Overview

• Calculating your expected return on investment (ROI) before committing to a property will help you make prudent commercial real estate investment choices.
  
  
• Florida is an excellent location to invest in commercial real estate due to factors such as steady tourism, economic growth, and favorable tax structures for both individuals and businesses.
   
• Bankrate provides this formula to calculate expected real estate ROI: (Operating income + sale price of investment – acquisition price) / acquisition price
  

Generally, the Sunshine State is an excellent place to invest in commercial real estate due to factors such as steady tourism, strong economic and employment growth, and an appealing tax structure for both individuals and businesses, as we detailed in a previous blog entry.  However, if you’re considering investing in commercial real estate in Florida, it’s wise to estimate the expected return on investment (ROI) for any property you’re interested in before making a final decision. Calculating your expected ROI can help you choose among various properties and maximize your eventual profits.     

How to Calculate ROI for Commercial Real Estate

The ROI for real estate represents the profit you can expect to achieve after subtracting all of the costs associated with the property from the income it earns, according to Bankrate. Expenses can include, but are not limited to, the following:

• Purchase price
• Maintenance and repairs
• Remodeling
• Property taxes
• Insurance

Meanwhile, these are typical sources of income:

• Rent payments from tenants
• Appreciation or increased value over time
• Sale price

Bankrate provides this formula to calculate real estate ROI:

(Operating income + sale price of investment – acquisition price) / acquisition price

Investopedia provides a similar formula:

(Investment gain – investment costs)/ Investment cost

Various factors can impact your ROI for commercial real estate. It’s essential to consider details such as the following, according to Investopedia. Note: This is not an exhaustive list.

• The property’s condition
• Local economic forces
• Specific marketplace conditions (e.g., whether the area is experiencing population growth or people are leaving the region)
• Property type (e.g., industrial, retail or office space)

To ensure your investment is worthwhile in the end, it pays to partner with local real estate experts. The Avalon Suncoast team will manage your investment brokerage as if it’s our own funds on the line. We’ll do all we can to help you turn your property investment dreams into reality. Call 941-235-7474 or email sales@avalonsuncoast.com to talk to our commercial real estate pros today.

The post How Do I Calculate the ROI on a Commercial Real Estate Investment in Florida? appeared first on Southwest FL Real Estate.

Gyms and health clubs are a wise investment as a growing number of Americans focus on fitness: A December 2024 survey found that of the 159 million adults who anticipated making New Year’s resolutions for 2025, 60 percent planned to set goals related to health and exercise, according to the Health & Fitness Association.  

Florida, in particular, is an excellent place to open a fitness-related business. If that’s your aspiration, the first step toward running a successful gym or health club is finding the right location. Space that’s highly accessible, visible and convenient for patrons will set you up for long-term popularity and prosperity.

If you’re currently wondering how to find available gym space for rent in South Florida, here are some suggestions to guide your commercial real estate search.  

1. Define your target audience and find out where they live and work.

Consider who you want to attract to your gym or health club. For example, the ideal commercial space for your business will likely differ if you’re opening a yoga studio versus launching a boxing gym. Once you’ve defined your target demographic, you’ll want to set up shop somewhere close to their homes and jobs so it’s easy for your clients to stop by, according to Gym Insight.  

2. Research the competition.

In addition to considering demographics, you should research other gyms in the area, according to Exercise.com. For instance, you wouldn’t want to open a kickboxing club if one is already operating right next door.

3. Assess visibility and accessibility.

You want to make it as convenient as possible for clients to find and access your business, according to Gym Assistant. That means clear signage and accessibility by various methods of transportation (e.g., foot, car and public transit).    

4. Ensure the indoor space is adequate.

Check that the commercial property’s layout can accommodate the activity you have in mind, as suggested by Gym Assistant. For example, you might want separate spaces for weights and cardio equipment. A spacious reception area can also improve customer experience (CX) and boost business.

Where can I find available gym space for rent in South Florida?

We serve clients and manage commercial property in Charlotte and Sarasota counties, including but not limited to Punta Gorda, Port Charlotte, Cape Coral, Venice, and Fort Myers. If you want professional assistance during your search for commercial gym space for rent in South Florida, the Avalon Suncoast team would be happy to help. Connect with our commercial real estate experts today by calling 941-235-7474 or emailing sales@avalonsuncoast.com.

The post How to Find the Ideal Space for Your Florida Gym appeared first on Southwest FL Real Estate.

While the quality of the cuisine might be No. 1, the location is still high on the list of factors that can make or break restaurants. As Harold Samuel famously stated in 1944 when founding the property company Land Securities, “Location, location, location.”

Whether your focus is fast food or fine dining, identifying the ideal spot for your establishment is vital to ensure lasting success. If you’re wondering how to find restaurant space in Florida, here are some recommendations from commercial real estate and culinary industry experts to help you find a site that makes sense for your burgeoning business.

1. Calculate your budget.

Before you start your search, it’s essential to understand your expected expenditures. Restaurant Real Estate Advisors state that your total occupancy spending (including rent, insurance, property taxes and other fees) shouldn’t exceed 6 to 10 percent of your projected gross sales.

2. Consider traffic (both vehicular and pedestrian).

When evaluating potential spots for your dining establishment, it’s vital to assess traffic levels before committing to a lease. You’ll have a much easier time bringing in business if a substantial number of people drive or walk past the location every day, according to the Lightspeed article “10 Best Practices for Picking the Perfect Restaurant Location for your QSR.”

3. Confirm that the area is zoned for restaurants.

Prior to renting or leasing space for an eatery, you must verify the proper zoning, according to the Chron article “How to Find a Building to Open Up a Restaurant.” If the site isn’t zoned for restaurants, you might be able to obtain a variance; however, there’s no guarantee.

4. Research the competition.

Before committing to a commercial property, you must also consider the competition, according to the Chron. For example, you don’t want to open a falafel shop in a shopping center that already has a Mediterranean restaurant.  

5. Avoid areas with high turnover rates.

There are some locations where restaurants tend to fail at high rates. Ask residents and business owners about the property to find out if it has a high turnover rate, as Lightspeed recommends. If the neighbors confirm many have struggled to succeed in that spot, it’s best to look elsewhere.

6. Conduct demographic research.

To determine your odds of success in the area, you’ll want to dig into demographics such as age, income level and family structure, according to the Chron. For example, if you dream of opening a family-friendly restaurant, you don’t want to set up shop in a region inhabited mainly by childless individuals.  

If you want to find restaurant space in Florida, the Avalon Suncoast team would be happy to help with our commercial real estate services. Our real estate brokers can handle everything from needs assessments to closing.

Start today by calling 941-235-7474 or emailing sales@avalonsuncoast.com to chat with our team of real estate experts.

The post How to Find the Perfect Spot for Your Florida Restaurant: 6 Essential Tips    appeared first on Southwest FL Real Estate.

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.

The post Why Florida Is a Prime State for Commercial Real Estate Investment appeared first on Southwest FL Real Estate.

Fortunately, there are numerous potential ways to motivate potential clients to visit your business. Here are a few effective tactics if you need ideas to attract customers to your store.

1. Beef up your online presence.

Marketing your business online is essential, even if you’re primarily focused on in-person sales at a brick-and-mortar location. A whopping 78 percent of location-based mobile searches lead to an in-person/offline purchase, according to SEO Tribunal. You’ll miss out on tons of potential clients if you don’t show up when they search for “shoe store near me.”

You’ll want to maintain a website optimized for search engines and mobile devices, stay on top of your social media profiles (Facebook, Instagram, Twitter, LinkedIn, etc.), and fill out your Google My Business profile. Be sure to ask your customers for Google and Yelp reviews to build your reputation as well.

2. Craft a unique and appealing in-store experience.

A sizeable portion (44.4 percent) of consumers still prefer to shop in a brick-in-mortar store instead of online, according to the State of Consumer Behavior 2022 study from Raydiant. Of those who opt to make purchases in person, 27.6 percent do so for the sake of the in-store experience. That speaks to the power of the physical environment in your store, including décor, music, personalized service, and on-site events and promotions.

3. Hook passersby with stunning window displays.

If a striking set-up in a retailer’s front window has ever turned your head, you know the power of an artful display. Your store windows present an opportunity to showcase your products as well as tell stories, reflect the season, and get creative, according to the blog entry “16 Window Display Tips to Captivate Shoppers and Drive in-Store Traffic” from Vend by Lightspeed.

4. Offer curbside pickup.

People who shop online often do so because it’s faster, according to The Balance Small Business article “Brick and Mortar Stores vs Online Retail Sites.” Making it easy for clients to pick up their orders curbside – a practice that’s become popular in recent years – can help your store win over shoppers on the fence about online versus in-person procurement.

If you’re looking for Southwest Florida commercial real estate for your retail store, the Avalon Suncoast Realty team can help you find the perfect property. Get started today by calling 941-235-7474 or emailing sales@avalonsuncoast.com to get in touch with our team and explore our services.

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