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Chere Roane, a member of the Orlando Regional Realtor Association (ORRA) and the Central Florida Commercial Association of REALTORS (CFCAR), received the 2020 Commercial Realtor Achievement Award at the 2020 Florida Realtors Awards.
The Commercial Realtor Achievement Award honors a Realtor’s lifetime of contributions to commercial activities at the local, state, national and community levels.
Honored by ORRA as its 2017 Realtor of the Year and as its 2018 Presidential Award recipient, Roane has worked tirelessly with the ORRA Realtors Commercial Council from its beginning to its current member base of more than 400 Realtors. She is a mentor to many members, encouraging those interested to earn their CCIM (Certified Commercial Investment Member) designation. Roan helped the transition team that made the Central Florida Commercial Association of REALTORS a reality, serving first as a member of the Board of Directors, then as president in 2011.
At the state level, she has served on numerous Florida Realtors committees, including Commercial Alliance, Legislative Task Force, RPAC and the Building Fund, to name a few over the years. Roane is a 2010 graduate of Florida Realtors Leadership Academy and a 15-year member of its Honor Society. She also has served the National Association of Realtors (NAR) on many committees, including Consumer Communications, Governmental Affairs, and Leading Edge Advisory Board. Currently, she is a member of NAR’s Commercial and Commercial Legislative committees. Roane also is a graduate of its JW Levin Leadership Academy.
In the community, she is a past president of the Orlando Evening Rotary Club; is part of the Golden Eagle Boy Scouts event that works closely with Boy Scout Troop 24 (her grandson is now an Eagle Scout); a member of the American Legion Post 19; and an auxiliary member with the Veterans of Foreign Wars (VFW) post 2093. Roane works closely with veterans’ groups and is a strong advocate for organizations that assist the elderly in the Orlando area.
Source: Florida Realtors
A land sale has been completed for e-commerce giant Amazon's latest Central Florida facility.
New York-based Nuveen and Atlanta-based Seefried Industrial Properties' related SIF Apopka Distribution Center LLC on Aug. 5 bought roughly 43.6 vacant acres for $14.4 million, or roughly $330,275 per acre, according to Orange County records and sources familiar with the deal. The seller was BPG Apopka Properties 1 LLC, an entity related to Kansas City, Missouri-based BlueScope Properties Group, developer of the 180-acre, 2.4 million-square-foot Mid-Florida Logistics Park — the complex where the Amazon facility will be built.
Site work already started on Seattle-based Amazon.com Inc.'s (Nadaq: AMZN) future 201,475-square-foot warehouse called "DFL5 Apopka Last Mile." The project adds to new construction in Central Florida, an important regional economic driver. It creates jobs, while also providing more space for companies involved in e-commerce, logistics, housing and other industries.
Nuveen and Bluescope representatives were unavailable for comment. Owen Torres, a spokesman for Amazon, said the company is "excited to increase our investment in Florida with a new delivery station to provide fast and efficient delivery for customers, and provide hundreds of job opportunities for the talented local workforce."
In addition, the market's dynamics are "fantastic," previously said BlueScope Properties Group President Scott Alexander. "Population growth has driven a lot of things."
Other companies that have invested in the rising industrial park include Atlanta-based Coca-Cola Co. (NYSE: KO), New Jersey-based Goya Foods Inc. and Universal Orlando Resort.
Industrial Explosion
In recent months, developers have been lining up to secure land for projects in the fast-growing Apopka submarket.
In the second quarter alone, the Apopka/Silver Star industrial market featured 656,500 square feet of industrial construction — or a quarter of Central Florida's total industrial construction, Cushman & Wakefield reported. The submarket also saw 713,916 square feet of industrial space completed in the second quarter. Both of those stats show how bullish investors and companies are on the submarket.
Additionally, some of the latest projects in the works include:
The projects are timely, as the expansion of State Road 429 and new companies adding jobs have made Apopka a hot spot for housing and other development, said Andy Slowik, director of land brokerage at Chicago-based Cushman & Wakefield PLC (NYSE: CWK), who isn't involved with these Apopka projects or deals.
The market is expected to continue to see developers vying for land as more people move there and as SR 429 construction work is completed in 2023, Slowik said.
"There are a lot of eyes on Apopka."
Beyond that, the Apopka/Silver Star industrial market features a 15.2% average vacancy rate, well above the Orlando-area's overall average of 8.2% — likely due to all the new product being built but not yet leased. The submarket's average asking monthly rent for warehouse/distribution space is $7.15 per square foot, higher than the Orlando-area average of $5.97 per square foot. The higher prices in the Apopka submarket may demonstrate that users are willing to pay more for this space.
Source: OBJ
A national dermatology company headquartered in Central Florida is putting more skin in the office real estate game.
Maitland-based Advanced Dermatology & Cosmetic Surgery is growing its headquarters from roughly 25,000 square feet to 35,000 square feet at Southpoint Executive Center at 151 Southhall Lane, Orlando Business Journal has learned.
The company signed a 10-year lease, and Shipley Hall (pictured above), executive vice president at Orlando-based real estate firm Tower Realty Partners, represented the building owner, which is also Tower Realty.
Advanced Dermatology & Cosmetic Surgery didn't use a broker.
The new office space will accommodate more job growth, but specific numbers or what positions will be hired weren't immediately known. Neither Hall nor Advanced Dermatology & Cosmetic Surgery were available for comment.
Dr. Matt Leavitt founded Advanced Dermatology & Cosmetic Surgery in 1989 and has grown it to more than 150 locations in the U.S., according to its website. And the company has seen more growth in recent years. In 2016, it grew its corporate headquarters space by 7,500 square feet and 100 employees. At the time, the company was valued at $750 million-$800 million and had more than 2,000 employees nationwide.
"Suspense builds" in Orlando's office submarket, which has started to feel the effects of Covid-19, according to a second-quarter Chicago-based JLL (NYSE: JLL) report.
And the long-term Maitland headquarters deal is seldom seen right now in the Central Florida office market where many companies are signing shorter leases in response to Covid-19, which moved more office employees to working from home. Meanwhile, office vacancies were trending higher and average asking rents were trending lower in the second quarter, showing a softening of demand for office space.
Most notably, sublease vacancies have more than doubled in 2020 when compared to 2019 — and are at the highest since 2010.
"Sublease availabilities are springing up across the market as tenants are either downsizing their workforce, shutting down, or transitioning to a more work-from-home-friendly structure," according to the report.
But these new vacancies are met with little demand as "virtually all" new-to-market and expansion deals are on hold, per the report.
That said, it’s too soon to determine the pandemic’s impact on future space needs, experts say. A recent JLL survey showed only 4.9% of office workers want to work from home exclusively going forward; roughly 60.6% of workers plan to return part of the week; and about 34.5% aim to come back full time.
“Although social distancing requires increased individual space allocation, companies across Florida are not using this as a planning metric for long-term individual space allocation,” said Eva Garza, JLL’s statewide workplace consultant.
Office Report
A booming economy and robust job growth, particularly in professional and business services, continue to propel Orlando’s office market. The vacancy rate is significantly below both the national average and Orlando’s long-term average of about 10%, despite loosening in recent years as more than 3.6 million square feet of new office space has been added since 2017.
Click here to download the Office Report.
Industrial Report
Booming population and job growth in Orlando have supported high demand for industrial units and vacancy has stayed below the long-term average for more than five years. Vacancy remains tight despite an increase in development and Winn-Dixie vacating more than 1 million square feet in Q2019. The rate could compress by as much as 60 basis points alone with Amazon's upcoming occupation of that space.
Click here to download the Industrial Report.
Retail Report
The market is already seeing limited new retail construction, which could keep vacancies low. The rate has so far only slightly risen from historical lows. Many new retail groundbreakings are unlikely to move forward in the coming months, which should at least slightly cushion the coronavirus’s below to the market’s retail vacancy rate. However, store closures are likely to ramp up due to the pandemic.
Click here to download the Retail Report.
Central Florida Commercial Association of REALTORS® active members are called upon to vote on proposed changes to the CFCAR bylaws. Active members will be sent a digital invitation to vote via an online form. Voting will open on August 24 and close on August 31.
Active CFCAR members are encouraged to click here to view the proposed bylaw changes. Bylaws are secured behind a member-only page and require a login to view.
Click here to view the bylaws.
January 2020 rolled in and every commercial broker in Central Florida was optimistic that 2020 was going to be a fantastic year for our respective businesses. The economy was cranking at a hefty +/- 3% growth rate, lenders were continuing to push money out to commercial borrowers, and interest rates were at all time lows. While Interest rates are still low, loan underwriting is tough and businesses are slowly reopening. While the virus has affected virtually everything we do in some way, commercial real estate brokers could see a substantial increase in transactions in the coming months and years.
Real estate prices will be affected. Hospitality, retail, and office have felt the biggest blow to date. Industrial and multifamily have so far remained relatively unscathed. What does this mean for the commercial brokerage business? While certain property classes will undoubtedly feel a hit in values, the next twelve to eighteen months will determine how we, as brokers, will be affected. There is still a great deal of liquidity out in the market. There is no shortage of buyers. The price they are willing to pay and the perceived motivation of seller’s are the factors yet to be reconciled. Surely, lenders will see an increase in defaults and at some point, will see their owned properties (REOs) increase in numbers. Seller’s motivation increases as we see more distressed properties in the market.
It is too early to tell, to what extent values in certain sectors may continue to decline. As commercial real estate brokers, we have an obligation to keep the best interests of our clients at the forefront in our dealings. Real-time pricing advice to property owners is the best thing we can do to protect them. As we move into the next phase of these crazy economic times, it is not unrealistic to expect that commercial real estate professionals may very well experience substantial increases in transaction volume over the next couple of years.
Article by Bob Rand, CCIM, 2020 CFCAR President-elect
Coldwell Banker Commercial Benchmark
Ormond Beach, FL
Orange County on July 28 approved changes meant to help encourage development activity during the pandemic.
The commissioners voted unanimously for county code amendments which allow for companies to defer the payment of impact fees and to exempt the payment of transportation impact fees for change-of-use permits up to $100,000.
That comes as Central Florida residential and non-residential construction starts are down 20% year over year through the month of May, according to a June 25 New York-based Dodge Data & Analytics report, the most recent data available.
The deferment will apply to all types of impact fees, including those collected for fire services, transportation, schools, parks and law enforcement. The fees usually are collected at the issuance of a building permit, but now will be due either by the time a development’s first building receives pre-power or the first certificate of occupancy is issued, whichever comes first.
With the transportation impact fee payment, there will be an exemption for permits issued for change of use, such as if a building was going from warehouse to retail. The $100,000 cap on the exemption means any amount above that point still will have to be paid.
The change-of-use fees account for a small amount of the $30 million-$40 million the county usually collects in transportation impact fees per year, Alan Marshall, assistant to the director for the county’s community, environmental and development services department, said during the July 28 county meeting. Between the past two years, collections of those change-of-use fees accounted for $100,000 to $110,000 on average.
Both of those incentive programs will start Aug. 3 and are set to end July 30, 2021.
The county commissioners on July 7 previously voted to provide $10 million to offset building permits for a six-month period. The policy allows developers to apply for up to $100,000 in building permit offsets per project. That program began July 13 and will end either Jan. 15 or when the funds are expended.
New construction creates jobs, making it an important regional economic driver. The industry employs roughly 90,800 people locally who are paid an average of $15.32 per hour, according to the U.S. Bureau of Labor Statistics.
National real estate developer North American Properties (NAP) has acquired 21 acres of land within Titusville's Riverfront Center development at the southeast corner of U.S. 1 and NASA Causeway.
The parcel is located at the entrance to Kennedy Space Center, between aerospace giants Boeing and Lockheed Martin.
Preliminary phase one plans call for multiple buildings totaling 135,000 square feet of traditional office, office warehouse and manufacturing space, plus commercial outparcels to serve the growing area market. This move marks the Cincinnati-based company's first project on Florida's Space Coast, with more to come.
"We see tremendous growth potential in this region, and we're accelerating our plans to meet the demand for industrial space by the vendors and suppliers that serve the defense and revitalized space industries," said Shawn McIntyre, NAP Florida Managing Partner. "We intend to have the first phase of this project designed, permitted and ready to lease within the next 12 months."
Since 1954, NAP has developed more than $7 billion in investments, including 22 million square feet of commercial space and 19,000 residential units in 15 states. McIntyre is currently wrapping up the Cascades Project in Tallahassee, a $150 million mixed-use development spanning two city blocks and featuring mid-rise residential, retail, office and restaurant space, and a 154-room AC Hotel by Marriott. By taking the proper precautions amid the coronavirus pandemic, the project remains set to open later this year.
"Our company has experienced more than 65 years of success in real estate development in part because of the time we invest in researching communities and monitoring trends," said McIntyre. "It's no secret that Florida's Space Coast is growing at an incredible speed and being fueled by companies such as SpaceX, Blue Origin and United Launch Alliance (ULA). We have other properties in the area under contract, and we believe this Riverfront Center investment is only the beginning."
A sizable commercial project is in the works in Brevard County — an area that’s attracting more demand for industrial real estate.
An unnamed developer is under contract to buy roughly 20 acres southwest of Grissom Parkway and Industry Road in Cocoa for a future cold-storage facility, said Mike Moss, vice president of industrial properties with Melbourne-based Lightle Beckner Robison Inc., which is marketing the property.
Moss declined to say who the developer is, but said the site is entitled for roughly 300,000 square feet of industrial space. The project will be called the Brevard Cold Storage Center.
The land acquisition and construction timelines aren’t known for the future build-to-suit project. But these types of projects are in demand across Central Florida as more consumers turn to e-commerce to order products — including food and other things that require cold storage.
“There’s not a refrigerated warehouse in Brevard County of any size outside of the port,” Moss said. “This is going to be state of the art.”
Cocoa-based Grissom Park LLC owns the roughly 20 acres, according to real state research firm Reonomy. The entity paid about $700,000 in January and June 2006 for two parcels of land involved in the deal.
The 300,000-square-foot industrial project may cost $19.5 million to build, based on industry standards.
New construction creates jobs, making it an important regional economic driver. The industry employs roughly 90,800 people in Central Florida who are paid an average of $15.32 per hour, according to the U.S. Bureau of Labor Statistics.
It will be the latest cold-storage facility to open in Brevard County. In August 2018, Bentonville, Arkansas-based retail giant Walmart Inc. (NYSE: WMT) opened a 550,000-square-foot “perishable distribution center” in Cocoa, according to Florida Today.
These types of deals show the growing demand for industrial space in Brevard County, which for years struggled to attract bigger tenants. “That’s starting to change a little bit,” Moss said.
Tom Nickley keeps waking up at 2 a.m. thinking about his company's new office space.
That's because he can't stop envisioning the possibilities for his residential real estate firm The Nickley Group's future office in the Cameo Theater at 1013 E. Colonial Drive — the highly recognizable 80-year-old building in the budding Mills 50 district. He signed a deal June 26 to occupy the roughly 4,200-square-foot space later in the year for his 35 or so agents. The Nickley Group is affiliated with Austin-based real estate company Keller Williams Realty.
Billy Rodriguez and Colette Santana represented the Orlando-based landlord, 1013 Colonial Ventures LLC, in the five-year deal, and Mark Arnold, with Keller Williams, represented The Nickley Group. Orlando-based landlord 1013 Colonial Ventures LLC purchased the building for $338,900 in February 2013, according to Orange County records. The space's market value was $522,448 in 2019, records showed.
The space was on the market for less than a month as the Mills 50 area has buzzed with real estate activity in recent weeks. For example, across the street, Anh Chau — owner of Orlando-based Asian Florida Investment Inc. — plans to demolish 723 N. Mills Ave. and build roughly 8,800 square feet of retail and commercial space there.
"All the stars aligned for us," Nickley said. "I believe it was meant to be."
Nickley's firm started looking for a new space roughly a year ago as the company grew. The group's agents sell between 35-40 homes each annually — considered high in the industry — and enjoy being in a physical office environment. In fact, they role play scripts with each other some mornings before making calls.
Nickley heard about the iconic space about three months ago after the then tenant, Snap! Orlando, was considering leaving. Snap! Orlando's founder and Chairman Patrick Kahn — and his wife, Holly, co-curator/exhibition coordinator — had bought a home from one of Nickley's agents. And Nickley had stayed in touch because he planned to do an event at the art gallery this year — and was familiar with the neighborhood's haunts.
"We've been buying pizza from Lazy Moon forever," said Nickley, referencing a nearby restaurant. "That was our stomping ground already."
The site's parking, its patio courtyard and proximity to downtown Orlando made it attractive, Rodriguez said. At least two other restaurant concepts had also expressed serious interest.
"Mills 50 is just getting more and more popular by the day," Rodriguez said.
Nickley plans to move his team into the new office later this year and wants to partner with Snap! Orlando for events. In addition, he aims to open the space up and do other company events there in the future.
He hopes the space's future buildout will capture the building's history. Nickley doesn't want people to see a standard real estate office when they walk inside.
"We want to be the exact opposite."
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