Southwest Florida Real Estate
- By Gregg Fous
- Published 02/3/2012
- Buying
- Unrated
In Southwest Florida Real Estate, it's Time to think long term.
I thought the phone call was to try to sell me advertising and I asked Erin to take a message. She said the caller was from the Fort Myers News Press. Then I recognized the name from her by-line. I immediately called her back. Lindsey was doing an article about the commercial market (normally Dick Hogan's beat). She asked my opinion about the commercial market. I only got a few comments printed in the article (See Here) so I'd thought I would make some commentary to my readers directly.
First some general observations; It is human nature to look at the steps in the journey and not the complete trip. When we are in the middle of a crisis we are robbed of the perspective of the 30,000 foot view; the big picture; and we certainly don't have the luxury of hind sight yet. Pundits have talked about this for years. Comments like; "It's hard to know your original objective was to drain the swamp when you are up to your butt in alligators" bring an accurate picture to mind. Most of us are working hard to survive in this market and have trouble focusing on any bigger picture than paying the rent, meeting payroll, or in some cases, just getting through the day.
But to succeed you need to think past today's job, today's task, this moment's problem; and look at the long term.
Long term, the Florida real estate market will flourish. Inflation will return (big time, I am afraid). Houses will sell, and the commercial space will be leased. Construction will return. Oil Spills will be cleaned up, and millions of baby boomers will continue to make their way to Florida.
Successful investors need to see opportunity where others see obstacles. Where some look at an abandoned bank and see future blight,
I see a plastic surgery center. Where others see a closed Publix location, I see a country western bar.
Florida's commercial market is certainly a mess: vacant buildings, empty lots, and incomplete projects. Jack Wood, a client of ours from Canada assembled a fine block of property along US 41 near downtown Fort Myers, the former Ted's Sheds sales lot, Office Furniture showroom and warehouse and a transmission shop long 41. He was going to put in a mixed uses project on the block. Now it all sits empty except for the transmission shop ( Link to listing here) ( Other commercial Listings here). We are offering incentives to tenants and buyers alike, however, and I would say that is all the commercial property in town, you would be hard pressed not to find some incentives from the landlords or sellers. Where there are stressed assets there is opportunity.
Many of the fortunes made in real estate were made by the investors that saw the opportunities where others saw the problems.
Opportunities that I see now:
1. Buying single family homes that were built post 2002 at below cost prices.
2. Buying ready to build lots for new homes. Concentrate on lots with infrastructure in place.
3. Buying strategically located vacant commercial buildings, like banks, and converting to medical and government use.
4. The hospitality industry is financially stressed right now, and for cash buyers there are very low prices, well located properties.
5. Taking over projects from Banks/Developers. Projects like Island Pines, and Oasis may offer opportunity.
These bulk purchases may be acquired at almost half the replacement value. These opportunities need to be treated as what they are long term; not get rich schemes. Make no mistake and most experts agree we are going to have high inflation back. When it does come back you are going to want to have real estate as part of your defense.
I thought the phone call was to try to sell me advertising and I asked Erin to take a message. She said the caller was from the Fort Myers News Press. Then I recognized the name from her by-line. I immediately called her back. Lindsey was doing an article about the commercial market (normally Dick Hogan's beat). She asked my opinion about the commercial market. I only got a few comments printed in the article (See Here) so I'd thought I would make some commentary to my readers directly.
First some general observations; It is human nature to look at the steps in the journey and not the complete trip. When we are in the middle of a crisis we are robbed of the perspective of the 30,000 foot view; the big picture; and we certainly don't have the luxury of hind sight yet. Pundits have talked about this for years. Comments like; "It's hard to know your original objective was to drain the swamp when you are up to your butt in alligators" bring an accurate picture to mind. Most of us are working hard to survive in this market and have trouble focusing on any bigger picture than paying the rent, meeting payroll, or in some cases, just getting through the day.
But to succeed you need to think past today's job, today's task, this moment's problem; and look at the long term.
Long term, the Florida real estate market will flourish. Inflation will return (big time, I am afraid). Houses will sell, and the commercial space will be leased. Construction will return. Oil Spills will be cleaned up, and millions of baby boomers will continue to make their way to Florida.
Successful investors need to see opportunity where others see obstacles. Where some look at an abandoned bank and see future blight,
Florida's commercial market is certainly a mess: vacant buildings, empty lots, and incomplete projects. Jack Wood, a client of ours from Canada assembled a fine block of property along US 41 near downtown Fort Myers, the former Ted's Sheds sales lot, Office Furniture showroom and warehouse and a transmission shop long 41. He was going to put in a mixed uses project on the block. Now it all sits empty except for the transmission shop ( Link to listing here) ( Other commercial Listings here). We are offering incentives to tenants and buyers alike, however, and I would say that is all the commercial property in town, you would be hard pressed not to find some incentives from the landlords or sellers. Where there are stressed assets there is opportunity.
Many of the fortunes made in real estate were made by the investors that saw the opportunities where others saw the problems.
Opportunities that I see now:
1. Buying single family homes that were built post 2002 at below cost prices.
2. Buying ready to build lots for new homes. Concentrate on lots with infrastructure in place.
3. Buying strategically located vacant commercial buildings, like banks, and converting to medical and government use.
4. The hospitality industry is financially stressed right now, and for cash buyers there are very low prices, well located properties.
5. Taking over projects from Banks/Developers. Projects like Island Pines, and Oasis may offer opportunity.
These bulk purchases may be acquired at almost half the replacement value. These opportunities need to be treated as what they are long term; not get rich schemes. Make no mistake and most experts agree we are going to have high inflation back. When it does come back you are going to want to have real estate as part of your defense.
Gregg Fous
Search Ft Myers Foreclosures Search Orlando Foreclosures "In my role as a broker I run what I would call a "boutique" real estate agency and I run my new franchise, Engel and Voelkers Fort Myers River District - high end residential homes. I am a motivator, a canceler of energy, and sometimes coac
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