The Air Force and Army’s Northwest Florida presence has been a key factor in boosting the economy for Crestview and of course the surrounding communities.

In Northwest Florida, military workers generate more than $4 billion in annual sales activity and consume $3.3 billion in goods. Defense annually brings in a significant capital investment of $495 million. This is according to a 2012 report from the Association of Defense Communities.

The University of West Florida’s Haas Center for Business Research and Economic Development estimates the average earnings per military-related job are about $87,300. The annual military economic impact to Okaloosa County is $5.2 billion with more than 58,800 local jobs. It is clear that support staff and family members helped shield Crestview and its housing and commercial real estate market from the recent recession.

“Many economists would have expected confidence to erode in April as the effects of the federal budget cuts known as sequestration along with the expiration of the payroll tax began to unfold,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “So far this has had virtually no impact on consumer confidence among Floridians, which is reflected in current sales tax collections.”

This data somewhat goes against national consumer confidence index, which as measured by the University of Michigan, dropped two points after recovering from a deeper slide in early April. Respondents’ overall opinion that their personal finances are better than a year ago increased five points to 70, while their expectations they well be better off financially a year from now increased six points to 78. Their trust in the U.S. economy rose three points to 80.

Florida’s housing prices also continue to rise, with the median price now at $160,000. This is the highest median price since October 2008, though it is 38 percent lower than the peak value of $257,800 from June 2006. In addition, mortgage rates continue to be at historic lows. Meanwhile, the stock market is still near record highs, bolstering retirement accounts for many Floridians, and gas prices have continued a steady slide.

“Floridians are increasingly optimistic,” McCarty said.

The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest is 150.

Details of the April Survey: http://www.bebr.ufl.edu/cci

Some businesses do not accept credit cards and are entirely built around cash. Some examples are coin laundries, tourist businesses, self-service car washes, service businesses such as hair salons and even some larger restaurants. Unreported cash is more predominant in cash-only businesses but buyers are aware of that and can often come up with their own methods to verify income.

The most telltale sign for unreported cash is % Cost of Goods or % Labor numbers that are out of whack (which could also be attributed to employee theft problems.) For example, if a coffee shop shows 44% COG instead of 29-31% COG than there is likely employee theft and/or unreported income.

Other than employee theft which is of course undesirable, unreported cash is often an intentional business (and personal) strategy of the small business owner. For business owners who intentionally do not report cash income and are contemplating the sale of their business, let’s look at some reasons why doing so is not a good business strategy (aside from the legal/ethical issues…)

• It will make your business more difficult for a buyer to finance.
• It will result in a lower appraised value.
• It will lower your credibility with buyers.
• You will not get cooperation from most reputable business brokers on the unreported cash amount.
• If unreported cash could be proven to the satisfaction of a buyer… how easy would it be for the I.R.S. to see?
• Under-reporting income almost assuredly means that sales tax is under-paid.
• Under-reporting income is VERY Costly!

Under-paid sales tax because of under-reported income has particularly bad ramifications. It is a scenario whereby the State of Florida has the legal right after a business sale transaction to seize business assets from the buyer, should they become aware of under-paid sales tax from the previous owner. The state doesn’t care who owns the business now – it is determined by physical location.

Why is under-reporting VERY costly to the seller? Assume that a business owner under-reports income (or overstates expenses) by $40K. At a combined 40% tax rate, the owner thinks they have just saved $16K in taxes. But… if the business is one that should sell for 3X SDE (Seller’s Discretionary Earnings) —the understated profit of $40K just cost the business owner about $120,000 in value! In other words, for a business worth 3X SDE the seller is “penalized” about $7.50 in value for every $1.00 “saved.”

In summary, no one wants to pay unnecessary taxes. Tax avoidance is understandable and is one of the reasons we pay professionals for tax advice. On the other hand, under-reporting income is not only risky business, it is a significant negative return on investment. If you are considering the sale of your business, JPB Commercial Real Estate Advisors will sit down with you to review your financials and develop an exit strategy in preparation for a sale. That strategy may include getting your books cleaned up for a year or two so that you can reap the rewards in higher business value.

The state’s unemployment rate dropped to 7.8 percent in January 2013. This was the first time it fell below the national jobless rate in five years. The state also added over 80k more jobs last year than estimated.

Experts are seeing this momentum continue into 2013. From December to January alone Florida added 15,400 jobs. The analysis also reported more jobs in industries like leisure, hospitality, retail and home health care.

This is of course a positive indicator for investing in NW Florida. If you are looking for Florida Businesses for Sale or Commercial Real Estate, speak with a JPB Advisor today.

View Detailed Market Statistics:

• Destin
• Panama City Beach
• Pensacola
• Tallahassee
• Crestview & Niceville/Valparaiso

The retail segment is by far the leader in recovery conditions, with significant positive net absorption in Pensacola, Destin/Fort Walton Beach and Panama City/Panama City Beach. With vacancies receding, we are noting some small upticks in rental rates, and believe the retail real estate market is poised to see some meaningful rental appreciation during the next 12 – 24 months. Additionally, new construction is under way, with the 300,000 SF expansion of Destin Commons, and in Pensacola multiple urban renovations in Downtown and the recently completed renovation of University Mall by Simon Properties.

In Panama City Beach, a joint venture between CASTO and St Joe is now under construction with Pier Park North, a 390,000 SF power center anchored by Dick’s Sporting Goods, Michael’s and Toys R Us, across from Simon Properties’ Pier Park property. Simon Properties is very active throughout Northwest Florida, with its recent investment in the Howard Group’s Silver Sands Outlet Center in the Miramar Beach submarket of Destin. Also in this submarket area, the Howard Group’s Grand Boulevard Town Center is now expanding with a new Carmike Cinema and additional small shops and restaurants.

With the recovery of the residential market and tourism sectors, the Finance, Insurance and Real Estate industry sector has finally stopped the bleeding from the Great Recession, and appears to be adding employment in the region. Multiple bank consolidations are driving a return to healthy conditions in this sector, and while banking employment is flat, a stabilizing base is forming. The Professional Services and Business Services sectors have also settled, and we are beginning to see some growth in the law and accounting segments, all of which should promote a strong recovery in the office and flex markets during the next 24 months.

The old development code allows high rise condos up to 225 feet, with the new code allowing for just 35 feet, a very significant difference. The developers are hoping to continue the project halted in 2005 under the old code.

Though this issue is still to be decided on by the council, it does show the growth and recovery in Panama City Beach, Florida.

Read the Full Story: http://www.newsherald.com/news/government/pcb-residents-speak-out-against-high-rise-1.103858

For example, in fiscal 2012, 449 loans were approved in Miami-Dade, totaling $213.3 million, up from 426 loans for $154.4 million in 2011. That is a very nice increase with promise that the trend is geared to spread.

Read more here:http://www.miamiherald.com/2013/02/17/v-fullstory/3239701/small-business-lending-rebounds.html

Come by and see our Commercial Real Estate experts in action.

Find Us At: 495 Grand Blvd, Suite 201J, Miramar Beach, Florida.

Commercial real estate activity is returning to the primary employment centers in Pensacola, Destin, Fort Walton, Crestview, South Walton and the Panama City markets, new businesses are entering the market and existing companies are beginning to expand again. Cumulatively, the above factors signal a broad market recovery and the beginning of an economic expansion curve.

While many worry about the possible headwinds of an election cycle and the looming federal “fiscal cliff” of automatic tax increases and federal spending reductions in early 2013, and there is no doubt that it is worrisome, Northwest Florida is likely to be not only immune from such factors, but is poised to see an accelerated expansion curve unlike anything from the past.

One acronym is all you need to know – BP. With $20 Billion already set aside in an environmental damages settlement with the federal government, and a federal mandate that requires 80% of these funds to be split among the affected States (Texas, Louisiana, Mississippi, Alabama and Florida), combined with State legislation in Florida that requires 75% of the state’s settlement to go to the coastal Panhandle counties of Escambia, Santa Rosa, Okaloosa, Walton, Bay, Gulf, Franklin and Wakulla, $2.4 Billion of capital is about to flood the Northwest Florida area’s municipal coffers.

Even if these funds are not all spent as wisely as they should be, which is likely, there is no doubt that a lot of capital will still feed into the region’s infrastructure, promoting jobs and multiplying investment activity. New roads and bridges, expanded ports, enhanced State Parks and other environmental initiatives, cultural attractions, and a boost to regional economic development efforts will all be outcomes of this massive influx of capital.

But there’s more. With the civil economic claims settlement process having been transferred from the Gulf Coast Claims Facility to the new Court-Supervised Settlement Program in June, 2012, a more certain path has been determined for individual economic claims to be paid to affected parties throughout the Gulf Coast. Economic classes and geography have been clearly defined, and over 60,000 claims are expected to be processed during the next two years, cumulatively creating several billion more dollars that will literally pour into the Gulf Coast region’s individual and business bank accounts.

An estimate of $3.5 – $5 billion in new capital will flow into the Florida Panhandle from the two BP claims settlements during the next few years, which is truly unlike any short term capital infusion in recent memory. Obviously there will be risks associated with this massive amount of funds, namely a potential regional financial bubble from profligate applications of such money. More importantly for the commercial real estate market though, there will be long-term investments in infrastructure and economic development, and there will be local and regional business growth that will promote further recovery throughout all commercial real estate segments and will likely create significant opportunities for new real estate development in the very near future.

JPB Commercial Real Estate Advisors is already witnessing heightened levels of activity in leasing and investment sales in the Florida Panhandle that is in anticipation of a strong recovery, and we are expecting a broad escalation of this activity over the next two to four years. We are positioned to assist our clients with all of their commercial real estate needs in this exciting new cycle, and welcome the opportunity to work with your team to develop appropriate strategies to take advantage of the expected growth.