Reasons Why Florida is a Commercial Real Estate Hotspot

Are you planning on investing in Florida’s commercial real estate this year? You’re definitely considering a serious move, but why not? After all, it has historically been one of the strongest real estate markets on a national and global level. With so many factors that make the Sunshine State’s active and enticing market, it continually receives big investments from global players like Saudi Arabia, China or Qatar. Of course, the commercial real estate is usually riskier than residential, but it’s also more rewarding. Let’s take a look at all the reasons why you can rest assured knowing Florida is a smart investment choice.

Florida's thriving economy

Even if you haven’t been keeping up with life in Florida, you probably know that its economy is booming. To be more precise, it’s ranked number two in Fiscal Stability by the US News and World Report. Essentially, this means that Florida has all the assets and policies in place which prevent the potential economic crisis and keep the market stable. A stable economy, in turn, is a good guarantee that your commercial real estate investment will be high return. If we take a look at the overall economic situation, it’s among the top 10 in the country. What’s the secret? It’s all thanks to two important factors, namely job growth and venture capital. Some might say that Florida owes its success to its location which makes it a vacation hotspot, but its economy is much more diverse. Yes, tourism is the principal industry, but agriculture, international trade, and aviation drive the economy as well. In fact, Florida’s economy is performing better than the national average, and these trends are expected to continue well into 2020 and beyond.

The competitive workforce

A good economy means that jobs are springing up all over the state. And indeed, when it comes to job creation, The Sunshine State is on a long winning streak. If you take a look at the recent data by the Bureau of Labor and Statistics, Florida has a growth rate of 3.0 percent, beating the 2.0 national average. Not to mention that it has the third-largest workforce in the US, with almost 10 million civilian workers! The best part about this is that the job growth is evenly deployed across the state and that jobs are being added across different industries. Typically, this means that the strong labor market will be durable as it’s not centered on just one branch of the economy.

Now, we’ve already mentioned the most prominent industries in the state, but a lot of the branches are yet to expand. If you’re looking to invest in commercial real estate, here’s a list of business to have in mind:

• Construction services
• Professional and business services
• Leisure activities and hospitality industry
• Education
• Health services

Population growth

We’ve stated already that commercial real estate is an excellent investment, but it’s tough to succeed without a plan. That’s why it’s important to analyze the area, among other things so that you can predict the growth of the particular city compared to the others nearby. We’ve covered job growth, but population trends are crucial for potential investors. It’s easy to see how population growth impacts the housing market, but the commercial real estate, too, follows along to where the people are.

With this in mind, you’ll be happy to learn that, when it comes to population, Florida is climbing all the time. In fact, it’s right behind California and Texas and has successfully surpassed NYC. The rise in population equals a tight market, so wages and salaries have started to rise as well. This is because businesses use higher pay as bait to retain workers or attract new ones. All things considered, if you’re thinking of moving your business to Florida, you can safely do it. And when it comes to transporting commercial goods to another address, a reliable moving company will take care of it for you.

International buyers

In case you’re still weighing your options, the huge number of foreign investors might boost your confidence. Florida remains the top destination for international home buyers, with Orlando and Miami at the forefront of the list. Low-interest rates and the strength of foreign currency are the main drives for foreign buyers, which helps stabilize Florida’s market. The driving demand, in turn, leads to the bidding wars, especially in the South Florida market. One of the main things that make it such a desirable investment area is due to the economic ties to Latin America. Investors from Spain and Latin America are drawn to Florida in search of a safe haven for their capital. People love to put money in America, and all of them want to reach premier cities. This is simply a fact, which means demand will continue to grow.

Stable commercial real estate market

Finally, the backbone of all investments is a stable enough market. Thankfully, The Sunshine State’s commercial real estate market shows signs of strength. So, yes, it’s safe to say we can expect that the demand will increase both for commercial and residential properties. Moreover, the defense-related contract has created an increased demand for office space too! Other than offices, warehouses, and distribution centers will be in high demand as well. With this in mind, take notes if you’re still thinking of the type of investment. This is due to the business being transacted only, as the rise of technology and e-commerce are driving demand for less conventional spaces, such as flex units. Believe it or not, but this can even mean that commercial sectors might outperform many others this year, drawing near to the housing sector. Of course, the following consumer preferences is crucial if you want your investment to succeed.

All things considered, Florida is a worthy investment. If you are still waiting for the green light to purchase commercial real estate, this is it. Go ahead, you won’t regret it!

My name is Betty and I have been writing expert articles in relation to the moving industry for the last couple of years. Besides this specific area, I am also experienced in other spheres pertaining to the concept of relocation.