Commercial real estate market tight in wake of Ian

Now that 2022 is behind us, it's time to look ahead to 2023 and see how the commercial realty market will trend for 2023. Prices are high, interest rates have risen, and costs are increasing. Sellers are seeing 100% returns in the past 24 months, and multiples for properties bought within the last 12 year. High-tax investors can still reap the benefits of paying premiums for Southwest Florida real estate. This is due to taxes that they legally defer or, in certain cases, avoid by properly completing a 1031 Exchange. Developers and smaller investors are often restricted by the high labor and material costs. But, big corporate partners continue to invest in our local market so development is currently booming. This is likely to continue for the foreseeable future. They can arrange the sale and lease in any way that suits them and the buyer. There are many reasons sellers might participate in a sale leaseback. They may need capital, avoid ownership duties, cash out with a profit, or retire. Many businesses call our team looking for space to rent. This is frustrating for all of us. All trades have more skilled labor, which is driving up project costs. Property insurance rates are on the rise by 50 to 100 percent all across the board. They will continue to climb into the next year. However, they have not had an impact on the Southwest Florida market. There are a record number of cash buyers. Because real estate is a historical hedge against inflation by its very nature, many clients continue to invest in bricks and mortar despite rising prices and interest rates.