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1st Quarter, 2022
Forecasting the succeeding year is always the article I most enjoy writing. The longer I witness history in the making the more I appreciate the occurring changes whether dramatic or nuanced. Increasing population and an open business environment are the driving forces behind Florida’s/Sarasota’s commercial real estate. I always pause and remind readers that unforeseen national and international occurrences may dramatically impact our market, but absent a major economic downturn, natural or international disaster, the Sarasota commercial real estate market is poised to continue to thrive in 2022. The increased demand is squeezing supply and elevating pricing to the top of the graph. Apartments, condominiums, and single-family homes have been selling and renting at record prices over the past 4 years and the increasing population demands services that are housed in commercial buildings. Warehouse pricing has soared as businesses scramble to find a home from which to deliver services. Retail and office buildings for sale receive tremendous attention as users believe in Sarasota real estate and want to invest in their future rather than rent. The one area that remains soft is the office rental market, but even that is curving upwards as businesses needing office space scramble and are absorbing the best deals. Tampa and other office markets are seeing $40 per sq ft NNN office rents which supports the cost of new construction. Will Sarasota follow? It looks like we are heading in that direction, but I don’t anticipate office rents that high in 2022.