Realty team helps shape condos across the region

Michael Saunders & Co. is known as one of the largest real estate firms in the region, with $3.23 billion in sales volume in 2023.

But the firm also does a lot unseen work for projects and more, through its Developer Services division. Simon Bacon, executive director of that unit for the Sarasota-based firm, has collaborated with developers on about 90 projects over the years, he estimates, offering its expertise years before a shovel hits the ground through sellout of the building. Some recent collaborations include the St. Regis on Longboat Key and the Residences at 400 Central in St. Petersburg.

The division is especially relevant today, as developers from Naples to Tampa grapple with a slew of challenges. That ranges from the big-picture, such as a percolating conversation some communities are having over limits on growth — one Manatee County commissioner recently suggested a building moratorium —to the day-to-day, like labor and materials costs, and more recently, of course, tariffs.

Bacon recently spoke with the Business Observer, providing a glimpse into what his division does and what is ahead for the region’s condo market. Edited excerpts:

How does the Development Services division work with developers?

We believe that every development, every project has its own characteristics and its own personality, and we get in at the very early stages with developers on helping to craft what that unique position is for the project. We will help advise on the unit mix and the sizing of those units, what the design criteria should be, the amenity programming. Many times, we will help introduce architects or interior designers to the developer so that each project gets its own unique perspective. That creates some variation within the market for prospective buyers.

What is the outlook for the condo market in the Sarasota area?

Quite a few new projects are slated to come to market over the next 12 to 24 months, so it will be competitive. But there is everything from very high-end boutique buildings to larger projects that are going to be … priced more favorably to the market, versus just exclusively at the high end, so there's going to be good variation.

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What does it look like when your team works with a developer?

It’s very research based. We have an internal team that will do extensive research on what's transacted in similar sized buildings, not just in our immediate area, but sometimes we'll look at parallel markets to see if there's any corresponding characteristics to the building that's being contemplated, whether it's the size of the site, the number of residences, does it have a hotel brand — the development du jour is anything that's branded these days. We'll also look at demographic information, how many people are relocating to the area, and population trends, so that we can turn to a developer and say that you should be doing 25% straight two bedrooms, 10% two bedrooms plus den [or] 50% three bedrooms. These are your buyers. This is what it is that they want. This is where they're coming from. These are the floor plans that have been most successful within the market, and these are the views that need to align with certain layouts in order for you to have the most salable and marketable project.

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How long does a project take from when you begin consulting to completion?

Our projects are a marathon. Each project can range from three, four years on the short end to seven to 10 years on the outside. [Work on the] St. Regis began in 2016, and the resort just opened last year … They take a very long time to get from the conceptual phase through pre-sales financing and then obviously the construction of those buildings and for people to end up living in them.

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When does the sales process begin?

We'll work with the developers, and we'll look at the timelines for when you should ideally launch. We will look at what should be in the sales gallery. The branding of everything will take sometimes six to 12 months prior to launching, and the build-out of the sales gallery can sometimes take six to 12 months. What our team does is really work hand-in-hand with the developer to try to figure out the most compelling way to market the property and to tell the story of what the developer’s vision is for the context of that property within a given location.

How does being an agency factor into the process?

We really act as the voice of the market, and as the conduit to the developers, because we have 600 agents across the region and also very strong relationships with agents that are outside of our company. We're always gauging what market sentiment is with the salespeople who are working with buyers day in and day out so that we can properly articulate what the current state of the market is and best hypothesize what the next three months, six months, 12 months will look like. That way, we can devise a sales strategy for the market that we are in for the building in its specific location.

How would you characterize the current condo market in Sarasota?

The market that we're in has a lot of variation, which I think is great. If you go to the downtown core, you can get something that's more modestly priced and sized for people who want that downtown walkable lifestyle. And then we have things like the St. Regis on Longboat Key, where they are the most expensive condos ever sold in the history of Sarasota.

Are there any changes on the horizon?

With the introduction of things like [the] Live Local [Act], which is going to bring more affordable housing to the downtown core, it's shifted the density requirements that developers were normally constrained by … I think we're going to see a shift to some slightly more modest-sized residences, which will help to bring down the overall face value of condominiums in the downtown market. That will lead to more opportunities for people who are considering relocating to Sarasota. 

Historically, you've seen a large number of projects where the average residence size is 2,500 to 3,500 square feet, which is a really large condominium. So to be able to bring in more affordably sized residences that are going to be 2,000 square feet, 1,800 or 1,500 [square feet] is going to do a lot for creating some variation in price points for people who want to be able to live downtown.

What does the future look like for condos in the region?

There are a lot of projects in conceptualization in downtown Sarasota and all the way up and down the west coast of Florida right now. That is going to bring the next generation of projects to the market that everyone will start to see in the next two to five or seven years, by the time they're out of the ground and having a real impact on the local marketplaces.