I know you are a devils advocate for FL, but this is a HUGE deal to our area. The trickle down effect will be huge and rumor has it there is another Fortune 500 company looking into the county for Headquarters. If you read why Hertz chose SW FL and my specific submarket it will make sense. Workforce is ready and educated (just not enough high paying jobs), low land cost, cheaper cost to live, etc… We are very happy with this news today.
http://www.News-Press.com – Check it out
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeI missed this post a while back.
Anyway I'm not sure why everyone's getting excited about this deal. Hertz are going to shift up to 700 jobs from Jersey over 2 years. 700 jobs in the scheme of things is absolutely tiny. My guess is that reality won't see 700 jobs materialise but it sure sounds good for the mayor and an MSM feel good story. Hertz bought out Dollar Thrifty and logic tells me the synergies generally mean job losses somewhere in the system.
In terms of the US market nothing changed. They just moved the deck chairs again.
Freckle –
I can't even dignify your imbeselic responses sometimes and I've stuck up for you for awhile here. You just proved to me you're just a troll. Where did you read they are shifting 700 jobs from NJ? It will be less then that, but the overall job creation in FL will be well over 700 The president of my firm is on the committee for the Economic Development Office which directly assisted Hertz land in Florida, in fact she knew who the company relocating was when the anonymous negotiations with county and state were ongoing and in a sales meeting 2 weeks ago she discussed the research that went into this and why a huge company is likely selecting SW FL for a new HQ. The trickle down effect will be even greater. The struggling retail and office industry will certainly pick up steam and the Coconut Point Shopping Center which has struggled for 2 years will get a huge shot in the arm. After Hertz announced their change, a manufacturing company just went hard on a building in Lehigh Acres to create 250 jobs. A tech company is committing to 400 more jobs. Direct impact from Hertz. Also, another important reason they chose SW FLorida…Their research showed that the workforce is highly educated and underemployed. They have assessed that each new employee in Florida, they would save an average of $13,000 in salary from what they paid in NJ to offset cost of living. Multiply that by 700 jobs.
Chico's, the areas second largest empoyer just assisted Florida Gulf Coast University on a partnership with the Fashion Institute of Technology in NYC which will be a huge boost to new graduates in SW Florida looking for NYC education experience.
Keep on moving your deck chairs freck
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeHertz Announces Corporate Headquarters Relocation
That's right. Up to 700 "RELOCATED" in 2 year period. That doesn't include the 300 jobs they are offering to the local SW Florida workforce. I'm not going to really argue this point. It's a huge economic shot in the arm to an area that shows a very promising future.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeJeez you guys go on about this stuff like it just saved the world. This stuff is an every day occurrence.
Hertz is a service company that bought out another service company and will consolidate the two for business synergies. That means the total jobs will decrease across the board as efficiencies are implemented between the two. It's not a gain for the US. Florida has what, a population of 20+ mil. A few hundred jobs means didly in the scheme of things. A big deal for one tiny little county among hundreds. Hardly gets me dancing in the street.
This link provides a list of bankruptcy filings by state up to 3Q 2012. Florida is only beaten by California (who are in a world of hurt)
http://www.abiworld.org/AM/Template.cfm?Section=Home&TEMPLATE=/CM/ContentDisplay.cfm&CONTENTID=66160
That follows on from a trend evident in this graphic for 2009 where Florida sits 15th on that list (per capita basis)
Bankruptcies in the main are dropping off of their 2009 highs howvever Chap 11 bankruptcies
still have some way to go before we're back at pre GFC levels. (Click graphic for more)
Will Bankruptcy Filings Increase in 2013?
I've never had a problem with Florida's growth/recovery story. While large brand name international businesses may settle in Florida there is still a long road to hoe before FL is back on an even keel. Things look rosey at the moment because FL was literally flattened economically. That vulnerability to economic downturn still remains. Nothing in the US or global economy suggests a sustainable recovery. Quite the contrary. Economic indicators are flat or declining again. Florida is one of several economic islands companies are migrating to looking for safety and growth. Florida is highly dependent on external drivers for its long term sustainability and they don't look promising at all.
The US will continue to shuffle the deck chairs. When that's finished there'd better be something more tangible or we're all back to square one again.
Bankruptcy update.
The Latest Bankruptcy Filing Statistics for March 2013
Within the top four circuit courts, the following districts had the most filings:
So Florida relies on external driving factors? Yeah I can live with that. Employment is always a leading indicator. UP. Population growth is typically 1.5% annually. UP to 5% for consecutive years (although I don't think that's sustainable, I believe we will see 2.5% consistently until 2030)… Bankruptcy's DOWN. Your chart on BK's certainly show Florida as one of the tops in filings, however Florida showed one of the biggest improvements in lesser BK filings. From 2011 to 2012, BK's are down 20%. In fact, if you take Miami-Dade County out of the equation, the improvement numbers would be far more dramatic. From a micro perspective, SW Florida from Tampa to Naples is showing the strongest economic improvements in FL.
Yup, Hertz is hurting NJ and other areas by closing up shop, but the long term economic effects will undoubtedtly be positive for a company who is looking to consolidate in the short term to expand in the near future. Campbell's Soup is doing the same thing. So is Merck Pharmaceuticals and so are many other Fortune 1000 companies. The firms are well funded again and will build Headquarters full of state incentives to build energy efficient campuses and offer employment to the LOCAL workforce.
Tourism in 2012-2013 season is near record numbers dating back to 1995. Construction prices are up 15% since November and expected to be up across the board by much more in 18 months. Investors of Multi Family is where the smart money is in Florida right now, a huge hedge against inflation which is definately going to be happening.
Freck: Your charts are misleading because it doesn't show annual improvements. Lastly, when does a Fortune 300 firm Headquarter relocation happen on an "everyday basis" as you say? You're a jokester and in my professional opinion can't be taken seriously here.
For 3 years I told investors NOT to buy in FL dating awhile back and it was before the GFC while I was working with a bank on the executive side when I got a feel that the craziness was not sustainable.. I called it the day I saw a school teacher in Michigan on a 40k fixed income qualify for 3 homes in Florida. I don't mind telling people NOT to buy. I can do that because I represent institutions on distressed dispositions so no matter where the pendulum swings, I have business. I'm not a cheerleader where my pitch is to buy all the time. It's timing and it's now.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeCheevesFinancial wrote:Freck: Your charts are misleading because it doesn't show annual improvements. Lastly, when does a Fortune 300 firm Headquarter relocation happen on an "everyday basis" as you say? You're a jokester and in my professional opinion can't be taken seriously here.
Your charts are misleading because it doesn't show annual improvements
Do you have some kind of problem interpreting charts. Both show an improving statistical trend. And you call me a jokester!!
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Keep it in context Cheeves. Business (of all types) coming and going is an every day occurrence. Ask any CRE guy. Where's Rob when you need him.
The bankruptcy data is to balance the recovery euphoria. The other side of the coin so to speak. For a so called boom state it still has its GFC detritus to clean up yet. The incoming businesses are in a significant way filling the vacuum of those that failed.
I'm wondering if new business is exceeding the rate of bankruptcy even if bankruptcies as a whole are trending down currently. That may reverse to an upward trend (nationally). It'll be interesting to see how that affects FL if at all.
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