3rd Quarter 2023

This is the first Market Update in several years that tosses some shade on the forecast for the Sarasota commercial real estate market. Well, maybe only a cloud or two. High interest rates impact all business activity, and the increasing rates are taking a toll on real estate as mortgage rates are 3-times what they were 3-years ago, and lending practices are more stringent. Cap Rates are increasing, driving investment real estate prices down, often discouraging would-be sellers to wait this out for better pricing. Unfortunately, it appears that high interest rates are here to stay and only a change in leadership or leadership policy will address a most debilitating component of our business climate. On the sunny side, Florida real estate is continually buoyed by population increases. Florida has missed some of the downturn only because increased population equals increased demand alleviating some of the pain.