If you’re considering buying commercial real estate or even just looking for an office for rent, there’s never been a better time in Florida than right now.
According to a new study by the National Association of Industrial and Office Parks, Florida ranked fifth out of all states in development and construction of commercial property in 2016.
Florida saw $7.59 billion spent on commercial real estate development in 2016. That translates into 134,152 jobs and an ultimate contribution to the economy of $15.75 billion. In Jacksonville, for example, real estate sales for commercial properties was up 2.5 percent, industrial properties were up 2.8 percent and even office real estate saw an increase of 0.8 percent.
Because Florida commercial real estate was slow to feel the effects of the real estate bubble that burst in 2007, it has also been a bit slow to see recovery. This seems to be the year when our recovery is finally stabilized.
What Does It Mean for You?
When commercial real estate’s booming, it can mean several different things for small businesses like yours, depending on where you are in the market.
For owners, for example, it can mean that your commercial real estate equity is positioned to see some increase without your doing anything besides maintaining your property. That’s always a big plus.
For people and companies seeking real estate purchases and leases, it can mean more available units to choose between, potentially initially lowering prices. If you can jump into the market before it really heats up, you’ll have the benefit of competition between builders and property management companies and may be able to snatch up a much better piece of property than you expected for your budget.
Everyone Needs Office Space
Even if you’re not an early bird, you still need a building or office, though, so you’ll have to think hard about what compromises you’re willing to make. Ultimately, however, these kinds of real estate booms benefit everyone as long as they don’t get out of control and become bubbles.
More activity in the market usually means more jobs on the ground, more money in the economy and a better business environment for everyone. That’s a really great thing for a small business like yours!
Since this is the second year in a row that Florida has seen such massive growth, it could be a perfect time to expand to a larger building or finally rent your first office space.