tampa-commercial-real-estate

Retail Space for Lease in Tampa Bay: Best Areas for Business Growth

Mon, 12 Oct 2026 13:47:59 GMT

Retail space for lease in Tampa Bay continues to attract entrepreneurs, franchise operators, medical retailers, and national brands looking to capitalize on strong population growth and consumer demand. From urban storefronts to suburban shopping centers, Tampa Bay offers a wide range of retail opportunities for businesses at every stage.

This guide explains where to find the best retail space in Tampa Bay, what lease costs to expect, and how to choose a location that supports long-term business growth.

Why Tampa Bay Is a Strong Retail Market

Tampa Bay is one of Florida’s most active retail markets, supported by tourism, year-round residents, and steady in-migration. The region benefits from diverse demographics, strong household income growth, and continued residential development.

Key factors driving retail demand include:

Growing population across Tampa, St Petersburg, and Clearwater
High tourism volume throughout the year
Expanding suburban communities
Demand for service-based and experiential retail
Strong small business and franchise activity

Retailers who choose the right location can benefit from consistent foot traffic and long-term customer loyalty.

Types of Retail Space Available in Tampa Bay

Retail space is not one-size-fits-all. Understanding the different retail formats helps business owners identify properties that align with their operational needs.

Common Retail Property Types

Strip centers with multiple tenants
Freestanding retail buildings
End-cap spaces with high visibility
Mixed-use developments with residential above retail
Neighborhood shopping centers
Lifestyle and destination retail centers

Each type offers different levels of visibility, parking, and tenant mix.

Average Retail Lease Costs in Tampa Bay

Retail lease rates vary based on location, center quality, traffic counts, and surrounding demographics.

Factors that influence retail rent include:

Proximity to major roads and intersections
Anchor tenants such as grocery stores or national brands
Visibility and signage opportunities
Parking availability
Market demand within the submarket

In high-traffic areas, lease rates may be higher but can support stronger sales volumes when properly matched to the business model.

Best Areas to Lease Retail Space in Tampa Bay

Choosing the right submarket is often more important than choosing the building itself.

South Tampa

South Tampa is a high-demand area with strong household incomes and established neighborhoods. Retail space here performs well for restaurants, boutiques, fitness studios, and service-based businesses.

Best for:

Upscale retail concepts
Food and beverage operators
Personal services

Downtown Tampa

Downtown Tampa offers retail opportunities tied to office workers, residents, and event traffic. Street-level retail benefits from ongoing redevelopment and residential growth.

Best for:

Cafes and quick-service restaurants
Professional services
Urban retail concepts

Westshore Area

Westshore combines office density, hotels, and residential communities. Retail space in this area benefits from weekday business traffic and airport proximity.

Best for:

Business-focused retail
National brands
Medical and service retail

St Petersburg

St Petersburg has a vibrant downtown with strong pedestrian traffic, tourism, and a growing residential base. Retail space here is popular with lifestyle brands and experiential retailers.

Best for:

Boutique retail
Art and lifestyle brands
Restaurants and entertainment

Clearwater and Suburban Markets

Suburban retail centers offer lower lease rates, ample parking, and access to family-oriented neighborhoods.

Best for:

Medical retail
Daycare and education
Fitness and service businesses

How to Choose the Right Retail Location

The best retail space is not always the most visible or the most expensive. Location selection should align with customer behavior and operational needs.

Important considerations include:

Target customer demographics
Traffic patterns and accessibility
Co-tenancy and neighboring businesses
Parking availability
Zoning and permitted uses

Retail success depends on matching location strategy with brand positioning.

Understanding Retail Lease Structures

Retail leases often include additional costs beyond base rent. Business owners should understand total occupancy costs before signing.

Common retail lease structures include:

Triple net leases where tenants pay operating expenses
Modified gross leases with partial expense sharing
Percentage rent in high-traffic locations

A detailed lease review helps avoid unexpected expenses.

Buildout and Tenant Improvement Considerations

Retail spaces often require customization before opening. Buildout costs vary depending on the condition of the space and the business type.

Common buildout elements include:

Interior finishes and fixtures
Electrical and plumbing upgrades
Signage and branding
ADA compliance

Landlords may offer tenant improvement allowances, especially for longer lease terms.

Why Work With a Local Tampa Bay Retail Broker

Retail landlords are represented by brokers whose responsibility is to protect ownership interests. Tenants benefit from having professional representation to level the playing field.

Tampa Commercial Real Estate helps retailers identify strategic locations, evaluate lease terms, and negotiate favorable agreements throughout Tampa Bay and across Florida.

A retail-focused broker provides:

Market rent comparisons
Site selection analysis
Lease negotiation support
Coordination of inspections and legal review
Access to off-market opportunities

Tenant representation typically does not add cost to the business owner.

Common Mistakes Retail Tenants Should Avoid

Retail leasing mistakes can be expensive and difficult to reverse.

Common errors include:

Choosing space based on rent alone
Ignoring parking and access issues
Overestimating foot traffic
Signing leases without expansion flexibility
Failing to negotiate tenant incentives

Careful planning reduces risk and improves long-term performance.

Frequently Asked Questions About Retail Space for Lease in Tampa Bay

How long are typical retail leases?

Most retail leases range from five to ten years, with options to renew.

Are retail leases negotiable?

Yes. Rent, improvement allowances, and lease terms are often negotiable.

Can small businesses lease retail space?

Yes. Tampa Bay offers inline spaces and small storefronts ideal for startups.

Is foot traffic always necessary for success?

Not always. Many service-based retailers succeed with destination locations.

Find Retail Space That Supports Your Business Growth

Retail real estate plays a critical role in brand visibility, customer experience, and revenue potential. Selecting the right location and lease terms sets the foundation for long-term success.

Tampa Commercial Real Estat e provides retail site selection, lease negotiation, and advisory services for businesses throughout Tampa Bay.

Address: 412 East Madison Street Suite 1204 Tampa FL
Phone: 813 785 3665
Email: steven@tampacommercialrealestate.com

Schedule a consultation to explore retail space opportunities that align with your business goals.

Office Space for Lease in Tampa: Costs, Neighborhoods, and What to Expect

Fri, 25 Sep 2026 14:02:42 GMT

Office space for lease in Tampa continues to attract businesses ranging from startups and professional firms to medical practices and regional headquarters. Tampa’s diverse office market offers options for nearly every budget, size, and operational need. Understanding pricing, submarkets, lease structures, and negotiation strategies is essential to securing the right space on favorable terms.

This guide explains what tenants should expect when leasing office space in Tampa, including average costs, popular business districts, and practical tips to avoid common leasing mistakes.

Why Tampa Is a Strong Office Market for Businesses

Tampa has become a major business destination in Florida due to steady population growth, a skilled workforce, and an expanding corporate presence. Companies are drawn to the area for its business-friendly climate, access to talent, and central location within the state.

Key advantages of leasing office space in Tampa include:

Competitive rental rates compared to larger metro areas
Modern Class A office developments and renovated buildings
Strong demand for medical and professional office space
Access to major highways, airports, and ports
No state income tax for employees

For businesses seeking long-term stability and growth, Tampa offers a balanced office market with room to scale.

Average Office Lease Costs in Tampa

Office lease rates in Tampa vary by location, building class, and amenities. Understanding pricing benchmarks helps tenants budget accurately and negotiate effectively.

Typical Office Lease Rates by Class

Class A Office Space: Premium buildings with modern amenities and prime locations
Class B Office Space: Well-maintained, professional buildings with moderate pricing
Class C Office Space: Older properties with basic finishes and lower rents

Lease rates are usually quoted on a per-square-foot basis annually. Additional operating expenses may apply depending on lease structure.

Popular Tampa Office Submarkets

Tampa’s office market is divided into several distinct submarkets, each offering unique advantages.

Downtown Tampa

Downtown Tampa is a hub for law firms, financial services, and corporate offices. It offers walkability, skyline views, and proximity to government offices and courthouses.

Best for:

Legal and financial firms
Corporate headquarters
Professional services

Westshore Business District

Westshore is Tampa’s largest office submarket and a favorite for regional and national companies. It offers excellent highway access and proximity to Tampa International Airport.

Best for:

Corporate offices
Sales and operations teams
Businesses requiring frequent travel

South Tampa

South Tampa provides professional office environments closer to residential neighborhoods and medical facilities.

Best for:

Medical and dental practices
Professional service firms
Boutique offices

Suburban Tampa and Surrounding Areas

Suburban areas offer more affordable lease rates, larger floor plates, and convenient parking.

Best for:

Growing companies
Call centers
Back-office operations

Types of Office Space Available in Tampa

Understanding office space types helps narrow options quickly.

Common office formats include:

Traditional Office Buildings: Private offices and shared common areas
Medical Office Buildings: Designed for healthcare compliance and patient flow
Flex Office Space: Combination of office and light industrial use
Executive Suites: Short-term, furnished office options
Creative Office Space: Open layouts with modern design elements

Each type offers different lease terms, buildout requirements, and cost structures.

Understanding Office Lease Structures

Commercial office leases differ from residential leases and can significantly impact total occupancy costs.

Common Lease Types

Full-Service Gross Lease: Rent includes operating expenses
Modified Gross Lease: Expenses are partially included
Triple Net Lease: Tenant pays rent plus operating expenses, taxes, and insurance

Knowing which lease type applies is critical when comparing properties.

How Much Office Space Does Your Business Need?

Determining the right square footage prevents overpaying or outgrowing your space too quickly.

General planning guidelines include:

Private offices require more space per employee
Open floor plans reduce square footage needs
Conference rooms and storage add to total size
Medical practices require specialized layouts

Future growth should be factored into lease length and expansion options.

Why Work With a Local Tampa Commercial Broker

Leasing office space without professional representation often puts tenants at a disadvantage. Landlords are represented by brokers whose job is to protect ownership interests.

Tampa Commercial Real Estate represents tenants throughout Tampa and Tampa Bay, helping businesses secure favorable lease terms and avoid costly mistakes.

A tenant-focused broker provides:

Access to on-market and off-market listings
Market rent comparisons
Lease term negotiation
Space planning guidance
Coordination of inspections and legal review

Tenant representation typically comes at no direct cost to the business.

Office Lease Negotiation Tips for Tampa Tenants

Strong negotiation can save businesses thousands over the life of a lease.

Key negotiation points include:

Base rent and escalation caps
Tenant improvement allowances
Free rent periods
Lease flexibility and renewal options
Parking and signage rights

Every lease is negotiable, especially in competitive submarkets.

Common Mistakes to Avoid When Leasing Office Space

Businesses often make avoidable errors during the leasing process.

Common mistakes include:

Choosing space based on rent alone
Ignoring long-term growth needs
Overlooking operating expenses
Skipping professional lease review
Failing to negotiate incentives

Careful planning and expert guidance reduce risk and improve outcomes.

Frequently Asked Questions About Office Space for Lease in Tampa

How long are typical office leases in Tampa?

Most office leases range from three to ten years, depending on space size and buildout requirements.

Can small businesses lease office space in Tampa?

Yes. Tampa offers executive suites, small offices, and flexible lease options ideal for startups and small firms.

Is medical office space more expensive?

Medical office space often commands higher rents due to specialized buildouts and proximity to hospitals.

Do landlords offer tenant improvement allowances?

Many landlords provide improvement allowances, especially for longer lease terms.

Find the Right Office Space in Tampa

Leasing office space is a major business decision that impacts operations, finances, and employee satisfaction. Working with experienced local professionals ensures you find the right location, size, and lease terms.

Tampa Commercial Real Estate helps businesses identify, evaluate, and lease office space throughout Tampa, Tampa Bay, and across Florida.

Address: 412 East Madison Street Suite 1204 Tampa FL
Phone: 813 785 3665
Email: steven@tampacommercialrealestate.com

Schedule a consultation today to explore office space options that align with your business goals.

How to Buy Commercial Property in Tampa, FL: A Step-by-Step Guide for Investors

Thu, 10 Sep 2026 19:14:23 GMT

Buying commercial property in Tampa, FL can be a highly profitable move when done correctly. Tampa’s strong population growth, expanding business base, and favorable tax environment make it one of Florida’s most attractive markets for commercial real estate investors. This guide walks you through exactly how to buy commercial property in Tampa—from planning and financing to due diligence and closing—so you can make confident, informed decisions.

Whether you’re purchasing your first investment property or expanding an existing portfolio, understanding the local market dynamics is critical to success.

Why Tampa Is a Prime Market for Commercial Real Estate

Tampa continues to rank among Florida’s fastest-growing metro areas, driven by job creation, corporate relocations, and sustained demand for office, retail, industrial, and multifamily properties.

Key factors driving Tampa’s commercial real estate market include:

No state income tax in Florida
Population and workforce growth across Tampa Bay
Strong demand for industrial and medical office space
Ongoing redevelopment in Downtown Tampa, Westshore, and surrounding submarkets
Investor-friendly landlord laws

For buyers, this translates into long-term appreciation potential and stable income opportunities across multiple asset classes.

Step 1: Define Your Commercial Investment Goals

Before you begin searching for properties, clarify your objectives. Commercial real estate offers multiple strategies, and each requires a different approach.

Ask yourself:

Are you buying for cash flow, appreciation, or owner-occupancy?
Do you want a low-risk stabilized property or a value-add opportunity?
What is your target holding period—short-term or long-term?
Are you investing locally or remotely?

Clear goals help narrow property types and guide financial decisions from the start.

Step 2: Choose the Right Commercial Property Type

Tampa offers diverse commercial property options, each with unique advantages.

Common Commercial Property Types in Tampa

Office Buildings: Downtown Tampa, Westshore, and suburban corridors
Retail Properties: Strip centers, freestanding buildings, mixed-use
Industrial Properties: Warehouses, flex space, logistics facilities
Medical Office Buildings: High-demand near hospitals and clinics
Multifamily Properties : Small apartment buildings to large complexes
Commercial Land: Development or future-use investments

Selecting the right property type depends on your budget, risk tolerance, and investment goals.

Step 3: Understand Tampa Commercial Property Pricing

Commercial property pricing in Tampa varies widely based on location, property condition, tenant mix, and market demand.

Pricing is typically evaluated using:

Price per square foot
Net operating income (NOI)
Capitalization (cap) rates
Lease terms and tenant credit strength

High-demand areas often command lower cap rates, while value-add properties may offer higher returns with added risk.

Step 4: Secure Commercial Financing

Commercial real estate financing differs significantly from residential loans.

Common financing options include:

Conventional commercial loans
SBA 504 or SBA 7(a) loans (ideal for owner-users)
Private lenders
Seller financing (case-specific)

Expect larger down payments (20–35%), shorter loan terms, and more stringent underwriting. Working with a knowledgeable broker can help you identify financing-friendly properties early.

Step 5: Work With a Local Tampa Commercial Real Estate Broker

Navigating Tampa’s commercial market without local expertise can lead to costly mistakes. A knowledgeable broker provides access to off-market deals, accurate pricing insights, and negotiation expertise.

Tampa Commercial Real Estate specializes in helping buyers source, analyze, and acquire commercial properties throughout Tampa, Tampa Bay, and across Florida.

A local broker assists with:

Market and submarket analysis
Comparable sales data
Property tours and evaluations
Offer structuring and negotiations
Due diligence coordination

Step 6: Conduct Thorough Due Diligence

Due diligence is one of the most critical phases of buying commercial property.

Key Due Diligence Items Include:

Financial review (rent rolls, expenses, leases)
Property inspections (structural, roof, HVAC, environmental)
Title and survey review
Zoning and land-use compliance
Tenant lease analysis

Skipping or rushing this step can expose buyers to unexpected costs and legal issues.

Step 7: Understand Commercial Zoning in Tampa

Zoning regulations dictate how a property can be used and developed. Tampa zoning classifications vary by district and municipality.

Confirm that:

The property’s current use is permitted
Future intended use is allowed
Parking and setback requirements are met
Any redevelopment plans align with zoning codes

Zoning issues can delay or derail transactions if not addressed early.

Step 8: Negotiate the Purchase Agreement

Commercial purchase agreements are more complex than residential contracts.

Negotiation points may include:

Purchase price and earnest money
Inspection and financing contingencies
Repair credits or concessions
Lease assignment terms
Closing timelines

Having a broker and attorney involved ensures your interests are protected throughout negotiations.

Step 9: Close and Execute Your Investment Strategy

Once due diligence is complete and financing is secured, the transaction moves to closing. After closing, focus shifts to execution—leasing, property management, tenant retention, or repositioning strategies.

Successful investors treat closing as the beginning, not the end, of the investment process.

Frequently Asked Questions About Buying Commercial Property in Tampa

Is Tampa a good city for commercial real estate investment?

Yes. Tampa offers strong population growth, business expansion, and favorable tax conditions, making it one of Florida’s top commercial investment markets.

How much money do I need to buy commercial property in Tampa?

Most buyers should plan for a 20–35% down payment, plus closing costs, inspections, and reserves.

Can I buy commercial property as an owner-user?

Yes. SBA loans make it possible for business owners to purchase and occupy commercial property with lower down payments.

How long does it take to buy commercial property?

Most commercial transactions take 60–120 days from contract to closing, depending on financing and due diligence complexity.

Ready to Buy Commercial Property in Tampa?

If you’re considering purchasing commercial property in Tampa, expert guidance can make the difference between a good deal and a great one.

Tampa Commercial Real Estate provides local market insight, strategic advisory services, and full transaction support for buyers across all commercial property types.

Serving Tampa, Tampa Bay, and all of Florida

Call: (813) 785-3665
Email: steven@tampacommercialrealestate.com

Schedule a consultation today and start your commercial investment journey with confidence.

Steven Silverman Receives Top Realtor Award

Wed, 09 Sep 2026 14:02:54 GMT

Steven Silverman Receives Top Realtor Award

I n 2018 The Florida Gulf Coast Assoc Of Realtors gave out awards in each category of commercial real estate to those members who had demonstrated the highest achievement in the brokerage of commercial real estate during the past year.

Steven Silverman received the award for the Deal Of The Year For Investment Property

Article Business Observer: Click Here

Past awards to Steven Silverman include:

2018 Deal Of The Year Investment Property

2015 Top Regional Producer Investment Property

2015 Regional Retail Deal Of The Year

2013 Awarded Member-To-Member Deal Of the Year – For an Industrial Property

2011 2nd Top Regional Producer Retail

2006 No 3 Top Regional Producer General Brokerage

2006 Presidents Award for Service to Florida Gulf Coast Commercial Assoc Of Realtors

In addition to the above Steven Silverman has received multiple Pinnacle Achievement Awards for multi-million dollar production

Cutting Edge Mixed Use Urban Development Project Brokered By Tampa Commercial Real Estate – Meridian

Wed, 09 Sep 2026 14:01:58 GMT

April 2020. Tampa Commercial Real Estate was pleased to represent our client in the acquisition of a property for a forward-thinking mixed-use development. For its role in successfully completing this deal, the Florida Gulfcoast Commercial Association Realtors awarded the Overall Deal Of The Year to Steven Silverman.

This project raises the bar for mixed-use development and self-storage in the USA. It presents new possibilities for mixed-use urban environments. In many US cities, self-storage has suffered increasing push back from both City Councils and the public in urban environments where self-storage is viewed as unattractive and a detriment to the neighborhood. At the same time, it is precisely the dense urban environments that are dominated by multi-family development that most need self-storage.

In this development project, where self-storage is attractive and seamlessly blends into the surrounding mixed-use components, a self-storage element is achieved that is acceptable to communities, cities, and developers. This project enhances the concept of mixed-use and adds storage as an important community amenity that complements the traditional Retail, Office and Multi-family components of a Class A mixed-use development. The approved project will comprise, built to the same design standard:

· A 5 story 140,000 sf Self Storage Facility with Retail on the first Floor
· A 15 story, 305 unit apartment complex

This was a complex transaction requiring knowledge of Retail, Industrial, Multi-Family, Zoning Regulations, and Future Land Use. In this transaction, we successfully represented our client in a competitive & strategic battle for one of the most desirable properties in Tampa. The property is located in the heart of the new Water Street development.

It was an honor to be associated with this project. Cities across the USA will be looking to Tampa, as this project serves as a model of how to incorporate visually appealing self-storage into a mixed-use environment. It was an honor to be recognized by my peers and be awarded the Overall Deal Of The Year

Creative Solutions For Landlords And Tenants. Lessons From The Corona Virus COVID-19

Wed, 09 Sep 2026 13:55:34 GMT

Creative Solutions For Landlords And Tenants. Lessons From The Corona Virus COVID-19

Coronavirus is affecting everything in its path. As commercial real estate brokers and property managers, we are receiving calls from tenants wanting to stop paying rent. At the same time, we are receiving calls from Landlords saying that tenants have the responsibility to keep paying.

All of us in commercial real estate have faced confrontations in the past between Landlord and existing Tenants. However, the onslaught of the Coronavirus has given us all pause for thought. Never before have we been hit with so many competing demands at the same time. How do we find the balance?

A tenant that is a fitness studio or a restaurant has been forced to close down during the crisis. The business owner feels a responsibility to pay their employees and they have to pay rent, loan interest, and other expenses. Yet they have no revenue coming in. They did nothing wrong that would have caused them to be in this predicament. Their employees look at it the same way. They did nothing wrong and feel that the business owner should still pay them even though they have been sent home from work. Of course, the rental equipment providers to the business have the same thoughts. The equipment that the business rents are still on the premises of the business and the business should pay the monthly rental fee. After all, the equipment rental company has done nothing wrong.

Lunch Time Photos in Downtown Tampa – Two of Tampa’s busiest streets – the streets are empty

Corona’s impact on downtown Tampa 1 – Florida Av at lunchtime

Corona’s impact on downtown Tampa 2 Tampa Rd at lunchtime

Some tenants have taken the view that the default course of action is to stop paying rent. Landlords, after all, are wealthy and if the Landlords want them to remain on as tenants the Landlords should help them. The problem is that Landlords are in business just like everyone else. They have expenses and they have mortgages. Landlords did not cause the crisis either

The only thing that everyone can agree upon is the opinion they each have that they themselves did not cause the crisis and therefore should not bear the burden

We can only address the situation if we take the position that landlords and tenants are both parts of the same food chain. Neither can survive without the other and everybody has to participate to keep one another alive. It will be painful for everyone. Tenants take the first hit. Workers may not get his full pay, the service providers will not get all their fees and the owners will cut their own salaries. Eventually, Landlords will have to accept some portion of the rent burden. However, it should not be that tenants just sit back and hold out their hands to their Landlord. Tenants should take immediate steps to avail themselves of State and Federal programs that provide relief. If a tenant does request assistance from their Landlord, it seems only fair that they demonstrate to the Landlord that they have taken concrete steps to help themselves. Some Landlords have already created forms that tenants must complete evidencing that the tenant has applied for help before coming to the Landlord. Many landlords will themselves be going to their lenders to ask for relief.

China has demonstrated that the only way to stop the crisis from snowballing is to be proactive and take bold action. Time is of the essence to find creative ways for tenants and landlords to work together. By being proactive and having discussions with Tenants, Landlords can mitigate some of the issues that will certainly arise.

Here are a few examples

1. Assuming this is a short term problem, allow the landlords to apply the tenant security deposit towards rent. Later, when the crisis has subsided the tenant can rebuild his security deposit by adding a few hundred dollars to each month rent check

2. The Base rent is reduced by 50% for ninety days. The tenant with a Net lease still pays CAM expenses. The unpaid 50% base rent is repaid to the landlord over the period of the remaining lease term ( I am not an attorney and you should always obtain legal advice when modifying a lease. However, if it helps you, here is one letter that I created that worked for both Landlord and Tenant Sample Letter)

3. Blend and extend. A variation of this is for there to be a reduction in rent paid for a period of time, with the lease to be extended commensurately

There is no “one situation fits all” solution. Tenants that are behind on the rent or habitual late payers may not have earned the forgiveness rights cited above. It could be argued that they were already traveling on the road to failure. Some Landlords that are heavily leveraged may not have the luxury to negotiate. Solutions will vary depending upon which state you are in. Much of the focus in the media has been on residential leases. California has already served notice that commercial landlords must give a 90 day grace period if requested, and commercial tenants cannot be evicted during that period. Florida is traditionally more conservative and I don’t expect Florida to take the same path. Many individual negotiations must take place to address specific situations, with parties applying creative band-aids to each circumstance

This is also an opportunity for Landlords to strengthen the lease quality of their tenants. It may be better for the Landlord to let the tenants that are of poor quality leave, rather than continue to be stuck in a lease with a poor quality tenant. Other tenants that want to negotiate rent concessions can be given new leases. Perhaps the rates will be better or other terms will be improved to the good of the Landlord. Another idea is to require tenants in the new lease take out some kind of insurance that will protect the tenant and the landlord from future business interruption

I remember in New York when there was a transportation crisis in the 1980s. This sparked a fundamental change in behavior. People started walking. Prior to the Transit strike, women would rather be caught dead than be seen without their high heeled shoes. During the strike, women began to wear sneakers with their skirts and dresses. they carried their high heeled shoes in their purse and put them on when they reached their destination. That continues to this day. In the midst of the Coronavirus, We are not shanking hands anymore. Instead, we pump fists. I would not be surprised if this becomes a permanent behavior change in society. We, in the real estate world, are always seeking situations that have upside potential. People have learned that shaking hands has a lot of downside.

The Corona Virus has given us many things to think about. A crisis can bring out the worst in people and it can bring out the best in people. Landlords and tenants are not necessarily polar opposites. Their interests are aligned in many ways. How they interact and support one another in navigating this crisis will impact the entire business and real estate community. Eventually, the Crisis will pass. Perhaps the Coronavirus crisis will spark creative solutions for Tenants and Landlords that will still be relevant long after business returns to normal.

Covid-19 Reasons For Optimism For Commercial Real Estate Investors

Wed, 09 Sep 2026 13:41:32 GMT

Covid-19 Reasons For Optimism For Commercial Real Estate Investors

Right now, watching the Covid-19 curve climb exponentially the outlook for commercial real estate seems bleak.

First and foremost it is a time to protect yourself and your family and there is so much information out there. We are all sick of it

The video below is a little long-winded but it is the most practical and well-articulated information I have heard on the Coronavirus. So make a cup of coffee and sit down and listen. Better yet, sit your family down and get them to listen with you. It is important and Netflix will still be there tomorrow

There are reasons to be optimistic that you will not contract Covid-19. Please take the time to listen to this. Click Link – Cornel University Overview

After protecting our families and ourselves we have to step back and ask ourselves what are the implications for all of us in the world of commercial real estate? These are the early days and we will learn as we go along. I have been speaking with appraisers to get their thoughts. Up until a few weeks ago, the real estate market was increasing at a rate we had not seen since before 2008. Most people in the appraisal business had predicted a downturn, or correction looming before we had ever heard of Covid-19. They are telling me now that they believe that this event will trigger this correction. One Appraiser emailed me that once the dust settles, he believes that we will see a correction in values of between 15-35% – as we recover from the lost revenues of this pandemic.

There was an excellent article in the New York Times on March 20th – for full article – Covid-19 and Commercial Real Estate

The gist of the article is that there’s downward pressure on every aspect of every asset class. Assets can’t be valued when tens of millions of people around the world are locked in their homes and commerce has largely come to a halt, with no idea how long the crisis will last. Lack of consensus about the current or future value of assets is also threatening property sales, closing an exit door for investors and landlords. Investment activity could fall by 45 percent this year in the US, Already, large deals are collapsing or getting postponed. The even bigger question is what will come when the crisis recedes. For every kind of property – not to mention a wide range of human activity – there will likely be long-lasting changes,

Investors in real estate make their money when they buy. There will likely be opportunities for acquisition as the Covid-19 situation gets worse before it gets better and before the world at large sees the light at the end of the tunnel. Listening to the Cornel video and understanding what to do has made me understand that there is a light at the end of the tunnel and it is not a time to be fearful. Investors in commercial real estate should be optimistic that investment opportunities may come their way and they should prepare themselves to take advantage of them

For commercial real estate investors that are already fully invested in the market. It is time to hold on and develop strategies with tenants that will enable you to survive until the crisis subsides. Please see my blog post: Lessons For Landlords and Tenants From The Corona Virus

Please stay safe and protect your families first

Commercial Real Estate Values Are At An All Time High

Wed, 09 Sep 2026 13:39:35 GMT

A few years ago, in the wake of the recession, the price of Gas fell one cent $2.00 per gal. I remember taking a photograph of the pylon sign because I did not believe that I would see this price again in my lifetime. It would be something to show my future grandchildren

Yesterday, I took another photograph. Gas had fallen to $1.79/gal. and prices are cheaper elsewhere

When the crown prince of Saudi Arabia gets a head cold the retail price instantaneously changes at my local gas station in Tampa, which is thousands of miles away. The price either goes up or goes down depending on how people interpret the situation and the mood of the prince. The price at the pump changes again after his doctor visits and gives the prince an aspirin. In the petroleum market and in the stock market the process is forward-looking and valuation changes are rapid. It is different for commercial real estate

The value of your commercial property has never been higher. That seems like an absurdity. We are overwhelmed by the Covid-19 Virus and the entire country has shut down. How can this be?

To understand why this can be true we have to look at the appraisal process and how we arrive at the value of a property? When trying to determine the market price of a piece of property, we cannot ask a Seller for his opinion because he will give a price that is too high. We cannot ask a Buyer because he will give you a price that is too low, because that is in his best interest. So. we ask an appraiser. Appraisers are arms-length and are highly trained to determine. It is true that there is always some art woven into the science of the appraisal process and different appraisers may arrive at a different value for the same property. However, the methodology is strictly regulated and has been tested by time. The system has been designed to use facts, not emotions to arrive at a property value. Buyers, Sellers, and Lenders rely on the appraisal process.

The procedures that the Appraisers follow to determine property value are rigid and uniform. Appraisers are compelled to look at comparable properties and, after accounting for differences such as property condition, location, size, etc , the appraiser will impute value to the property they are appraising. When analyzing comparable properties, the appraiser looks at sales price, lease rates and earnings of similar properties that recently transacted. The process that Appraisers have developed is based on historical information

Many Appraisers are still very busy today. There were a lot of deals in the pipeline before the COVID-19 pandemic and the lenders are, for the most part, honoring their loan commitments and Appraisers are providing strong valuations to the lenders. It does not matter that we are today in the midst of an epidemic. Appraisers have their hands tied. If they appraise a property in today’s market, they must use the established procedures of the Appraisal process to determine value. So when the Appraiser pulls up comparable properties today, he is reviewing properties that transacted recently, when we at the top of the real estate market. Appraisers are trapped by the system. They know that COVID-19 will have an effect on property values but the Appraisal process gives themy have no basis to discount property values at this point in time. It is an interesting situation, Buyers and Lenders who had initiated a deal before the COVID-19 crisis are moving forward.to closing. To some, it does not seem to make a huge difference but others privately express concern that they are moving towards closing, fearing that the market today is probably very different from the day that they committed to the deal. Many of them don’t have a choice. They can be sued for specific performance if they back out. The Sellers, on the other hand, are holding their breath and rejoicing.

Recognizing the absurdity, some Appraisers are now putting disclaimers into their reports. They may say that the value is valid at the date of Appraisal only. Or they add a clause saying that the value herein is subject to change based on market conditions

Real estate values are the story of supply and demand. You don’t have to be a rocket scientist to understand that Covid-19 will change the equilibrium, Uncertainty changes the demand. Intuitively, we know that prices have changed. I have already had buyers that had not inked the deal, back out. Some Buyers that had deals in progress are demanding a price concession, even if it means losing their deposit. At the same time, some sellers that I have spoken to are sticking to their sales prices saying that they have not seen values decline. They are right because history has not yet had time to reflect changes. Other Sellers, however, have taken their properties off the market. They will take a step back and wait for the market to recover. The crisis today is very different from 2008 which was basically a liquidity crisis. This time the government is promising that money will be available, so some market participants argue that the effect on property values will not be as dramatic. However, people die, people divorce, people move an some run out of money. Certain lenders may not restructure debt. Inevitably, some property owners will need to sell, even as demand decreases. Buyers are already assembling pools and building cash to take advantage of opportunities that may arise. As these transactions eventually get reflected in the historical Appraisal process, property values will start to decrease. Because the Appraisal process is historical and has a long tail, there will be a time lag in reflecting property values on the way down and again on the way up. No matter what an Appiraser or anybody else tells you, it is time for common sense.

Payment Protection Program (PPP) – Certain Banks Are Using The Cares Act To Protect themselves, Not Their Customers

Wed, 09 Sep 2026 13:37:42 GMT

Payment Protection Program (PPP) – Certain Banks Are Using The Cares Act To Protect themselves, Not Their Customers

Up until a few weeks ago, I was a humble commercial real estate broker, end of story. How I long for that simpler life. Now I have morphed into a counselor spending time trying to help clients navigate the real estate related issues brought on by the COVID-19 shutdown.

Under the CARES Act, a small business employer (a business with fewer than 500 employees) can receive forgivable or low-interest loans of up to $10 million. The purpose is to provide cash-flow assistance to employers who maintain their payrolls during the COVID-19 crisis. This program is known as the Paycheck Protection Program (PPP). The government and lenders are promoting the PPP (Payroll Protection Program) as a wonderful solution for small businesses. The interest rate on the PPP loans is low and if the proceeds are used for qualified purposes such as payroll or utilities the loans will be forgiven.

The guidance given to small businesses is that it is a simple process and that they should submit the PPP application through the bank with whom they have a relationship. April 3rd was the opening date to submit applications

I went with a client to Bank of America on April 3rd so they could submit their PPP application. This client has been a loyal customer of Bank of America for 35 five years and they have always maintained strong deposits in the bank. There can be no question about the long-standing banking relationship. Bank of America refused to even look at the application, saying that the applicant did not meet the BOA criteria for the PPP loan because the applicant company did not owe Bank of America any money. The applicant business has been run in a fiscally responsible manner and at present does not have any loans or credit cards with Bank of America. For that reason, the applicant company did not qualify for relief through the PPP program at Bank Of America.

I was shocked and my client was outraged. They are a small business and were only applying for $20,000 in order to cover payroll expenses. All the propaganda about The Bank of America taking care of existing clients is nonsense.

The PPP loan program is designed to assist employers in maintaining eligible payroll costs within the “covered period.” The “covered period” runs from February 15 through June 30, 2020. The critical part is that the loans are made on a “first come, first served” basis, per guidelines issued by the Small Business Administration (SBA.)

The Banks are the gatekeepers and certain banks such as Bank Of America are only processing PPP loans for customers who owe Bank Of America money. Other clients are barred from crossing the threshold

My interpretation is that there is a simple reason for this code of conduct. The bank does not want defaults on its loan portfolio. In selecting only customers with a loan relationship, Bank Of America is protecting its interests. By processing only PFP loans for these selected customers, the bank is more secure that it will continue to receive loan payments from clients who have existing loans. I do not believe that this policy (i.e. requiring a loan relationship with the bank) is mandated by the SBA. I do believe that Bank of America has taken it upon themselves to select applications from certain clients in order to protect Bank Of America. By the time Bank of America has submitted all the self-serving PPP loan applications to the SBA, the funds allocated for the PPP loan program will have been depleted

Now I get it. Certain banks are using PPP process to protect the banks, not small businesses. The manner in which the program is being administered by certain lenders is neither honest nor fair. Countless small businesses will be shut out completely and they will not be able to keep their employees employed. Relationships are a two-way street. Bank of America and other banks who are operating in a similar fashion will pay a price down the road when their clients leave. This has a long tail.

How wide-spread is this? I suspect that this manner of processing t he PPP applications is occurring at some larger banks. I am not sure if the smaller banks and community banks are operating in the same way. My gut feeling is that the smaller banks will take much better care of their customers. I can only speak factually about my experience with one bank. If I am wrong in my assessment, and it turns out that it is mandatory for all banks to service only their clients with loan relationships then I apologize for this entire article and I stand corrected. If I am correct, then the system is broken and is being abused. People should know about it. There may be other alternatives. I want to share whatever I can learn with my clients and my fellow brokers. I would love to hear from anybody who has been working with banks what their experience has been. Also, I would love to hear from lenders directly, as to how they are administering the PPP loan application process. .Kindly comment below

Flood Risk When Purchasing Commercial Real Estate In Florida

Wed, 09 Sep 2026 13:36:21 GMT

Flood Risk When Purchasing Commercial Real Estate In Florida

Florida is surrounded by water. Intuitively everyone knows there is a risk from flooding but we have learned to live with it. Most people have become oblivious. The thinking is that “that is a small risk that may affect someone else. It won’t happen to me.” Why would anyone be thinking about melting iceberg when they are sitting under the hot sun in Florida? But, science tells us that the Icebergs are melting and sea levels have been rising at an accelerated pace. Science also tells us that wearing a mask will prevent the spread of the Coronavirus. There are plenty of Floridians who scoff at this scientific notion the net result is that Florida has experienced a surging pandemic.

Florida is in the path of Hurricanes. Rising sea levels increase the likelihood that storm surges or water driven by hurricanes will flood properties. Flooding places more real estate and more people at risk in Florida than it does in any other state, by a wide margin. As an example, 40% of St Petersburg is inside the Coastal High Hazard Area that reflects whether a storm surge from a Category 1 hurricane could cause flooding. Imagine what flooding we would see if there is a Category 4 hurricane, which has occurred several times in Florida over the past few years. General insurance policies that property owners and renters carry don’t cover flooding, A specific Flood Insurance Policy is required to insure flood water damage. No other place in the world has the insured exposure to hurricanes as Florida does.

FEMA uses the best available technical data to create flood hazard maps that outline a community’s flood risk areas.

There are two factors to be concerned with:

1) Annual Cost of Flood Insurance:

Banks require properties that they finance that are located in Flood zones to carry flood insurance. Flood insurance can be costly and if your property is in a flood zone, you will pay for it.

The National Flood Insurance Program is up for reauthorization this year. Fiscal conservatives have said they want to use that opportunity to reduce the program’s subsidies so that people are paying something closer to the full cost of their risk. A cut in federal subsidies would particularly hurt Florida, which despite its exposure, pays the lowest average flood-insurance premiums in the country, according to FEMA data.

It is important to understand that a wave will be punishing Florida, whether we have a hurricane or not. That wave is the cost of insurance. The reason for this is Reinsurance, the insurance designed to buffer insurers from large losses. Reinsurance prices have risen by 26%. That has caused major insurance companies on Florida to raise premiums by as much as 33%. Several insurance companies have dropped clients in areas considered to be at high risk of hurricane damage. Citizens, the state-owned insurer of last resort is left holding the bag. Not only will not be able to cope if an expensive storm hits, but taxpayers will also be left holding the bag. for Climate change threatens to make higher insurance (and reinsurance prices) the new normal.

2) Property Values:

The risk for Florida is that climate change could drag down the real estate markets – residential and commercial. Relative sea levels in South Florida are roughly four inches higher now than in 1992. The National Oceanic and Atmospheric Administration predicts sea levels will rise as much as three feet in Miami by 2060.

The chief economist at Freddie Mac, warned in a 2016 report that Flooding in coastal areas could cause a real estate crisis more severe than the Great Recession. It could spread through banks, insurers, and other industries. And, unlike past recessions, properties at risk from Flood water may not recover.

Additional risks to property owners could come from the lending end. If we experience a storm surge and property values start to fall, banks could stop writing long term mortgages for properties in Flood zones. These properties will be more difficult to sell which will decrease their value.

The odds of dying in a car crash are 1 in 103. Because of the risk, we all wear seatbelts. The odds of flooding occurring to a property that is located in the 100-year flood plain is 1 in 100. Yet, aside from taking out flood insurance, people in those properties don’t do anything.

Properties A and B are nearby one another and on the same main road. However, Property A is located inside of the100-year Flood Plain depicted on the FEMA map. Property B is outside of the Flood Plain. It may be worth paying more for Property A because Property A has a superior location or it is a better building and you will transact more business at that location. That is a business decision. But all things being equal, I would advise my client to select Property B. Property B has a lower risk and you won’t have to pay flood insurance

If you are purchasing a property don’t forget to check the flood zone in which the property resides. If you have the choice between two properties, select one that is not in a flood zone. Also, wear seat belts and read science articles.

Steven Silverman, Broker Tampa Commercial Real Estate www.TampaCommercialREalEstate.com

Interview on Commercial REal Estate in Tampa with Fox News

Wed, 09 Sep 2026 13:34:28 GMT

Fox News aired a segment on commercial real estate. They wanted to talk to a competent commercial real estate broker with a good reputation who has boots on the ground. They were referred to me. I spoke to them for 30 min and they aired about 30 sec. Nevertheless, I was happy to help. We are all in a difficult period.

Video Link: https://www.fox13news.com/news/struggling-businesses-push-commercial-real-estate-into-the-red

The Changing Office Market

Wed, 09 Sep 2026 13:33:08 GMT

We learned new behaviors during the Covid-19 epidemic. The new ways of working will be with us for a long time. The office market will always be there but it will be different. Fox News looked to industry leaders for their thoughts and interviewed Steven Silverman

https://www.fox13news.com/news/companies-dump-office-space-as-work-from-home-becomes-more-common

The State of Industrial Real Estate In Tampa Bay, Florida

Wed, 09 Sep 2026 13:27:49 GMT

The State of Industrial Real Estate In Tampa Bay, Florida

Steven Silverman of TampaCommercial Real Estate sat on a panel of experts to discuss the state of the industrial real estate market in Tampa Bay Florida. This was part of an educational series held by the Greater Tampa Association of Realtors for the benefit of brokers and associates practicing commercial real estate. The other panelists were Pat Marzuli of Colliers and Julia Silva of Jones Lang La Salle.

It is one thing to read the market data and statistics but experience sometimes gives a different picture. All the panelists are practicing real estate brokers and were able to bring boots on the ground real-time experience to the discussion.

Here are my views on the subject: To understand the current state of Industrial real estate it is crucial to look at the supply and demand, Over the last three years over 8 million SF of new industrial space was delivered to Tampa Bay. Over 3.5 million SF were delivered in 2020 alone. That is the most industrial space delivered in 20 years. All this was new space delivered in the year that Coronavirus catapulted the economy into a new orbit. Logically, this much space coming onto the market would increase the market vacancy rate and reduce rental rates. That in fact did happen. Annual Rent Growth in the industrial sector fell slightly by 300 basis points. and is now roughly in line with the national average. At the same time, vacancy rates remained low at under 6% which is slightly under the national average. So what happened? It is amazing to look back and realize that during this crazy epidemic, all this new industrial space was absorbed. The second quarter of 2020 posted the second higher volume leased industrial space ever recorded in Tampa Bay. This came at a time when industrial leasing activity stalled nationally.

So what makes Tampa Bay such a nurturing environment for Industrial Real Estate.

Location: First look at the location of Tampa and the infrastructure that has been built. Port Tampa Bay is the largest port in Florida for both acreage and tonnage. Tampa International Airport and St Petersburg Internation Airport have a national and global reach. And of course, there is the CSX rail system. Geographically located at roughly the center point of the Florida peninsula and at the Western tip of the I-4 corridor, freight emanating from Tampa can reach the vast majority of the state’s population with same-day round-trip deliveries. The ability to quickly reach a population of over 20 million has attracted major players and they are still coming. Ace Hardware will be break ground on a 710,000 SF facility. Home Depot has signed on to a new 400,000 sf warehouse. Amazon just announced plans for a new 600,000 sf distribution center in Tampa. This is on top of the 1 million sf facility that Amazon already has in Tampa.

e-Commerce: Habits have changed that has had an enormous impact on Industrial Real estate. Prior to the recession, online shopping accounted for less than 15% of retail sales. That has increased to roughly 35%. The Industrial sector is the net beneficiary and Retail is the net loser. Online Grocery shopping has suddenly become a factor and major players such as Amazon and Walmart are pivoting in this direction. Look for increased demand for freezer-cooler facilities.

Population Growth: Let’s not forget the main driver for real estate. 1,000 people per day are moving to Florida. Many are fleeing the urban epicenters of the midwest and northeast

Developers in Tampa are ready for more growth with millions of square feet of new projects hoping to break ground. However, the pandemic is causing some developers to pause and view the market with some caution. Construction prices remain high. On a national level, we have already seen some weakening in the national economy due to the pandemic and effects of a trade war and construction prices remain high. On balance, the Industrial sector in Tampa has been a stellar performer but it is not all roses. Market participants serving the hospitality industry and retail sectors have been certainly experienced a negative impact

Exciting technological changes are in the future for Industrial real estate. You will recognize the distribution and manufacturing facilities of tomorrow but they will certainly be different. Higher ceilings, Large lots for electric charging of vehicles; Autonomous vehicles will accelerate distribution; Drones will deliver merchandise; Robotics will play an increasing role; 3-D Printing will make manufacturers more nimble; Artificial Intelligence will make all facets of the industry more efficient. Growth in the industrial sector does not necessarily mean more jobs. This innovation will reduce the rate of participation of labor in the growth of the industrial market.

The trends bode well for the Distribution sector. The question is whether the manufacturing capacity that has moved offshore will come back to the USA. Many are touting the return of manufacturing due to the technological trends that will offset cheap labor costs and the advantage of local manufacturing being able to provide just-in-time delivery of manufactured goods. Perhaps this will occur to some extent, but I am not skeptical. I have been to factories in China and was amazed. All we read about here is that cheap labor is the reason why the US industry cannot compete. Touring Chinese factories, I realized that it is not only cheap labor that gives China an advantage. The technology that I saw in the offshore factories is vastly superior to aging equipment in USA factories. We are dreaming if we discount this. Our offshore competitors will not stay idle. They will continue to innovate and make the same technological advances we do. China and other offshore manufactures do not have to deal with the regulations that many USA manufacturers face. In the early ’80s, when I came to America, 90% of garments sold in the USA were made in the USA. Today, that number is less than 5%. Offshore manufactures have developed a skilled labor pool that we have lost over the past generation. Use it or lose it. I am betting that the growth in the Industrial sector will continue, but it will be in Distribution.

How to Find Out Everything You Need to Know about a Multifamily Property, Before You Invest

Wed, 09 Sep 2026 13:25:36 GMT

As commercial real estate brokers, we at Tampa Commercial Real Estate counsel our clients on how to improve their chances for success. One of the most important steps in the process of the acquisition of a property is to secure financing. It is imperative for investors to understand how to work with a lender and what information your lender will require in order for you to receive financing in the shortest possible time. Andrew LaSalla, a Principal at LSG Lending Advisors is a respected lending advisor who shared his thoughts on the subject with Tampa Commercial Real Estate.

How to Find Out Everything You Need to Know about a Multifamily Property, Before You Invest

Multifamily properties can be healthy investments. However, before you buy an existing multifamily apartment building, careful research must be done to determine whether to move forward with the property you’re considering.

Multi-Family site – sold by Tampa Commercial Real Estate

Use this article as a guide to get the information you need before purchasing a multifamily property.

Information from the Current Project Owner

The first step is to ask the existing project owner for the current rent roll and the last three years of historical operating statements for the project.

Rent Roll

The rent roll includes important data such as the type of unit, unit size, rent received, any subsidies for affordable units and whether units are occupied or vacant. It will also include move-in dates and lease expiration dates which can help you determine how long renters tend to stay in the building, whether most renters stay long-term or if there is a high rate of renter turnover.

Historical Operating Statements

Historical operating statements give the investor a snapshot view of the historical revenue of the property and ancillary income. They also provide a glimpse into the cost of expenses, including utilities, payroll, advertising, repairs and maintenance, security, property taxes and insurance, as well as other operating expenses. It is important to compare these expenses year-over-year, and look into large variances in further detail.

One-off capital expenses to upgrade the project, such as the installation of new HVAC systems, roofs, windows and siding, should be categorized separately. A common mistake is to categorize expensive, one-time repairs under “repairs and maintenance”. This will result in higher expenses and lower net operating income.

Look at the Last 3 Years of Occupancy

Investors should also review the occupancy records for the last three years. Look into whether occupancy has increased, decreased or remained consistent.

If the occupancy has decreased, is it due to newer projects in close proximity, increased unemployment in the area or poor management?

If the occupancy has increased, is it due to the market, or were large concessions offered to decrease vacancies?

Review Data from Nearby Multifamily Apartments

Once you have gathered and reviewed financial information on the property you wish to buy, look at data for other multifamily apartments in close proximity and in the same market.

Compare properties in the same class (A, B or C) with the property you wish to buy. Look at unit sizes, rental income and expenses compared to the project that you are looking to purchase.

Remember that older properties, such as class C assets, may require significant capital to make improvements that would justify increasing rents to compete with newer projects.

Use Data to Plan for the Future

Experienced investors should use operating statements to assess where expenses can be reduced and where revenues can be increased in order to get the return they are looking for. Consider how long major renovations will take and how much they are likely to cost. If you are serious about a property after reviewing the financials, request recently-completed third-party reports, including a CNA (Capital Needs Assessment) report and the most recent appraisal.

How to Secure Financing from Your Chosen Lender

It is important to note that lenders will also review a project’s historical operating statements when an investor approaches them for financial services. Lenders do not underwrite based on future projections.

When you are ready to request a term sheet from your chosen lender, having the following items available will help them expedite your request:

The current rent roll.

Trailing 12-month operating income statements.

The last 3 years of operating income statements.

Acquisition date and purchase price of property.

Property address.

Résumé of principals.

Personal financial statement.

REO (Real Estate Owned Schedule).

Mortgage statement (reflecting current debt and reserves).

A list of repairs and capital improvements made in the last 3 years.

Proposed or required repairs to the project.

Low-income occupancy covenants and approved utilities, if applicable.

Any third-party reports that have been completed in the last 5 years.

A copy of the organizational chart of ownership.

The original and current HAP contract, if applicable.

Invest with Confidence

With a thorough understanding of how the multifamily apartment project you’re interested in currently operates and how it compares to competitor projects, you can make an informed decision to invest.

This blog post was contributed by Andrew LaSalla, Principal at LSG Lending Advisors. Andrew is a trusted financial consultant dedicated to helping clients secure loans for multifamily, healthcare, affordable housing and student housing properties.

Thoughts on Workforce Housing

Wed, 09 Sep 2026 13:22:13 GMT

As a commercial real estate broker I have assisted multi-family clients with both market-rate and affordable projects. The difficulty that working folks experience in finding an affordable place to live should be a concern for all of us.

Most new apartments coming onto the market are in the luxury category. One reason for this is that due to the rising costs of land materials and labor, developers are finding that the only way for them to be profitable is to construct a premium product. The private sector cannot obtain a satisfactory return on investment by developing workforce housing.

Financing is another obstacle facing affordable housing. Commercial lenders will often make capital available only to the top tier of the apartment rental market. Projects targeted to providing housing for poorer Americans must rely on funding from federal programs such as low-income housing tax credits. We are not doing enough for workforce housing. The demand for workforce housing far exceeds the supply. The biggest shortage of housing affects middle range workers that earn 60%-120% of area median incomes.

Here are two innovative approaches that I have seen in the market place that may help to provide partial solutions to the workforce housing crisis

1. Adaptive Re-use

Ironically, the pandemic that hurt so many in the workforce may have created an opportunity to assist in the creation of multifamily apartments for middle-income workers. During the pandemic, one of the hardest-hit segments of the real estate sector was the Hospitality segment and many hotel properties found themselves in severe distress. Adaptive reuse of distressed hotels is an exciting avenue in which to expand the availability of affordable housing. Developers across the country are examining the possibility of converting distressed hotels into workforce housing. Several such projects are already underway.

For example, in Alabama, a private company has acquired a Ramada Inn that had been on the market for a year they are converting the former hotel into 120 energy-efficient one-bedroom workforce targeted apartment units. The development will include co-working spaces, a gym, a pool, daycare, storage, and even a nature trail. Rents will be in the range of 500 to $700.00 per month. The project will be completed in 2022. In Branson Mo, a former Days Inn property is nearing completion as a 341-unit apartment complex.

Credit: Fort Worth Housing Solutions

The private developers are first out of the gate. They are undertaking adaptative reuse projects without using federal funding or tax credits. The privately funded deals can close faster and give the owner more flexibility. But there is no reason that public housing cannot learn from what the private developers are doing and pursue a similar strategy. Help is available. I have spoken with contractors in Florida who are now focusing on adaptive reuse and can help developers and public entities in the analysis and construction of adaptive re-use projects

2. Space Sharing

In the 21st century, we have moved towards the culture of sharing assets in order to more efficiently use the asset. We share vacation space assets using Airbnb. We use ride-share services such as Uber, office share spaces such as We-Work, bike share, scooter share, etc. In ten years, we will have driverless cars and we can expect to see people moving away from owning a car to a shared system where they summon a vehicle when they need one

So how can we use the sharing phenomena for housing? I am a co-host of the Invest Florida Show, a weekly podcast focused on real estate investment in Florida. Hosting the show gives me the opportunity each week to learn from smart people and be exposed to new ideas. One recent guest described his real estate investment strategy where he has figured out how to use a shared space strategy for real estate investment. He purchases small apartment buildings, removes the communal spaces such as the living room, dining room, study, etc., and converts those communal areas into bedrooms. Each property is of course different. But, as an example, he may end up reconfiguring a unit that previously had 3 bedrooms into a space with 5 or six bedrooms. He then rents out each bedroom for $500-$600 per month. The residents share the kitchen and bathroom areas. One might think that a shared living environment with residents living in such proximity would cause problems.

This enterprising landlord also figured out how to structure the management and ground rules so that there are very few problems with residents and less work is required for him as the owner. He told me that this is a win for the residents. It is a solution for a segment of the population. With his projects, they have a clean, affordable space where the building is maintained, and they feel safe. The landlord gains also. By creating additional rooms for rent he boosts his revenue and achieves an acceptable return on his investment. Is there a way to scale this approach?

The shortage of workforce housing was a problem before the pandemic, and it will only worsen as the population increases. It is a social issue facing all communities. Now, as the economic hardships caused by COVID-19 accelerate, the need for affordable housing will become even more pressing. There is no panacea; not one single simple solution to solve the problem. It is imperative to think out of the box and explore multiple creative ways to address this issue.

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