There’s just something about the Sunshine State. In this blog, we’ve previously covered why South Florida has some of the hottest housing markets in the country and why Chicagoans have flocked to Southwest Florida. Thanks to factors like consistent economic growth, the state is also a prime location for commercial real estate investment.
Despite an economic slowdown, the South Florida commercial real estate market has proved resilient across various property types, according to CoStar. If you’re looking for a place to buy commercial property, the Sunshine State is a strong contender.
Here are a few of the reasons why Florida is one of the top places for commercial real estate investment in the U.S.
1. The tourism industry supports retail, hotels and restaurants.
The balmy weather, luxurious beaches and other Florida features attract a steady stream of tourists from all over the globe to support commercial property categories like stores and restaurants. In the 2024 calendar year, the state welcomed a record-breaking 142.9 million visitors, up 1.6 percent from 2023, according to the Executive Office of the Governor.
2. People are flocking to Florida, driving population growth to support businesses.
The state boasts a steadily increasing population to support commercial properties. Between 2023 and 2024, Florida gained 467,347 people, thanks to both domestic and international migration, making it one of the fastest-growing states in the country, according to the U.S. Census Bureau.
3. The state has experienced historically strong economic and employment growth.
Florida consistently outperforms the rest of the nation in terms of employment and economic strength. In December 2024, Florida’s total private sector employment increased by 122,800 jobs or 1.4 percent over the year, according to the Florida Department of Economic Opportunity. This outpaced the national private sector job growth rate (1.3 percent). Additionally, the statewide unemployment rate of 3.4 percent in December 2024 was also below the national average of 4.1 percent.
4. Florida has a favorable tax structure for individuals and small businesses.
In Florida, only traditional or C corporations pay state income taxes, according to Investopedia. Meanwhile, S corporations, limited liability companies (LLCs), partnerships, and sole proprietorships don’t owe state income taxes. Individual Florida residents also don’t have to pay state income taxes.
The Avalon Suncoast team is here to help if you want to explore Florida commercial real estate. We have decades of experience in the commercial real estate industry and are dedicated to achieving the best possible outcomes for our clients. Start now by calling 941-235-7474 or emailing sales@avalonsuncoast.com.