Study: SW Fla. 'Hot Spot' to establish new business Fort Myers, Cape top mid-sized area

By Randal L. Mercer
Special to news-press.com Originally posted on January 13, 2008

Fort Myers-Cape Coral is ranked as the "top mid-sized metro" area in the nation where companies will have the best chance to grow and prosper, according to a study by the National Policy Research Council and Expansion Management magazine.

Naples is ranked third nationally among small-sized metro areas. The influential study is being used by corporate leaders and entrepreneurs seeking more efficient business locations and assessing growth markets for maximum potential in the coming economic recovery.

The "Hot Spots" study researched the policy council's interactive database of 19 million companies. The council is a non-partisan think tank dedicated to serving state and local policy-makers. While the study looked at fundamental site selection factors, such as workforce availability and cost and community infrastructure, it focused on the success of existing businesses and measured that success by comparing the percentage of businesses that increased employment over the past four years.

Quite simply: success begets success. The synergy of thriving businesses in a nurturing community offers great comfort to new businesses and assurance of their success.

Certainly, the fundamentals for economic growth in Southwest Florida are rock solid. The workforce is strong and growing, with more than 30,000 people moving to Lee County alone each year. Advances in educating the workforce are apparent in the growth of Florida Gulf Coast University, Hodges University, Edison College, Southwest Florida Business College, and the addition of Ave Maria University.

The current housing surplus assures affordable housing and reduces pressure on wages. Community infrastructure is also impressive in the Fort Myers - Cape Coral metro area. While those orange cones and roadway barricades frustrate commuters, they are a beacon of progress for businesses seeking communities who are investing in the future.

Southwest Florida International Airport has completed a modern new airport terminal and is proceeding with construction of another runway. Work is now beginning on the expansion of I-75. New north-south highways are being developed, new overpasses and road improvements are under way at every turn, and utility systems are building facilities and expanding service throughout the area.

The other key component in an area targeted for business growth is commercial real estate. Southwest Florida's growing population and expanding business community will continue to drive demand for a wide range of lease space and land that's ready to build.

Recognition as the nation's "Hot Spot" for success will add fuel to the fire and put added pressure on the real estate market to deliver suitable properties. Once a growing company commits resources and energy toward relocation or expansion in Southwest Florida they will seek a fast track to becoming established. Regardless of whether the business operations are office, retail, manufacturing or distribution, time is of the essence.

Fortunately, this is an excellent time for Southwest Florida's commercial real estate market to answer the demand. Investment capital is abundantly available, lending rates are favorable, and property prices are increasingly negotiable. Many landowners and builders are also receptive to joint ventures in developing commercial properties.

It is also noteworthy that the recent downturn in residential development has enabled consultants and permitting agencies to be more responsive to commercial projects.

The processes involved in converting raw land into readily buildable commercial property may take two years, depending on environmental issues and availability of utilities. Likewise, the processes involved in designing, permitting and developing commercial buildings may also take a year or more.

Forward-thinking investors and property owners are working now to have properties in position to serve the demand that will accompany the resurgence in economic growth.

Designation as an "economic development hot spot" not only positions Southwest Florida to lead the nation's economic resurgence but it also recognizes the achievements of existing local businesses and community efforts to support economic growth. Despite any current market challenges driven by excess residential development, as Southwest Florida's economy grows and matures, the vitality of the business community will remain a major attraction to growing businesses.

— Randal L. Mercer is a founding partner in CB Richard Ellis, Fort Myers — Naples, and former president of the Real Estate Investment Society. He may be contacted at 850-0287 or rlmercer@cbre-ftmyers.com.