In the News

Connect CRE: Seefried Industrial to Develop 492K-SF Distribution Center for Home Depot in Tampa

Franklin Street has arranged the $9.6 million sale of a 65-acre development site in Tampa’s South Hillsborough County.

The buyer, Seefried Industrial Properties, acquired the land for the development of a 492,156-square-foot built-to-suit distribution center for home improvement giant Home Depot…

Patrick Kelly of Franklin Street, along with Frank Ryon of Redstone Commercial, represented the private seller in the transaction.

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NAIOP Hall of Famer Joins Franklin Street as Regional Managing Partner in Tampa

Tampa, Fla. – Franklin Street, a full-service, commercial real estate firm, recently hired Patrick Kelly as regional managing partner for the Tampa Bay area.  Kelly replaces Brad Robinson, who now serves as the chief learning and development officer, a national role within the company. Kelly will provide strategic guidance for Franklin Street, helping to grow the firm’s market share and expand its investment sales, capital advisory, insurance, property management, project management and tenant and landlord representation services throughout Tampa Bay.

“Pat’s more than three decades of experience in commercial real estate, capital markets and management will take our business development and talent recruiting efforts to the next level,” said Franklin Street’s Kurt Keaton, president of Real Estate Services and Management Services. “His strong transactional and development background within multiple asset classes will help Franklin Street offer substantial expertise on behalf of our private and institutional clients. Pat is a tremendous cultural fit and his diverse experience fits perfectly with our integrated platform across all product types.”

Prior to Franklin Street, Kelly served as president for Redstone Commercial, a major commercial real estate brokerage and development firm with over 75 properties totaling more than 4.5 million square feet in 15 states. Kelly’s initial industry experience stems from his debt and equity background, having financed multiple office properties throughout Florida and the Rocky Mountain states. 

His capital markets focus shifted to commercial development when he became the Florida regional partner for one of the country’s largest developers, The Vantage Companies. Kelly managed the development of over 2 million square feet of flex and Class A office, industrial and retail product throughout the Southeast. Previously, he worked as managing principal of a company that managed, leased, and sold over 10 million square feet of commercial real estate assets within multiple markets in Florida, along with Atlanta, Raleigh, Memphis, Nashville and Denver. 

In Tampa Bay, Kelly led the infrastructure development for several office parks (Carillon Park, Highland Oaks, University of South Florida Research Park, Crescent Park). He also negotiated many large office lease transactions, representing both tenants and landlords, including Franklin Templeton, GTE, Aegon, PBS&G, New York Life, URS Greiner and the Perot Group. In 2014, Kelly was inducted into the NAIOP (formerly the National Association for Industrial and Office Parks) Tampa Bay Hall of Fame in recognition of his significant contributions to commercial real estate and the Tampa region.

“I was very impressed by Franklin Street’s core value-add focus and how they collaborate on various business lines like investment sales, leasing, property management, project management, insurance and capital markets,” said Kelly. “I am thrilled to join the team during this accelerated growth period and look forward to building our brand throughout the Southeast and nationally.” 

Kelly, a sixth-generation Floridian raised in Miami, holds a bachelor’s degree in Business from Florida State University. He is actively involved with Florida State University’s Real Estate Program, International Council of Shopping Centers, NAIOP, Real Estate Investment Council of Tampa Bay and Tampa’s Westshore Alliance. 

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at

Ask The Expert Trends

Ask the Expert: What is the top trend shaping Atlanta’s retail investment market?

Ask the Expert: What is the top trend shaping Atlanta’s retail investment market?  

“The latest trend is the limited new retail development supply coming to market. Outside of a few grocery-anchored centers and build-to-suit developments for expanding retailers, Atlanta as a whole is not seeing a lot of pure-play retail developments. Many of the major new developments in the Atlanta metro area have retail components, but they are being driven by multifamily or office components. This set of circumstances has led to a landlord market for existing owners because of the low supply of retail projects, which is keeping vacancy low.”

Bryan Belk
Senior Director, Retail Investment Sales
Franklin Street 
D: 404.832.1251  

Ask The Expert

Ask the Expert: What Atlanta submarket is seeing new retail growth?

Ask the Expert: What Atlanta submarket is seeing new retail growth? 

“With the rapid growth the Atlanta market has seen in the last decade, neighboring submarkets are reaping the benefits of the population overflow from ‘intown’ Atlanta. Suburban life  has become more desirable due to the lower cost of living, and for that reason, almost all these areas are seeing exponential growth. 

Atlanta’s affluent population still has a strong desire to expand up the Ga. Highway 400 corridor, and this development is pushing population growth in markets like Cumming and Dawsonville – areas that are 40+ miles outside of the city. All these signs indicate that Atlanta will continue to be one of the fastest growing real estate markets in the nation, and this trend will be mirrored by retail expansion in the surrounding submarkets.”

Sam Krueger
Senior Associate, Retail Agency Services
Franklin Street
D: 404.649.6268


Why Dr. Phillips Inc. plans to raze these buildings near downtown

Excerpted from Orlando Business Journal story.

A developer’s plan to flatten a pair of aging buildings shows confidence in downtown Orlando’s potential future expansion.

Orlando-based Dr. Phillips Inc. — a major real estate company in Central Florida — plans to tear down two 60-plus-year-old buildings at 307 and 315 N. Orange Blossom Trail in Parramore, according to permits filed with the city of Orlando. The developer also plans to redevelop similar older structures as part of the 202-acre, $480 million Packing District near College Park.

For now, Dr. Phillips has no immediate plans for new construction on the Parramore properties. The nonprofit umbrella company Dr. Phillips Charities uses the income produced from its portfolio of rental properties and other investments to fund grant making.

“We saw an opportunity to prepare today for tomorrow,” Ken Robinson, president and CEO for Dr. Phillips Charities, told OBJ. “We continually analyze our properties, and in this case, these properties were older and functionally obsolete.”

Local retail experts say the developer likely is anticipating downtown Orlando’s westward expansion past Interstate 4 and into Parramore. In recent months, companies and developers have been scouting for potential real estate opportunities in the historically segregated and low-income Parramore community. These companies have cited the neighborhood’s momentum from projects such as the construction around the 68-acre, $1.5 billion Creative Village and the Orlando Magic’s planned Sports and Entertainment District.

Office, entertainment and residential developments in Parramore will spur more demand for retail in the area, said Terrence Hart, senior director at Franklin Street of Orlando, who handles retail leasing and is not involved with the two buildings destined for the wrecking ball. Hart said he sees downtown’s western edge eventually growing to John Young Parkway — about 1 mile west of the Dr. Phillips properties. “Retailers actually are starting to take that part seriously. That used to be a no man’s land for retailers.”

For full story, visit

Ask The Expert

Ask the Expert: What Tampa submarket is a hot spot for new retail development?

Ask the Expert: What Tampa submarket is a hot spot for new retail development and what are the driving factors?

“Pasco County is one of the fastest growing areas in Tampa Bay. Specifically, the Wesley Chapel submarket and the State Road 54 corridor have been the hot spots to watch for new retail development. 

Among the driving factors are the modern residential communities being developed and the amount of single-family homes being sold. These homes provide a lower cost of entry than neighboring cities like Tampa, Clearwater, and St. Petersburg, making them an attractive alternative for new families and young professionals. Pasco County’s strong employment incentive programs also provide a major draw for new businesses, helping to create more employment opportunities. 

In addition to the area’s population growth and increased economic opportunity, the Pasco-SR54 market is attractive to retail developers due to the large amount of undeveloped land in close proximity to these new residential communities, with infrastructure in place to connect the area with the rest of the region.”

Anthony Suarez
Senior Associate, Retail Investment Sales
Franklin Street of Tampa
813.839.7300 Ext: 0393


Affordable Housing Developers Face Complex Insurance Issues Nationwide

The lack of affordable housing options continues to be a hot button issue across the nation. Further complicating the matter is the fact that affordable housing developers must deal with the high cost of commercial real estate insurance and the broad array of laws and regulations governing the marketplace. Michael Shadeed, director for Franklin Street Insurance Services, shares his expertise on how developers, owners, investors and managers can work with insurers to address those financial and regulatory barriers.

How are opportunity zone projects impacting the insurance needs of affordable housing developers in the U.S.?  Affordable housing developers already enjoy tax credits from local housing authorities, and I am sure would like to increase those in every state and territory in the U.S. as well.  The issue is that you must invest a full matching amount of your basis back into the property, and that is not the typical model for affordable housing developers.  If the circumstance is perfect, it may work out, but this situation will not happen frequently.  

Developers risk losing federal Low-Income Housing Tax Credits if they don’t abide by the strict timelines. How do insurers help developers remain on track in cases when their properties are impacted by delays?  There are tax credit recapture coverages, which move back to the beginning of the development (up to 10 years) but are very expensive.  There are also annual replacements for units not ready for inspection on January 1st that just cover one year under the business income and extra expense, and those are substantially more affordable.

Does the threat of hurricanes make Florida and other hurricane-prone states a more complex insurance market for developers than other states?  Yes, there is a wind load for development projects that raises the cost of insurance.  Also, due to the highly litigious environment, the carrier interest of construction default is high-risk and priced accordingly for any residential units.

What types of specific insurance coverage requirements do lenders have in each state?  Lenders have standard agency debt requirements, which are generally uniform across the country.  However, carriers will rate a property for wind exposure, and set deductibles accordingly, so buying conforming deductibles may be too expensive on some projects, unless you are willing to take on more risk.  

Michael Shadeed is a Director for Franklin Street Insurance Services. He can be reached at 

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at


4 big Tampa Bay projects you might have seen but (probably) know nothing about

Excerpted from Tampa Bay Times story.

3. More apartments 

Like Carillon, the Gateway Centre has a prime location near three main roads — U.S. 19, Gandy Boulevard and I-275. The original tenants nearly 30 years ago included manufacturing giants Jabil and Lockheed Martin but today the Centre is getting more and more tenants of the residential kind.

The Epic with 224 units opened a few years ago and Allure at Gateway with 274 units is well under construction. Now site preparation is underway for yet another big apartment community. A project of Atlanta-based Davis Development, the Satori (as it is tentatively called) will have 270 units in several buildings and will be within easy walking distance of the Wawa convenience store on Gandy.

Darron Kattan, an expert on multi-family housing at Tampa’s Franklin Street brokerage, said the Gateway area is “highly desirable” to developers for two main reasons: its proximity to job centers and the high demand for housing in fast-growing parts of Tampa Bay.

“I do believe there’s also a niche of need below the true A-plus and high-rise core development,” he wrote in an email. “The price point will be lower than what you will see in downtown Tampa and downtown St. Pete and therefore will serve renters that need to save a little more money yet still avoid the commute.”

For full story, visit


Rocketing rental rates: Local rates rising at one of the fastest paces in the nation

Excerpted of Jacksonville Business Journal story.

When Jaymee Yocum opened Bark Boutique on Park Street about nine years ago, she said she remembered paying about $800 a month in rent.

Almost a decade on from the Great Recession, the combination of a booming Five Points submarket and positive economic growth across the country has Yocum now paying multiple times that amount — ”and I actually have a good deal,” Yocum joked.

While the median rate for small retail spaces in the Riverside, Brooklyn, Avondale and Murray Hill neighborhoods are around $13.41 per square foot, according to CBRE’s annual State of Florida retail report, Yocum has heard of rents as high as $40 per square foot at the most-highly sought-after intersections in the area.

“I have a 10-year lease, and I recently signed another,” she said. “Thank God I got in when I did.”

Other retailers — particularly locally owned small businesses on the First Coast — are feeling the crunch, with the average asking prices for retail space in the greater Jacksonville area having risen 12 percent year-over-year, one of the highest increases in the country. 

The only markets where rates are growing faster are Miami and Oakland, California — at 14 percent and 13 percent respectively — while metros like Cleveland, Indianapolis and Louisville saw declines.

Why the rent is so dang high

The main cause of the rocketing rental rates in Jacksonville (and throughout the Southeast) is the population growth that the region has seen in recent years, said CBRE Florida Research Manager Scott Brien.

The Jacksonville market has experienced a 2 percent annual population growth rate that shows no signs of slowing down, CBRE noted in its 2018 Southeast real estate market outlook. 

“The consumers are here,” Brien said, which is driving the demand for retail space. 

And even as that demand grows, the supply is not.

While the marketwide vacancy rate hovered around 4 percent and more than 1.7 million square feet of retail space were absorbed in 2017, only around 500,000 square feet were under development. Even with demand rising, only about 800,000 square feet are under development.

The cost of that construction is also going up, said Carrie Smith, managing director at Franklin Street, with more expensive land and rising building material prices being passed on to tenants. 

That rise in construction cost can also be attributed to an increase in the average rate of labor cost, which is being driven by a construction labor shortage. David Kottmyer, vice president of operations for Danis, told the Business Journal that the company has been advising its clients to include escalation costs in project budgets. 

For full story,


Industry Outlook: Here’s a solution to Orlando’s permitting problem, city official says

Excerpted from Orlando Business Journal story.

Bo Bradford started seeking a building permit from the city of Orlando at the beginning of August for a 1,600-square-foot speculative office space.

As of Oct. 8, the co-president of Lee & Associates-Central Florida still was awaiting a response. “We don’t even have the first round of comments yet,” Bradford said.

In fact, many of more than a dozen executives agreed, as they discussed Orlando’s current permitting pileup during Orlando Business Journal’s Oct. 8 Commercial Real Estate Industry Outlook at Lynx Central Station.

The issues coincide with a massive construction boom in Central Florida, where developers have been drawn to the area’s exploding population and job growth. The combined building permit values in the metro Orlando area added up to $5.82 billion through August this year, according to the most recent Dodge Data & Analytics report.

The city has been attempting to streamline its process, though, with things such as an online portal to submit plans digitally.

But the online portal isn’t helping speed things up much, said Yvonne Baker, regional managing partner with Franklin Street.

Part of the issue with the online portal is the city waited too long to shift from a paper-based to an electronic system, said Jim Gray, who represents southeast Orlando on the Orlando City Council and is the head of CBRE’s (NYSE: CBRE) Central Florida operations.

Gray encouraged panel attendees to continue to voice complaints to the city.

“We tried to do it right in the middle of what has turned out to be a boom for everybody,” he said of moving the permitting process online. “We’ve not done a good job keeping up, but I think we’re getting there now.”

One potential solution may come from the private sector, Gray said. Rather than rely on city officials, some municipalities have allowed professional consultants such as architects and engineers to review plans and assure they are up to code. Cities then can focus on life safety issues as they relate to those project plans.

Still, it may be unfair to put all the permitting problem onus on the city. Central Florida continues to experience a robust amount of construction and it would be hard for any one agency to keep up with all that activity, Bradford said.

Closer Look
Where are you seeing commercial activity? 

Maitland office submarket 

Why: Office vacancy rates were hovering around 20 percent about four to five years ago. But now, vacancy is 9.3 percent — or near Orlando’s average of 8.6 percent, according to a third-quarter Cushman & Wakefield (NYSE: CWK) report. “It’s a submarket that’s always struggled in bad economies and taken longer to catch up,” said Greg Morrison, principal and managing director of commercial real estate firm Avison Young Inc. in Orlando. “It’s a nice surprise.” Maitland typically is more affordable than other submarkets in Orlando, with Class A rents averaging $20.45 per square foot.

Clermont, Hamlin office submarkets

Why: Several new office developments are in the area now, showing that millennials want to work in places where they also live and play. “We have to have some office component out in those markets,” said Yvonne Baker, regional managing partner with Franklin Street.

For full story, visit