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.

100 S. Washington Blvd. • Sarasota, FL 34236 • 941.957.3730 • msccommercial.com

Continuing the upward trend we saw in Q1, the industrial real estate market in Sarasota and the surrounding areas experienced another solid period of positive absorption.

For the fifth straight quarter, vacancy rates continued to hover around a very low 2.6%. The top sale of Q2 in industrial real estate was the acquisition of a 48,900 sq. ft. combined office-warehouse in Manatee County for $2.9 million. Taking a look at the numbers for office space, the big story of Q2 was the third turnover of a major downtown Sarasota property — the 13-story Sarasota City Center. The property sold to a North Carolina real estate investment firm for $36.5 million. Its significant tenants include Wells Fargo, Boar’s Head, RBC Capital Markets and Merrill Lynch. Read on for more of the latest in the region’s commercial real estate market.

State of the MarketMATT DREWSDIRECTOR,COMMERCIALDIVISION

Manatee, Charlotte & Sarasota Counties

COMMUNITIES REPRESENTED AS OF SUMMER 2O17

COMMUNITY PRICE # OF RESIDENCES CONSTRUCTION INFO

ASHTON OAKS From the high $500,000’s 20 Custom homes. Model open daily.

EDGEWATER AT HIDDEN BAY From the high $400,000’s 52 Sales center open.

THE GRANDE From the $2,000,000’s 72 Pre-construction. Sales gallery open.

THE MARK From the $600,000’s 157 Pre-construction. Sales gallery open.

PALMA SOLA BAY CLUB From the $300,000’s 207 Sales gallery open.

SANDHILL LAKE From the high $400,000’s 43 Coming soon.

VUE SARASOTA BAY From $1,490,000 141 Under construction. By appointment.

2nd Quarter 2017

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

SIGNIFICANT SALES by MS&C Commercial • Second Quarter 2017Date Location SQ FT or ACREAGE Property Type

4.3.17 2802 Tamiami Trail, Port Charlotte, FL 3,000 SF Retail

4.10.17 726 Commerce Drive, Units 107-109, Venice, FL 7,560 SF Office

4.11.17 5901 N. Honore Avenue, Sarasota, FL 6,238 SF Office

5.30.17 945 25th Drive East, Ellenton, FL 11,111 SF Office

5.30.17 2570 Franklin Street, Ft. Myers, FL 14,783 SF Industrial

6.1.17 3621 & 3623 S. Tuttle Avenue, Sarasota, FL 4,614 SF Retail

6.8.17 3935 N. Washington Blvd., Sarasota, FL 22,000 SF Retail

6.26.17 5869 Derek Avenue, Sarasota, FL 1.23 +/- Acres Vacant Land

6.28.17 4615 S. Tamiami Trail, Sarasota, FL .85 +/- Acres Vacant Land

6.29.17 2611 West 26th Street, Suite 2611, Bradenton, FL 4,180 SF Office

COMMERCIAL TRENDS & REPORTS

As the nature of office work changes, so does the office. Offices are no longer just places to house employees — they support utilization, innovation and engagement. It’s not just about how many people can the space accommodate, but how many people can utilize the space provided. Offices must also have the appeal to attract and retain talent. Being well located, close to amenities and offering in-office amenities are all high on the list of desired attributes. Markets like ours allow big companies to decrease their costs and cost of living for their employees, as illustrated by John O’Keefe’s ITelagen move to Honore Avenue, where office amenities include a game room, chef’s kitchen and café, gym and on-site child daycare. Locally, office space activity is strong across the Sarasota/ Manatee County region with vacancy at approximately 8.5%. While many mid to small tenants are moving into, expanding within and moving within the market, the exodus of or downsizing of larger tenants can dramatically impact the overall picture. This is the case currently as we see the large Herald Tribune building and former Clockwork space at Five Points hit the market.

Susan Goldstein: The Changing Office Scene

Medical Office buildings present a solid recession-proof investment with stable cash flow and strong tenant retention. Whether the economy is sluggish or thriving, everyone needs to see the doctor sooner or later. 10,000 baby boomers are reaching full retirement age every single day. Centers for Medicare and Medicaid Services are projecting that health care spending will increase 5.8% annually through 2025, making medical office buildings unbeatable as a smart investment today. Physician

tenants typically sign 10+ year NNN leases with annual escalations and renewal options allowing them to stay in one location, which alleviates the expense and difficulty of relocating. Long term leases, regular payments and higher returns of NNN properties make medical office buildings an excellent long-term investment.

Gail Bowden: Investing in Medical Office Buildings

From a retail perspective, Venice is an area spinning on a dime as a myriad of factors change customer shopping patterns. Speaking of “spinning”…kudos to the FL DOT rotary design team for implementing a solution to the Jacaranda Rotary which, since

inception, had claimed many a vehicle bumper. The reconstructed design has provided needed clarity in directing drivers as they approach the rotary, resulting in a greatly reduced number of “knock-a-bouts” which used to be associated with this round-a-bout.

The intersection of Jacaranda and Tamiami Trail has long provided a multiple of retail justifications for shoppers to flock to the intersection. The Sembler Company’s announcement of a new Publix anchored shopping center four miles further on Tamiami Trail east has south county residents coveting a shorter more convenient commute. Projected to open in Q3 of 2018, the site will be the first opening in the West Villages and is projected to be paired with a potential adjacent future development offering retail and restaurant tenants. Along with the Atlanta Braves opening their new spring training complex, the overall movement of area residents is anticipated to accelerate heading towards North Port to conduct their shopping.

At the other end of the compass is the long-anticipated Venice portion of the Hwy 41 road-widening project. Many a retailer and restaurant will sigh in relief as the project comes to a conclusion allowing full access back to their businesses.

Steven Larkin: Venice Retail Outlook

Land at reasonable prices in Sarasota is becoming increasingly challenging to find. This seems to reflect the lack of availability in the Sarasota Central Business District, which in turn benefits the submarkets who have seen increase in tenant interest. Some

of the major stories of this quarter include the approval of a 254-unit multi-family development in Palmer Ranch, and the closing of 533 acres off of Ibis Road by Neal Communities.

Colin Pember: Land Update

Tamiami Trail is more active than ever, as indicated by the business Massey & Massey has facilitated along this long and commercially diverse road.

Recently, Massey & Massey has closed on a 37,135 SF plot of CG zoned land located at 4615 S. Tamiami Trail, between Field and Proctor. This land will be developed into a high-end self-service car wash that the area will enjoy for years to come.

Moving along further south down the Trail, we have seen a wealth of commercial activity in the Bay Street Town Center, located just south of Bay Street. The plaza consists of 3983 and 3976 Destination Drive, two large buildings divided into shell state suites that are sold as condominiums.

Tamiami Trail continues to be a lucrative strip of Sarasota for all commercial industries. There is always an opportunity somewhere along this road, whether you are looking to buy, rent, or build.

Massey & Massey: A Look at Tamiami Trail

COMMERCIAL TRENDS & REPORTS

n Pier 22/Twin Dolphin: Large scale expansion and upgrades in 2016/17.

n 9 story Marriott Springhill Suites hotel: 1st floor restaurant, roof top bar.

n New public parking garage: retail spaces planned for first floor, City Hall open to developers.

n South Florida Museum: Huge $12 million renovation & expansion for 2017.

n Manatee Performing Arts Center: Expansions completed for more parking/programs.

n Historic Leach Building: just leased for a restaurant, major renovation has begun.

n SUNZ Insurance Building: just purchased, multi-million dollar renovations underway to accommodate 100% capacity.

n Village of the Arts: fastest growing arts community in Florida is currently undergoing major upgrades in lighting, signage, sidewalks, etc.

n Villages at Riverwalk: 510 unit mix of apartments with loft over street retail, currently being built. Phase I is near completion and will begin leasing in September.

n New purchase plan development: SunCoast Development and Management Services has a five-year plan to redevelop its new building at 1002 Manatee Ave. E. into a seven-story multi-use facility.

Lee DeLieto Jr.: Retail Market Update, Plus a Significant Sale

Ben Bakker: 10 Exciting Projects for Downtown Bradenton

After almost a decade on the market, the DeLieto Team closed on the sale an eight-acre tract in downtown Sarasota; which the Herald Tribune reported had become the city’s most infamous casualty of the past decade’s economic recession. With its purchase, David Weekley Homes intends to build 135 townhomes and other residences on the site, now occupied by a derelict former Scotty’s home improvement store and other warehouses. David Weekley intends to connect the property to the city’s Payne Park nearby with pedestrian-friendly elements.

Bradenton’s downtown a rea c ont i nue s to thrive and f lourish, making its mark as a true destination for our region of Florida. Here are 10 developments to look out for:

CLICKS & BRICKSIt has been said that Retail is not dead—it’s just evolving. This is true, and the twist might surprise you.

In a recent s t udy presented at the ICSC

ReCON in Vegas, 1 out of every 11 US jobs are shopping center related. Collectively, the retail industry accounts for 12.7% of the total US employment. So why with such a strong economic connection, am I constantly being asked of the health of brick and mortar retail?

Let’s address the main question: Is e-commerce killing brick & mortar Retail? In my opinion, a resounding NO. Is it taking away market share? Absolutely. But just because millions of shoppers (including myself) have an Amazon Prime account, that doesn’t mean we no longer seek social interaction. Currently e-commerce accounts for approximately 7% of all retail sales. And in 2020, it is estimated to still be less than 9% of sales. Yes, the recent purchase of Whole Foods Market by Amazon was a game changer. But following the sale, was there any announcing of market closures? No! That is because the largest e-commerce

retailer sees the value of a physical presence. The concept is called Omni-Channeling. It allows for not only online convenience (clicks), but also a social experience (bricks).

Here’s a little twist: The food industry, in and of itself, has become the new anchor retailer — in both clicks and bricks. Food delivery/preparation services are popping up across the county, including Shipt, Sun Basket and even UberEATS. Yes, the same Uber driver you call upon for a ride will now deliver your yummy eats from a roster of local restaurants.

But, with all of these great conveniences, there is no substitute for the good old-fashioned social interaction. If you haven’t been to downtown Sarasota in a while, you are truly missing out. One of the newest and hippest eating, drinking, seeing and being seen, farm-to-table experiences is at Boca Kitchen on Lemon Ave. Its interior

preserved some of the original brick and wood while marrying it with modern industrial finishes. Continuing south and around the corner on State Street is the most recent and most appropriately named restaurant for this article, Brick’s Smoked Meats. Once a popular stop at the Saturday Farmer’s Market, the owner has now secured their own “brick” and mortar location. Whether you like the convenience of Clicks or the experience of Bricks… Retail is alive and well.

To accelerate success in a highly competitive market, our commercial experts draw upon their mastery of financial, market and investment analysis, active community involvement and the long-standing local dominance of Michael Saunders & Company to turn opportunities into results. For all your commercial real estate needs — Think MS&C Commercial.

COMMERCIAL TEAM

Michael Saunders, CEO and Founder of Michael Saunders & Company

Matt Drews, Director

Benjamin Bakker

Gail Bowden

Dennis Dahm

Lee De Lieto, Sr., MBA

Lee De Lieto, Jr., P.A., Broker-Associate

Jessica Fleming

Michael Gallatin

Susan Goldstein, MBA, CCIM

Ben Graham

Daniella Kaskey

Roberta Kolton Cera

Steven Larkin

Will Martin

Eric Massey, Broker-Associate

Robert Moffatt

Molly O’Brien

Daniel J. Page, CCIM

Colin Pember

Erin Reid

Howard Sadwin

Larry Schaper, CCIM

Peggy Wellman

Carey Robards, Marketing Assistant

Ellen Spencer, Administrative Assistant

BRADENTON OFFICE4400 Manatee Avenue West • Bradenton, FL 34209Phone: 941.748.6300 • Fax: 941.749.5001

DOWNTOWN SARASOTA OFFICE100 S. Washington Blvd. • Sarasota, FL 34236Phone: 941.957.3730 • Fax: 941.552.5216

ENGLEWOOD OFFICE1200 S. McCall Road • Englewood, FL 34223Phone: 941.473.7750 • Fax: 941.473.7751

LAKEWOOD RANCH OFFICE8325 Lakewood Ranch Blvd. • Bradenton, FL 34202Phone: 941.907.9595 • Fax: 941.907.8802

ORLANDO121 S. Orange Ave., Suite 1500 • Orlando, FL 32801Phone: 407.377.6830

PALMER RANCH OFFICE8660 S. Tamiami Trail • Sarasota, FL 34238Phone: 941.966.8000 • Fax: 941.918.9392

PUNTA GORDA OFFICE101 Taylor Street • Punta Gorda, FL 33950Phone: 941.639.0000 • Fax: 941.639.0101

COMMERCIAL PROPERTY MANAGEMENT1801 Main Street • Sarasota, FL 34236Phone: 941.951.6660 • Fax: 941.951.6667

Bob Smith, Director of Commercial Property Management

Diane Conte, Administration Manager

Tony Fus, In-House Facility Technician

EXPECT THE EXCEPTIONALIN COMMERCIAL REAL ESTATE