Businesses adjust to changing commercial real estate market

TAMPA, Fla. – With Direct Mail 2.0, they don’t do what you might think.

“We don’t print anything. We don’t send anything,” said CEO Brad Kugler.

According to Kugler, their technology helps improve direct mail response rates – and it drives growth.

“We have 21 employees. A year ago we had 12.”

Direct Mail 2.0 currently occupies 2,100 square feet in downtown Clearwater.

“I’m kind of old school. And as soon as we were able to, I strongly encouraged anyone who wasn’t in a personal situation to return to the office,” said Kugler.

Kugler says having them all together made all the difference.

“We’re a very collaborative, communicative group, and I really needed and felt that the energy and mood helped us grow. And to be honest, we started right after the shutdown ended last April,” said Kugler.

Not only did Direct Mail 2.0 succeed during the pandemic, but they are also expanding and preparing to move to a much larger office.

Brokers say the past year has been surreal when it comes to commercial listings, with some businesses growing and others suffering.

“There are some people who just die on the vine because of the restrictions. Then you have others who are just doing better than they have been in a while. It’s just crazy,” said Jim Jacob, owner of Jacob Real Estate Services.

“We saw a lot of sub-leases. In the beginning everyone was panicked. They had to work remotely. Remote work is here to stay. But the office is too,” said Liz Menendez, an advertising broker with Berkshire Hathaway and CCIM Florida Chapter President.

Brian Alford analyzes real estate market trends in the Tampa Bay area for the CoStar Group.

He says the economy here has weathered the pandemic.

When it comes to industrial space, nothing has happened.

He says retail has seen its share of closings but is still in a good place.

But office space has been hit hard.

There is now a record of 2.1 million square feet.

“A lot of them are empty. They are rented out. But there has been a dramatic shift towards working from home. But that’s changing. We see a lot of companies on the way back,” Alford said.

The available office space could lead to the growth of non-government companies.

There is also 1.2 million square feet under construction and new developments including Water Street in downtown and Mid Town in North Dale Mabry.

“Maybe we can help attract other companies to the business-friendly climate here in Florida. We definitely have the space,” Alford said.

“People are still coming to Tampa. Companies are still moving. This is a great place. We have a lot of people from other states moving to Florida. And Tampa is one of the best big cities,” Menedez said.

“This area was booming long before I was born. And I was born in Tampa. And it will be booming long after I’m gone,” Jacob said.

Alford says we will know more about how companies will return to their offices over the next six months.

But he doesn’t expect the extensive work-at-home trend that many feared.

“People’s memories are short. If the pandemic had lasted about two to three years, it might be different,” Alford said.