Why Florida Retail Stands Out
As we step into the new year, it’s clear that the Florida retail commercial real estate (CRE) market is not just surviving—it’s thriving! This state is solidifying its position as a vital contributor to the Sunbelt’s economic growth. While the national retail landscape grapples with challenges, Florida’s key retail metros like Orlando, Tampa, and Fort Lauderdale are poised for remarkable growth in 2025. Why?
The Answer…
- Population and Employment Surge: Florida is experiencing a significant influx of residents, driven by abundant job opportunities and a welcoming business environment. This population boom translates to increased retail demand that can’t be overlooked.
- Tourism and Hospitality: Renowned as a global travel hotspot, Florida enjoys year-round tourism, enhancing retail demand in its major metro areas. This constant flow of visitors is a goldmine for retail businesses.
- Tax Benefits: The absence of a state income tax, coupled with favorable business policies, makes Florida a magnet for both individuals and enterprises. This unique advantage is a compelling reason to invest here!
Spotlight on Florida’s Retail CRE Markets
Orlando: A Vibrant Retail and Tourism Hub
Orlando’s flourishing tourism sector and rapid population growth create a high demand for retail spaces, positioning it for another stellar year.
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- Availability Rate: 3.9% (one of the lowest in top markets).
- Asking Rent Growth: 4.5%.
- Total Return: 8.9%
- Inventory Leased: 1.6%
Tampa: Resilient Amid Challenges
Even with a significant decline in sales volume, Tampa’s strong rental growth and impressive total returns reveal a thriving market in the long term.
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- Availability Rate: 3.4%.
- Asking Rent Growth: 4.4%.
- Total Return: 7.8%.
- Inventory Leased: 1.6%
Fort Lauderdale: A Leader in Sales Growth
The retail market in Fort Lauderdale is flourishing, driven by a surge in sales transactions and a consistent demand for quality retail spaces.
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- Sales Volume Increase: Fort Lauderdale is leading the pack in year-over-year growth.
- Availability Rate: 4.4%
- Asking Rent Growth: 1.4%.
- Total Return: 6.2%.
- Inventory Leased: 1.6%
Why You Should Invest in Florida Retail
Florida’s unique combination of economic resilience, appealing lifestyle, and significant growth potential makes it an ideal destination for retail commercial real estate investment. As we embark on this new year, the Sunshine State’s dynamic markets exemplify the strength and adaptability of the retail sector.
If you have any questions or interest in hearing more about the benefits of investing in the Sunshine State or own property here and want to know where it stands in today’s market, please do not hesitate to reach out.
