State of commercial real estate following Hurricane Ian

With 2022 behind us, it is time to look ahead at how the commercial real estate market is trending for 2023.

One thing is obvious – it is difficult to get a great deal right now on the acquisition side. Prices are at an all-time high, interest rates are rising, and costs continue to go up. Meanwhile, inventory is low. Sellers, on the other hand, are seeing 100% returns from just within the last 24 months and many multiples of that for properties purchased in the last 12 years.

As always, tax liability is a variable to consider. Investors from high tax states can still benefit from paying a premium for real estate in the Southwest Florida market because of taxes they are legally deferring and, in some cases, avoiding by reinvesting and properly completing a 1031 exchange. By completing a 1031 exchange in Florida and becoming a Florida resident, you can reinvest capital and avoid taking a major tax hit.

For industrial or flex space properties, the local market is still hovering near 1% vacancy, but it will be important to keep an eye on the millions of square feet of new construction slated for the near future. Labor, material and site work costs are prohibiting projects for smaller or more conservative investors and developers. However, large corporate partners continue to pour money into our local market, so development is

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tory lost when the hurricane flooded the downstairs storage area. The dining room and kitchen survived untouched.

“We are Sanibel residents and have been affected by the storm just like everyone else,” Pasquale Russo said. “We felt obligated to open so residents would have some place to go for normalcy and to start the healing process. The opening day, people were hugging and sharing stories of their

BY CHASE MAYHUGH Guest Columnist

currently booming and is expected to remain so.

Over the past two years, sale leasebacks have become an increasingly popular option. Sellers are getting a premium for real estate and can avoid having to move. They can structure the lease and sale whichever way pleases them and works for the buyer. Sellers have different motivations to participate in a sale leaseback: needing capital, avoiding ownership duties, cashing out with a gain and even retirement to name a few.

Over the past few months, Southwest Florida has been starting the recovery process following Hurricane Ian. The combination of property destruction and importing a new labor force has strained an already tight real estate market. Our team receives many calls from businesses looking to rent space, and often times there is nowhere to put them, which is frustrating for everyone, ourselves included.

Supply chain issues that existed before the hurricane are being magnified. Skilled laborers across all trades are now much more expensive, driving up all personal challenges.”

To meet the needs and requests from islanders, Tutti Pazzi will begin catering operations and private events.

“The chamber has been extremely supportive to businesses coming back,” Russo said. “We look forward to more of that influence. A number of our guests are from off-island, coming to support local businesses. We thank the chamber for its support making that happen.”

Although the Bailey-Matthews National Shell Museum suffered severe flooding to its ground-floor aquarium project costs. Both of these factors are greatly impacting timelines on repairs and construction. Property Insurance rates are rising 50% to 100% across the board and look to continue to rise into the next year or two. exhibits, it reopened its original second level on a temporary basis to allow islanders and visitors an opportunity to experience its permanent and special short-term exhibits.

One of the most talked about concerns heading into 2023 is rising interest rates and how rates will play a role in the state of the market.

With so much going on, increased interest rates have not yet played an impactful role in the Southwest Florida market specifically. The number of cash buyers is at a record high.

These buyers are less affected by interest rates and will benefit, like all of us, if these rates help stabilize inflation. Real estate, by its nature, is a historical hedge against inflation, so many clients are still putting money into bricks and mortar despite prices or interest rates.

When making your investment plans for the new year, there is no quick advice or one-size-fits-all approach. There are many aspects to consider when investing in Commercial Real Estate. It is critical to team up with a highly experienced, accredited and educated Commercial Real Estate Advisor.

Chase Mayhugh, SIOR, CCIM, is a broker and senior associate at Mayhugh Commercial Advisors with over 20 years of experience. Call (239) 278-4945.

“We’ll remain open until reconstruction begins in earnest, sometime later this spring, so maybe a couple months, but we’re not certain,” said Executive Director Sam Ankerson. “Visitors will be able to access the Great Hall of Shells, our new temporary exhibit ‘In the Wake of the Flood: Community Photographs of Hurricane Ian and Its Aftermath,’ and a ‘’Shell and Tell’ guided tour of local shells offered by collection volunteers.”

During the limited-time opening, hours are shortened to Tuesday through Friday 11 a.m. to 3 p.m.

Admission will be free, although the museum suggests a donation. An opening date for the complete museum has not yet been determined, but Ankerson estimates more than six months.

“The SanCap chamber has really stepped up these past months in many ways and has been a great friend and partner to the museum,” he said.

Crafty counselor works with the grays

Crafty Counseling is an up-and-coming organization to serve the mental health needs of the growing diverse Southwest Florida community.

Lauren Ramnath Daharry is a New York native who grew up in Broward County then went to Tallahassee for her formal education. She graduated from Florida State University with dual bachelor’s in Psychology and Religion. She furthered her education at Florida A&M University, obtaining a Masters in Community Psychology. She is a licensed mental health counselor and Yoga Alliance certified yoga instructor.

She opened Crafty Counseling in January 2022 in hopes of combining her two passions: mental health and yoga. Using yoga as a coping method, she has been able to host “Yoga in the Yard,” where she will come to your home or place of employment and teach mindfulness movement and skills in a comfortable environment. She is also a certified through the American Diabetes Association as a Diabetic Behavioral Health Provider.

She teaches MS Yoga and facilitates local support groups through the local Multiple Sclerosis Center. Her passion is to help the underserved.

Being certified by the state of Florida as a Women Owned/Minority Owned business, she embodies the philosophy that every person has a voice.

“I want everyone to be treated fairly, not just equal; recognition is the first step,” she said. “As a therapist I can help you find your voice to express your unique self be it verbally or artistically. Let’s navigate the gray areas of this black and white world together and craft the environment we can thrive in.”

Contact Ramnath Daharry at admin@craftycounseling.com.