Companies focusing on Florida as a smart place to invest in commercial real estate
Florida continues to be a top destination for investors from all parts of the world.
There are plenty of reasons as to why this is, perhaps the most well-known being the strong population growth, tax-friendly environment, and availability of investment options.
After the pandemic, Florida became a desired place to start a business, thanks in part to the more relaxed Covid restrictions, and being one of the first states that was re-open for business. A total of 318,855 people relocated to Florida in 2022, according to the National Association of Realtors (NAR).
Florida commercial real estate not only benefits from significant capital investments from the US, but also global players from Latin America and Europe. Multinational companies are relocating here, which has a multiplier effect that boosts the local economy.
Thanks to its strategic location and investment in its infrastructure, Florida is an important hub for trade. Port of Miami, Port Everglades, Port Canaveral and Port Jacksonville are among the busiest ports on the East Coast.
Investment in passenger trains has also been a catalyst for growth. Brightline, a privately-owned company, is connecting major Florida cities with its high-speed trains. Recently, Brightline unveiled their new facility at Orlando Airport. Brightline not only connects passengers across the state but also has the potential to create thousands of jobs.
On the technology front, South Florida continues to attract companies and startups.
Before the pandemic, Miami was not on the tech hub radar, but the city today is a rising star and a top destination for many startups thanks to the multicultural population.
On the restaurant and hospitality front, Miami has performed better thanks to an increase in household income and warmer weather. Relaxed COVID-restrictions contributed to a quicker recovery in the restaurant industry. Florida’s hotel construction pipeline has grown for nearly two years. According to CoStar, over 20,000 rooms are currently under construction, representing 4.3% of Florida’s existing supply.
Here are some of the accolades that help explain why businesses invest in the Sunshine State:
– Florida is a tax friendly state; there is no state income tax.
– Florida is the third state in the nation with tax-friendly Opportunity Zones.
– Florida ranks in the top 3 in the nation for job growth, according to the US Bureau of Labor and Statistics.
– Fast Company magazine ranked Florida #1 in the country for innovation.
– Florida is the second “best” state for business, behind Texas, according to Chief Executive magazine.
– U.S. News & World Report ranked Florida #8 nationally in fiscal stability and #8 with its economy.
– Florida ranks among the top five most tax-friendly states for retirees.
– Florida is top 10 in the United States receiving foreign direct investment (FDI).
Thanks to all of this, Florida’s commercial real estate should continue to do well across all sectors and outperform the rest of the US in many fronts.
Fernando Echeverri is a broker specializing in commercial investments properties, and works with Great Properties International on Key Biscayne.
To read his last piece in the Islander, click here.