Isaac Toussie suggests that when looking into Florida real estate, you’re most likely thinking about the southern half of the state. To be precise, it is the southeastern face of the Sunshine State that is sunniest of all, economically speaking. Of course, if you’d like somewhere quiet and bucolic, northwest is what you’ll probably be wanting, but from an investment perspective southern Florida is where the game is – and the game is where you get a shot at making some money. So go where everyone else goes (in this case, anyway), and head on over to Miami, Fort Lauderdale, West Palm Beach, and South Beach. Naturally, anytime a rule of thumb is given a host of exceptions crop up, so be sure to keep an eye out north and westwards at Orlando, Daytona Beach, and even Tampa, too.
Yes, we’re in hard economic times, but you can always count on the commercial real estate market in Florida to be profitable. Of course, you’ll still need to apply due diligence and do your homework, carefully evaluating the property before purchase or lease. One common tip given is to look for property with minimal reconstruction costs. Another way to think about things is to look at it from the perspective of a landlord, rather than a tenant. For example, consider how a landlord might advertise the property to portray it in the best light while minimizing, if not outright hiding, any potential negatives, states Isaac Toussie.
When it comes to commercial real estate in Florida, shopping centers have been a sure profit-maker. And a novel way of looking at profitability with respect to those shopping centers is this: do they have a movie theater? Movie theaters, perhaps even more than food courts, are great “anchors” for a sprawling shopping complex. They serve as reference points where people can meet up and shop – that is to say, generate profit for shopping center operators and owners! Indeed, the typical multiplex of today can host up to half a million guests each year – visitors who are disproportionately converted into shoppers, because almost no one simply goes to the theaters and then goes back home.
Florida has been hit with oversupply though and there may likely need to pass several years before upward trends kick in, cautions Isaac Toussie. Many projects have been halted, buyers are on the sidelines, and banking has dryed up significantly.
The content of this article has been posted strictly for informational and human interest purposes only, not for advisory purposes, and should not be relied upon in any way by any person or institution. The reader should not rely on the validity of any of the information contained herein. The reader is urged to consult a variety of professionals when making business or any other significant decision, including accountants, lawyers, investment advisors, insurance companies and the like. Again, this article has been posted merely for human interest and informational purposes, not for advisory purposes.