Look No Further

By:style='mso-tab-count:2'> Craig D. Timmins, CCIM

style='font-size:10.0pt;font-family:Arial'>Bonita Springs is proving to be one

of the hottest areas in Southwest Florida. High-end retail centers, expanding

residential projects, and record leasing and sales activity for office space

make the area between Fort Myers and Naples increasingly desirable.

style='font-size:10.0pt;font-family:Arial'>If you are not convinced, talk to

Tom Tippett of Appraisal Research Corporation. His company has been conducting

surveys in the area every year for the past 20 years. What they discovered in

their most recent survey, conducted in mid-1999, astonished them. More than one

million square feet of office space is coming on line in Bonita Springs and

Naples within the next 12 months with Bonita getting a large share. One of the

most impressive findings is that a large portion of this space is already

leased or sold.

style='font-size:10.0pt;font-family:Arial'>"This number reflects more

office activity in one year than in any two consecutive years in the

past," says Tippett. "As more offices are built and space is

absorbed, the market responds by imitating the winners."

text-autospace:none'>Garden-Office

Market Growing

style='font-size:10.0pt;font-family:Arial'>The garden-office concept, a popular

trend, accounts for nearly 300,000 square feet. This office type defies the

typical categorization of office buildings. These offices are similar to a

Class C building in that both encompass approximately 3,000 to 5,000 square

feet. The difference lies in the quality and appearance of the garden

office…and the price tag. The average lease price is $16 to $18 per square foot

or $150 per square foot to purchase. These prices are more in line with a Class

A building.

style='font-size:10.0pt;font-family:Arial'>According to Tippett, we may see

Class B and Class C offices take a significant hit. Many of the new offices are

being offered at current rates. It's very attractive to be able to move to a

newer updated building for a price that is close to what they are paying for

their current office.

text-autospace:none'>Class

A Offices Planned

style='font-size:10.0pt;font-family:Arial'>McGarvey Development, noting the

growth in the area, is developing a large tract of land in Bonita Springs. The

company recently launched its largest commercial venture in southwest Florida

-- the Riverview Corporate Center. This 24-acre site along the Imperial River

will accommodate 239,000 square feet of Class A office space.

style='font-size:10.0pt;font-family:Arial'>Colonial Bank has announced that it

will relocate its southwest regional corporate headquarters to the site and

will occupy 14,000 square feet of the first building in the complex, Colonial

Corporate Center. This 46,000 square-foot office site will set the stage for

nine upscale office buildings planned for the parcel. Other tentative plans

include a 6,000 square-foot restaurant on the Imperial River and as much as

30,000 square feet of retail space is permitted.

text-autospace:none'>What

about Retail Growth?

style='font-size:10.0pt;font-family:Arial'>Bonita Springs is not only home to

large office complexes, the area is attracting impressive national retail

chains as well as a growing number of specialty shops and quick service

restaurants. The recent expansion of The Promenade Shops at Bonita Bay

indicates a noteworthy trend. Prestigious stores such as Chico's, Jami's,

DuFrane Jewelry and Simply Natural lend an air of sophistication to the center

attracting even more high-end retailers. Trendy restaurants like Roy's,

Houlihan's and South Bay Bistro add a cosmopolitan feel to the center.

style='font-size:10.0pt;font-family:Arial'>"Additional upscale retailers

including fashion-apparel stores, retail gifts and another restaurant are

expected to join as we expand," says Dougall McCorkle, Director of Leasing

for the Lutgert Company, owners of the Promenade. "Phase II will add an

additional 25,000 square feet to the

style='font-size:10.0pt;font-family:Arial'>existing 85,000 square feet from

Phase I."

style='font-size:10.0pt;font-family:Arial'>However, The Promenade Shops are not

the only retail centers attracting interesting retailers and restaurants.

Durango Steakhouse, one of the few national sit-down restaurants in Bonita

Springs, located one of its restaurants at The Prado at Spring Creek, a new

98,000 square-foot shopping center that includes a new Regal Cinema.

style='font-size:10.0pt;font-family:Arial'>"We bought the center because

of its prime location and the expected growth of the area," says Rainer

Filtaut, CCIM. Filtaut who negotiated the transaction as a Broker of

International Realty Consultants is the vice-president, general partner of Diag

Investment IV Limited, the company that bought the center. "It is already

more than 90 percent leased, which indicates to me that it's a good

investment."

style='font-size:10.0pt;font-family:Arial'>Also keeping a close watch on growth

patterns and trends, McDonald's razed its old restaurant at Springs Plaza and

built a brand new one in the same spot. They recognized the influx of

competition and the higher caliber of clientele and decided to completely

retool its restaurant, giving it a fresh, updated look. Capital reinvestment by

such a major national entity suggests a high level of confidence in the market

place.

text-autospace:none'>What's

Next?

style='font-size:10.0pt;font-family:Arial'>All indications point to more

growth. There are no signs of a slow-down in the near future as we see

bulldozers and cranes forging ahead. As prime commercial land in Collier County

continues to become more and more scarce, and residential growth continues to

explode, the progression of the commercial market into Bonita Springs is

inevitable. The area that once represented a vacuous stretch of highway between

Fort Myers and Naples is quickly becoming a thriving metropolitan area and a

coveted location for investors and developers.

style='font-size:10.0pt;font-family:Arial'>

style='font-size:10.0pt;font-family:Arial'>Craig D. Timmins, CCIM is a

principal with Grubb & Ellis|IPC, a full-service commercial real estate

company serving Southwest Florida.