The Rideout Report - Sept 2018

Heather-Rideout-Bio.jpg

The Trend of Retail in Charlotte County

I’m just back from the ICSC (International Council of Shopping Centers) Florida Conference and Retail in Florida is strong and tertiary markets like Charlotte County are on the Retailer Map.

The face of retail is changing with the growth of Amazon and other online retailers but brick & mortar is alive and well. Retail is evolving and giving the consumer a more diverse experience with a mix of restaurants, entertainment and healthcare in the retail space.

One of the bigger booths at the show was GBT Realty Corp, the national company who acquired the 75 year ground lease on the 9 acre Kmart property in Port Charlotte. GBT is marketing Port Charlotte as being halfway between Sarasota and Naples, an area prime for the expansion of national retail brands and they are bringing retailers who have not been in Charlotte County before. With the announcement of HomeGoods & Burlington last fall, they have now added a 58,000 SF phase II expansion and added Lucky’s Market, a Skecher shoestore and Ross Dress for Less to the mix.

As we look at big box conversion, it’s an economical way for developers to get into a good trade area with high visibility. It will be interesting to see the mix of service retail, restaurants and possibly entertainment that they will bring in to enhance the consumer experience.

Many other developers are gearing up for retail: Sunseekers Resort, the 22-acre development on Charlotte Harborand Private Equity Group with its development on Peachland Boulevard and at Murdock Village. Lost Lagoon Development LLC at Murdock Village has modified its development plans with a more retail slant - a Town Center with an Old Florida Feel and is delaying the Water Park for a few years.

Charlotte County Statistics for Retail:

  • Vacancy Rates are Down to 3.7%

  • Market Rent is Up, Averaging $14.83 psf Annually

  • Rent is Growing at 1.5%

  • Market Cap Rate is at 8.0%

  • Average Sales Price is $143.00 psf

Heather Rideout, CCIM

Rideout Commercial Group

KW Commercial, Peace River Partners

Charlotte County Q1 2018 Snapshot Report

Charlotte County kicked off a strong Q1 with new developments in retail and hospitality leading the way. Office rents and demand continue to trend upward, and the market for high-end office space in Punta Gorda is hot.

New Development

By The Numbers

4 Gas Stations
Including Wa-Wa’s 

3 Hotels
Including Holiday Inn Express, Marriott, and Sunseeker Resort

7 Retail Locations
Including HomeGoods, Burlington Coat Factory, a national shoe store, Dick’s Sporting Goods, Harbor Freight, and additional new retail shop locations. 

4 Restaurants
Including a Tropical Smoothie cafe, 3 Peppers Burritos Restaurant, and Peace River Brewery.

1 Grocery Store
Construction has begun on the new Aldi’s at Jones Loop.

Featured Development

The biggest news in the area is the completion of assemblage for the new Sunseekers resort. The resort is Spread across more than 22 waterfront acres in Charlotte Harbor. The developers will complete more than $16 million in infrastructure improvements in exchange for an additional 3.62 acres on the east side of U.S. 41. 
 
“This is really going to change the narrative in Charlotte County”
- Charlotte County official, Lucienne Pears

View Details

Office Building Trends

  • Sales volume up 31%
  • High-end less than 5% of inventory

According to the latest Costar data, Punta Gorda is continuing its record setting trends, with office sales volume up 31% over to the historical average. 

Opportunities are prime for new construction in the high-end office market. Demand in this segment is expected to continue increasing in line with annual trends.

Ask Heather about high-end office inventory and construction opportunities in Charlotte County.

 

Image Attribution: Mike Mozart from Funny YouTube, USA - Dick's Sporting Goods - License CC BY 2.0

10 Examples of Florida’s 2018 Hotel Market Expanding and Improving

PUNTA GORDA, FL - 2017 was seen as a slow year for hotel sales in Florida, with only a handful of big-ticket deals. According to “The Real Deal”, this included the $36 million sale of the Ritz-Carlton Coconut Grove and the $85 million trade of the Courtyard Fort Lauderdale Beach by Marriott. However, industry insiders are optimistic about a turnaround in 2018, and a host of developments both completing and kicking off show signs of recovery.

Rideout Commercial Group has compiled a list of predicted and planned hotel investment and expansion projects, and new hotel openings in Florida for 2018.

#1 - Sunseeker Resort, Port Charlotte

 Night Rendering of Sunseeker Resort in Port Charlotte, FL

Night Rendering of Sunseeker Resort in Port Charlotte, FL

Expected to open in 2020, the Sunseeker Resort in Port Charlotte, Florida is slated to break ground in mid-2018. The $600 million investment is being made by Allegiant Air, and will leverage the exponentially increasing amount of travellers coming through the nearby Punta Gorda airport. Allegiant Air will be able to offer affordable direct flights from across the United States directly to the location as part of travel packages. The impact is expected to have a transformative effect on the area, boosting its image as a tourism destination and luxurious place to live.


#2 - Hyde Beach House, Hollywood, FL

 Rendering of Hyde Beach House in Hollywood, FL

Rendering of Hyde Beach House in Hollywood, FL

The Hyde Beach House is planned to operate as a condo-hotel (legally a condominium, but operated as a hotel). It is slated to open in 2018 and will feature 265 hotel condos and 77 unfurnished condos. The project has an estimated cost of $115 million.


#3 - The Celino South Beach

 Bar rendering at The Celino South Beach

Bar rendering at The Celino South Beach

Expected to open in early 2018, The Celino South Beach  is a 132 room boutique hotel, situated at 640 Ocean Drive. The property was originally acquired in 2013 for $51 million. The new development is the result of a $40 million renovation of original structures, preserving much of the character of the property.


#4 - Disney’s Coronado Springs Resort, Orlando

 Disney's Coronado Springs Resort, Orlando, FL

Disney's Coronado Springs Resort, Orlando, FL

Nine hotels were expected to open in Metro Orlando in 2017. The trend is continuing into 2018 with investment from both Disney and Universal.

Disney’s largest convention hotel at Walt Disney World Resort is expanding in 2018 with a new 15-story tower and 500 additional rooms. According to icFlorida, the renovation will also bring new meeting spaces, and a rooftop restaurant.


#5 - Universal’s Aventura Hotel, Orlando

 Universal's Aventura Hotel, Orlando, FL

Universal's Aventura Hotel, Orlando, FL

Disney is not alone with its hotel expansion. Universal is opening the Aventura Hotel in 2018. It will feature 600 rooms on 17 stories. According to icFlorida, this is intended to be a budget traveller friendly hotel.


#6 - Las Olas Ocean Resort, Ft. Lauderdale

 Las Olas Ocean Resort, Ft. Lauderdale, FL

Las Olas Ocean Resort, Ft. Lauderdale, FL

The Las Olas Ocean Resort is a new development on a previously vacant 34,299 square foot parcel of prime oceanfront real estate. The development includes 136 hotel rooms and 12,000 feet of restaurant space. It is expected to open mid-summer of 2018.


#7 - The Sheraton Tampa Riverwalk Hotel

 The Sheraton Tampa Riverwalk Hotel, Tampa, FL

The Sheraton Tampa Riverwalk Hotel, Tampa, FL

The Sheraton Tampa Riverwalk Hotel is just on the cusp of completing an extensive renovation to the property’s 277 guest rooms. These changes were part of a larger renewal project for the property, with an estimated total investment of $7 million. The 2018 phase of the renovation includes a redo of the poolside bar, pool pavers, and cabanas. The hotel lobby and main restaurant called “River’s Edge” are also receiving a facelift.


#8 - AC Hotel, Sunrise

 AC Hotel, Sunrise, FL

AC Hotel, Sunrise, FL

Construction on a new 170 room hotel in Sunrise is expected to begin in the spring of 2018, with an estimated grand opening date of early 2020. The hotel will be located adjacent to the Sawgrass Mills shopping complex.


#9 - Hawks Cay Resort, Duck Key, FL

 Hawks Cay Resort Lagoon, Duck Key, FL

Hawks Cay Resort Lagoon, Duck Key, FL

Like many hotels and resorts in the Florida Keys, Hawks Cay Resort was badly damaged by Hurricane Irma in September of 2017. It plans to re-open in mid-2018 after having completed major renovations. It will be interesting to see how the market adjusts to the reopening of previously damaged and renovated hotels and resorts in the area.


#10 - The Magic City Innovation District, Miami

 Rendering of the Magic City Innovation District, Miami, FL

Rendering of the Magic City Innovation District, Miami, FL

As part of a $1.36 billion investment in a mixed-use project, the Magic City Innovation District will have 432 hotel rooms in addition to the thousands of apartments and millions of square feet of office space.

Taxes Favorable for Breweries and Distilleries in Southwest Florida

PUNTA GORDA, FL - The craft brewing and distillery industries have been booming, and recently received an additional boost as part of the tax overhaul the U.S. Congress passed recently. Specifically, Part IX, sections 13801 through 13808, which are lowered excise taxes on alcoholic beverages made by small producers.

Breweries in Southwest Florida experiencing benefits from this include

  • Peace River Beer Co. in Punta Gorda
  • Fat Point Brewing in Punta Gorda
  • Cape Coral Brewing in Cape Coral
  • Big Storm Brewing Co. in Clearwater, Odessa, and recently acquiring a stake in Cape Coral Brewing and Fat Point Brewing.
peace-river-beer-co

Peace River Beer Company

A shot of the interior of the Peace River Beer Company

In the past, some breweries had struggled in the area. One example is Fat Point Brewing, which required partnership with Big Storm Brewing Co. in February of 2017 to avoid shuttering its doors.

The tax relief for this industry should help smaller breweries and distilleries find success without requiring support from larger companies, and give them more room to experiment with different brews and flavors while experiencing less financial risk.