Tourism and Military Presence Bolster Pensacola Economy
Pensacola is the westernmost city in the Florida Panhandle. With an economy that thrives on tourism, a strong military presence, healthcare and education, Pensacola is a regional distribution hub and has local air traffic access through the Pensacola Regional Airport. Pensacola’s largest employer is the Navy, which brings more than $5.1 billion in salary and wages annually by more than 22,000 military/federal employees to the local economy.
Tourism is another strong contributor to the economy. Located on the Gulf of Mexico, the city’s beaches and beachfront real estate attract about 3.7 million tourists every year, contributing $1.2 billion to the area economy. The city is home to some of the nation’s best hospitals and healthcare facilities, such as Sacred Heart Hospital, Nemours Children Clinic, Andrews Institute and Baptist Healthcare.
Similar to many downtown office markets across the Southeast, Pensacola has experienced vacancies and lease/price reductions. However, downtown is still the sought after location and is experiencing a recent upswing of activity. The suburban office market was hit more severely than downtown. Owners are now more apt to provide lower rates and price incentives.
The retail market slowdown is now showing promise. Sidelined investors have begun to buy and lease. This is due in part to the thought that the market has reached a bottom. Pensacola’s Industrial market is still slow as reflected by lower lease rates in the $3-$4 range. But, lease activity showed improvement the second quarter.
Land sales have been the hardest hit as banks are reluctant to provide suitable financing and developers are hesitant to start new projects. There are a few self-funded investors taking advantage of reduced land values. There are several large projects in the works for 2009-2010, such as the Pensacola Maritime Community Park Project. The park will be funded by a $40 million Community Redevelopment Agency bond and an estimated $30 million or more in private investment.
yeah,The retail market slowdown is now showing promise. Sidelined investors have begun to buy and lease.
Posted by: commmercial property | November 26, 2009 at 01:24 AM