Florida Sees Surge in Commercial Real Estate
Fueled by population gains, tax advantages and a strong economy, commercial real estate investment is surging across the state, experts say.
MIAMI — Driven by the dynamic economy, growing population and favorable tax environment, investments into Florida’s commercial real estate market is booming, experts said.
In West Palm Beach, retail occupancies are at their record highest. Ken Himmel, the president of Related Ross, said that the demand is due to the "deliberate and sustained migration of high-net-worth individuals, financial executives and tech leaders to South Florida" since the start of the pandemic.
He added, "With nearly 90,000 new residents added to Palm Beach County in a few years, the city's evolution from seasonal resort town to year-round city has been swift and strategic."
Steinbauer Associates, Inc. indicates that with a favorable tax environment in Florida, commercial real estate investments have been profitable, especially as Florida's population increases and the economy remains dynamic.
Companies such as Foot Locker are relocating from NYC to St. Petersburg, and Publix is planning to open 50,000 square-foot supermarket in Panama City Beach.
Himmel pointed out, "As top investment firms and institutions open offices nearby, they bring with them a highly educated and well-compensated population seeking elevated lifestyle experiences. That demand is being met by integrated, mixed-use developments like CityPlace, which combines office, residential, and commercial in a highly walkable district that has created built-in foot traffic and a steady flow of demand helping push vacancy rates below 3%, even as new square footage comes online."
Moreover, he added, "As financial services and innovation hubs take root in the city, retail is rising in parallel and fueling a self-sustaining cycle of growth and demand that continues to accelerate."
Source: Fox Business (06/28/25) Genovese, Daniella
© Copyright 2025 Smithbucklin