Matt Drews oversees the day-to-day activities of his dedicated team of agents, whose expertise in all classes of commercial properties spans the Gulf Coast region from Manatee to Charlotte Counties.

Drews, a Sarasota native and former professional baseball player, brings a wealth of diversified business, entrepreneurial, real estate and customer service experience to his new role with the company. Since returning to his Sarasota roots, Matt has held several key management, operational and business development positions.

COMMERCIALREAL ESTATE

100 S. Washington Blvd. • Sarasota, FL 34236 • 941.957.3730 • michaelsaunders.com/commercial

New developments are taking shape throughout the region, and the MSC Commercial Division continues to serve as a go-to resource for land acquisition in Manatee,

Sarasota and Charlotte Counties. Michael Saunders & Company is excited to have the opportunity to work with The Kolter Group again while securing the prime downtown Sarasota location for its latest urban development, The Mark. This 157-residence condominium is to be built at Lemon Avenue and State Street, along with 50,000 square feet of ground floor retail and office space. This will include “The Promenade,” an interactive alfresco shopping and dining experience.

State of the Market

Quarterly1st Quarter 2016

MATT DREWSDIRECTOR,COMMERCIALDIVISION

Manatee, Charlotte & Sarasota Counties

The MSC Commercial Division works closely with clients to secure the right location and land for exceptional new developments. The MSC New Homes & Condominiums Division takes over from there, putting to work dynamic strategies that bring these exciting communities to the market.

COMMUNITIES REPRESENTED AS OF MARCH 2016

COMMUNITY PRICE NUMBER OF RESIDENCES CONSTRUCTION INFO

Ashton Oaks From the high $400,000’s 20 Custom homes. Model open daily.

Coral Caye From the high $200,000’s 95 Custom homes. Models open daily.

Edgewater at Hidden Bay From the low $500,000’s 52 Sales center open.

Granada Park From the high $800,000’s 15 Custom homes. Model open daily.

Grand Oaks From the low $300,000’s 55 Models open daily.

The Islands From the $900,000’s 178 Custom homes. Models open daily.

Mirabella From the mid $200,000’s 160 Custom Villas. Models open daily.

The Mark* From the $700’s 157 Pre-construction. Sales gallery open.

VUE Sarasota Bay From the mid $1,000,000’s 141 Under construction. By appointment.

The Mark*

REGIONAL TRENDS & REPORTS

A General OutlookLocally we face similar economic headwinds as the rest of US. However, we have a few that directly affect us.

n With already compressed cap rates, any raise in interest rates could temporarily slow growth as the spread tightens.

n There is abundant new construction activity on the Gulf Coast, with many new multi-family, condo, retail and hotel developments coming out of the ground. Anytime you have this much activity there is an air of excitement, however, there is also a cautious eye on the absorption rates.

n Increased activity means we are starting to see a widening gap in spreads between seller and buyer valuations for properties. While prices have risen, there are still the underlying fundamentals in every transaction that dictate price.

n In 2015 we had near boom time highs in new housing starts, especially in Manatee County. The difference this time around is that the population growth seems to be keeping up with the housing starts. That bodes well for commercial real estate in our market.

n Aging assets and a lack of quality space have slightly pushed down office rental rates and we saw a slight increase in vacancies toward the end of the year. We expect the new office projects as well as some substantial remodels to help push prices north as well as lessen vacancies.

Overall we expect another strong year in 2016, with a few headwinds to keep an eye on.

Bradentonn The K Center office park is filling up rapidly, with a new lease

nearly once every month.

n Sales are happening more frequently than leases, with office space moving unusually slow for the first quarter.

n A $435,000 land property just went under contract for potential hotel development.

n 2424 office building is now at 95% occupancy.

n A potential long term major lease is pending at the Starbucks building on 59th, for the entire remaining vacant square footage.

n 7.25 acres in East Manatee went under contract for roughly $400,000.

South Sarasota & Charlotte CountyAfter years of silence, new retail developments are commencing construction throughout South Sarasota and into Charlotte County.

n At the southwest corner of I-75 and Jacaranda Drive Dunkin Donuts is under construction with an opening which will just miss the seasonal crowd.

n Wawa will soon be a neighbor to Dunkin Donuts, and ears are being kept close to the ground for prospective leasing activity on the long proposed power center approved on the same corridor.

n Within this same trade area may soon come the sound of frying chicken as a variety of national and regional quick service restaurants (QSR’s) are known to be seeking locations.

n Further north on Tamiami Trail, in Nokomis and Osprey; retail, restaurant and service businesses are expanding due to the success of their existing locations. Long dormant Bay Street Town Center will soon have a new European style pastry and espresso store opening, while Shear Paradise is doubling the size of their salon services with the acquisition of the former Colonial bank building.

n Aldi has opened a location in North Port and is under construction with another location in Port Charlotte. Not to be outdone, several value and organic grocery operation are on the search for locations within the same markets.

n Driving the attention in South County is spillover from tenants who have found recent success in Sarasota and seek in-fill locations to capture greater market share. The rapid expansion of home building along Tamiami Trail, between Jacaranda and River Road, further whets the appetites of developers and tenants.

n Valuation of property, especially existing retail uses, is climbing and becoming more competitive with a litany of national investors now having targeted the area for acquisitions.

Lakewood Ranchn University Town Center continues to thrive.

n Two additional Benderson out parcels are being developed and leased out.

n Daily Eats, Fresh Kitchen and Tom and Chee are newly opened.

n Lakewood Ranch is growing. Only one retail store is available with Nancy’s Bar-B-Que and Craft Growlers To go & Tasting Room newly opened.

n Lakewood Ranch is planning its Life Science Center.

n New home developments in Manatee are at varying stages.

n The University interchange construction is in full swing with Lorraine and Lakewood Ranch Blvd extensions expected in the 2nd quarter, 2017.

Significant Sales by the Commercial Division of Michael Saunders & Company • Fourth Quarter 2015LOCATION SQ FT OR ACREAGE PROPERTY TYPE2117 47TH STREET, UNITS 7 & 8 • SARASOTA 6,000 INDUSTRIAL

1598 APEX ROAD • SARASOTA 9,000 INDUSTRIAL

4133 N. WASHINGTON BLVD • SARASOTA 3,600 INDUSTRIAL

2525 E. 7TH AVENUE • BRADENTON 1,812 MULTI-FAMILY

6310 HEALTH PARKWAY, UNIT #302 • BRADENTON 3,607 OFFICE

8916 E. 77TH TERRACE • LAKEWOOD RANCH 7,841 OFFICE

8065 S. BENEVA ROAD • SARASOTA 8,752 OFFICE

2620 W. 9TH STREET • BRADENTON 1,546 RETAIL

203 & 215 WALLACE AVENUE • SARASOTA 0.29 ACRES VACANT LAND

3415 BROADWAY AVENUE • SARASOTA 9.27 ACRES VACANT LAND

2705 N. TAMIAMI TRAIL • SARASOTA 0.58 ACRES VACANT LAND

2101 MAIN STREET • SARASOTA 0.29 ACRES VACANT LAND

102 N. TAMIAMI TRAIL • NOKOMIS 4.61 ACRES VACANT LAND

DOWNTOWN SARASOTA OFFICE

100 S. Washington Blvd. • Sarasota, FL 34236

Phone: 941.957.3730 • Fax: 941.552.5216

Matt Drews, Director

Dennis Dahm

Lee De Lieto, Sr.

Lee De Lieto, Jr.

Roberta Kolton

Steven Larkin

Eric Massey

Sarah Massey

Larry Schaper

Ellen Spencer, Administrative Assistant

LAKEWOOD RANCH OFFICE

8325 Lakewood Ranch Blvd. • Bradenton, FL 34202Phone: 941.907.9595 • Fax: 941.907.8802

Susan Goldstein

PALMER RANCH OFFICE

8660 S. Tamiami Trail • Sarasota, FL 34238Phone: 941.966.8000 • Fax: 941.918.9392Daniel J. PageRobert MoffattPeggy WellmanJoe Bell

BRADENTON OFFICE

4400 Manatee Avenue West • Bradenton, FL 34209Phone: 941.748.6300 • Fax: 941.749.5001

Benjamin Bakker

ENGLEWOOD OFFICE

1200 S. McCall Road • Englewood, FL 34223

Phone: 941.473.7750 • Fax: 941.473.7751

Johns Knight

PUNTA GORDA OFFICE

101 Taylor Street • Punta Gorda, FL 38950

Phone: 941.639.0000 • Fax: 941.639.0101

Ken Walker

PROPERTY MANAGEMENT

1801 Main Street • Sarasota, FL 34236

Phone: 941.951.6660 • Fax: 941.951.6667

Bob Smith, Director of Commercial Property Management

Carrie Roberts, Administration Manager

Tony Fus, In-House Facility Technician

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