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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.

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.

Tavistock buys 1,000-plus acres airport land

is expanding its boundaries south of and it now owns the land it needs.

Lake Nona developer Tavistock Development Co. LLC’s related entity TDCP LLC spent $63.9 million, or roughly $55,700 per acre, on May 10 for nearly 1,147 acres south of Orlando International Airport from the Greater Orlando Aviation Authority and the city of Orlando, Orange County records showed.

The three different parcels, two in Orange County and one in Osceola County along Narcoossee and Boggy Creek roads, will be used by  to develop a portion of a mixed-use project west of Narcoossee Road, north and east of Boggy Creek Road near the Orlando VA Medical Center, Tavistock spokeswoman Jessi Blakley told Orlando Journal.

The project, known as the Poitras planned development, includes:

  • 2,973
  • 100,000 square feet of commercial use
  • A school on 25 acres

Tavistock previously sought approval from the city earlier this month to rezone the property as a planned development with aircraft noise.

The 11,000-acre Lake Nona already has billions of dollars worth of underway and there’s even more growth ahead.

inside Orlando’s first Earth Fare market in Lake Nona

 

 

will be getting the first of what could be many of organic grocery chain Earth Fare’s greater locations.

The Fletcher, N.C.-based company opened its 24,000-square-foot store at 13204 Narcoossee Road on Sept. 29 as the anchor to the $10.5 million Shoppes at Nona Place facility. The store features the same styling as many other Earth Fare stores, but there is a local feel for the residents of Lake Nona, according to Earth Fare CEO Frank Scorpiniti.

“What is not prototype is how we join each community, some of the refinement we do and the assortment of local products we have on the shelf,” Scorpiniti told Orlando Journal.“While the furniture is pretty darn similar, the people and local product assortment will be very focused for each store we open.”

The location at the Shoppes at Nona Place is among an increase of development in the area, including a 7,000-square-foot store for Sunrise-based Pet Supermarket Inc. The shopping center, developed by Palm Beach Gardens-based Blackfin Partners and Canadian firm North American Development Group, still is looking for other tenants. Interested parties can go here for more information.

Why develop in Lake Nona? We have a store we developed in Lakewood Ranch with (Development Co.), and of course, we toured many of its developments. We came to Lake Nona having known that, and we were incredibly inspired by the health and wellness focus of this particular community. We had become aware of this potential two-and-a-half year ago and understood the growth that was going to occur in this community with the young families, with moms and dads focused on health. What we offer was kind of missing here, and what we could do fills a need that has yet been addressed.

What has it been like getting more involved in the community? We have been here as a management team many times, but one of the ways our company becomes familiar with the community is we ask people to serve on community advisory boards and have met with our teams on more than four occasions to help us understand the community. That started 90 days ago, and we really appreciate what they do to tell us what the community needs, what we can do to be a better neighbor — and that’s put into the building blocks of this particular store.

What does it mean to stick to an organic food philosophy compared to other chains? It makes us very proud our focus is on health and wellness. We know if we do this right, the sales and growth of our company will come. Rather than being focused on selling everything, we’re focused on making sure we don’t sell what we perceive to be bad for health. I think that’s a very special position in retail — we have a higher purpose than filling a grocery buggy. Our purpose is filling it with longevity, health, and happiness.

What are the next expansion steps for the area? Our next store in the area will be by Orlando Health on the corner of Orange Avenue and Gore Street. That will open later this year and we are very excited. That will be No. 2 of probably eight to 10 stores we are looking at in the Orlando area currently. Many of these are still under negotiation.

UCF Lake Nona Medical Center CEO

By   – Staff Writer, Orlando Journal
 Updated 

The University of Central Florida’s planned teaching hospital, dubbed Medical Center, now has a CEO.

Central Florida Regional Hospital CEO Wendy Brandon will take on the role Jan. 1. The proposed 100-bed hospital is expected to be completed by 2020.

“Wendy is a seasoned, dynamic leader who has played a pivotal role in our partnership with at Lake Nona, and we are excited to have her lead our newest hospital in the Central Florida region,” HCA Healthcare’s North Florida Division President Michael P. Joyce said in a prepared statement. “Under her leadership, we will advance health care in Lake Nona , improve quality of life for the community and provide education that ignites careers in medicine at UCF Lake Nona Medical Center.”

Brandon has been CEO for HCA Healthcare Inc’s (NYSE: HCA) 221-bed Central Florida Regional Hospital in Sanford for the past 10 years, with accomplishments including the launch of the hospital’s Level II trauma center and the development of Oviedo Medical Center. She earned a bachelor’s in business administration from the University of Tennessee at Martin and her MBA from Belmont University. She also has leadership roles with several organizations, including the Orlando Economic Partnership Board, CareerSource Central Florida Board, the Sanford Rotary Club and Seminole County Regional Chamber of Commerce Board.

The center will create 302 high-wage jobs, with salaries ranging from $60,000 to $600,000, and has the potential to retain some Sanford Burnham researchers.

Along with the hospital, UCF plans to add more developments as it moves its colleges of nursing and medicine to the campus. University partner Alter+Care will design and develop a 150,000-square-foot building, which will include 90,000 square feet for the College of Nursing and 60,000 square feet for expansion and future Academic Health Sciences Center use at the campus. Those projects are targeted to open by spring 2022.

In addition, Lake Nona’s daytime population continues to grow with its Medical City life sciences hub and future developments such as New York-based audit giant KPMG LLP’s $430 million, 55-acre training facility being built on Lake Nona Boulevard. The community already boasts more than 11,000 residents, 5,000 employees and more than 11,000 students at its schools.

It will be built in Medical City near Sanford Burnham Prebys Medical Discovery Institute, a facility UCF is set to take over as La Jolla, Calif.-based Sanford Burnham winds down its Florida operations.

The university received approval in August to take over the 175,000-square-foot Sanford Burnham research facility. The public research university closed on the existing facility Aug. 27, with Sanford Burnham occupying the building until Nov. 30. The university will begin doing research there by March 1.

UCF wants to turn the facility into a cancer research and treatment center with partner organizations such as Knoxville, Tenn.-based Provision Healthcare LLC, and HCA’s Sarah Cannon Research Institute LLC. UCF has projected its plan will result in a $578 million economic output after five years of operations.

“It’s fantastic for a couple of reasons,” UCF President Dale Whittaker previously told Orlando Business Journal. “One is it creates a private investment in the community, it gives us an additional treatment option, which is fairly unique in the community as well as significant clinical research. Sarah Cannon has been involved with almost 75 percent of the cancer research drugs that have been approved recently, so this is a nationally very powerful clinical research organization added to our university-level basic research.”

 

Chick-fil-A -slated Lake Nona

By   – Staff Writer, Orlando Journal
 Updated 

A 75,000-square-foot retail development soon could be home to ‘s first Chick-fil-A.

College Park, Ga.-based Chick-fil-A Inc. is in talks for signing a lease at Tyson’s Corner, a retail development at the northeast corner of Narcoossee and Tyson Road, sources told Orlando Business Journal. It would be the first Chick-fil-A location in Lake Nona.

A Chick-fil-A spokeswoman said the company hopes to have more to confirm about a Lake Nona location in the weeks to come. “We would very much like to have a new location in the Lake Nona area, but we have no new locations to confirm at this time,” spokeswoman Jessica Ferrell told OBJ.

Meanwhile, several other tenants either have signed leases or are in talks for space inside Tyson’s Corner. Click through the slideshow below to see which tenants could be coming to the retail center.

SRS brokered the purchase for the 9.69-acre Tyson’s Corner property on June 15, according to Orange County records. Entities related to Clearwater-based Epic Development Co. bought the property for $9 million from entity Lake Nona Holdings LLC. “We like the demographics and the growth,” said Epic Development Managing Member Andrew Hupp, who declined to confirm tenant interest in Tyson’s Corner.

The site may break ground in February with potential tenants moving in by summer 2019, said Hupp. Holiday-based FWH Architects Inc. is the architect, and Palm Harbor-based AVID Group is the engineer. Epic typically handles the general contracting itself, but Hupp said it was too early to start accepting subcontracting bids.

The property, which is next to Lake Nona High School, adds to new retail in Lake Nona. The largest retail project is the $300 million piece of Lake Nona Town Center, which is expected to make a big retail and splash for the growing southeast Orlando community, which already boasts more than 11,000 residents, 5,000 employees and 14,000-plus students at its schools.

Lake Nona to land big biotech facility

By   – Staff Writer, Journal

Before dirt even has been tossed, a future biotech manufacturing plant in ’s 650-acre is dreaming up expansion plans.

The 18-acre site — likely slated for Cranbury, N.J.-based global tech and biopharmaceutical company Amicus TherapeuticsInc. (Nasdaq: FOLD) — already is being considered for a planned development with manufacturing, office and warehouse space.

And it may include a future phase to accommodate additional parking, office space and a lab area, city of Orlando project planner Wes Shaffer said at a Sept. 13 meeting.

Amicus executives haven’t responded to requests for comment. However, an unnamed company behind “Project Olympus” this month received a city committee approval to build a 200,700-square-foot development at the southwest corner of Laureate Boulevard and Medical City Drive. Real estate sources said Amicus likely is the company behind Project Olympus.

Additionally, Amicus reportedly also was considering other cities for a new facility, but the Orlando City Council approved a nearly $380,000 incentive deal Aug. 20 to attract the company to Central Florida.

The facility would be the first biologic drug substance manufacturing plant with associated research and development in Lake Nona. It’s a major win not only for Orlando but also for Lake Nona, which already is home to the Orlando VA Medical Center, Nemours Children’s Hospital and the University of Central Florida medical school, among others.

“The fact that an innovative business such as Amicus is considering Orlando to build the first biologic drug substance manufacturing plant solidifies Medical City’s ability to attract new and innovative companies,” city spokeswoman Jessica Garcia said.

The new facility would add to a bevy of industrial activity nearby as part of the airport/Lake Nona submarket, one of the largest in the Orlando area.

Sports facility company shoots for next location,Lake Nona

By   – Staff Writer, Journal

An Orlando-based sports facility operator has scored a new location in Central Florida as it gears up for another.

XL Soccer World expects to build a $7 million, 50,000-square-foot facility in and open it next summer, CEO Ciaran McArdle told Orlando Business Journal. The company operates about eight facilities in the U.S, including one at 825 Courtland St. near the intersection of Lee Road and Interstate 4. That facility opened in 2011.

McArdle, a Lake Nona resident, hopes to attract soccer players and fans from Lake Nona and surrounding communities such as Kissimmee and St. Cloud. “We’ve seen tremendous success and popularity with what we do.”

The new facility will feature four fields for indoor soccer and futsal, a different version of soccer, among other uses. The facility will spread across roughly four acres off Narcoossee Road less than one mile south of State Road 417. XL Soccer World’s Xl Soccer World Orlando II LLC bought the 3.8-acre site from Narcoossee Land Holding Two Inc. for $571,400 on Aug. 27, according to Orange County records.

XL Sports Group

A contractor is expected to be announced soon. The architect is Orlando-based Butler Moore Architects LLC. Subcontractor opportunities likely will be available. A groundbreaking is expected before the end of the year.

McArdle declined to say where XL Soccer World’s next Central Florida facility will be, but he said it likely will be built in northwest Orlando.

XL Soccer World is the latest in a string of new sports companies to open facilities in Lake Nona. The $100 million U.S. Tennis Association National Campus opened its 100-court facility in 2016, and Drive Shack (NYSE: DS) opened its $25 million concept this spring.

Earth Fare Grand Opening in Lake Nona

By   – Staff Writer, Journal
 Updated 

Earth Fare will open its first organic grocery store in the area at the end of this month.

The Fletcher, NC.-based chain will open its store Sept. 29 in the Shoppes at Nona Place at 13024 Narcoosee Road in . The 24,000-square-foot location will feature a juice bar as well as a prepared food section with a salad bar, hot foods bar, pizza station, sandwich counter and pre-packed meals.

“At Earth Fare, we are passionate about helping our shoppers make the connection between clean food and longer, healthier, happier lives,” Earth Fare President and CEO Frank Scorpiniti said in a prepared statement. “Since 1975, we’ve been proudly encouraging shoppers to make healthier food choices easy and enjoyable, and we take great pride in expanding our strong Florida presence to the Nona community.”

Earth Fare provides food on its shelves that are free of added hormones and other non-organic ingredients. It keeps a list of booted ingredients which are not allowed on its shelves .

The chain will hold its grand opening celebration Sept. 29 at 7 a.m. with a ribbon-cutting ceremony and a check presentation to Nemours Children’s Hospital. There will be a mystery gift card giveaway for the first 500 customers in line with values up to $1,000, along with other giveaways, free samples, and product demonstrations.

NAR Pending Home Sales Report

WASHINGTON (August 29, 2018) — Pending home sales stepped back in July and have now fallen on an annual basis for seven straight months, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.7 percent to 106.2 in July from 107.0 in June. With last month’s decline, contract signings are now down 2.3 percent year-over-year.

Lawrence Yun, the NAR chief economist, says the housing market’s summer slowdown continued in July. “Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity,” he said. “It’s evident in recent months that many of the most overheated real estate markets – especially those out West – are starting to see a slight decline in home sales and slower price growth.”

Added Yun, “The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

https://goo.gl/AFukQb

Pointing to annual changes in active listings data at realtor. com®, Yun said increasing inventory in several large metro areas, and especially many out West, will likely help cool price growth to more affordable levels going forward. Even as days on market remains swift in many of these areas, Denver, Santa Rosa, California, San Jose-Sunnyvale-Santa Clara, California, Seattle, Nashville, Tennessee, and Portland, Oregon was among the large markets seeing a rise in active listings in July compared to a year ago.

Earlier this week, NAR released commentary reflecting on the past decade since the beginning of the Great Recession. Although supply and headwinds are the biggest issue right now, Yun said it is important to note just how much the housing market has recovered since the depths of the financial crisis. Today, thanks to several years of solid job growth, as well as safe lending and regulatory policy reforms, foreclosures sit near historic lows and record high home values have helped millions of households build substantial wealth.

“Rising inventory levels – especially if new home finally starts picking up – should help slow price appreciation to around two-and-four percent, which will help aspiring first-time buyers, and be good for the long-term health of the nation’s housing market,” said Yun.

Yun expects existing-home sales this year to decrease 1.0 percent to 5.46 million, and the national median existing-home price to increase around 5.0 percent. Looking ahead to next year, existing sales are forecast to increase 2 percent and home prices around 3.5 percent.

July Pending Home Sales Regional Breakdown

The PHSI in the Northeast climbed 1.0 percent to 94.6 in July but is still 2.3 percent below a year ago. In the Midwest, the index inched up 0.3 percent to 102.2 in July but is still 1.5 percent lower than July 2017.

Pending home sales in the South declined 1.7 percent to an index of 122.1 in July, and are 0.9 percent below a year ago. The index in the West decreased 0.9 percent in July to 94.7 and is 5.8 percent below a year ago.

The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing . A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: NAR’s August Housing Minute video will be released on August 31, Existing-Home Sales for August will be reported September 20, and the next Pending Home Sales Index will be September 27; all release times are 10:00 a.m. ET.