The downturn in the commercial real estate market on the Gulf Coast is attracting more outside investors looking for opportunities.
Miami-based Adler Group is opening an office in Naples to manage buildings it acquired here late last year. It's also scouting for other buildings to buy and manage.
Adler, which owns and manages about 3.1 million square feet of commercial space in Tampa and the Southeast, says 40% of its leasing comes from walk-in traffic.
“Our number one mission is to lease the property we already have under management,” says Matthew Adler, president of Adler Realty Services, the firm's leasing and brokerage division. He says the Naples buildings are about 80% full.
Overall, Collier County's office vacancy rate has surged to 19% in the fourth quarter from 14.9% in the fourth quarter of 2008, according to Cushman & Wakefield.
Adler owns and manages about 250,000 square feet in two commercial developments: Collier Park of Commerce and Commerce Center of Naples. It acquired them last year from Lund Capital Group for $31 million.
But besides filling its own buildings, it hopes to also manage properties for other landlords. “In every market we go, we bring a landlord's perspective to the management of third-party buildings,” Adler says.
Adler is also keeping an eye out for more acquisitions in Naples and Fort Myers. He says the firm is looking for properties with healthy income and high occupancies.
“We don't want to buy distressed assets,” Adler says. “We want to buy great assets from distressed owners.”