Jaime Sturgis | Source | CEO at Native Realty

"Not everyone wants to work in a large office building, as there’s also a growing market for boutique offices that feature more privacy, said Jaime Sturgis, CEO of Fort Lauderdale-based Native Realty.

For example, tenants like having private entrances and more control over operating hours, such as in the evening and on weekends, he added,

Sturgis has converted numerous industrial buildings in the Flagler Village and Progresso neighborhoods into office space. He adds private rooms, conference rooms and furnishings that dampen sound, as noise is often a problem in converted warehouse spacse with high ceilings.

He stresses that the adaptive reuse strategy works best in neighborhoods that are attractive for workers because they have many restaurants and housing options, so areas like Flagler Village are ideal.

“The same business plan here versus 2 miles down the road could have drastically different results,” Sturgis said. “The urban core and emerging markets have outperformed the suburbs. It’s night and day.”

“Traditional real estate has always been desirable as a hedge against inflation and now we’re seeing retail, in particular, be an asset class that is negotiating new leases to reflect the pressure of inflation in real time so that the value investor’s dollar match it and it does not get diluted,” said Sturgis.

Out-of-state restaurateurs from New York and New Jersey make up much of the new demographic.

“They closed down restaurants that they had run there for several decades and they’re relocating their businesses down here. That’s been interesting,” said Sturgis.