A NAIOP Commercial Real Estate Development Association survey found that Florida’s commercial real estate sector added nearly $190 billion to the state’s economy in 2017. That was the third-most of any state trailing only Texas and California. It was also third behind Texas and California as it related to commercial real estate spending at $99.3 billion. Florida also ranked highly in several other categories related to construction spending and economic impact.
The state was ranked second in the retail, entertainment and warehouse sector behind only Texas. It was also fifth in overall economic impact in 2017. Finally, the state ranked third in warehouse development and construction. According to a professor at George Mason University, construction spending increased 54.6 percent over a period from 2011 to October 2017. There was a 37 percent increase in construction spending for buildings used for nonresidential purposes.
Overall, the economy is projected to continue growing until 2020. However, according to the NAIOP, there are several variables that could lead to slower growth. These variables include rising interest rates and not enough workers to fill existing job openings. Furthermore, increasing energy prices as well as unforeseen impact from the recent tax cuts could also reduce the chances of continued growth over the next two years.
Those who are looking to buy, lease or otherwise invest in commercial real estate may want to consult with an attorney prior to doing so. This is because there could be zoning, title or other issues with a property that may not be disclosed or disclosed properly. An attorney may be able to review the title and further research the status of a building before a deal closes.