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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.

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.

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.

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.

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.

Property Man – Bob Massi Features Lake Nona and Orlando

features in a recent episode… Not only is Lake Nona and one of the fastest growing cities across the nation, but the here is perfect for . Orlando is used as a meter for the real estate market because of the booming economy and the constant influx of new residents and visitors. In this episode, Bob Massi answers why Orlando is so successful and features Lake Nona and as one of the fasted growing community across the nation. Bob takes a tour around Orlando and Lake Nona to see why the market is so successful. The most important message to take away about Orlando is, as most cities across the nation feel the ups and downs of the economic rollercoaster, Orlando is the first to recover and last to feel the pinch.

Watch as Bob Massi uncovers the reasons why Orlando truly is the city beautiful…

As always… comment, like and share. Your feedback helps us know how to help you better!

-The Maycumber Team of WeKnowOrlando.com

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