lee county florida land market report

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Land Market Report Lee County, Florida

October 2013

Independent market research, analysis, and commentary to help you make better decisions About this report

This report is intended to provide an objective assessment of market conditions in Lee County. The best way to accomplish this is by looking only at numbers which are consistent and leave little room for error or interpretation.

By starting here we can find concrete statistics and trends that allow us to make broader interpretations of market strength and momentum. The commentary provides a forward looking interpretation of the data as well as strategies for market participants.

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Total Lee County, Florida Land Market

$4.03 Billion Total Value* 184,852 Total Parcels of Land 183,696 Total Acres

October 2013 Purchase Prices

Median One Standard Deviation Range $65,557 / Acre $32,797 to $1.7 Million / Acre $1.50 / Sq. Ft $0.75 to $39.53 / Sq. Ft

Example of Median $ per Acre / Sq. Ft. Land Sale – Cape Coral, Florida

Example High $ per Acre / Sq. Ft. Land Sale – Fort Myers Beach, Florida



Example of Low $ per Acre / Sq. Ft. Land Sale – Fort Myers, Florida

Total Transacted in October 2013

Amount Transferred M/M Y/Y % of Market $15.6 Million* ▼ ▼ 0.39% 692 Parcels ▼ ▼ 0.37% 263 Acres ▼ ▼ 0.14%

Compared to September 2013

$38 Million 908 Parcels 1,608 Acres

Compared to October 2012

$58.8 Million 1,106 Parcels 4,909 Acres

Assessment of short term and long term momentum The month over month and year over year activity quickly pulled back in October 2013. This after a few years of sharp recovery is to be expected; and here it is. Correlation to broader markets Publicly traded real estate companies have lagged the overall rally in US equities indicating (and confirming) the relative weakness of real estate. Big picture interpretation Markets are typically cyclical. However, since the 2008 nose dive and multi-year sharp recovery, we have seen more rapid and one-way changes in values than what has been normal for many decades. As the volatile boom, bust, and recovery years move further into history; we could now be at the beginning of the first intermediate term cyclical pullback in real estate since 2002.



Current strategies for buyers and sellers Buyers that have missed opportunities during the recovery rally may be able to find opportunities over the next few months. Sellers that have other opportunities may need to be more aggressive about finding the current best buyer and making a deal happen. What to watch for Transaction volume is seasonally expected to decline at the end of the year. Seeing November and December numbers lower on a month over month basis would not be significant. However, if transaction volumes are lower on a year over year basis, then this would be further confirmation of an intermediate pullback. If transaction volumes rise into the end of the year, then the pullback may be nothing more than a pause and we could be back to the races in the first quarter of 2014. October 2013 Transactions by Type

Type Number Acres Value* Vacant Residential 663 186.49 $12.8 Million Vacant Commercial 24 10.50 $ 995,212 Agricultural 2 9.71 $ 479,153

October 2013 Transactions by Location Cape Coral had the highest dollar volume and second highest number of transactions in October. Lehigh Acres had the highest number of transactions, primarily in low priced vacant residential lots. Cape Coral $4.5 Million

221 Parcels

56.9 Acres

Fort Myers

$3.2 Million

74 Parcels

37.7 Acres

Bonita Springs

$2.88 Million

63 Parcels

14.9 Acres

Estero

$1.1 Million 29 Parcels

6.3 Acres

Fort Myers Beach

$804,000 2 Parcels

0.43 Acre

Alva

$581,017 16 Parcels

22.6 Acres

Lehigh Acres

$639,000 250 Parcels

74.1 Acres

Sanibel $636,500 3 Parcels

1.5 Acres

North Fort Myers

$454,374 17 Parcels

24.8 Acres

Bokeelia

$267,240

8 Parcels

15.9 Acres

Saint James City

$256,005 6 Parcels

3.3 Acres



Additional Market Size Information Total Market Breakdown by Type

Type Number Value Vacant Residential 172,018 $ 2.25 Billion Vacant Commercial 7,396 $ 322 Million Agricultural 3,498 $ 911 Million Vacant Institution Owned 982 $ 54 Million Vacant Industrial 661 $ 99 Million Unclassified Acreage 254 $ 88 Million Open Storage 42 $ 10 Million

Andrew Falde is a market analyst, advisor, and investment manager. For more information, please send an email to [email protected]. Subscribe at www.crecentral.com to get updates and notifications of new market information and reports.

*Just Value is the price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other.

This information is gathered from sources that are deemed reliable however no guarantees can be made as to the accuracy or reliability of the data. This is not an appraisal and should not be the sole source of information for any decisions that you make. Property data is provided by the Lee County Property Appraiser’s office.


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lee county florida land market report

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