TALLAHASSEE, Fla. (WTXL) — Tallahassee is becoming a hub of commercial activity from retail to manufacturing and healthcare. Commercial real estate experts said the market is going to do really well in the future.
That future could get complicated with ongoing inflation and high interest rates. From new housing on North Monroe to new restaurants on Thomasville Road, investments in new commercial real estate are driving business in Tallahassee.
Just ask Ed Murray.
“The market’s been on a good run over the last many years,” Murray said. He’s president at NAI TalCor, a commercial real estate agency based in Midtown. “With the effects of inflation, rising interest rates and less consumer confidence than what we used to have, the market is starting to cool down a little,” Murray added.
In November, the Federal Reserve raised interest rates another 3/4 of a point to try and get inflation under control. That’s not stopping construction at 4Forty North Apartments. The complex is a mixed-use development that will bring more than 200 residential units along with retail across from the Hotel Duval on Monroe Street.
It’s an idea City Commissioner, Jack Porter, sayid could drive more business to the downtown area. “I think that Tallahassee is on a good trajectory in attracting small, medium, large-sized businesses to our area,” Porter said.
The Big Bend has already attracted huge investments like an Amazon Fulfilment Center, which is expected to create more than a thousand jobs when it opens in 2023.
It has also attracted restaurants like Raising Cane’s to West Tennessee Street and inspired smaller, locally owned shops like Poco Vino downtown.
Porter said bringing in new business does not come without challenges. “We don’t want to grow out,” the commissioner said. “As a result, we’re going to have to grow up. We’re going to have to have those tricky discussions with our neighbors and with the community at large.”
Businesses like a new BMW, Jaguar and Land Rover dealership have set their sights on keeping clients local.
The ideas is to keep customers from driving to surrounding cities like Jacksonville, Atlanta and Destin.
“You’ll drive if you want that type of car…you’ll drive a long way to get the car you want,” Murry added.
In order to support that business, though, Murray said some things will have to change. “We need to continue to have quality jobs here and bring jobs in and retain jobs and grow the job market.”
