OUTLOOK FOR 2012-2014

• Land prices will remain depressed due to lack of consumer demand for most types of real estate and the excessive supply of same.
• Single family housing and condominium foreclosures and "short sales" will continue for another three years...home building to remain depressed for the foreseeable future.
• Apartments will continue to remain strong but even though everyone's getting absorption of both older and new units on the leasing end, few owners and managers are able to get rate. Lenders, equity prospects, and buyers are only interested in effective income (not the face rentals prior to concessions).
• Retail is tough because in general Florida has too much space, on-line shopping is increasing, consumer confidence is declining, and we have too much new space. The tenants that can make it today are limited, and with more belt-tightening ahead, it will become even more difficult to generate profitable sales volumes.
• With the exception of a few bright spots like the new jobs in Medical City in SE Orlando and in Jacksonville's Port, the jobs that left the state in 2008-09 have not yet comeback.
• Florida population should have a net gain increasing from the first negative growth in 60 years from 2008-2010 to around .5% now and moving toward 1.3% annually for the balance of the decade.
• Governor Scott has already stopped some stimulus projects like the high speed rail from Orlando to Tampa but we anticipate an increasing level of foreign and northern net migration into the State between now and 2020, which will help to absorb the excessive amount of residential and commercial supplied.