when the office vacancy rate dips below 10% in Tampa’s Westshore district. According to some measures, the rate has already reached single digits in Westshore, though some analysts maintain that mark won’t be reached until the latter half of 2016.
UTC looking to iPic No names have been officially attached to the movie theater that Benderson Development Co. officials say is coming to University Town Center, but industry buzz is that iPic Theaters will be opening there. Benderson officials made the theater announcement last month, during one-year anniversary celebrations for the Mall at University Town Center, the company’s joint venture with Michiganbased Taubman Centers Inc. Mark Chait, Benderson’s director of Florida leasing, says the unnamed theater would be built at University Parkway and Interstate 75, on land adjacent to the $315 million mall. It will also anchor a planned entertainment district Benderson plans to construct there. Neither Chait nor Michelle Soudry, an iPic spokeswoman, returned calls for comment on the theater chain’s plans. If the iPic theater comes to fruition, UTC would join more than a dozen other locations the chain operates in Arizona, California, Florida, Illinois, Maryland, Texas, Washington and Wisconsin, according to the company’s website. In Florida, iPic has a theater in Boca Raton, and a North Miami Beach location is expected to open next month, according to the website. Like CineBistro, scheduled to debut at Westfield Corp.’s Southgate Mall in Sarasota next year, iPic combines plush movie watching with high-end dining, a “chefdriven” menu and adult beverage options.
FILE PHOTO
Prudential Real Estate Investors acquired the Mercato office and luxury complex in Naples earlier this year for nearly $240 million. While the city has experienced an uptick in numerous forms of real estate since the recession, Mercato has come to symbolize Naples’ resurgence.
Naples,
revisited
Despite its affluence, Naples has historically been a bronze medal for national developers. Those thoughts are turning gold.
N
aples didn’t take the hit some areas along the Gulf Coast experienced when last decade’s economic boom turned to bust. Now in the recovery, Naples has surged ahead of much of the region in new investment. Resident ia l development ha s spurred talk of luxury condo towers for the first time in a decade. Senior housing is flourishing with higher rents and project openings. High-end retail space, meanwhile, is commanding top dollar from investors who cite barriers to entry and limited potential for competition. And office space has traded for significant profit, snapped up by the same institutional investors who once considered Naples a purely third-level play. “I don’t see the area ever slowing down,” says Greg Hoffmann, a principal in Hoffmann Commercial Real Estate, a St. Louis firm that spent $74.4 million in October to buy the 5th Avenue Collection, a seven-building retail portfolio on Naples’ tony 5th Avenue. “Anyone who goes there understands why it’s so unique,” he adds. “The look and feel of the properties, the whole dynamic of the restaurants, the quality retailers and the community is very exciting. There’s really nothing like it in the world.” Hof f ma n n’s pu rcha se of t he
122,275-square-foot property is only one of a number of deals that have occurred in Naples so far this year, however, that point to a sustained recovery. Perhaps most notably, Prudential Real Estate Investors, a subsidiary of the giant insurance and financial services firm, spent nearly $240 million in May to buy Mercato, a complex that contains 456,400 square feet of high-end retail and office space. Mercato features more than a dozen restaurants such as Capital Grille and McCormick & Schmick’s, a 12-screen Silverspot movie theater a Whole Foods Market, and retailers such as Nordstrom Rack. “The prominent location, on-site amenities and high-quality tenant base in a market with a favorable
Anyone who goes there understands why it’s so unique.
Greg Hoffmann | Hoffmann Commercial Real Estate
economic outlook and strong demographics make Mercato an ideal income-producing investment to add to our clients’ portfolio,” says Kevin Smith, head of the Americas for Prudential Real Estate, which had gross assets under management of nearly $59 billion at the end of last year. Analysts note that institutional buyers like Prudential wouldn’t have considered Naples even a decade ago, bypassing it in favor of so-called first-tier markets such as New York or Chicago or secondary locations like Tampa. Today, Naples is evaluated along with the larger areas for significant investment on select assets, they maintain. “From an institutional investment perspective, Naples has always been seen as a tertiary market,” says Gavin Campbell, a principal in Steelbridge Capital, itself an institutional investment firm formed in 2008. “But now, it’s viewed as a solid secondary market along with cities much larger in size,” Campbell adds. “That’s been a sea change there over the past decade.” Steelbridge also has profited from the upgrade in perceived stature. In July, for example, it sold the SunTrust Bank office building it owned at 801 Laurel Oak Drive in Naples for nearly twice the amount it had acquired the property for in 2014.
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
Texas-based American National Insurance Co. paid $23.6 million for the seven-story building, according to Collier County property records. Campbell maintains that high-profile corporate relocations to the area, like that of auto and truck rental giant Hertz’s world headquarters, have also put Naples on the radar of many office users. “What we’re seeing now, and what we didn’t see 10 years ago, are corporate office users examining our properties,” he says. “That’s part of the reason we’ve doubled down on Naples as an area for investment.” ‘LIMITED COMPETITION’ But while retail and office deals have garnered the most attention, the residential sector — from senior housing to condominiums — has driven much of the growth and new capital. Both WCI Communities and London Bay Homes have been particularly active in the area constructing singlefamily homes. That has driven condo and other types of residential building. Lutgert Cos., one of Naples’ premier development firms, has sold nearly half of the 52 Residences at Mercato homes it is building. “It’s the right project at the right time and in a great location,” says Howard Gutman, Lutgert’s president. “The highend market here, especially, got hit a bit, but really, not a lot went bad in this area. Now, prices are increasing and inventory is low. And there’s limited new product because there’s a lack of land, so competition is limited.” In the exclusive Pelican Bay residential enclave, demand has picked up so significantly that Gulf Bay Marketing Group in June unveiled plans for the first luxury condo tower there in more than a decade. The 21-story Mystique, slated to fea-
ture 81 residences on one of the few remaining buildable lots in the community, will be a joint venture between Gulf Bay Group and investment firm Kohlberg Kravis Roberts & Co. Discovery Senior Living that same month debuted its new Discover y Village at Naples, which features a 120,000-square-foot clubhouse and independent and assisted-living residences, together with memory care units. Those developments come amid a shift in living arrangements and demographics that benefit Southwest Florida as a whole and Naples in particular. “A few years ago, people from up north couldn’t sell their homes and move south to Florida, and now they can and they are,” says Ray Sandelli, managing partner of CRE Consultants, a commercial real estate brokerage with offices in Fort Myers and Naples. “We’re seeing a shift from more temporary housing on an annual basis to more permanent housing,” he adds. “And on the commercial side, that’s prompting a tremendous amount of capital to chase a limited amount of product.” Campbell notes, too, that the influx of residents has spurred demand for office space among service companies such as law firms and wealth management teams. The push is also drawing younger workers. “The Naples area is not bulletproof, but the wealth that’s there tends to insulate it a bit from economic dips,” Campbell says. Even with the recent $74 million outlay, Hoffmann is already scoping the Naples market for his firm’s next acquisition. “We’re hoping to get more real estate in that area,” he says. “Our goal is to own as much as we can on Fifth Avenue South.” – K.L. McQuaid
BusinessObserverFL.com
21
Leases TAMPA BAY ¡¡ Bactes Imaging Solutions leased 3,902 square feet of office space at 11701 Belcher Road, Largo from B&L Management. Dan Quarles and Scott Clendening of Commercial Partners Realty represented the landlord. ¡¡ Feldman & Mahoney PA leased 2,892 square feet of space at 2240 Belleair Road, Clearwater from 2240 Belleair Oaks LLC. Karin Stewart of RMC Ross Realty represented the lessor. ¡¡ Budget Couriers Inc. leased 1,500 square feet of space at 5555 W. Linebaugh Ave., Tampa from Real Capital Holdings. Dennis Bush of RMC Ross Realty handled the transaction. SARASOTA-MANATEE ¡¡ Doyle Eye Care LLC leased 1,356 square feet of space at 1286 N. Palm Ave., Sarasota. Linda Emery of Sperry Van Ness Commercial Advisory Group handled the transaction. ¡¡ Munda Interiors LLC leased 2,300 square feet of retail space at 1515 Main St., Sarasota. Linda Emery of Sperry Van Ness Commercial Advisory Group negotiated the transaction.
¡¡ The Retire Advisory Group LLC leased 1,584 square feet of office space at 2055 Wood St., Suite 220, Sarasota. Dawn Fitzgerald of Hembree & Associates represented the tenant. Linda Emery of Sperry Van Ness Commercial Advisory Group represented the landlord. CHARLOTTE-LEE-COLLIER ¡¡ Southern Imports of Naples LLC leased 3,750 square feet of office space at 3883 Davis Blvd., Naples, from 3873 Davis LLC. Rob Carroll of Investment Properties Corp. negotiated the transaction. ¡¡ Jasper Corp. leased a 4,000-square-foot industrial building at 12931 Metro Parkway, Building 2, Fort Myers from Jim Smith Electric Co. Jeff Forsythe of Lee & Associates negotiated the transaction. ¡¡ The Salameh Law Group PA leased 4,576 square feet of office space at 4091 Colonial Blvd., Fort Myers. Adam Palmer and Deanna Bornstein of LandQwest Commercial handled the transaction. To submit leases for publication, email Steven Benna at sbenna@businessobserverfl. com
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BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
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BY K.L. MCQUAID | COMMERCIAL REAL ESTATE EDITOR
COURTESY
DAN WOODWARD Developer and Investor, Tampa Dan Woodward has spent the past three decades refining and honing skills across the commercial real estate spectrum, from brokerage to management to development to finance, with some of the top names in the business in Tampa. But the Highwoods Properties’ vice president for Tampa may be on the cusp of having an even bigger impact. That’s because while Highwoods has focused almost exclusively on high-end, suburban office properties in the past, the North Carolinabased real estate investment trust is now executing a corporate strategy
to expand into central business districts. In Tampa that strategy led Highwoods this summer to invest $124 million to acquire the 35-story SunTrust Financial Centre, a 528,000-square-foot property Woodward refers to as “one of three Class A-plus office buildings downtown. “Historically, Westshore has been the dominant submarket in the Tampa area,” says Woodward, 55. “But given converging events — the leadership of Mayor Buckhorn, the completion of Riverwalk, a workforce shift, more millennials downtown, the momentum at Channelside and the Port — downtown is now a vastly improving market.” Woodward adds that most urban U.S. office markets don’t suffer from excess supply today, so even if or when activity cools, areas like Tampa won’t experience a significant drop. And SunTrust, in particular, offers tremendous upside for Highwoods. Company materials say the REIT will receive $8 million in net operating income from the building in its first year of ownership alone, a figure that could spike as a result of near-term rent rollovers. Like Highwoods itself, Woodward has spent his career continually adapting, reshaping and adjusting himself. In the mid-1980s, the Pensacola native obtained an M.B.A. from the University of Florida, which led to a stint with the Dallasbased Vantage Cos. in Tampa. A decade later, Woodward went back to school, to the Massachusetts
transactions | DEEDS/MORTGAGES The following real estate transactions more than $1 million were filed in Charlotte, Collier, Hillsborough, Lee, Manatee, Pasco, Pinellas, Polk and Sarasota county courthouses. The information lists the seller, buyer, amount of sale, previous price and date, mortgage and lender, if available, address and book and page of the document.
Price: $9,224,100 Previous Price: $2,050,000, October 2006
CHARLOTTE NONE COLLIER Buyer: The Moorings Incorporated Seller: HCC MP LLC Address: Airport Pulling Road N., Naples Property Type: Commercial land Price: $35,992,348.61 Previous Price: $4,000,000, May 2014
Buyer: Brandon Ers LLC Seller: Hilltop Investments Corp. Address: 1502 Spitz Court, Brandon and 112 S. Hilltop Road, Brandon Property Type: Manufacturing Price: $2,000,000 Previous Price: $1,200,000, March 2000
Buyer: Ortsac Investments MF 22 LLC Seller: Naples Laurel LLC Address: Bear Creek Drive, Naples Property Type: Multifamily Price: $12,900,000 Previous Price: $6,960,000, December 2012
Buyer: Amstin LLC Seller: Tampa Food Venture LLC Address: 3864 W. Waters Ave., Tampa Property Type: Fast food Price: $1,525,000 Previous Price: $850,000, May 2009
Buyers: 3798 White Lake — Naples LLC (60.32%); Terra Hospitality-Florida LLC (39.68%) Seller: CHM Naples Hotel Partners LLC Address: 3798 White Lake Blvd., Naples Property Type: Hotels and motels
tains in the state. Today, the firm owns and manages 22 Tampa-area properties totaling 3.6 million square feet, in projects like LakePointe I and II, Pavilion, Highwoods Preserve and Tower Place, among others. Woodward oversees 45 employees at the firm. While Highwoods has grown in Tampa primarily through acquisitions of SunTrust and the Meridian I and II complex, which it bought earlier this year for $56 million, it also is focusing on build-to-suit opportunities with existing clients. Its latest project, a $56 million headquarters for the Laser Spine Institute, is scheduled to be completed next year. The six-story, 176,000-square-foot building is 100% pre-leased. Development may be in Woodward’s future, too. In addition to a one-acre tract adjacent to the SunTrust building downtown that is valued at $2.2 million, Highwoods owns a pair of sites in Westshore capable of accommodating new projects. “We’re focused on improving the size and especially the quality of our portfolio,” Woodward says. “And we’re a long-term owner and investor. That gives us a unique perspective.”
He stood out because he always pursued intellectual excellence. Bob Abberger | Strategic Property Partners
BY STEVE BENNA | STAFF WRITER
HILLSBOROUGH Buyer: SPT WAH Windermere I LLC Seller: TWC Eighty-Three LTD Address: 9474 Windermere Lake Drive. Riverview Property Type: Apartment units Price: $26,418,508 Previous Price: $1,750,000, March 1998
Buyers: 3808 White Lake — Naples LLC (62.27%); Terra Hospitality-Florida LLC (37.73%) Seller: CHM Naples II Hotel Partners LLC Address: 3808 White Lake Blvd., Naples Property Type: Hotels and motels Price: $9,938,500 Previous Price: $2,050,000, October 2006
Institute of Technology, to earn a graduate degree that focused on real estate development. With that experience, he developed a handful of buildings totaling more than 1 million square feet for the Pizzuti Cos., in Orlando, before joining the Trammell Crow Co. “He stood out because he always pursued intellectual excellence,” says Bob Abberger, senior managing director of Strategic Property Partners, the real estate firm led by Tampa Bay Lightning owner Jeff Vinik working to develop the Channel district. “Dan was always looking to go beyond what you asked him to do,” adds Abberger, who led Trammell Crow’s office at the time. “He always took the next step.” Pat Kelly, president of Tampa’s Redstone Commercial and the person who hired Woodward at Vantage, says Woodward possesses a unique combination of skills. “He’s very detail oriented and technologically inclined,” says Kelly. “But he sees things globally, as well, and that’s a big deal because you usually don’t find that all in the same package.” Woodward joined Highwoods in 2006, after the company approached him about running its Tampa office, one of two it main-
LEE Buyer: Place at Corkscrew LLC Seller: Resource Conservation Holdings LLC, Ascot Mining LLC, Ascot Acquisitions LLC Address: 16871 Corkscrew Road, Estero Property Type: Commercial land Price: $20,000,000 Previous Price: $33,200,000, September 2005 Buyer: 10611 Chevrolet-Fort Myers LLC Seller: Estero Hotel Development LLC Address: 10611 Chevrolet Way, Estero Property Type: Hotels and motels Price: $5,540,100 Previous Price: $1,200,000, September 2005
Buyer: ARHC LMFMYFL01 LC Seller: Fort Myers Crediside MOB LP Address: 12600 Creekside Lane, Fort Myers Property Type: Professional building Price: $5,275,000 Previous Price: $4,000,000, September 2014 MANATEE Buyer: Waypoint Sarasota Owner LLC Seller: University Groves Property LLC Address: Broadway Avenue, Sarasota Property Type: Vacant commercial Price: $4,350,000 Previous Price: $3,500,000 Buyer: CH6 Rosedale LLC Seller: Newton Developments Inc. Address: Bradenton Property Type: Commercial land Price: $2,200,000 Previous Price: N/A Buyer: Lazy O Ranch LLC Seller: Daniel and Karry Voss Address: 38500 Clay Gully Road, Myakka City Property Type: Commercial land Price: $1,065,000 Previous Price: $975,000, April 2015 PASCO NONE PINELLAS Buyer: Park Plaza Shopping Center LLC Seller: Land Dade Inc. Address: 12999 Park Blvd., Seminole Property Type: Neighborhood shopping center Price: $8,545,000 Previous Price: $6,062,300, May 2001 Buyer: BDC Investors III LLC Seller: Broad Street Holdings LLC Address: 12700 66th St., Largo Property Type: Mini golf course, golf school, driving range
Price: $4,048,200 Previous Price: $3,952,200, August 2014 Buyer: New Towne Glen Oaks LLC Seller: 311 Betty Lane LLC Address: 311 S. Betty Lane, Clearwater Property Type: Apartment units Price: $2,400,000 Previous Price: $1,200,000, June 2012 POLK Buyer: DMCM Associates LLC Seller: Ed Far Inc. Address: Largemouth Road; Camp Mack Circle; Sportsman Drive; Camp Mack Drive; Camp Mack Road; Fishermans Lane; Rod and Reel Place; Hunters Drive; Decoy Lane; Mallard Place, Lake Wales Property Type: Condominium Units Price: $2,730,000 Previous Price: $6,500,000, July 2008 SARASOTA Buyer: Taylor Morrison of Florida Inc. Seller: McCann Holdings Ltd. Address: Parcels of land west of Honore Avenue and south of Central Sarasota Parkway Property Type: Residential land Price: $20,600,000 Previous Price: N/A Buyer: Centennial Bank Seller: First Federal Bank of Florida Address: 126 S. Osprey Ave., Sarasota Property Type: Financial institutions Price: $1,925,000 Previous Price: $1,585,000, October 2009 Buyer: Rosemary Square LLC Seller: City of Sarasota Address: 1440 Blvd. of the Arts, Sarasota Property Type: Vacant government land Price: $1,054,500 Previous Price: $76,700, October 1994
NOVEMBER 20 – NOVEMBER 26, 2015 | BUSINESS OBSERVER
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BY HEIDI KURPIELA | CONTRIBUTOR
CEOs gather for R&R at Tierra Verde party CLAYTON KREIS, principal and managing director of Garcia & Ortiz; DAVID EASON, CEO at Pario Solutions; and SUSAN BURRELL and ROSIE KREIS, with Garcia & Ortiz.
More than 120 people turned out for The CEO Council of Tampa Bay’s annual fall social at Geoff Dyer’s Tierra Verde home. The evening kicked off at sunset with live music, Caribbean hors d’oeuvres and waterfront corn hole. The laidback island-themed fete, sponsored by LCG Advisors, was one of the organization’s best-attended parties. Some guests even arrived by boat. Chairman emeritus of the CEO Council, Dyer is the founder and former CEO of Lifestyle Family Fitness. In 2011, he launched AussieFIT, a twoclub fitness group with two locations in Columbus, Ohio.
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BUSINESS OBSERVER | NOVEMBER 20 – NOVEMBER 26, 2015
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