After a slow start to 2025, a trio of Lee County office real estate deals show the market is strong.
It remains strong, said Justin Ankney, a broker with Mayhugh Commercial Advisors, because although the rise of remote work during the pandemic shut down many offices, the supply of such offices went down.
“We also had an extreme population growth and zero development of office,” Ankney said. “So maybe tenants and businesses don’t need the square footage of yesteryear. But there’s more tenants and businesses.”
Sanibel Captiva Community Bank bought its former landlord out of the historic Edison Theatre building at 1533 Hendry St. in downtown Fort Myers, paying $2 million for 16,000 square feet of space, including the 3,900 square feet it had leased since 2017. It sold for $125 per square foot.
Business will continue as usual for both the bank and its neighbors on the second and third floors, as they become the bank’s tenants.
“The seller approached us and said, ‘We’re selling the facility, would you like the whole building and to be your own landlord?’” said Kyle DeCicco, president of Sanibel Captiva Community Bank. “And we jumped on the opportunity. We saw the great mix of tenants on floors two and three.”
The other tenants will remain in place, DeCicco said, and they will enjoy some forthcoming upgrades, including a new roof, new air conditioning units and some new windows.
“It’s a simple business decision,” DeCicco said of buying the building. “We like to own our real estate rather than paying rent. We can give our customers the best possible experience. We like to be friendly with our tenants, as well.”
On April 10, the office building just next door at 1529-31 Hendry St. sold for $1.1 million for 3,699 square feet, or $297.38 per square foot. Jason Fiore of Zero In Real Estate represented K2W LLC, owned by Ian Knight, owner of The Lucky Screw bar and restaurant next door.
Alex Henderson, Max Molloy and Sawyer Gregory of LSI Companies represented the seller. Henderson said the flurry of April deals made up for a slow start to the new year.
“It was very slow to dead around the turn of the year,” Henderson said. “After the new year and the [presidential inauguration] took place, there was a lot of distraction in the markets for local real estate though. The need for buyers and the need for businesses to occupy space really picked up in the first quarter.”
On April 29, The Renaissance Office Center, an 86,000-square-foot office building at 9530 Market Place Road, at the northwest corner of Daniels Parkway and Interstate 75, sold for $9.6 million, or $112.50 per square foot.
The seller, Brookwood Financial Partners, bought it in 2017 for $8.6 million. Chase Mayhugh and Ankney of Mayhugh Commercial Advisors brokered the deal. They also were part of the ownership group, CM-CRE Office I LLLP, that bought it.
“The building was meticulously maintained by Brookwood,” Mayhugh said. “They’re a private equity group. The finishes are phenomenal. It’s got exposure on I-75, and 125,000 cars a day go by it. It’s on 5 acres.
“It’s gated and secured. That building has everything. The latest and greatest as far as security. Key card access. It’s exactly what we were looking for. It’s like a trophy asset. It’s probably one of the nicest office buildings in Fort Myers.”
Even when buildings don’t hit the market, the brokers said they have been kept busy by filling leases.
In April, Hazen and Sawyer, a national water engineering firm, signed a three-year lease for 3,000 square feet of space at 1404 Dean St., Suite 300, Henderson said, with LSI Companies handling the agreement.
Also in April, Suarez, Rios & Weinberg P.A., signed a 10-year lease for 2,694 square feet at 1601 Jackson St., Suite 200, Henderson said.
Office buildings continue to rise as valued assets in Southwest Florida, which was why DeCicco and his team pounced on their off-market acquisition of the Edison Theatre building.
“Office is pretty hot right now,” DeCicco said. “Downtown Fort Myers office space is pretty hard to come by. There’s a pretty good mix of professional tenants in that building. There are some longer-term leases and there are some short, month-to-month leases. And all that drives the sales price. We like the building, and we think we got the building at the right number, and we’re not going anywhere.”
LSI Companies wasn’t involved in that deal, but Henderson admired it, nonetheless.
“Anytime you have local businesses doubling down and spending significant capital to invest in their backyard, everyone feels and benefits from it,” Henderson said. “This cements yet another high-quality owner and business in our market. I’m very happy for all in this deal.”
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