Pensacola Commercial Real Estate Archived Article

Pensacola: Thriving on Key Industries

Although, Pensacola has not had the growth that much of Florida has had in the last several years, the city’s economy and its commercial real estate market is thriving. The business community continues to expand and there are also several projects worth hundreds of millions of dollars that were either recently completed or are in the works. “South Florida has seen the highs and they are now unfortunately seeing the lows, so some of the developers in the state are starting to look at Northwest Florida,” explains Charles Wood, senior vice president of Economic Development for the Pensacola Bay Area Chamber of Commerce.

Healthcare, tourism and the city’s Naval Air base are the three primary drivers of the Pensacola economy. “All three of these sectors tend to remain stable, and while they may experience a bit of a hiccup, it is nothing compared to some of the things we have seen on the West Coast or South Florida or even in the Northeast,” notes Wood. “From that perspective, the city is pretty well stabilized, particularly from a commercial standpoint.”

The Naval Air base itself generates quite a bit of activity for Pensacola’s commercial sector, but it also aids in creating new businesses and jobs outside of the base. “Tapping into the military talent both from a technology side and from a management side has provided a lot of value for the community,” notes Wood.

For example, the Navy Federal Credit Union has a large back-office presence in Pensacola. There are currently two office buildings up and running, totaling 250,000 to 300,000 square feet, and the credit union is currently constructing a third building that will total approximately 200,000 square feet, as well as a 1,000-space parking garage. There is a fourth building in the planning stages that will total approximately 250,000 square feet. When all is said and done, the Navy Federal Credit Union will contain approximately 650,000 square feet with approximately 3,000 employees. The entire project is slated for LEED-Gold certification and it set for completion in 2010. The third building and the garage are scheduled to be online by the end of year.

The Navy Federal Credit Union is currently constructing a third office building totaling approximately 200,000 square feet.

In August, Sacred Heart Hospital will begin construction of its new state-of-theart $31.5 million Cancer Center in Pensacola. Located on the northern edge of the hospital’s campus, the center will truly be a boon to the area. Upon completion in 2009, the new center will provide the most advanced cancer treatment available to patients in Northwest Florida.

Sacred Heart Hospital is slated to begin construction of its new $31.5 million Cancer Center in August.

Often hand in hand with the healthcare industry, life sciences companies have been making investments and growing within the Pensacola market. Pall Life Sciences, a major medical device manufacturer, is currently constructing a $26 million expansion to its office located at 8780 Ely Road in the Ellyson Industrial Park. The University of West Florida is also branching out thanks to the burgeoning technology sector in Pensacola. The University is building a new $25 million school for computer science and engineering that will include new classrooms and a high-tech virtual reality lab.

The University of West Florida is building a new $25 million school for computer science and engineering that will include a virtual reality lab.

There are also several projects in the planning stages in Pensacola. One of the most noteworthy projects is a Technology Campus that the city is bringing to downtown Pensacola. The economic develop- ment authority has acquired, through the city and the county, 9.2 acres and are planning on developing a technology oriented office campus that will accommodate up to approximately 500,000 square feet of office space geared toward technology companies. Construction on the infrastructure for the first 100,000-square-foot building is scheduled to begin late fall with completion roughly 18 months from the start date. “The Technology campus is about providing a location for existing companies to be able to grow and sink their roots in and build corporate headquarters, as well as a way to recruit new technology companies to the region,” explains Wood.

A 30-acre mixed-use project is also being planned for the city’s waterfront — Community Maritime Park. “The Maritime Park project has a strong public purpose around it,” says Wood. It has been a long time coming for the area.” The project will include office and retail components, as well as a baseball stadium for the Pensacola Pelicans, the city’s minor league baseball team; the Florida Maritime Museum; and a waterfront promenade. Two master developers have submitted proposals on the project and the city should make their selection of the design by end of summer.

Another mixed-use project set for development will be located right across from the new Technology campus downtown. Hawkshaw Village, which is being developed by Hawkshaw Eastside, Inc., a joint venture being led by Moulton Properties, is a $20 million mixed-use project that will feature office, retail and residential uses. “The conglomeration of these projects in the same general location will really add some power into downtown,” remarks Wood. In addition to several new developments, there has been much redevelopment of existing buildings in the downtown area. Several retail and residential developments have been redeveloped and more is planned for the future.

There are also several projects surrounding Pensacola that could have a major impact on the city’s economy. Downtown Mobile, which is only about 45 minutes from downtown Pensacola, is expecting to execute a half billion dollar contract with Northrop Gruman. The city of Pensacola hopes to offer potential suppliers for the new project. Also in Mobile County close to Interstate 65, which is near the northern part of Ascambia County in Pensacola, Tyhssen Krupp is planning to develop a $3 billion steel mill. Wood notes that Pensacola should benefit economically from this massive project not only during the construction phase, but upon completion as well. Construction, which is set to start this fall, will take roughly 3 years and 10,000 people to complete it.

Overall, although Pensacola is sometimes the forgotten corner of the state, the city’s staunch focus on aiding new businesses and its key driving factors will continue to push the community forward.

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