ORLANDO—Central Florida’s commercial real estate landscape is changing, mostly for the better. Property managers are playing a key role in the recovery and will continue driving value for landlords as the boom begins.
GlobeSt.com caught up with Patrick McGucken, vice president of Commercial at Franklin Street of Tampa, to get his thoughts on how property management is making an impact on the local commercial real estate scene. He also has a strong word about walkability in part one of this exclusive interview.
GlobeSt.com: What are the current conditions of the commercial landscape?
McGucken: Foreclosure/value-add properties are becoming increasingly rare as many of these assets are now stabilized. Property managers played a big role in getting these assets to where they are today.
When a property manager is hired for a distressed asset, the ultimate goal is stabilization. The property likely got into a bad position because of high vacancy, poor rent collection from existing tenants, or a combination of both. When a property goes into foreclosure, usually the property will fall into disrepair and it is the role of the property manager to clean up the property, reconcile tenant and vendor accounts, repair any damages, and make pending tenant improvements.
However, now we are seeing increasingly more activity in class A and B properties, and landlords have all but ceased giving concessions to secure new tenants. We expect redevelopment to pick up in hot trade areas where there’s not any space available for new properties to be developed.
GlobeSt.com: How is what Millennials and Baby Boomers want impacting the commercial space?
McGucken: Walkability has gone from a buzzword to a requirement in real estate during the last couple of years. People of all ages, from Millennials to Baby Boomers, want to “live, work and play” in one connected and cohesive location. This is causing a shift toward mixed-use in commercial properties being developed or redeveloped.