Commercial real estate market to grow in Florida

Commercial real estate market to grow in Florida

According to economists, Florida is expected to experience economic growth over the next several years. In particular, about four or five years of economic growth will likely take place in the commercial real estate market, as rents are slated to rise and occupancy rates will probably be lower. This is just one piece of positive recent news for the state's real estate market.

The main reason that market growth is expected include increased tourism and a surging population. This will cause retail spending to go up and will result in greater demand for distribution centers, warehouses and office spaces. The state's retail market is actually expected to outperform the entire U.S. retail market.

Multi-family homes are especially going to be in major demand in the next few years. Part of the reason is that nearly 830 families are moving to the Sunshine State per day. Many people are marrying at older ages and thus are renting longer, so apartment living is highly sought after these days. It's worth noting that the number of people who won single-family homes declined from nearly 70 percent prior to the Great Recession to closer to 60 percent now.

With the commercial real estate market growing in Florida, it appears to be a wise time to jump aboard the real estate train and purchase or develop land for apartments and other commercial buildings. Sometimes, these types of deals can be complicated, and failure to take the proper steps at any point of the deal can cause it to fall through. Understanding real estate laws can help people to successfully complete their deals and achieve their long-term aspirations in our state.

Source: bizjournals.com, "7 real estate insights from CBRE conference", Brian Bandell, Sept. 19, 2014