Sarasota's incredible shrinking space

Buried deep in a new Sarasota County Business Competitiveness survey that asked 74 local companies to rate the health of the region's business climate and macro conditions was a troubling finding: Space is at a premium.

Nearly one-third of survey participants indicated they “cannot expand in their current facility and will need to evaluate alternative real estate to support their growth.”

For some of the manufacturers and distributors, business and technical services firms and finance and insurance providers — hospitality operators, retailers and construction companies were purposely excluded — that may mean going elsewhere to accommodate growth.

EDC officials, including President and CEO Mark Huey, say the results show a need to “develop a real estate plan that meets the near- and long-term needs of growing businesses.”

The good news is, the 74 companies surveyed are growing. Some 85% said they are creating new products or services, a majority believe revenue will climb by as much as 49% over the next year, and collectively they expect to hire 1,370 new workers by the end of 2018.

Today, the firms employ a cumulative 8,130 full-time workers and maintain a $375 million payroll, and have annual revenue of $5 billion, the survey taken between October 2014 and Aug. 15 with input from site selection firm Moran, Stahl & Boyer LLC of Lakewood Ranch found.

Participants also had positive things to say about the area's available business services, tax structure and quality of life.

But the companies said workforce development should be a “top priority” for civic leadership, followed closely by housing affordability and availability.

EDC officials acknowledge recruiting, research and development support, transportation, communications and housing affordability are “areas to strengthen.” Availability of viable commercial real estate was also cited as a primary need.

That could prove critical, because if the collective 3.75 million square feet the survey found the 74 companies occupy isn't capable of expansion, the area could lose some prime economic drivers and diversifiers.

By the numbers
Nearly one-third
Companies that cannot expand in their current facility and will need to evaluate alternative real estate to support their growth

85%
companies that are creating new products or services

49%
of companies surveyed think their revenue will climb over the next year

1,370
number of new workers expected to be hired