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Economic Yearbook 2006 - Northwest Florida
Hitting Home
In the Florida panhandle, the issue is housing, from Pensacola to Apalachicola.
The prime business topics across Northwest Florida all involve building -- whether the issue is workforce housing, beachfront condos or pioneering New Urbanist-style developments.
New companies are helping to fill voids. The Eagle Group of Atlanta is putting most of its new projects in Northwest Florida, says principal partner Hal Hayes, who moved to St. Joe's WaterColor in Walton County from Savannah, Ga. Among Eagle's current plans: 2,700-acre NewHaven in fast-growing Santa Rosa County and 1,400-acre Pickett's Crossing at DeFuniak Springs in Walton County. Nearly one-third of initial buyer interest at NewHaven comes from outside the state.
 "The Panhandle is new and exciting and accessible," says waterfront developer Jimmy Lewis, who's building the Majestic Beach Towers Resort in Panama City Beach. Higher construction costs could slow condo development in the next few years, Lewis says. |
Escalating costs and high demand for service workers along the Gulf are pushing housing development northward in the region. In 6,000-population DeFuniak Springs, the city recently approved development plans for 300 residential lots and is reviewing proposals for about 1,000 condominium units and single-family homes. Assessed property values in Walton County are up more than 50%. But a decline in some areas in recent home sales -- Santa Rosa County's January single-family sales were down 19% -- could put the brakes on development.
Waterfront growth, spurred in part by St. Joe Co.'s 7,000 acres of current regional development and widespread marketing, is attracting higher-income buyers. "People want to invest in Florida, and the Panhandle is new and exciting and accessible,'' says Gulf-front condominium developer Jimmy Lewis of Birmingham, Ala., who recently completed the first phase of his 23-story Majestic Beach Towers Resort at Panama City Beach. New condominium construction could slow in the next few years, however, Lewis predicts. "Cost of construction has gotten out of sight -- even before the hurricanes, which made it worse.''
Key Newcomer
? Former Georgian Gary Pruitt calls Milton and himself "a perfect match.'' Since moving to the Santa Rosa County seat last October, the developer has bought several downtown lots and announced plans to open five restaurants, five retail shops and a bed-and-breakfast. Blackwater River and its waterfront at Milton were the main attraction, says Pruitt, 39, who wants to add a marina and make the waterfront more accessible. Also: "I like authenticity, the Southern draw of the town.''
