The Daily Soak - May 19

New St. Joe CEO Takes Over; Optimistic About Future

Incoming St. Joe CEO Britt Greene was hired ten years ago and groomed over the past four in Jacksonville to replace outgoing CEO Peter Rummell. Greene takes over the helm of Florida's largest private land owner at a turbulent time, but he is optimistic about the company's prospects, especially in the Panhandle. With the new Panama City Airport scheduled to open in 2010, Greene anticipates a steady influx of tourists, retirees and homebuyers in Florida's Great Northwest. St. Joe shares are currently trading at $40, well below the 52-week high of $57.


Tallahassee Avoids the HousingBath

Local news coverage of the resilience of the Tallahassee housing market over the past two years. Despite the downturn in other corners of the state, prices in the capital city have remained steady and the outlook is equally encouraging. Tallahassee avoided the rampant speculation of 2000-05, and the presence of state government and two major state universities continue to provide steady employment and local economic stimuli. Tallahassee's stability is serving as a magnet for homebuilders looking for stable markets with good growth prospects.


Simon Says Retail Sector to Be Weak Through 2009

David Simon, CEO of Simon Property Group, shares his impressions of the retail market in advance of this week's International Council of Shopping Centers convention. Simon says the tighter lending guidelines have made it difficult for commercial real estate buyers and developers to finish projects. Still, compared with the residential market, commercial vacancies have risen "mildly" and mortgage default rates remain low. Simon sees recently-built "lifestyle" centers with small, boutique shops as being the most problematic going forward. Real estate analysts believe Southwest Florida is one of the retail markets that will get hammered for overbuilding in recent years for a population that never materialized (Flashback).