Kevin Thorpe, Chief Economist at Cushman & Wakefield, Delivers Key Economic Insights for SWFL

FORT MYERS, Fla. - July 11, 2024 - PRLog -- At the Horizon Council meeting on Friday, June 28th, Kevin Thorpe, Chief Economist and Head of Global Research, at Cushman & Wakefield US delivered a comprehensive analysis of the current economic landscape and its impact on Southwest Florida's real estate market. Among the key insights were:

• Rental Market Adjustments: While apartment rents nationally show a decrease of 1%, the Consumer Price Index (CPI) indicates an increase of 6%, suggesting a lag in "owner's equivalent rent" which reflects real economic changes with a one-year delay.
• Interest Rate Predictions: The Federal Reserve is anticipated to implement a 25-point rate cut in September, with a further reduction expected in December, aiming to stimulate economic growth.
• Regional Economic Growth: Southwest Florida has experienced a growth rate of 6%, outpacing the national average by 1%, primarily driven by a significant influx of businesses in recent years.
• Job Market Recovery: Post-pandemic and hurricane recovery have seen nearly every sector restore employment, except leisure and hospitality.
• Real Estate Prices: The median home price in the region has surged from $250,000 pre-pandemic to nearly $500,000 currently, with a tapering supply of new homes beginning to stabilize new home prices.
• Office Space Demand: The Fort Myers-Naples area ranks in the top three for net absorption of office space since 2020, driven by peak attendance days and a focus on sectors like legal services.

Thorpe emphasized that with the slowing demand for labor and a growing supply, construction costs might soon level out, stabilizing the local economy and real estate market.

About the Horizon Council The Horizon Council is a public-private board established in 1991 to advise the Lee County Board of Commissioners on economic development issues and provides vision, guidance, and support to the Lee County Economic Development Office (EDO) in its mission to:

• Help improve the business environment in Lee County
• Retain and encourage the expansion of existing business
• Attract new and diversified employment to the area

The Council has up to 80 members representing: municipalities, chambers of commerce, economic development and trade organizations, community, business, and education organizations, along with various officers and at-large members. To learn more about the Horizon Council visit https://www.leecountybusiness.com/horizon-council/.

About Cushman & Wakefield | Commercial Property Southwest Florida
Cushman and Wakefield | Commercial Property Southwest Florida, LLC delivers integrated solutions by actively advising, implementing, and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. They cultivate long-term relationships, advising clients in buying, selling, financing, leasing, and managing assets. CPSWFL provides valuation advice, strategic planning and research, portfolio analysis, site selection, and space location assistance.