East Fort Myers

There's an area in East Fort Myers that seems to be

forgotten. It's the area east of I-75 where large tracts of vacant land are interrupted

by sporadic pockets of dated homes and businesses and a few cow fields.

Surprisingly, a large six-lane highway snakes through the area and seems to be

a road to nowhere. State Road 80, originally constructed in the 50's, has been

expanded and has undergone improvements twice in the last 20 years. No doubt,

the expectation was that residential and commercial development would fill in

around this major artery. It didn't. But now, it seems that the area is on the

edge of a major development breakthrough that will change the face of East Fort

Myers.

In the Beginning

Before we predict the future, let's examine the past. In the

late 70s and early 80s, Southwest Florida began to see a substantial population

increase, and a growth pattern emerged. Typically, development clusters around

major roadways and waterfront properties. Therefore U.S. 41 and coastline

development prospered. However, during this time, a distinct chasm remained

between Fort Myers and Naples. Very little development was apparent between San

Carlos Park and Pine Ridge Road, which was considered north Naples. Then, out

of the blue, Bonita Bay Properties purchased a large parcel of land in Bonita

Springs.

This purchase took the commercial development community by

surprise. Why would Bonita Bay buy land in the middle of nowhere? It turns out

that they were the pioneers at the forefront of a tremendous growth trend.

Let There Be Flight

Although Bonita Bay Properties was the first to recognize

that a boom was on the horizon, there were, in fact, several indications that

the market was ripe for growth. Studies showed that commercial airline

passenger traffic had increased 100 percent per year since 1938. With this kind

of growth, Page Field, the county airport located in Fort Myers, was simply

inadequate. The runways were too short and the facilities couldn't handle the

number of passengers coming to the area. After much deliberation and

controversy, Southwest Florida Regional Airport opened its doors in 1983.

As the airport opened in Lee County, Collier County was

experiencing growing pains of its own. The lack of available and affordable

land in the county coupled with tighter development restrictions pushed

development north into Lee County. The completion of I-75 made travel between

Fort Myers and Naples more convenient, and Bonita Springs, as predicted by

Bonita Bay Properties, became the obvious choice for development.

Rolling with the Changes

Throughout the 90's, a major in-fill occurred between south

Fort Myers and north Naples along U.S. 41. Soon, available land along U.S. 41

and west was virtually non-existent. In 1991, the Alico Inc. site was selected

for the 10th four-year state university, Florida Gulf Coast University. This

major entry began to define the development of the area.

The vast development of residential areas between I-75 and

U.S. 41, encouraged the expected commercial growth that typically follows a

major artery. Small business upstarts such as gas stations and convenience

stores, plus large commercial establishments such as Miromar Factory Outlet

Stores and TECO arena, soon began appearing along the interstate.

Travelling north on the interstate, between exits 22 and 23,

even more commercial development, including an entertainment district with a

mega water park and a mammoth retirement community are planned. With the

population density in this area expected to grow exponentially, the question

becomes, where are we going to put everyone?

Back to the Beginning

Remember how Bonita Bay Properties had an almost prophetic

vision of growth and development in Bonita Springs, an area that everyone had

seemed to forget about? Guess what? They've done it again. Bonita Bay has

purchased more than 1,000 acres from the Baucom family and acquired Marina 31

in East Fort Myers. In addition, Forest City Development purchased a 700-acre

ranch and an east coast developer purchased a 318-acre hay farm for a planned

single-family development off Buckingham Road.

The last frontier in southwest Florida is soon to succumb to

the back hoe and the bulldozer. Sensitive to environmental issues however,

developers have established a close working relationship with the Army Corps of

Engineers to keep density to a minimum. The plan is to build only one unit per

acre to minimize urban sprawl and maintain the ambiance of the area.

Go East Young Man

So where do we grow from here? Smart investors are keeping a

close watch on the sleepy little towns of Alva and LaBelle. The four laning of

State Road 80 in the area is a key indication that growth is anticipated to

continue its easterly progression. As development inches its way eastward,

property value along State Road 80 should increase accordingly. Who knows,

there may be gold hidden in the last available land parcels and the first ones

to claim their stake may be sitting on their very own gold mine.

Tom Woodyard is an Advisor at Grubb &

Ellis|VIP-D'Alessandro, a full service commercial real estate company located

in Southwest Florida.