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💰$10B TPA tourism, Lightning sell $1.4B stake & what homebuyers really want in 2023

💰$10B TPA tourism, Lightning sell $1.4B stake & what homebuyers really want in 2023

These are a few major things happening in Pasco County and in the Tampa area you might want to know about.

Sean Bates
June 20, 2023

Happy Tuesday!

Pasco County’s summer real estate market is in full swing. So is Tampa’s economic growth!

We’ve got money coming in from tourism, billion dollar companies, and lots of buyers who are wanting to move to the area.

Keep reading to see what’s happening in our local area and what buyers are looking for when you decide to sell.

—Sean

🤩 Airport visitors spend almost $10 billion within Tampa Bay area

Florida's airports are economic powerhouses, especially in Tampa Bay. This isn't just small talk, it's backed by a recent report from the Florida Department of Transportation (FDOT).

Driving the news: Guess which airport is the highest earner in FDOT's District 7? Yep, it's Tampa International Airport (TPA) with a jaw-dropping $11.3 billion annual economic output.

By the numbers: In 2021, aviation activities in District 7 pulled in a total of $48.1 billion in economic output, according to the Florida Aviation Economic Impact Study (AEIS).

And here's a fun fact, $9.2 billion of this money was splashed by visitors at Tampa Bay airports.

Not too far behind are St. Pete-Clearwater International Airport and MacDill Air Force Base, clocking in at $3.4 billion and $3.1 billion, respectively.

Meanwhile, TPA ranks fourth among all Florida airports in terms of economic output, with Orlando International sitting pretty at the top with $41.4 billion.

The big picture: The report isn't just blowing Tampa Bay's horn, it's singing praises of Florida's entire airport system. As per the AEIS report, this network of airports has been the wind beneath the wings of Florida's record-level economic activity.

Local jobs: The aviation industry in the area is a massive job generator too, supporting almost 279,000 local jobs, which means earnings of $16.3 billion for workers.

All around Florida, airports and the businesses they host directly employ about 182,000 people.

The bigger job numbers come from the gigs created by the influx of tourists and goods.

Tampa’s growth: Post-Covid, airports are bouncing back like champs. Take St. Pete-Clearwater airport for instance, it's seen "tremendous growth" in destinations and passengers and even outperformed Jacksonville International in economic impact in 2021, despite having fewer passengers.

Go deeper: Let's not forget about cargo. TPA ranked third in the state for air cargo volume with nearly $3 billion worth of electronics shipped through it in 2021, as per the FDOT study. There's even a $74 million air cargo facility for Atlanta-based UPS under construction at the airport right now.

The bottom line: The sky's the limit for Florida's aviation industry, especially in Tampa Bay. It's not just flying high, it's also helping the state's economy and job market soar.

📦 Amazon launches new electric vehicles across Tampa Bay

You might see these sleek, new Amazon and Rivian electric delivery vans cruising around your neighborhood. Just recently, they were unveiled at Amazon's delivery station in Land O’ Lakes.

Driving the news: These shiny electric vans will be dropping off packages in select cities across the Tampa-St. Petersburg metro area. Amazon's stepping up its green game!

The big picture: Back in 2019 Amazon co-founded The Climate Pledge. They promised to reach net-zero carbon by 2040. As a big step towards that goal, they teamed up with Rivian, with a goal to roll out 100,000 electric delivery vehicles by 2030.

These zero-emission vehicles have delivered over 75 million packages across the country.

Details: Wondering what makes these vans so special? For starters, they've got a 360-degree visibility design and safety features like sensor detection, a large windshield, automatic emergency braking, adaptive cruise control, and collision warnings.

They're smart, too, with embedded technology that syncs the delivery workflow with the vehicle.

Plus, they've got automatic door locking/unlocking, a powered bulkhead door, fast heating and cooling ventilated seats, and a strengthened driver’s side door for extra protection.

Zoom in: Since their launch last year, Amazon's fleet of electric vans has grown to over 3,000, operating in more than 500 cities and regions across the U.S., including Austin, Baltimore, and even Sin City itself, Las Vegas. Now, it's Tampa's turn!

Besides Tampa, new delivery vans are also hitting the streets in other cities like Cleveland, Grand Rapids, Philadelphia, San Jose, Santa Rosa, and Toledo.

The bottom line: So, whether you're in Land O' Lakes, St. Pete, or anywhere in between, keep an eye out for these new electric vans. They're more than just a green statement – they're a clear sign of Amazon's commitment to a sustainable future.

🏒 Tampa Bay Lightning to sell minority stake at $1.4B valuation

Our very own Lightning is sparking up some big news! They're set to expand their partnership with a private equity firm, Arctos Sports Partners, and this deal values our hockey heroes at a record-breaking $1.4 billion, as per Sportico.

Driving the news: This isn't the first time Arctos is getting in on the Lightning action. They first acquired a minority stake in the team back in December 2021. Now, they're looking to buy an additional stake, pending approval from the NHL.

The big picture: The NHL started allowing private equity minority ownership in 2021, but there are some rules. A single fund can only own up to 20% of a team, and no more than 30% of a franchise can be owned by investment funds.

The new deal with Arctos reportedly exceeds these ownership cap rules. This means that the Lightning needs a special waiver from the league.

By the numbers: Jeff Vinik bought the Lightning for a cool $170 million back in 2010. If this new valuation sticks, it means the team's worth has skyrocketed by over 723% in just 13 years. Back in December 2022, Forbes estimated the Lightning's value at $1 billion.

Details: Vinik brought in Tod Leiweke to lead the team’s financial turnaround, making him a minority partner in the team until 2015. After that, Vinik was the sole owner, up until the 2021 sale to Arctos.

What's next: Vinik's also a partner in Strategic Property Partners, the team behind the 56-acre Water Street development surrounding Lightning's Amalie Arena. So, let's keep our eyes on how this investment game plays out.

🧐 What do buyers really want?

If you're considering selling your home, listen up. Curbio, Inc. has just dropped some important insights in their "Preparing to Sell: 2022 Home Improvement Report." It turns out there's a pretty big disconnect between what sellers think buyers want, and what buyers are actually looking for.

Why it matters: In the never-ending game of tug-of-war between sellers and buyers, Curbio's report offers some much-needed clarity.

According to them, 43% of sellers think there's no need to fix up their home before selling it. But, hey sellers, nearly 77% of buyers beg to differ. They won't even consider a home that's not move-in ready.

Zoom in: The report shows that buyers are still choosy. If you want to seal the deal, your home needs to be ready to live in as soon as the papers are signed.

Three findings stand out:

67% of buyers are looking for homes with updated features and layouts.
A huge 68% will say goodbye to a home in disrepair with visible wear and tear.
And remember that 77% who won't consider a home that's not move-in ready?

So basically, more than three out of four potential buyers will walk away from a home sold "as is."

ROI for home improvements: Okay, so you're ready to make some changes. But which ones will give you the most bang for your buck? Here are the top five, according to Curbio:

Kitchen refresh (upgraded appliances, new hardware, painted cabinets, new countertops, new flooring): <377%
Refinishing hardwood floors: <348%
Basic listing prep (minor fixes, interior electrical updates): <297%
New roof: <288%
New carpeting: <280%

For instance, if you spend $15K on a kitchen refresh, you may be able to expect buyers to pay ~$71,550 extra. That's a profit of $56,550!

Take note: Full remodels may not give you the best ROI. A bathroom refresh yields a 256% return, while a full bathroom remodel's ROI is 120%. So, sellers, you don't need to go all-out. A simple refresh might be all it takes to make your home stand out and attract those choosy buyers.

The bottom line: If you want a quick sale at a good price, you'd better make sure your home is move-in ready in the current market conditions.

📊 Our Current Local Market Data:

Have 7% rates slowed demand?

📍7% mortgages mean slightly fewer bidders

📍So fewer homes go into contract

📍And those that don't get their offer start to cut price

These are subtle signals, but many markets still have more buyers than sellers.

While there are some signs of inventory creeping up in small numbers, we’re still in “The Great Inventory Crisis” in Tampa.

And demographic data shows signs this could be a decade long issue:

Expect solid demographic housing demand through at least 2030.

Permanent work-from-home boost. Work-from-home arrangements mean workers and their families will need additional space, boosting housing demand even more.
More homes are needed. Rebounding adult population growth will fuel new household formations and new housing demand through the rest of the decade. JBREC expects the US adult population (age 20+) to grow by +18 million from 2020 through 2030.
Suburbs and exurbs will grow the fastest. +7.3 million additional 30-to-49-year olds between 2020 and 2030 will push demand for housing into the suburbs due to people moving from more expensive urban areas and needing more space.

This is why many experts and data is now pointing to, “We now see housing putting in a bottom, and maybe moving up a bit. We're watching that situation carefully."