So where does SWFL commercial real estate stand as we enter the second half of 2022?
The opening speaker of the 2022 CCIM-SWFL Chapter Mid-Year Commercial Real Estate Update session, Adam Palmer, Managing Director, Landqwest Commercial, asked, “With 130 people per day moving to Southwest Florida, is this a sustainable trend? 2022 is the first year that Southwest Florida International Airport moved 1 million passengers in the first four months of the year: is this a sustainable growth pattern?"
“Interest rates are probably going to continue to climb, although we do not know at what pace or by how much at this time, "Palmer said. "We may have more sustainability in Florida because people still love the Sunshine State, they still love ‘tax-free.’ But if the Fed keeps driving up interest rates to keep up with inflation, the rate of return on a real estate investment property can only go down."
According to Palmer the big questions for 2022 are holdovers from 2021.
“In 2021, I said to this group to keep your eyes on 1) supply chain issues, 2) permitting delays, 3) the big tenants coming back, 4) the people-working-from-home trend, 5) the lack of inventory and 6) finding the right people for the jobs available. All points are still relevant in 2022," he said. "And ask yourself, ‘Of the 130 people moving to Southwest Florida every day—how many of these are employable, able to contribute to our local economic growth?’”
To read more about the future of commercial real estate in Southwest Florida, read the accompanying article in the August edition of Southwest Florida Business Today.
