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Coffee Talk
Keep your eye the CPI
Here's a little trade secret that commercial real estate landlords shared with Coffee Talk recently: Watch the Consumer Price Index (CPI).
The CPI is an index of inflation that the government's Bureau of Labor Statistics calculates every month. The agency produces national and regional CPIs, and they can differ substantially.
This matters if you're renewing or signing a new lease for space, or signing any contract that includes an inflation adjustment. With inflation a growing concern, commercial landlords have started including clauses that allow rents to rise with overall price increases.
And it really matters which CPI is selected. Not surprisingly, landlords are choosing the Miami regional CPI because prices generally rise faster in that area than the country as a whole. Recently, the Miami CPI rose 4.7% on an annual basis. That's more than one percentage point higher than the national CPI's 3.4% annual increase. For the latest national and regional CPI numbers, visit www.bls.gov/cpi/home.htm.
Bottom line: if your rents are tied to the Miami CPI, you can be pretty sure they'll rise faster than if they're tied to the national CPI.
January real estate bump
After three depressing months in residential real estate, at least one company is seeing an uptick from January. Prudential Palms Realty officials are reporting a 30% increase for January over the same period in 2005. Scott Sosso, president of Prudential Palms Realty, says that the company reported sales of about $78 million in January compared to about $60 million for January 2005.
"It seems to be picking up," Sosso says. "At the least, it's a positive sign. The other nice thing is we have finally seen a closing on one of our higher-priced listings."
Sosso attributed this primarily to sellers adjusting their prices more following the correction in the overall real estate market.
"There's not the urgency their once was," Sosso says. "The supply and demand factor in the market started to shift ... and buyers were looking for better deals. It took a while for sellers to evaluate their properties more realistically. The market is still very healthy; we just need more positive indicators like this."
Boat slips are going condo
Owners of marinas that rent boat slips are converting to "condos," selling the slips in the same way developers resell apartments as residential condos.
In fact, the same laws that apply to high-rise residential condominiums also apply to marinas that undergo a "condo" conversion. Owners get a deed to the boat slip and pay monthly fees to maintain the common space.
There are about 2,000 marinas in Florida and 1,000 are candidates for condo conversions, estimates John Chadwick, a Fort Lauderdale-based marine property consultant who recently visited Fort Myers. Boat slips are selling for $100,000 to $150,000 each, Chadwick says.
Although the trend is well established on the east coast of Florida, it's starting to pick up on the Gulf Coast. One recent conversion: the Naples Boat Club. Chadwick expects more will follow.
The results are in...
A group of business and political leaders in Hillsborough County has released the results of a recent poll taken to gauge support for putting a referendum on the November ballot that would create an elected county mayor.
Taking Back Hillsborough County commissioned the poll as it begins fundraising to put the question to voters. McLaughlin & Associates, a polling outfit in Alexandria, Va., conducted the survey of 400 likely county voters. The results are mixed.
There was no overwhelming anti-Hillsborough County Commission sentiment among poll respondents. About 42% say the county is headed in the wrong direction, while 41% say the county is on the right track.
More heartening to the pro-mayor group was 57% of the respondents who disapprove of how the commission is dealing with transportation problems.
As for the mayoral question, 42% of respondents say they would vote to create the office this fall. About 28% say they would vote it down. Undecided: 30%.
Fewer than 3% of respondents cited unemployment, the cost of living or the business climate as a major concern. Government spending was important for just 1%.
You never call me anymore
And that's not just your mother saying that. A new survey released by the Menlo Park, Calif.-based staff service company OfficeTeam shows a dramatic decline in the amount of time executives spend on the phone talking to colleagues.
The survey of 150 senior executives at 1,000 of the United States' largest companies, found that executives spent almost half the time they used to five years ago with face-to-face discussions, but it was still slightly more than they spent on the phone.
Unsurprisingly, the biggest winner was the emergence of e-mail as the communication medium of choice for business executives. Executives were asked: Which method of communication do you use most often at work?
HOW YOU COMMUNICATE
5 Yrs.
Now Ago
E-mail 71% 27%
In-person 14% 24%
Telephone 13% 49%
Unknown 2% 1%
What's ahead ...
Feb. 6 - The Center for Innovation and Technology at Manatee Community College will hold a one-day workshop, "Meet the Bankers," for entrepreneurs considering starting a business from 9 a.m. to 3:30 p.m. at 7131 Professional Parkway East, Lakewood Ranch. Lunch is included in a $15 registration fee. For more information, contact Dr. Tom Davenport at 363-7212. To register, call 363-7000.
Feb. 6 - The Economic Development Corporation of Sarasota County will hold an investor update breakfast at 7:45 am, at Boca Royale Golf & Country Club, 1601 Englewood Road, Englewood. The breakfast will feature presentations by Sarasota County Commissioner Shannon Staub and Wendy Brandon, CEO of Englewood Community Hospital. Cost is $20 for EDC investors; $25 for non-investors. Call (941) 309-1200.
Feb. 22 - The Economic Development Corporation of Sarasota County and the Florida West Coast Resource Conservation and Development Council will host the "Natural Capitalism" a seminar presented by the Rocky Mountain Institute from 8:30 a.m. to 12:30 p.m. at the Manatee Community College Center for Innovation and Technology, 7131 Professional Parkway E. in Lakewood Ranch. The seminar will focus on how to integrate smart growth and sustainable economic development, and strategies for building stronger local economies. Cost is $65 and includes the book, "Natural Capitalism: Creating the Next Industrial Revolution." E-mail [email protected] or (941) 309-1200, Ext. 203.
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