InvestOrlando | Capital Analytics Associates

An influx of affordable housing is coming to Orlando

By: Beatrice Silva

2 min read September 2020 — Affordable housing has been a major cause for concern in Florida for decades. Homes in the sunshine state are overpriced by almost 20%, the highest level in eight years, according to a study done by Florida Atlantic University. The pandemic has served as a reminder of just how fragile the line between having a place to live and experiencing homelessness is for families. This past year, Central Florida added seven affordable rental options for low-income households, which has raised the total count to 20, in an effort to subdue this crisis.

On Dec. 17, 2019, Orange County commissioners signed off on a 10-year plan to create new affordable housing projects, injecting $160 million into a fund with a goal to build 30,300 units by 2029. Among other grants and strategies, developers and nonprofits can seek financial help to build or upgrade low-income properties. “In the end, all those things are going to help, but they are going to have to have dedicated resources,” Shannon Nazworth, CEO of Jacksonville-based Ability Housing, previously told Orlando Business Journal. “There have been communities like Los Angeles that have gotten permission from their populous to do a bond issue to develop affordable housing and meet the need, and if Orange County were to do that, I think the return on investment would be demonstrative.”

Residential Communities LLC and New South Residential LLC are the most recent developments to undertake an affordable apartment complex. Construction on the 77,473-square-foot senior housing facility is set to begin in early September at 5800 S. Rio Grande Ave, according to Orlando Business Journal. This project is one of the many that are needed to help bring more affordable housing options to the region. Families are struggling, perhaps now more than ever, to simply pay rent. To put things into perspective, a minimum-wage worker in Florida makes around $445 per month while the average one bedroom apartment costs around $1,027 per month, according to the National Low Income Housing Coalition. Rent at that price point is simply out of reach even for median-waged workers like nursing assistants, janitors and cashiers.

While paying rent is difficult, for some people owning a home may seem unfathomable. However, renting a single-family home provides the experience of owning without the costly fees and obligations associated with purchasing a property. As a result, the single-family rental sector is booming in Orlando. “If you can find single-family housing that you can rent that’s within close proximity of multifamily housing, the single-family housing is going to beat it out every time,” Brad Hunter, managing director of real estate consulting firm RCLCO, told Orlando Business Journal.

The rise of rentals could be another form of relief for low-income families. The increase in occupancy will eventually lead to more single-family rental communities being built that then provide more affordable housing options. However, when it comes down to it, the majority of the responsibility to help reduce the burdens of housing costs and minimum wages falls on elected officials. Without the support of the local and state government, deploying a plan to promote affordable housing is left in the hands of developers and the community.

Tourism in Orlando pushing forward despite rise in COVID-19 cases

By: Beatrice Silva

2 min read July 2020 — It has been almost six months since the World Health Organization declared the novel coronavirus a pandemic. Within days, each sector of the economy had to discover new ways to keep businesses afloat despite being forced to close their doors. Unlike banking and technology, tourism relies on almost every aspect of life that is now restricted, like travel and face-to-face interaction. For cities like Orlando, tourism is a major factor in the economy, to the tune of $75 billion a year.

Tourism supports an estimated 41% of Orlando’s workforce. Around 463,000 jobs have been affected and millions of dollars worth of wages are being lost each day during the area’s local tourism shut down. Tourism also accounts for $5.8 billion in state and local taxes, finances which go to support local schools, roads and other crucial services, according to Visit Orlando. The city’s resilience, however, is proving that it is not going to let a microscopic organism bring it down as tourism continues to push forward.

Although the hotel industry has been wrestling with obstacles caused by COVID-19, activity in that area is starting to gain traction again. One example is the development of a five-star convention hotel that was recently announced. Summa Development Group LLC has proposed a 33-story project in Thornton Park and the construction is expected to begin sometime next year, according to Orlando Business Journal. As for the big players like Walt Disney World, SeaWorld and Universal Studios, they too have begun to jump-start their operations. Disney’s Hollywood Studios and Epcot officially opened on July 15. Universal Studios welcomed guests back to its park on June 5, after almost two and a half months of closure. Of course, the theme parks will each have their own updated operational guidelines, including mandatory face coverings, temperature checks and social distancing regulations.

“When we first made the decision in March 2020 to close Universal Orlando Resort in response to the coronavirus pandemic, we didn’t know how long it would be for. We didn’t know what the future held or what a reopening would entail … Getting us here has been an in-depth process, and I am incredibly proud of the ways our Team Members have listened to experts and implemented new operational guidelines for the safety of our guests. At Universal Orlando Resort, we are following what we’re calling the three Ss. That’s screening, meaning we’re taking everybody’s temperature before they enter; sanitization, because we are constantly sanitizing areas and high-touch surfaces in the parks; and spacing, providing markings and reminders throughout our resort so guests can socially distance themselves from other parties,” said Bill Davis, president of Universal Orlando Resort, in a welcome back letter.

It’s safe to say that tourism is the bloodline of Orlando’s economy. While there is hope for a new beginning and a new normal after the pandemic, the city isn’t in the clear just yet. Despite every attempt by public officials to stop the spread of the novel coronavirus, cases continue to surge and hospitals are starting to fill up. On July 19, Florida reported 10,328 new positive COVID-19 cases and 90 Florida resident deaths related to COVID-19. Orlando has been listed as the second highest city, behind Miami, with the most confirmed number of COVID-19 cases, according to The Florida Department of Health.

How Orlando is improving its transportation infrastructure through technology

By: Beatrice Silva

2 min read — Public transportation is a vital contributing element to urban sustainability. Practical transportation networks that integrate public travel can help lower a city’s per capita carbon footprint. It also makes metropolitan areas more livable by easing commute times and expanding accessibility. Over the last few decades, technology has played a critical role in the evolution of transportation. Transportation technologies most often tackle challenges involving alternative fuels, demographic shifts, traffic analytics, safety and security.

Almost 300,000 people live in Orlando and an estimated 75 million people visit the city every year, according to Visit Orlando. These figures are just part of the reason why Orlando has issues with its transportation system. Among companies tackling these challenges is Omnimodal LLC, an interdisciplinary team of mobility tech experts that has created smart mobility management solutions to ease congestion by helping to make public transportation easier to navigate.

“Let’s say you live over by Orlando Health, but you work in Winter Park. You have to take a bus or catch a bike share to get to the [train] station. You’re having to possibly download the Lynx bus tracker app. You have to download whatever scooter or bike-share app you want to use. Then you have to download the SunRail app. They all possibly have separate payment interfaces as well. The future here is how do we integrate things to let folks download whatever app they want? Let’s allow the data to flow and have interoperable payment options, so folks use what’s going to work best for them. Otherwise, you have 16 apps on your phone that you’re kind of playing bingo with to figure out,” David Thomas Moran, CEO of Omnimodal LLC, told Orlando Business Journal.

Beep, a driverless and electric shuttle, is another company making big changes within Orlando’s transportation industry. The company uses key hardware and software to enhance safety, sustainability and mobility. Not having a human driver may seem like something out of a science fiction novel, but it is actually quite common and effective. Beep believes that its technology eliminates human error when it comes to driving. The shuttle is equipped with scanners, sensors and cameras that make its reactions similar to a human driver but without having to worry about the human distractions. As for sustainability, it’s electric-powered motor makes it extremely environmentally friendly. “Look at the passenger count we had, which was 14,000 riders, equivalent to 7,000-9,000 cars off the road. That starts to show the impact these vehicles can have in not only eliminating road congestion and removing or reducing parking requirements but also impacting safety,” Joe Moye, CEO of Beep, told Orlando Business Journal.

As transportation continues to be transformed, safety will always be a top priority. Autonomous vehicles will reduce the reality of human error which is the cause of 85% of all accidents on roadways. Improved safety is a result when combined with a reduction of cars on the roadways due to this mobility service, according to Beep’s Mobility Platform.

Undoubtedly, technology will continue to impact the way people commute. Today, travelers are demanding more and more mobility alternatives. A city’s sustainability relies deeply on the different ways it’s able to offer transportation for its community. To ensure a region’s success and growth, metropolitan areas must continue to find more effective solutions to increase the overall quality of their transportation services.

Spotlight On: Michael A. Okaty, Office Managing Partner, Foley & Lardner LLP

By: Yolanda Rivas

2 min read February 2020 — Orlando needs to promote itself as a hotbed for investors and companies as it enters more and more into the spotlight as a destination for private investors and venture capitalists. Historically, much of the local M&A activity has been on the sell side, said Michael A. Okaty, office managing partner at Foley & Lardner LLP, in an interview with Invest:.

Are you seeing a comeback of the corporate consolidation trend in the Orlando market?

Yes, I think that’s been happening for the last several years. We are seeing both consolidation of strategic owners who are trying to grow and consolidate, but also financial buyers, private equity and family offices that are trying to consolidate what would otherwise be fragmented industries into larger companies with more economies of scale.

We live in a middle-market city so more often than not we would tend to be on the sell side, representing a solid, family-owned, multidecade, multigeneration business that has gotten to the point where the founders are looking for liquidity and there are buyers, both strategic and financial, out there looking to roll up. Home-grown businesses based here over the last few years tend to be on the sell side. We don’t have a lot of large, publicly-traded companies based here, but we have a lot of defense and aerospace companies, like Siemens and Lockheed, but they are in a different league. Still, companies in Orlando, to the extent that they are engaging in M&A activity, are probably on the sell side.

What are the fastest areas of growth for the firm in the Orlando market?

Healthcare M&A, both in consolidation as well as provider practices and primary care groups. There’s also the area of medical office buildings, and we do a lot of work in the senior housing area. Healthcare and healthcare M&A is a really hot, growing area.

Private equity and venture capital, regardless of the industry, are also moving. They are looking at everything from diversified services like home plumbing and electrical to software technology, cybersecurity and health-related services. The interest of private equity and VCs in Florida, and Central Florida in particular, is increasing.

Another big area in Central Florida is simulation. Orlando is the capital of the simulation industry, both for medical and military simulation and engineering. The same kind of simulation that can be used in the military field can be used in healthcare. For example, surgeons are using simulation to practice surgery before actually doing the procedure.

Are there any particular areas where you are looking to expand your reach?

Real estate, the hospitality industry and healthcare. We have a major presence in real estate, and in particular in the hospitality industry, representing the vacation clubs that are based here in Orlando and the senior housing industry nationwide. We have a major presence in those areas.

To learn more about our interviewee, visit:

Foley & Lardner LLP: https://www.foley.com/en/offices/orlando

Spotlight On: Diane H. Crews, President & CEO, Orlando Sanford International Airport

By: Yolanda Rivas

2 min read February 2020 — Since 1971, the Orlando Sanford International Airport (SFB) has been fulfilling its mission to bring convenient air travel to passengers and economic value to Central Florida. Today, SFB is one of the fastest-growing airports in North America, and it’s undergoing an expansion effort that will be completed late this year. SFB’s President and CEO, Diane H. Crews, spoke to the Invest: team about their recent accomplishments.

What is the status of the renovation project, and what changes are being implemented?

Our terminal expansion project is on schedule for completion in the fourth quarter of 2020. Basically, we are taking the existing footprint of the airport and making it more efficient and user-friendly for passengers and staff alike. Also, we are continuing to grow, and we know that maybe 10 years down the road we will need a new terminal building, but in the meantime, we need to facilitate our ongoing growth so we are adding four new gates and related improvements. For example, we are consolidating screening into one location, creating more way-finding signage and pathways to help passengers get to their destinations with more ease, adding more bathrooms and baggage belts, and even changing the façade of the airport to include an extended canopy to keep people out of the rain. We want our visitors to always feel comfortable while they travel. Our airport code is SFB, which we have adopted as a motto to mean Simpler, Faster, Better. It is important that the changes we’re making reflect this ideology. That’s what sets us apart.

To what do you attribute the significant passenger growth you have been experiencing?

I attribute the passenger growth to increased public awareness, getting the word out and letting people know we are here and that we offer over 75 nonstop destinations. The growth of the region has had a significant impact as well. We bring our passengers an easy and convenient experience overall, and that is very appealing. The Orlando Sanford International Airport has been used mostly for leisure travel, especially because our flights do not have the frequency that business travelers need. However, that is starting to change. We are seeing more business travel, and we are going to be working toward increasing that component of our operation.

What has been the impact of your rebranding and new website?

The primary emphasis for the airport’s rebranding and new website was to modernize our appeal and accessibility. Based on the feedback we have received thus far, we have hit a homerun in both areas. The focus on travel convenience and a myriad of affordable and diverse travel opportunities showcased via an updated, mobile-friendly website has proven to be a winning combination.

To learn more about our interviewee, visit:

Orlando Sanford International Airport: https://flysfb.com/

Spotlight On: Patrick Mahoney, Principal, President & CEO, NAI Realvest

By: Yolanda Rivas

2 min read February 2020 — Orlando’s real-estate scene has witnessed major changes as people look more for destination experiences and after Amazon changed the rules of retail. While some regions within Orlando are running out of development land, Patrick Mahoney, principal, president and CEO of NAI Realvest, is convinced there is still room for growth.

How has real estate demand evolved in Orlando?

The changes in retail are the talk of the town. We work with Planet Fitness among several other retailers that are marketed as destinations. You still see the national value tendency with examples like HomeGoods and T.J.Maxx. Similar businesses are still coming in and leasing space. Forever 21’s bankruptcy filing had more to do with overleverage. It was more about debt rather than retail. There are certain malls, such as Fashion Square Mall, where a complete redo is scheduled. In these cases, the anchor tenants are likely not going to stay, to the benefit of a more multifamily, mixed-used project. The other extreme is the strip malls: small clothiers that focus primarily on making sure they are in the right location. Park Avenue and Winter Garden are good examples of that. An increasing number of these small boutique clothiers are going to have a small store presence but will start selling online.

What advice would you give small retailers to thrive in this market?

It boils down to a two-pronged approach. First, demographics. Remain aware of changes within the demographics around their location and adapt to those changes. Second, plan the required resources ahead of time to weather such changes and make the best use of the available land and redevelop the property.

What primary challenges is your business facing?

The first thing that comes to mind is competition. There is virtually no barrier to entry when it comes to obtaining a real estate license. The spectrum goes from a residential broker dipping its pen in commercial while working from home with no overhead, to groups like us with lots of overhead and a fully-staffed office, and finally the multibillion-dollar competitors that we compete with, such as CBRE. To maintain a sharp edge, we engage in a continuous improvement process, embracing new technology. We invest in the latest software and research tools. As members of NAI Global, we can compete with multibillion-dollar real estate companies on either a national or global stage. Because we are locally owned, we have greater local knowledge and flexibility in the marketplace than our large competitors do. We have the best of both worlds: being able to compete with either the big and small real estate firms.

Financing also remains an issue. Coming out of the last recession we learned who to approach, depending on the property type and what we are trying to accomplish. Increasingly, we are turning to private rather than bank debt. Banks usually are on the fence over lending on land.

Manpower is another challenge. I would consider Orlando a zero percent unemployment market. Whether it is salespeople, administrative help or maintenance engineers and property management, finding talent is difficult.

What is your outlook on commercial real estate in Orlando?

We remain quite bullish about the market, particularly Florida and Central Florida. We are positive that 2020 will be another solid year as there are no variables telling us otherwise. Recruiting is at the top of our list. Our operational focus will remain centered on delivering excellence for our clients, our brokers and property owners through continual improvements. We do not skimp on our resources and invest in the best software available to manage our properties, such as Yardi. We are implementing the tip of the iceberg. We will also continue to guarantee we are as financially secure as possible through solvent debt levels.

To learn more about our interviewee, visit:

NAI Realvest: http://www.naiglobal.com/members/nai-realvest-maitland-orlando-area

Spotlight On: Scott Lyons, Business Unit Leader, SE Region DPR Construction

By: Yolanda Rivas

2 min read January 2020— DPR Construction is leading the charge in delivering large construction projects faster and with better quality by employing prefabrication solutions and utilizing their own self-perform crews to put the work in place. Central Florida Business Unit Leader Scott Lyons discusses the prospects for the construction industry in Central Florida.

What has been the impact of DPR moving into Downtown Orlando and what opportunities are you finding there that promoted the move?

We moved Downtown in October 2018, which helped us combine two existing DPR Orlando offices into one. There is a great vibe Downtown, and many of our business partners and clients are now our next-door neighbors. This has been a path to strengthening our connections to the local business community with close proximity for lunch meetings or spending time with people in-person. Our new space was designed to host large groups, with a large training room and 10 conference rooms.

Our Orlando office is one of the largest for DPR, in terms of square footage, which provides us with the unique ability to host meetings for our national and regional teammates. Providing our visitors with walking-distance access to some of the city’s best restaurants and venues means they get the very best of what Orlando has to offer and DPR gets to contribute to the economic success of our Downtown district. We just fell in love with the Downtown vibe, it is where the energy is.

What are the most relevant projects DPR is working on in the region?

We are finishing the KPMG Learning & Innovation facility, which will be completed by the end of 2019. It is the largest project being built by DPR in the Southeast this year. KPMG performed a lot of due diligence in choosing Orlando and the Lake Nona area and it has been one of the more rewarding, incredibly designed and fastest projects for us in a long time. Mega projects are historically tough to execute on time and on budget in the Central Florida area since finding enough skilled craftsmen to build these projects can be a challenge. However, our collaborative approach with the client and the design team plus integrating a lot of prefabricated components into the design has allowed the project to be built at a very good pace. This was truly a collaborative effort and success on behalf of our entire team, including the designer and our owner. KPMG is a huge regional project and a huge win for the city.

What are the clearest trends in construction in the Orlando area in recent years?

At DPR, we are very passionate about driving forward the concept of prefabrication in our construction projects. There are multiple reasons for this. There is a shortage of skilled construction workers, so prefabrication decreases the demand for workers onsite and when you prefabricate components they are usually of a higher quality and safer generally, resulting in a better product for the client. For the KPMG project, we prefabricated 800-bathroom pods. We built them in a factory here in Orlando, called SurePods, and the quality was beyond anything we could get building them in place. It changed the dynamic of how the project was executed, resulting in a faster speed-to-market with fewer people needed on the project. Prefabrication is the way of the future for construction and DPR is well-positioned to lead this trend.

What other advanced technologies are you employing in your work?

We are believers in technology where we can find a great use for it, and where it adds immediate value. We beta test a lot of ideas and technology, apps and software, and generally settle quickly on things that help the client or our people. One is laser scanning. We use it before rebuilding a client’s existing space, like a corporate office, to create a digital model that captures the exact reality of the designed space.

We are also working in partnership with Reigl to utilize LiDAR technology and bring some of their technology into the vertical construction market. It is a drone-borne scanning technology that flies over an existing site, scans it and provides the contours of the land, so you can see elevation changes and other useful data. A civil engineer can take that data to minimize how much dirt is moved around, for example. This type of real-world use of technology on our projects keeps us nimble. We are innovating in ways that not only change the landscape for the construction industry, they are helping our client successfully expand their products into new markets.

What kinds of projects are in greatest demand in the Orlando area?

The attractions companies have very robust plans for the next few years and we also see healthcare companies continuing to invest in their existing and new facilities. We also believe that advanced manufacturing will play an increased role in the Orlando economy as well, so we’re also keeping close tabs on those upcoming projects.

To learn more about our interviewee, visit:

DPR Construction: https://www.dpr.com/

Orlando top city for behavioral health technicians

By: Yolanda Rivas

2 min read January 2020 — The rapid advancements in technology and innovation are significantly disrupting the work environment across all industries, making many health and life sciences-related professions some of the fastest-growing across the globe. A recent report on 2020 emerging jobs places behavioral health technician as one of the fastest-growing positions around the world, and Orlando is one of top the cities for this career.

LinkedIn’s third annual U.S. emerging jobs report identified the top 15 up and coming jobs during the last five years. Artificial intelligence and data science continue to show rapid growth and heavy influence in many sectors. However, according to the report, the rise in insurance coverage for mental health is increasing the demand for behavioral health professionals.

Orlando ranked as one of the cities where the jobs are for behavioral health technicians, which is the only job on the list that generally doesn’t require a four-year degree. The report estimates the hiring rate for these professionals has grown an average of 31% year over year since 2015.

The average annual salary for a behavioral health technician in Orlando is $27,817, as of Jan. 2, 2020, according to online employment marketplace ZipRecruiter. The national average salary is $30,080 a year. ZipRecruiter’s recent job postings show an active marketplace for behavioral health technician jobs in Orlando and its surrounding area.

Behavioral health technicians work along doctors, primary counselors, therapeutic staff and other healthcare professionals to assist in the treatment of adults or children with substance use, developmental disorders or mental health conditions.

The report suggests that increased health insurance coverage for mental health and substance abuse treatment are likely the reasons for the increased demand for these professionals. The State of Mental Health in America 2018 report states that 61.7% of adults with any mental illness (AMI) in Florida did not receive treatment. The national average is 55.8%.

The top industries hiring behavioral health professionals are: mental healthcare, hospital and healthcare, individual and family services, education management, health and wellness and fitness, the 2020 emerging jobs report shows.

To learn more, visit:

LinkedIn 2020 Emerging Jobs Report:

https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/emerging-jobs-reort/Emerging_Jobs_Report_U.S._FINAL.pdf

Spotlight On: Johanna W. Clark, Co-Managing Shareholder, Orlando Office, Carlton Fields

By: Yolanda Rivas

2 min read December 2019 — Orlando, known for its thriving tourism industry, is growing quickly and diversifying its economy to attract new companies to the region. Sectors like construction and technology are seeing healthy growth and with that comes the need for a knowledgeable legal team. In an interview with Invest: Orlando, Carlton Fields Orlando office co-managing shareholder Johanna Clark talks about the impact the growing economy has had on the firm’s legal practices, efforts to help the business community in the region, and outlooks for the legal sector heading into the new year.

What are the benefits of being located in the Orlando market?

The Orlando market is unique as it is one of the fastest-growing cities in the country. Orange County leaders project growth of over 1,000 new residents per week. Business is also booming. Carlton Fields’ Orlando office is centrally located in the heart of the Business District. We are in the SunTrust Center and our new office offers a more modern and efficient workspace to better serve our clients in this growing region.

From what types of industries are you getting the most demand?

Technology is a growing sector of Orlando’s economy and our attorneys are handling a lot of tech-related client needs. The gaming company Electronic Arts recently announced plans to move its headquarters from Maitland to downtown Orlando’s Creative Village. On top of that, with universities like Full Sail and the University of Central Florida in the area, there is an influx of great gaming-related talent coming to Orlando. To meet client needs, we have a team of attorneys who specialize in electronic gaming. Our attorneys help our tech-based clients with cybersecurity, as well as licensing, labor and employment, mergers, or any type of technology issue. They help companies and tech-based entrepreneurs navigate this developing aspect of the law. The same is true with the growing construction industry in the region. The influx of new businesses is impacting our practice areas.

What are some of your focus areas in the Orlando market?

Our main goal is to attract, train and retain attorneys. We have a culture that seeks to develop young lawyers into exceptional professionals. As Orlando continues to grow and its economy continues to diversify, we are keeping an eye on the incoming businesses. Many new companies are arriving and we want to know how we can best serve their needs. We also provide free business and legal resources online for entrepreneurs and startups where they can get information to develop their companies through LaunchToThrive.com. That is how we can gauge the changing business climate in the region. As lawyers, our priority is to offer our services to help companies thrive in the Orlando area and beyond.

What is your outlook for the region’s legal sector and economy?

The forecast for Central Florida is superb. New businesses and high-paying jobs are coming to the region. Our local leaders are doing a great job attracting companies to the area. Orlando is a great place to live and work. From a business perspective, the outlook for 2020 is exceptional. From a legal perspective, it will also continue to be a booming area. Companies need help and deals need to be done, and lawyers help make that happen. With so much development and construction, there will be a demand for representation in litigation matters as well.

To learn more about our interviewee, visit:

Carlton Fields: https://www.carltonfields.com/

An influx of affordable housing is coming to Orlando

Tourism in Orlando pushing forward despite rise in COVID-19 cases

How Orlando is improving its transportation infrastructure through technology

Spotlight On: Michael A. Okaty, Office Managing Partner, Foley & Lardner LLP

Spotlight On: Diane H. Crews, President & CEO, Orlando Sanford International Airport

Spotlight On: Patrick Mahoney, Principal, President & CEO, NAI Realvest

Spotlight On: Scott Lyons, Business Unit Leader, SE Region DPR Construction

Spotlight On: Johanna W. Clark, Co-Managing Shareholder, Orlando Office, Carlton Fields

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