Bonita Springs

With a burgeoning growth rate of almost 20 percent from 1990 through 1996, Bonita Springs is in the midst of major expansion. Anyone driving north or south on U.S. 41 need only take a few sidelong glances to see evidence of the changing complexion of this once rural and sleepy, but increasing busy, thoroughfare.

Frank D'Alessandro, a Fort Myers commercial real estate broker, says "Bonita Springs is quickly becoming one of Southwest Florida's premier communities, providing mid- to upper-end residential developments that are well-supported by commercial development. As the residential and commercial activity in Bonita increases, coupled with improved transportation infrastructure, the end result will be growth, and plenty of it."

According to Craig D. Timmons, CCIM, of John R. Wood, Realtors in Naples, "Eight years ago, it was no-man's land. From a retailer's perspective, there was nothing. Rooftops were modest and scattered." With Naples pushing northward through the development of Pelican Bay and other communities "pushed the envelope north into Bonita."

Among the first residential developments was Spanish Wells in 1980 and three years later Bonita Bay.

Currently, Bonita Bay Properties is developing The Brooks, which is slated for 5,200 single- and multifamily housing units. "From a retailer's perspective, when there is enough houses, commerce and business, this is a viable market," says Timmons.

Retail and Services

Apparently so. The list of new commercial activity is extensive and exhausting. Publix, Winn Dixie, Albertson's, Kash 'n Karry, Target, Kmart, Office Max, Perkins Family Restaurant, Walgreen, Eckerd, McDonald's, Burger King, Taco Bell, Applebee's, and Hampton Inn all have at least one establishment on or just off of U.S. 41. A car dealership and the Americinn Motel are currently under construction just south of Bonita Beach Road.

A sure sign of confidence lies in the fact that eight banks have built at least one branch in this area. Like many of the other businesses establishing themselves here, it may take some years before profits are realized but retailers are digging in now to be well-positioned when the population catches up to the development levels. "They want to stake out their turf, maybe come in a few years early. If they can get a key spot, then that's what they want to do," says Timmons. He adds that there are still tracts available in the Spring Creek area on U.S. 41 across from Pelican Landing.

Timmons says that while there are several fast-food eateries, the casual theme dining restaurants (those serving alcohol) usually like to situate themselves near office space to grab the lunch crowd. While it might appear there's a shortage of places to enjoy a meal and libations, that's soon to change.

Plans are under way by The Lutgert Companies to bring in a broad range of top-quality restaurants at The Promenade, located on U.S. 41 at Bonita Bay. When full, The Promenade will boast specialty shops and office space. Office spaces will lease for $19 per square foot; retail is expected to fetch in the mid to upper $20s per square foot, plus CAM and marketing fees. Because of the upscale tenants The Promenade is expected to accommodate, space is priced higher than the $15 to $18 per square foot for anchored space.

According to Dougall McCorkle, director of leasing and commercial development, the first phase of the project will provide 80,000 square feet now with another 35,000 square available in the second phase, which is in the planning stages. Ground is expected to be broken this month. This is the first commercial project in Bonita Bay by Lutgert. Asked about future plans for other Lutgert development projects, McCorkle says if it makes sense, the company will take a look at

The Shoppes at Pelican Landing is being developed by partners Jim Nashman and Richard Laura. With 81,312 total square footage, the center is anchored by Publix and space directly south of Publix is 90 percent leased. Phase II includes another 24,000 square feet of which 75 percent is leased. Nashman says "junior anchor" spaces are available at $14.50 per square foot. General retail space rents for $17.50 to $18 per square foot, not including CAM fees, which are $3.75 per square foot.

"It's extremely difficult to find small parcels," according to Timmons. Nashman says the Shoppes has leases with a residential real estate firm, framing shop, hair salon, cleaner and dentist.

Keep in mind that prices per square foot of retail space can differ significantly depending upon what is included, such as common area maintenance charges or the location of the space within the shopping center.

Industrial

Midway in the Fort Myers-Naples growth corridor is Railshead Industrial Park, located on old U.S. 41. Out of 42 lots, only 5¾ are still available. While there are other smaller pockets of industrial space, much of it is representative of 20 years ago and it is scattered haphazardly throughout the area.

Railshead is a grassy area with park-like grounds and smarter buildings with attractive facades. Smarter meaning that a 102,000-square-foot space has a 26-foot eave height, which allows for more cubic rather square feet. According to Stan Stouder, commercial Realtor, "There are more upscale-type of industrial users." He adds that he is working on space with a moving company who can stack their inventory up. The walls have concrete blocks and metal above that to avoid punctures made by forklifts and the like.

Prices range from $4.50 to $5.50 base charge per square foot with $1 per square foot for the cost of common area maintenance (CAM).

For free-standing industrial space, Stouder says, "If you're thinking of going to Bonita and you need industrial space, give yourself enough time to build a building," and adds that new space is being absorbed within a "reasonable time frame."

Keeping up the Pace

The total dollars invested in commercial growth can be measured in terms of permits. Though final figures are not available at this time, the year-to-date building permit totals stood at $46,675,068, representing a 177 percent increase over the prior year. In 1996, a 55 percent increase occurred from the previous year with a total of $16,863,884. Three years ago, in 1994, the permit total for the Bonita Springs submarket was $8,217,822.

What does this mean? "What's happened is we are at construction levels of 500 percent of our 1994 figures. Five times the level of activity we were enjoying four years ago," says Ross McIntosh, a Naples commercial Realtor. The lead time for such demands, says McIntosh, is typically two years. With the market's cyclical nature, "that demand can completely change in that period of time."

The end result of such an occurrence is oversupply, which is not the case now. "Oversupply doesn't occur in all segments of the market simultaneously or even on the same block or the same neighborhood. It's a tren