Residential, commercial construction continues frenzied pace in
Volusia County
The gilded age
continues for the Volusia County real estate market, with no
immediate slowdown in sight, in spite of recent increases in
interest rates.
According to a
Volusia County Division of Economic Development report based on
city and county permit data, the value of residential and commercial
permits in the third quarter surged to $456.2 million, up from the
second quarter total of $334 million.
Through the
first three quarters of the year, new construction in Volusia County
totaled $1.13 billion.
From Daytona
Beach to Deltona, Volusia County real estate is thriving, with many
cities surpassing last quarter's performance. With 16 commercial
permits totaling $50.2 million, Daytona Beach led all jurisdictions
and showed a nearly 50 percent increase over last quarter's $27.8
million. Daytona Beach Shores' 179 residential permits led the
county in project value of $78.2 million-a $70 million increase over
the second quarter. However, in terms of the number of residential
permits in the third quarter, the leader was unincorporated Volusia
with 409 housing starts.
Volusia County
Property Appraiser Morgan Gilreath, in assessing the rose-colored
real estate picture in Volusia County, said: "Everybody's
growing–across the county. Housing prices are up and commercial
development has been particularly impressive. I've seen 50 to
60-year-old buildings with sales of $130 plus per square foot, and
that's more than we've seen in this market."
Main streets
across the county are experiencing a revival of downtown business,
Gilreath pointed out. "Downtowns are celebrating events with
merchants and restaurants participating. I remember when it was hard
to sell–even in recent years–in the downtown areas. In areas such as
DeLand, if you want to sell, there's someone willing to buy."
DeLand's
commercial development also includes construction at the airport and
in the town's industrial center, according to Dale Arrington,
DeLand's Development Director.
Commercial
development in New Smyrna Beach includes one project at the
intersection of S.R. 44 and Interstate 95 with six lots, and four
lots have been presold, including a restaurant, two hotels and a gas
station, according to Paul Holub, owner of Holub Development in
Ormond Beach. New Smyrna Beach building official Richard McFadden
projects a fourth quarter or first quarter 2006 permit date for this
project.
Edgewater,
Ormond Beach, and Orange City are other areas of commercial growth.
Linda White, the community relations director for Orange City, said
that future commercial projects in Orange City are generally medical
and retail. There are plans for a 35,000-square-foot addition to the
Florida Hospital Fish Memorial. Another specialty retail center has
been approved and will be in the vicinity of the hospital.
In January,
construction of a lifestyle shopping center will start in the area
near the new Kohl's department store, according to Chester Murray,
Orange City's chief building official.
Residential
growth in the county during the quarter also remained unabated. New
Smyrna Beach approved 193 residential construction permits in the
third quarter, a substantial increase over the 82 residential
permits in the city during the second quarter.
"Single
family, town homes and condominiums–we've seen a little bit of
everything," said McFadden. There are five beachside condos in
process in the city and eight town homes are ready to be permitted.
Single family
and condo growth also is strong in DeLand where there are plans for
several new subdivisions on the west side of the city.
The
unprecedented demand has renewed focus on efficient process and
construction costs. The New Smyrna Beach building staff has been
working overtime to keep up with the pace and the city also has been
hiring additional staff. Port Orange building official Mike Dishler
said that in the past two years the city's planning division has
added three new positions. "The development industry is increasingly
competitive," he said. "It's affecting all aspects of the industry."
There's no
immediate end to the rush, according to Gilreath, but there may be
an eventual deceleration. "If the Federal Reserve and the economy
continue on this track, we will see more of the same. Eventually, I
believe the rate of increase is going to slow, probably within the
next couple of years. "
