As I reported last month the 2011-year end economic numbers demonstrate that our tourist-based economy is healthier than it has been in several years. As we close out the first quarter of 2012, the positive numbers and news thankfully keep rolling in! After three years of gloom and doom, it’s great to see real economic health returning to our beloved island.
The reported 5.7% unemployment rate for the Florida Keys in January was by far the lowest in the state of Florida. That number statewide was 9.6% and nationwide was 8.3%. All three numbers have steadily declined since the height of the Great Recession in 2009.
Southwest Airlines, the popular discount airline recently announced that it would continue to fly out of Key West International Airport, while announcing cancellations of flights out of several other U.S. destinations. The Dallas, Texas-based carrier acquired AirTran Airways in May 2011. AirTran has been flying from the Key West airport since December 2009. Peter Horton, director of Monroe County Airports, said AirTran flies from two to three flights per day from Key West – to Tampa and Orlando.
And again, the Smith Travel Research numbers for February are the healthiest that we have seen in over six years. February occupancy rates for Key West “Luxury” and “Upscale” lodging properties were 95% and 96% respectively, Average Daily Rates (ADR) were $429 and $353, and Revenue per Available Room (RevPar) was $408 and $339, a significant year-to-year increase from last year. As I previously stated, the recent numbers reflect the healthiest lodging market we have seen years across all sectors of the Key West lodging market: small properties, budget, economy, midrib, upscale, and luxury.
A healthy economy is the first step to increasing commercial real estate property values. We believe that over the next few years, both values and the number of commercial real estate transactions will begin to increase from recent years’ lows.
At DMRE, Keith Bland (cell: 305-304-6335) and Doug (305-292-6155) stand ready to assist you with any of your commercial real estate needs, whether you are considering selling, buying, or leasing.
Tags: Florida Keys Blog, Key West Blog, Key West Commercial Real Estate
Posted in Florida Keys, investment property, Key West, Key West Commercial Real Estate, key west real estate, real estate, tourism | 1 Comment »