Florida Amendment 3 proposes a significant change to Florida's property tax structure, expanding the homestead exemption while reducing the annual assessment cap on non-homesteaded properties from 10% to 5%. What does it mean for Homesteaded Homeowners? Using an illustrative statewide average non-school millage rate of 10.5 mills, a qualifying homeowner could realize approximately: - 2027: $1,035 in annual tax savings with a $150,000 exemption - 2028: $2,085 in annual tax savings with a $250,000 exemption - Two-year cumulative savings: $3,120. The additional exemption does not apply to school district property taxes. What does it mean for Local Governments? Statewide estimates project: - 2027–2028: $4.95 billion in reduced local government revenue. - 2028–2029: $8.78 billion in reduced revenue. - Fully implemented: Approximately $11.86 billion in annual revenue reductions. What about Commercial Real Estate and Investment Properties? Non-homesteaded properties do not receive the expanded homestead exemption. Instead, their annual assessed-value growth cap would decrease from 10% to 5%. Potential benefits include slower assessed-value increases and greater predictability for property owners. However, lower assessment growth does not necessarily mean lower property tax bills. The Potential Hidden Cost Local governments still have to fund essential services, including public safety, fire and rescue, roads, infrastructure, and municipal and county operations. To offset lost property tax revenue, jurisdictions could consider: - Higher millage rates: Increasing property tax rates on the remaining taxable property base, subject to applicable statutory and voter-approval requirements. - Additional fees: Increasing building permit fees, impact fees, utility charges, stormwater fees, and other service-related assessments where legally authorized. - Reduced services: Cutting budgets, delaying infrastructure improvements, or reducing public services. - Alternative revenue sources: Exploring other taxes, assessments, and charges to replace lost revenue.

I'm a little late joining the conversation here, especially since I've had the pleasure of knowing and working directly with many of you in the self-storage industry for years! This looks like a great forum and resource, and I'm looking forward to connecting with both familiar faces and new ones. For those I haven't met, I'm with EDC, a mid-sized national general contractor headquartered in Richmond, Virginia. We build throughout the Eastern United States, with a strong focus on self-storage, small bay/flex, warehouse, and logistics facilities. I lead our construction programs in these sectors and enjoy working with owners, developers, and industry partners from the early planning stages through project completion. I'd also like to offer EDC as a resource to this group. Whether you have questions about construction costs, need preliminary budgeting assistance, want to explore value engineering opportunities, or simply want to bounce around ideas on a potential development, we're always happy to help. Those of you who already know me know that I'm easy to reach and always willing to have a conversation. Feel free to call, text, or email anytime. I'm looking forward to contributing to the forum, sharing ideas, and learning from everyone here. Please reach out and introduce yourself. I'd love to hear what you're working on! Martin Blum, CCIM Senior Business Development Manager | Shareholder EDC 1660 Huguenot Road, Midlothian, VA 23113 Mobile: 804.461.5613 Email: [email protected]

September's CPI increased 3.7% year over year, adding further uncertainty to the interest rate outlook. The Federal Reserves next rate announcements are scheduled for October 28 and December 9. As of today, market sentiment is pricing in the possibility of a cumulative 0.50% increase in the federal funds rate. Below is a five-year look at the 10-year Treasury yield, illustrating the significant increase in borrowing costs: Dec 2021 ~1.49% Dec 2022 ~3.5% Dec 2023 ~3.9% Dec 2024 ~4.1% Today ~5.24% This represents an increase of approximately 375 basis points since December 2021. CRE impact - Historically, an increase in the cost of capital has resulted in lower property valuations and cap rate expansion as investors require higher returns to compensate for increased borrowing costs and investment risk. Generally, each 0.25% rate increase impacts the buying power by 2.5% provided that other variables remain constant. Based on what we are hearing and reading, new transaction activity has slowed, with some deals being retraded, or effectively coming to a standstill. We are also beginning to see pricing adjustments and cap rate expansion across various asset classes. The bigger questions - Where do valuations and cap rates go from here? Will sellers adjust their pricing expectations to reflect the higher cost of capital, or will the disconnect between buyer and seller expectations continue to constrain transaction volume?

My name is Henry. I am a residential home builder in South Carolina. Transitioning to small bay developer. Glad to be in the group. I was at the Flex connect event in Houston and learned a lot.

Hello Hello! I’m Heather McCombs with Spacebox Management. I have nearly 10 years of experience in self-storage management and am now expanding into the flex space market. We currently have one facility under management that is under construction, with hopes of receiving our Certificate of Occupancy within the next month. I’m excited to bring my self-storage experience and industry knowledge into the flex space sector to help get our units leased quickly, efficiently, and successfully. www.spaceboxmanagement.com