Commercial connection: Businesses find great deals on spaces to rent



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Many years from now our kids may read stories about the "Great Recession" of 2009 to 2010 (and counting).
With luck, they will only recall the ice cream being good and the beach being hot. But the rest of us here in Southwest Florida won't soon forget the things we see happening every day now - especially in the crazy commercial real estate market. It is an amazing time to witness history being written. Many of us wish it just wasn't so painful while others are happily securing their "Best Deals of a Lifetime."
For example, a local bank just foreclosed on its $6.2 million mortgage for a new, never occupied Class A industrial building (60,000 square feet) on Alico Road that cost $7 million to build just two years ago - and it is now being offered for sale at $2.7 million - and that is an asking price! I'm just getting started here.
On the street

An office building in World Plaza recently sold at $95 per square foot, where the norm was $150-plus per square foot a few years ago. An office lease was just signed in World Plaza at $7 per square foot gross, where $13-plus triple net used to be common. A 1.6-acre land site on Del Prado Boulevard just sold at $4 per square foot, as opposed to the double-digit price per square foot that was common in the past. Two land sales occurred on U.S. 41 between Colonial Boulevard and Corkscrew Road ranging from $2 per square foot to $5 per square foot. A lease on Colonial Boulevard was just signed at $11 per square foot gross, where $13 to $15 per square foot triple net used to be common. A Gladiolus Road retail lease was just signed at $10 per square foot net, where $15 per square foot triple net used to be common. A number of industrial leases at high-quality spaces are getting signed at $3.50 per square foot net, where $6 to $7 per square foot net was once the norm. A big medical group in Naples just renewed its lease on Goodlette Road for $20 per square foot net. This is still a top-of-the-market rent.
And some industrial owners are accepting deeply discounted rents for new tenants on month-to-month leases with the understanding that if they secure better deals from the market in the future, the month-to-month tenants will have to move out. Courtesy Fort Myers News Press.
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