Happy Wednesday!

With the end of the year and the holidays approaching, time seems to fly even faster! But there’s always room for some great weekly news around Tampa.

Two Palms, a new 262,000 sqft industrial hub, is set to rise in East Tampa. The AER Tampa, a 31-story residential tower, opens in the River Arts District, marking a milestone in downtown Tampa's growth.

We’re also breaking down the latest mortgage trends above 7%—what does this mean for you?

—Sean

🤩 $8M Land Deal Sparks New Development in East Tampa

Driving the news: Orlando-based Foundry Commercial has acquired 20 acres from Citigroup Technology Inc. in East Tampa for $8 million, with plans to develop a 262,000-square-foot light industrial complex, Two Palms.

Details:

• The development spans two parcels: one at Falkenburg Road and Martin Luther King Boulevard and another at Falkenburg Road and Broadway Avenue.

• Two Palms will include five buildings designed for tenants needing spaces between 15,000 and 35,000 square feet.

• Construction begins in early 2025 and is slated for completion by Q1 2026.

• Foundry Commercial is partnering with Iowa-based Principal Asset Management on the project.

Why it matters: The project addresses the growing demand for light industrial spaces in Tampa Bay, one of the tightest industrial real estate markets in the area.

Two Palms' location near major highways like I-4 and I-75 enhances accessibility for businesses with local and international logistics needs.

The big picture: Tampa Bay's industrial market continues to thrive due to high demand for facilities catering to small and mid-sized businesses.

The region's economic growth and strategic location have made it a prime spot for developments like Two Palms.

What’s next: Foundry and Principal aim to attract a diverse set of tenants and expect the complex to be fully operational by 2026.

The success of this venture could pave the way for similar developments in the region, bolstering Tampa Bay's industrial capacity.

🏡 2-Bed LAKEFRONT Home Near WEEKI WACHEE for $139,000!

2 Beds | 1 Bath | 658 sqft

Enjoy peaceful lakefront living on a fenced, tree-lined .36-acre lot. This cozy home features inside laundry, updated plumbing, and a brand-new water heater. The roof is just 5 years old for added peace of mind.

Step outside to a spacious 18x21 carport-covered patio and a 12x12 storage shed, perfect for extra storage or hobbies. With a little updating, this home has incredible potential as a tranquil retreat or a profitable Airbnb.

Located just minutes from the famous Weeki Wachee Springs and other local attractions.

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🌇 AER Tampa Opens in the River Arts District

Driving the news: Downtown Tampa's River Arts District welcomes AER Tampa, a 31-story apartment tower, now open at 300 W. Tyler St.

The project, nearly a decade in the making, features 334 modern units alongside retail spaces, blending residential comfort with city vibrancy.

Details:

• Unit Options: One-, two-, and three-bedroom floor plans ranging from 770 to 1,636 square feet.
  

• Retail & Parking: The ground floor hosts 13,802 square feet of retail space, with 514 parking spaces above.
  

• Design Influence: Inspired by nearby cultural landmarks, including the Straz Center and Tampa Museum of Art.

Why it matters: The tower’s completion signals a fresh chapter in Tampa’s downtown growth, adding much-needed housing and community-focused spaces.

With an expected influx of 2,000 new residents to the area from projects like AER, the district is set to become even more dynamic, boosting local businesses and cultural engagement.

The big picture: This development marks a pivotal moment in Tampa's urban evolution, complementing nearby attractions like Curtis Hixon Waterfront Park and the Tampa Riverwalk.

It reflects the city’s increasing appeal as a hub for cultural and economic vitality.

What’s next: With its strategic location and thoughtful integration into Tampa’s artistic core, AER Tampa is poised to attract professionals, families, and creatives alike, setting a new standard for downtown living.

📊 Is 7% the New Normal for Mortgages?

Driving the news: The average 30-year fixed mortgage rate hit 7.02% this week, climbing above the symbolic 7% threshold again.

While this might seem daunting to potential homebuyers, many in the industry consider it part of a “new normal”.

Details:

• 30-year conforming rate: Rose 3 basis points to 7.02%.

• 15-year conforming rate: Held steady at 6.98%.

Rising rates have increased the median monthly payment for mortgage applicants to $2,127, $86 higher than September.

The Mortgage Bankers Association (MBA) reports affordability challenges, with October’s payment-to-income ratio (PAPI) up 2.8% from the prior month.

Why it matters: The sustained high rates are challenging affordability for buyers, but certain factors could offset the strain.

Homeownership is becoming a more cost-effective option compared to renting, and conforming loan limits will increase to $806,500 in 2025, providing greater flexibility for buyers.

The big picture: Despite affordability hurdles, market forecasts indicate stability ahead.

Industry analysts predict mortgage rates will hover between 5.75% and 7.25% next year—a narrower range than the volatility seen in 2022 and 2023.

Between the lines: Loan officers are adapting to this environment by guiding buyers toward strategies like seller-paid rate buydowns, which offer temporary relief without penalties for refinancing later.

What’s next: While a Federal Reserve rate cut could provide some relief, most experts believe the impact on mortgage rates will be limited in the short term.

Buyers should watch for seasonal shifts in inventory and consider options like new-build discounts or other seller incentives.

The bottom line: With careful planning and guidance, buyers can navigate the current market to find opportunities despite higher rates.

Adaptability remains key for both professionals and shoppers.

📊 Our Current Local Market Data:

As we near the end of the year, the real estate markets in Land O' Lakes, Lutz, Odessa, Tampa, and Wesley Chapel continue to offer opportunities for both buyers and sellers.

If you're planning to sell, having a clear and effective strategy is essential to stand out in the current market. For buyers, this could be a good time to secure a property before competition potentially increases.

Feel free to reach out if you’d like help navigating the market or creating a plan that works for you.

If you’re curious how much your home could sell for now, then reply “What’s my home value” or you can get an estimated value here.

Or if you’re just curious about how the current market affects your situation & what’s going on in your specific neighborhood, just reply & ask.

📰 In Other News:

• FDOT examining McIntosh Road/Branch Forbes Road improvements

• Valrico senior living community breaks ground

• AdventHealth joins forces with the Straz Center to elevate performing arts in Tampa Bay

• 25 hottest housing markets in Tampa Bay ranked

That’s all for today, I hope you have an amazing week!

If there’s ever anything you need:

• a custom market or home value report

• a home services list for a reliable contractor or services professional

• feedback or a professional opinion on a home project

Just let me know! We’re here to help with all your home needs.

Talk soon,

- Sean, and the Bello Home Team

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