So, You have Naples Retail Space for Lease?
If the neighborhood has less money, it stands to reason they have less to spend. That means the stores take a hit, which is why there is so much Naples retail space for lease right now. If you’re a landlord with vacant space, don’t despair, and if at all possible, don’t sell up.

Real estate has moved in cycles for over a 100 years now. Every 10 to 12 years the values double in most areas. For example, some of the larger colonial homes in the Naples area sold for less than $2000 in the 1920’s, and look at them now! Enough time has passed for values to have doubled 8 times since then.

The property market is a classic two steps forward and one step back scenario. The value doubling happens in those 10 to 12 years, then there is a correction where they lose 10 or 20% over the space of a couple of years. The steps forward are when the prices increase, and the temporary backward step comes when they correct.

The last cycle was in the 1980’s where the value of property skyrocketed. Easily doubling in value over the decade, the correcting itself in the early 1990’s. There the value dropped by around 25% before creeping back up again. Look around the area and think that 20 years ago everything you see was almost 100% cheaper. Then consider that in 10 or 12 years time, everything you see will be up to 100% more expensive. If you own any of it, then the good times are coming, you just need to hold on.

After the millennium, the cycle continued the rise from the late 1990’s to the highs of 2004/5. Now we find ourselves in the corrective cycle again. With the economy being like it is, and the availability of finance as scarce as it is, the property values have dropped 20-30% again.

So if you’re a Naples landlord with retail space for lease, what does this all tell you? It tells you that despite everything that’s going on, the recovery WILL come. It isn’t a matter of if, but when. It is the way of things and has been for over 100 years.

We aren’t suddenly going to lose millions of people. Birth rates are increasing, as is immigration. These new citizens are going to need somewhere to live, work and shop. Your units will rent at some point, it’s just a matter of when. If you have the financial backing to keep going, then the good times will return. A positive attitude can make the difference to your success or failure. Yes it takes more effort to sell or lease property in the downturn, but it doesn’t mean you can’t sell or lease it. Keeping up momentum, and redoubling your efforts might be necessary if you’re starting to lose motivation. Just bear in mind that every dip in property values corrects itself eventually.