Real Estate Forecast from Gregory E. Matovina

How are developers coping with shortages of close-in land? How far out might the Jacksonville market ultimately extend?

By using innovative approaches, such as redeveloping commercial sites as multifamily developments. D.R. Horton's redevelopment of the AutoNation site along I-95 south of J. Turner Butler Boulevard as a condominium community is a prime example.

We're also looking to develop boutique communities, typically waterfront, by acquiring homesteads, tearing down the structure, and developing a single-family community such as Romeo Point.

Finally, we're extending the boundaries. Northeast Florida developers are looking as far north as Brunswick, Ga., as far south as Melbourne in Brevard County, and as far west as Lake City in Columbia County for new projects.

Why have large, mixed-use developments become so dominant in Northeast Florida?

Because large national builders have come to town with deep pockets that allow large tracts to be assembled and developed. These developments offer economies of scale for development and marketing that create significant advantages over smaller, single-use communities.

Where will the next development hot spot be?

Nassau County, particularly the area between I-95 and the Intracoastal Waterway. The area west of I-95 is also ripe for development.

What do you think are the three crucial components of a successful community?

Most critically, location. Then, proper market positioning. The community product, lot size and pricing must fit with its location. Finally, presentation in terms of the entrance and other features and amenities. The first impression, and the ongoing impression, is very influential to visitors making home buying decisions.