Florida is more than the sunny paradise the world knows it as. It is at the centre of goods transportation and travel for North and South America. Due to its climate and location, Florida also offers various business opportunities across several sectors.
Commercial Real Estate in Florida / Retail Real Estate in Florida can be profitable and rewarding. Florida’s housing inventory is high, with a steady demand, which is a positive sign for entering the market.
Economic growth, political stability, favourable demographics, and social factors suggest that now is an ideal time to invest in real estate in Florida. Its strong and diversified economy provides a stable investment foundation.
The following article details some economic and lifestyle reasons for investing in Commercial Real Estate in Florida / Retail Real Estate in Florida.
Five Reasons for Investing in Commercial or Retail Real Estate in Florida
Florida, or Sunshine State, is one of the United States fastest growing and most resilient economies. It is one of few states that recovered the fastest after the 2007 financial crash and Florida is recovering better after the economic turbulence of 2020.
Let’s take a closer look at the reasons for investing in Commercial Real Estate in Florida / Retail Real Estate in Florida.
1. Florida’s Growing Economy
Florida with its strong economy and consistent signs of growth makes it a lucrative investment opportunity. Since 2018, Florida has been showing a positive 3.5% GDP growth. In terms of its professional and business services, it’s one of the fastest-growing industries.
Florida also has 1.8% population growth, ranked third in the United States. It boasts various key commercial and retail real estate markets, mainly in Miami, Orlando, Tampa Bay, and Jacksonville. Miami is renowned for its prime retail properties. Additionally, Tampa Bay/St. Petersburg was ranked among the Top 10 Fastest Growing Commercial Real Estate Markets in 2020, highlighting the region’s dynamic growth and investment potential.
2. Best State for Business
Based on factors like GDP growth, growth of working-age adults, average salary, and tax rates, Florida is one of the best states for business.
Several media houses rated it in the top 10 in the following categories:
· 2nd on ChiefExecutive.com for Best States for Business
· 3rd for Small Business and Entrepreneurship Council
· 4th on Best Businesses States List
3. Florida is Tax Friendly State
Florida is one of seven states with no personal income tax, offering a significant tax advantage for investors and entrepreneurs. The Tax Foundation ranks Florida as having the best tax climate in the Southeast and the fourth best in the nation, therefore a lucrative state for attracting many businesses. This favourable tax environment contributes to 20% of the United States’ exporting businesses being based in the state.
The Tax Cuts and Jobs Act is a positive move forward for Commercial Real Estate in Florida / Retail Real Estate in Florida.
4. Low Unemployment Rate
Since reaching a peak of 11.2% in 2010, Florida’s unemployment rate has declined significantly. According to the Bureau of Labor Statistics, Florida’s current unemployment rate is 3.2%, which is a 0.1% decrease from the previous year and 0.4% lower than the national average.
5. Quality of Life
Quality of life plays a significant role in property investment. Florida offers several positive points for anyone looking for Commercial Real Estate in Florida / Retail Real Estate in Florida.
Three factors affect the quality of life in Florida:
Climate: The Sunshine State enjoys year-round sunshine, making it a desirable place to live and visit, contributing to economic activity.
Lifestyle: The great weather and beautiful beaches encourage outdoor activities like sports, shopping, and recreation. Florida is home to three of the top 25 U.S. tourist destinations: Miami, Key West, and Orlando. It ranks #2 among the most visited states.
Education: Florida ranks #3 in education and #1 in higher education according to U.S. News & World Report, attracting families and professionals.
Conclusion
Florida’s strong economy, growing population, and vibrant tourism industry create a favourable environment for retail and commercial businesses. Additionally, as more people move to Florida, drawn by its climate, job opportunities, and quality of life, the need for retail spaces to serve these new residents increases.