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TALLAHASSEE, FL—While the coronavirus will clearly have a short-term impact on the local commercial real estate community, Tallahassee's fundamentals were solid going into the crisis, according to a recent report. The area has seen a nearly 19% increase in hotels since 2018. The region also has a low industrial vacancy and a lack of distribution centers in the area has created a tight warehouse market. These were some of the subjects covered during the inaugural Commercial Real Estate Market Report presented by the locally-based NAI TALCOR, which specializes in properties in North Florida, South Georgia and South Alabama.
"Tallahassee's downtown office market has seen over 100,000 square feet of office space either newly developed or being developed," NAI TALCOR director, president and broker E. Edward Murray, Jr., Murray said. "However, our office professionals expect this trend to happen every 10 years."
Future projects and developments were also discussed including the addition of an Embassy Suites near the Stadium Enclave (a student housing development), dozens of restaurants soon to join the area, and both REI and World of Beer who are currently in the permitting process.
Murray tells GlobeSt.com that all of post-report feedback has been positive and that it will become an annual event. Topics discussed included industrial, office, retail, multi-family, student housing, hotels, investments, and what Murray referred to as the "Silver Tsunami" of assisted living and memory care facilities.
The event also covered the four main retail "hot zones" in Tallahassee where $30 per square foot rent is achievable, and the migration of state employees to the Centre of Tallahassee and the Russell Development. Additionally, the low industrial vacancy and lack of large distribution centers in the market have created a tight warehouse market. With high construction costs, the rents are expected to rise.
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