Commercial brokers and agents who call downtown Fort Myers, Florida as their venue of operations will have no problem finding commercial properties to offer to buyers. However, majority of these commercial structures require significant rehabilitation before they can be rented or sold, hence the reluctance of buyers and renters to make a deal.
Just like most foreclosed homes for sale in the area, downtown commercial structures are in need of repairs which often discourage buyers or tenants since they need to invest significant cash on improving the premises' conditions before they can move in. This, market observers reveal, is not a very attractive prospect in a market that is taking only its first steps towards recovery.
According to market analysts, not a lot of investors have the means to finance the needed improvements, particularly with lack of potential tenants to pay the rent and provide a way for investors to recover their repair expenses. On the other hand, buyers will not be able to get tenants if they refused to work on the necessary repairs, which brings the situation back to where it started and which usually leads to commercial property buyers or tenants opting not to make any deal.
Despite these difficulties, commercial brokers from the city believe that the downtown commercial property industry is on its way towards some improvements. They cited several high profile development projects in the area as proof that commercial real estate is starting to make headway towards a recovery.
One of these projects involves RLJ Hotels which is expected to take over the foreclosed property, Hotel Indigo. The latter was foreclosed on last March by TIB Bank. According to analysts, the low prices of commercial structures in downtown Fort Myers somehow offset the trouble of renovations needed for most of the properties and some investors still believe that these structures are worth investing into.
Other significant deals, including the Bradford House and the Sky Bar building, add to the optimism of commercial brokers that the downtown commercial real estate is on its way towards a recovery despite the need for an area-wide rehabilitation. Agents believe that the rest of 2010 will bring only positive developments to the market.