New Canaveral Terminal



Port Canaveral’s plans for a new $150 million cruise terminal The money. are underway, and one major aspect of the project is going smoothly.

The Canaveral Port Authority on Dec. 5 approved a project financing plan that includes a mixture of bonds, bank loans, a line of credit, as well as funds from the terminal’s future tenant, Carnival Cruise Line. The terminal is part of a larger agreement with Carnival that includes the cruise liner operating for another 25 years at Port Canaveral.

The Central Florida sea hub’s Cruise Terminal 3 is set to be complete by June 2020, with kicking off in first-quarter 2019. The new terminal, designed to accommodate the latest cruise ship sizes, will be roughly 190,000 square feet with a minimum 1,800-space parking garage and additional infrastructure and utility upgrades.

“We are going to borrow some and pay some down with the cruise line help. It’s a very good investment for the port and the surrounding area,” said Bob Harvey, a port commissioner, during the Dec. 5 meeting.

In addition, the port shared a brief update on when contracts regarding the project will be awarded.

A $75 million contract to oversee the terminal and roadwork construction will be awarded in January. According to the port’s contact page, the work includes the new Terminal 3 building, launch pad entrance hall, provisioning warehouse building with chiller yard, bag drop/crew building and roads/civil/utility work. The new terminal will prepare he world’s second-busiest cruise port for more future growth in passenger traffic.

Passenger counts at the port increased by 7.7 percent over last year to 4.56 million passengers — a gain of 327,489 passengers. Also, cargo tonnage coming through the port increased 6.9 percent to 6.4 million tons

Both are vital metrics to the port’s success that has major impacts on the Central Florida region’s ability to be both a tourist destination and a hub for bulk commodities that service several industries.

“These historic achievements are a fan formation that the course we’ve charted for our port is a good one,” said Port CEO John Murray, in a prepared statement. “We’re continuing to look ahead to strong organic growth, sound planning and a clear focus on creating a best-in-class experience for every customer.”

Tavistock to start construction on its 24,000-acre Sunbridge

Tavistock Sunbridge

  Development Co. LLC has beefed up plans for a portion of its 24,000-acre, cross-county Sunbridge development.

Tavistock may start as early as February on the 2,700-acre Osceola County piece of its future development that crosses the line into Orange County, a spokeswoman told Orlando Journal. The developer is seeking approvals from Osceola County on an updated development plan for that portion of a total of 19,560 acres in future development after winning approvals for a different plan in July 2017.

The current requests before the Osceola County development review committee are for:

  • 3,198 single-family
  • 1,434 apartments
  • 2.5 million square feet of office space
  • 180,430 square feet of civic space
  • 450 hotel rooms
  • Two schools

The county’s development review committee will make a recommendation on the proposal at a Dec. 5 meeting. Approvals typically take months or years as plans can be stalled, delayed or changed for various reasons.

The Osceola County property is south of the Orange County line, east of Narcoossee Road, west of the Econlockhatchee Swamp Preservation Area and north of Nova Road. Homestead, Penn.-based GAI Consultants Inc. is the master planner.

Master infrastructure construction was expected to start sometime in 2018, Richard Levey, managing director of Levey Consulting, which was representing Tavistock Development on approvals for the development, previously told OBJ. Levey couldn’t immediately be reached for comment.

Meanwhile, construction on Sunbridge, one of the largest developments acreage-wise in Central , is expected to continue through 2055. Orange County’s 5,000-acre portion of Sunbridge is slated to include more than 7,300 homes, 490 hotel rooms, 6.3 million square feet of office and retail space, and 2.9 million square feet of industrial space.

The land is owned by entities related to The Church of Jesus Christ of Latter-day Saints, according to Osceola County documents.

For developments such as Sunbridge to find success, they require enormous amounts of capital and time to create a sense of place to attract residents, said local land expert Trevor Hall Jr., who isn’t involved in the project. Developers need to build medical, education, industrial and office buildings to serve future residents. “Whatever employment you can generate then feeds absorption of the housing projects.”

Sunbridge is expected to create big business and job opportunities similar to Tavistock’s in southeast Orlando. The 17-square-mile Lake Nona boasts more than 11,000 residents, 5,000 employees in the 650-acre biotech hub, and 14,000-plus students at its schools.

End of year Housing Report



Trends in Real Estate

Check out this Report for full details:



U.S. Economic Outlook: November 2018
Payment-to-rent affects tenure choice and presages future home price growth By Frank E. Nothaft
Mortgage rates rose in October to their highest level in seven and a half years
and are expected to rise further in the coming year. A rise in rates may dissuade homeowners from moving.

And for households that are relocating, the rise in monthly mortgage payment relative to rent
may discourage home buying. Comparing the mortgage payment with rent not only affects the buy versus rent decision of households, but it can also indicate whether a local area is overvalued. Places, where the mortgage payment is much higher than its historical relationship with rent, could see not
only a falloff in home buyer activity but also a dip in sales prices.
The house-price bubble from 2004 to 2006 is an example of when the mortgage payment increased well above single-family rent and then fell sharply after 2007 as home prices declined. Using CoreLogic’s sales price data and Single-Family Rent Index, we traced the boom-and-bust pattern for
several metros. Los Angeles and Washington, DC are metros that had a doubling in the mortgage payment-to-rent ratio between 2001 and 2006, with a subsequent crash. In contrast, this ratio remained more stable in the Houston area. (Figure 1) By comparing the payment-to-rent ratio in
2018 with its value in 2001, we can determine whether the buy-versus-rent decision has
become more or less favorable for home buyers. We can also see which metros may be at greater risk of a home-price correction. We found several metros that have a mortgage payment-to-rent ratios that were more than 10 percent higher than in 2001. Other Metros had payment-to-rent ratios that were close to or less than what they were in 2001. Metro areas with high payment-to-rent ratios are
more likely to see slowing sales and less price growth. (Figure 2) If mortgage rates move higher in coming months, as expected, then metros that have affordably priced relative to
rental will likely continue to have steady or increasing sales, whereas markets, where mortgage payments are high relative to rents, are at greater risk of experiencing cooler home sales and lower sales prices.
Dr. Frank Nothaft
Executive, Chief Economist,
Office of the Chief Economist
Frank Nothaft holds the title executive, chief economist for CoreLogic. He leads the Office of
the Chief Economist and is responsible for analysis, commentary and forecasting trends in global real

Orlando’s priciest homes were sold during Q2 2018

Orlando Homes Orlando Homes

There are no surprises here when it comes to where the priciest were sold in Orange and Seminole counties in Q2 2018.

Back in August, we revealed our Wealthiest ZIP Codes based on 2016 median household income, and the 34786 ZIP code in the Windermere area topped our list with a median household income of $98,970. So there is no surprise that the same ZIP code joins us for our top 25 ranking of neighborhoods where the priciest homes sold in second-quarter 2018, at a solid spot as No. 4 on our list, with an average home sale price of $461,808.

Today we are releasing part two of our ‘Hottest Neighborhoods’ series. If you missed our first installment, we showed you the most popular ZIP codes around town based on the number of homes sold in Q2 2018.

According to Orlando Regional Realtor Association data, the average home sale price increased 3.6 percent when compared to Q1 2018. The data shows the area’s overall average sales price rose from $259,671 in January to $292,731 in June.

Of the top 25 ZIP codes, only three had an average home sales price greater than $500,000. Here are a few more facts:

  • Three ZIPs from our top 25 ranking are also at the top of our Wealthiest ZIP codes list: 32814 in Baldwin Park, 34786 in Windermere, and 32827 in Lake Nona.
  • Our No. 1 ZIP code saw its average sale price decreased by about $100,000 from Q1 2018.
  • It is $150,000 more expensive to buy a home in our No. 1 ZIP code than it is to buy one in the No. 2 ZIP code.

Click through the gallery above to find out which Orlando-area neighborhoods had the highest average home sales price in the second-quarter of 2018. Check out the Link above.

The CoreLogic Home Price Insights report features an interactive view of our Home Price


The CoreLogic Home Price Insights report features an interactive view of our Home Price Index product with analysis through September 2018 with Forecasts from October 2018 including live maps.

CoreLogic HPI™ is designed to provide an early indication of home price trends. The indexes are fully revised with each release and employ techniques to signal turning points sooner.

CoreLogic HPI Forecasts™ (with a thirty-year forecast horizon), project CoreLogic HPI levels for two tiers—Single-Family Combined (both Attached and Detached) and Single-Family Combined excluding distressed sales. Check out the site below for a Full report

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes home price indices (including distressed sale); home price forecast and market condition indicators. The data incorporates more than 40 years of repeat-sales transactions for analyzing home price trends

September 2018 National Home Prices

Home prices nationwide, including distressed sales, increased year over year by 5.6 percent in September 2018 compared with September 2017 and increased month over month by 0.4 percent in September 2018 compared with August 2018 (revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results).


Forecast Prices Nationally

The CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year-over-year basis from September 2018 to September 2019, and on month-over-month basis home prices are expected to decrease slightly by 0.6 from September 2018 to October 2018.

The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the home buying or renting decision process. When asked about the desire to own a home, potential buyers in the younger millennial demographic have the desire to buy, 40 percent are extremely or very interested in homeownership. In fact, 64 percent say they regularly monitor home values in their local market. However, while, 80 percent of younger millennials plan to move in the next four or five years, 73 percent cite as a barrier to homeownership (far higher than any other age cohort).

House Buyers are gaining the most power in Orlando

By   – Editor, Business Journal

After years of competitive house bidding wars and rising prices, a new data analysis from Zillow shows it might finally be a good time to buy a home in many U.S. markets — especially in Orlando.

Zillow researchers looked at three factors to determine which of the largest housing markets are becoming more buyer-friendly: an increase in the share f listings with a price cut; projected increase in rent appreciation over the next year; and relative to the past.

Based on those factors, the best places for buyers this winter include:

  1. Orlando
  2. Boston
  3. Seattle
  4. Las Vegas
  5. Charlotte
  6. Columbus
  7. Portland
  8. Sacramento
  9. Minneapolis
  10. Dallas

Here in Orlando, there are 6.8 percent more listings with a price cut compared to last year, rent is projected to increase 1.4 percent in the next year, and it costs about 20.2 percent of the monthly median income to pay the mortgage on the typical home.

Zumper National Rent Report: November 2018

As we approach the slow moving season, many of the 100 cities on our report have started to experience downward monthly rent trends. However, a lot of the mid to lower tiered markets are still continuing to play catch up with the most expensive cities with large year over year rental growth rates even into these cooler months. In the top markets, the most expensive 10 cities remained the same last month, though there was some shifting at the bottom with San Diego moving up to become tied with Santa Ana and Seattle dropping to 10th. Meanwhile, the city with the fastest growing rent last month was Spokane, up 5.6%, and the rental market that took the biggest rent dip was San Antonio, down 5.4%.

Overall, both the national one and two bedroom rents grew 0.7% last month, settling at $1,203 and $1,432, respectively. On a year over year level, one bedroom rent is up 2.3%, while two bedrooms have increased 2.9%.

The Zumper National Rent Report analyses rental data from over 1 million active listings across the United States. Data is aggregated on a monthly basis to calculate median asking for the top 100 metro areas by population, providing a comprehensive view of the current state of the market. The report is based on all data available in the month prior to publication.

If you’re interested in a more in-depth explanation of how and why we calculate our rent data, view our methodology post.

To keep up to date with rent changes across the country, like or follow Zumper on FacebookTwitter, and Instagram. In the market for a new place? Search apartments for rent on Zumper.

Latest figures on Housing outlook and Economy

Housing policy experts and community activists have long been concerned about access to mortgage credit in underserved neighborhoods. Insufficient access to credit, attributable to outdated underwriting
guidelines or a legacy of discrimination can hinder housing wealth creation and economic development.
For many years, the federal government’s collection of Home Mortgage Disclosure Act (HMDA) data has provided one benchmark of whether advances are being made in providing credit to these communities.
Disadvantages with this loan-level data set are the long lag before their release and the public availability of only calendar year data rather than higher frequency, such as monthly. While descriptions of what constitutes an underserved area may vary, one metric is the Federal Housing Finance Agency’s (FHFA)
definitions of both low-income and minority census tracts.1 The Agency uses these to assess the affordable housing performance of the government-sponsored enterprises it regulates. We compared the annual trend in the HMDA data with what we have in CoreLogic’s public records, and then used
CoreLogic data to update the trend through July 2018. (Figure 1) What we found was that CoreLogic’s public records tracked very closely with the trends in the HMDA data.2 Further, the share of home purchase mortgage lending in low-income areas or moderate-income minority census tracts has increased steadily from the low point in 2012 and 2013. For 2018 through July, this share was the highest since 2010. The increase in 2018 occurred even though the FHA share of purchase-mortgage lending is less than it was one year ago. FHA-insured loans tend to have a higher share of low income
and high-minority census tract lending than conventional. (Figure 2) But the share of conventional loans made in low-income and minority areas has steadily grown over the last six years, in part because
Fannie Mae and Freddie Mac have begun to fund conventional loans with three-percent down payment and up to 50-percent debt-to-income ratios. We will continue to monitor these trends with our public records data. Further increases in the share of loans made in underserved neighborhoods are likely as their local economies improve in the coming year.

New office space slated for Lake Nona Town Center

By Jack Witthaus  – Staff Writer, Journal

The Orlando-based developer, Tavistock Development Co. is planning for a new 120,000-square-foot office building in the Lake Nona Town Center. It’s the third office project in the $780 million, 3.8 million-square-foot, mixed-use town center that is developing in partnership with Columbus, Ohio-based Steiner + Associates.

is expected to begin before the end of the year.

“Leasing for the building is going very well,” Senior Sales and Leasing Associate Ginger Vetter said in a statement about the second building, which has yet to open. “We expect to announce another regional headquarters and other tenants soon. With the momentum from this building, we’re moving forward with another new, Class A office building.”

The third building’s general contractor is Barton Malow Co., and the architect is a partnership between Gensler and HuntonBrady Architects. Tavistock spokesperson Karlee Kunkle declined to say whether or not a tenant had been signed for the third building or what percentage of the second building has been leased.

The third building’s revelation comes after the second building — an estimated $20 million, Class A 155,000-square-foot, six-story office building at the southwest corner of Veteran’s Way and Boulevard — topped out in March. The second building, called Town Center Office II, is part of the town center’s $300 million Phase 2A. The building was slated to be completed by the end of this year.

So far, BBA Aviation Plc., parent company to Signature Flight Support in Orlando, has signed a 65,000-square-foot lease inside Town Center Office II.

It’s no surprise that there’s interest in the airport/Lake Nona office submarket as average Class A office rents are $30.18 per square foot — the highest in Central and ahead of Orlando’s average of $25.93 per square foot, Cushman & Wakefield (NYSE: CWK) reported. Part of the demand for office space might have to do with Lake Nona’s growing Medical City, which could be spurring other businesses to relocate to the area to serve that new employment base, said Nicole Barry, vice president and director of operations at Tower Realty Partners Inc.

Meanwhile, construction continues on the second phase of Lake Nona Town CenterOrlando Business Journal previously learned about three dozen major retailers — from American Eagle Outfitters (NYSE: AEO) to Dick’s Sporting Goods (NYSE: DKS) — are lining up for a spot inside the town center. Tavistock wouldn’t confirm any of the potential retailers as tenants, but the company recently announced that Dallas-based cinema Cinepolis USA will open a nine-screen, 40,000-square-foot cinema in 2020 in the town center.

The fast-growing community in southeast Orlando boasts more than 11,000 residents, 5,000 employees and 14,000-plus students at its schools.

Opportunity Zones but great Investment Yes!

It’s not quite lottery level buzz, but talk of the tax rewards and potential of Opportunity Zones has tax lawyers, developers, municipalities and business development pros clamoring for answers and angles.

Still, in its early stages, U.S. governors helped the Internal Revenue Service and U.S. Treasury define eligible census tracts as official zones in May and June. Initial draft regulations about the program provided a fair amount of broad specifics — until late on Oct. 19. That’s when the IRS delivered hotly anticipated detailed rules on Opportunity Zones in a 74-page report reflecting a long period of public comment.

Here’s why Opportunity Zones are getting a lot of attention.

If you have capital gains, the new bipartisan supported provision found in 2017’s tax reform means an individual or institution can park those capital gains into what is known as a Qualified Opportunity Fund. That fund is used only to create investment within the designated census tracts or group of tracts.

Notable Orlando zones include Carver Shores, Washington Shores, Rosemont, Mercy Drive, the Packing District (west of Orange Blossom Trail), West Colonial Drive, East Colonial Drive (GOAA properties), Parramore (south of Church Street), the SoDo area (west of Orange Avenue) and the northeast corner of Semoran Boulevard and Curry Ford Road.

If you leave those deferred gains in a fund for seven to 10 years, then you don’t pay the capital gains for that period. While real estate is the sweet spot, the program was initially developed as a job creator — so it also applies to gains on sales of businesses, too.

“Those gains are deferred, but on top of that, anything you earn in the Opportunity Zone is tax free,” said Mike Miedel, director at Pinellas Economic Development. “It’s a tremendous opportunity for people.”

Buchanan’s Opportunity Zone practice team of Lisa Starczewski and Bill Conaboy has been on a whirlwind tour, the lawyers said, reacting to high interest from clients of all types.

The new details Friday were heavily anticipated, Starczewski said, and it’s going to take some time digest and understand. “There are still a number of open questions,” she said. But in one big move, the government extended the period over which an investor can take advantage of the program’s 10-year gain exclusion to as late as the end of 2047.

“They also answered some simpler questions like, can a Qualified Opportunity Fund be an LLC?” Starczewski said. “Yes, they can, and that was the right answer; and while it was just a clarification, it was nice to know so people didn’t feel like they had to create a limited partnership or corporation.”

Ahead of the Friday regs, PCED’s Miedel said it remained unclear how much people can use the funds for housing or hotels. “I think we are pretty safe with our target industries. The problem is how much of that investment will get sucked away from our types of projects into other things that would be secondary industries.”

Starczewski’s bottom-line takeaway: The program continues to be pro-taxpayer.

“As a practitioner, I think it is helpful guidance and I think it is designed to be facilitative,” she told OBJ sister paper the Tampa Bay Business Journal on Saturday. “I am happy to see that because it gives me a platform where I can say to clients, the IRS and Treasury are trying to help make these transactions work.”

With some level of confidence, Opportunity Zone subject matter experts can now have an easier time predicting what the feds will do in the next set of regulations based on the approach they took in the first one.