T
he rise of online retail and population growth in Southwest Florida drove a series of significant real estate transactions in 2024. Established shopping centers and industrial warehouse buildings were among the most lucrative deals, with experts citing the continued strength of brick-and-mortar retail.
Despite predictions that online shopping would replace traditional retail, people are still drawn to physical stores, says Matt Simmons, a property appraiser for Maxwell, Hendry & Simmons. In fact, annual percentage revenue from online sales increased from 10% in 2019 to 16% in 2024, according to a study by Capital One bank.
However, this growth has not come at the expense of traditional retail, as more than 80% of retail revenue still occurs in person. As a result, shopping centers continue to hold and increase in value. Vacancies are filling, with new tenants like Nordstrom Rack replacing departing retailers, and restaurants becoming increasingly popular.
Large investors have taken notice, purchasing retail centers in high-traffic areas at significant prices. Benderson Development spent $100 million on two shopping centers in Collier County, while InvenTrust Properties Corporation paid $41.3 million for The Forum at Fort Myers.
The industrial sector has also seen significant growth, with warehouse and distribution centers becoming increasingly important due to the rise of e-commerce. Amazon's purchase of 143 acres in Fort Myers for $66.5 million is a prime example, with plans to build a 750,000-square-foot facility by 2027.
Industrial deals dominated the list of high-priced transactions in 2024, with several records being set. EQT Exeter paid $92.5 million for CenterLinks Business Park, while Walton Street Capital purchased Tri-County 75 for $155.1 million.
The office market remains strong, with Family Health Centers of Southwest Florida paying $15.5 million for 81,000 square feet of office space in Fort Myers. The office sector has been resilient despite the pandemic and work-from-home movement, making it one of the healthiest markets in the country.
Multifamily sales were slower than expected in 2024, but picked up pace in the second half of the year. Apartment complexes still commanded healthy prices, with several deals being brokered by Tyler Minix of Newmark and Jamie May of JBM Institutional Multifamily Advisors.
The largest deal of the year was a $620 million land sale, believed to be the most lucrative in Southwest Florida history. The 2,000-acre property, which included an active rock mine, changed ownership in October.
