It doesn’t take a master’s degree in economics to see that Pasco County’s commercial real estate market is going strong.
Take a drive down the State Road 54/State Road 56 corridor, and you’ll see new developments popping up, and for sale property signs planted everywhere.
As spaces along that corridor become too expensive or less available, more activity is expected along U.S. 41 and Wesley Chapel Boulevard, and U.S. 301 in Zephyrhills near the end-point of the State Road 56 extension, predicts Jim Engelmann, a broker with Commercial Partners Realty Inc., who will be moderating a fall forum on commercial real estate in Wesley Chapel on Oct. 18.
“It’s a really good time to lock in in Zephyrhills right now,” Engelmann said, because the prices will increase once the State Road 56 extension is done.
“It’s a fantastic time to buy right now.”
“There’s not a lot of high-quality office space available in Zephyrhills right now. There is some, but there’s not a lot.
“What’s going to happen is that slowly, people are going to buy and either remodel, or they’re going to buy, demolish and rebuild.
“They’ll start to put up better quality over there, but that’s 10 years down the road.”
“The challenge we’re starting to see along (U.S.) 41 now is that the property that’s available doesn’t match up with what the users can pay, in a lot of cases,” he said.
“What you see right now is a lot of owners who are not willing to develop the property. It’s just a piece of bumpy, flat land,” he added.
Engelmann also noted that Pasco County has been taking steps to attract more commercial development.
“Pasco is doing some really good things to bring business into the county. They’re doing incentives,” said Engelmann, who is president-elect of the Rotary Club of Land O’ Lakes and a board member on the Central Pasco Chamber of Commerce.
Pasco County waives mobility fees for some target industries and offers loan forgiveness for projects meeting specific criteria, he said.
Engelmann also noted that Wesley Chapel continues to be a hot market.
Wiregrass Ranch continues to attract interest, Engelmann said, praising the approach the Porter family has used to promote quality growth.
“It’s incredible what they’re doing out there,” he said. “They’re being smart about what they’re doing.”
Looking to lease commercial space?
Jim Engelmann, a commercial real estate broker, said these are some things you should keep in mind:
- Know what the rent includes.
Who pays for janitorial services? Who pays for water and sewer?
Who maintains the air conditioning and heating?
“If you are responsible for the air conditioning, you need to find out: Do you have service records on the air conditioning?
“Have you had a bi-annual inspection and upkeep? If they haven’t, I would push back on that, as a renter.
“You have to protect yourself as a tenant, to make sure the property has been maintained adequately.
- Before leasing, talk to other tenants.
“A lot of people won’t do that. They don’t want to bother anybody.
“You know what? Every tenant wants to tell their story. If you go ask somebody, ‘How do you like it here?’
“They will tell you whether or not they like it. They’ll tell you the five or six things you need to be aware of, with that landlord.
“People who have already experienced those things that go wrong, let them tell you what went wrong.”
- Be sure the property meets your needs.
“If you have an office and people come to you, you’re a destination for them, it doesn’t matter what the traffic is like. But, if you are a retail user looking for drive-by traffic, you’ve got to know what the traffic counts are out on the street in front.
“Go sit there during the day. See what type of traffic flow there is.”
- Have your attorney check out the lease.
“Every single lease is completely different. I’ve seen two-page tenant leases; I have seen 40-page tenant leases for the exact same type of property.”
- Remember, everything is negotiable.
“There is nothing in a lease that is not negotiable. Every term, as far as payments, security deposit, when you pay, how much your share of something might be. Everything is negotiable.”
Also, don’t rule out a space, even if it seems too pricey.
“A lot of times people will look at a price of something listed online, and they’ll see that it’s $37 a square foot, (and they’ll think) ‘Yeah, but you know I can only afford $32, so I’m not going to bother calling.’
“You know what? If it’s been on the market six months, eight months, a year, they’re going to talk to you.
“It’s always worth the phone call.”
Commercial Fall Forum
Where: Hilton Garden Inn in Wesley Chapel, 26640 Silver Maple Parkway
When: Oct. 18, 11 a.m. to 2 p.m.
Cost: $20 for members of Central Pasco Association of Realtors; $25 for others (fee includes lunch)
Details: This forum features a variety of topics related to commercial real estate and will include several speakers.
Info: (813) 948-6966
Published October 17, 2018
