Ask any KW Commercial real estate agent, and he or she will agree the impact that commercial real estate has on the Florida economy is nothing short of staggering. In 2017, the industry contributed $189.4 billion to the state’s economy. Traditionally one of the strongest markets in the country, the Sunshine State offers solid returns and advantageous conditions (high employment, skilled labor pool, low vacancies, tax benefits, etc.) for investors.
Let’s take a look at Florida’s commercial real estate (CRE) industry by the numbers:
- 3rd. The CRE industry contributes more to the Florida economy than any other state, with the exceptions of California and Texas.
- 3rd. We are third among states when it comes to commercial real estate spending. Only Texas and California outspend Florida.
- 5th. Hot on the heels of California, Texas, New York, and Pennsylvania, Florida ranks fifth in total economic impact ($19.3 billion).
- 54.6%. This is how much construction spending has increased since 2011.
- 37%. Nonresidential building construction has been a big part of that growth, increasing 37% from 2013 to 2017 for an additional $126.7 billion.
- 2nd. Retail, entertainment, and warehouse sectors are strong performers, second only to Texas.
- 3rd. Here, we are topped only by Texas and California in terms of spending on warehouse development and construction.
So is the commercial real estate forecast looking sunny? Yes, and signs indicate it will be full steam ahead in the coming years. However, factors such as federal tax law changes, rising interest rates, and a more pressing shortage of labor could put a few clouds in the sky. The best time to invest is now. Contact a KW Commercial real estate agent to make sure you see the returns you want.