Florida Commercial Real Estate Development Trends Among the Best in the Nation
Commercial real estate development and construction is a powerful economic engine propelling employment and growth here in Pensacola, throughout Florida, and across the country. In fact, a recent study found that development and construction in Florida’s commercial real estate sector was among the top five in the nation. If you are considering a commercial real estate project, now is a good time to do so and Northwest Florida is a good place to do it.
The study by the National Association of Industrial and Office Parks for the Commercial Real Estate Development Association concluded that in 2016 alone, office, industrial, warehouse and retail development supported 6.25 million American jobs which led to $264.4 billion in salaries and wages. Such development also contributed $861 billion to the U.S. Gross Domestic Product (GDP) last year.
Florida’s contribution to those numbers was impressive:
- $7.59 billion was spent on commercial real estate development in Florida in 2016.
- Florida’s commercial real estate sector supported 134,152 related jobs and contributed $15.75 billion to the state’s economy last year.
- Those 134,152 commercial real estate-related jobs put $5.4 billion worth of earnings in the pockets of Florida workers in 2016.
- The Sunshine State ranked fifth overall among the 50 states in the construction and development of commercial real estate last year.
- Florida ranked third in both retail and warehouse development in 2016.
- Florida was seventh in the nation in terms of office real estate development.
The economic impact of Florida’s commercial real estate market was only topped by four other states: New York, Texas, California, and Louisiana. Nationally, commercial real estate development had 410 million square feet of construction in 2016 with a value of $86.9 billion, the study stated.
In and around Pensacola, commercial development projects continue to be a cornerstone of the region’s economy. Developers and investors are attracted by the region’s continued growth, and the same trends which boosted the state’s commercial real estate market in 2016 bode well for 2017. However, shepherding such complex projects from inception to completion involves a multitude of legal, financial, and practical issues any one of which can bring things to a standstill if not anticipated and addressed properly.
At McDonald Fleming Moorhead, our Pensacola commercial real estate attorneys understand the issues commercial developers face in Florida and have experience working with developers from Florida and out-of-state. Our knowledge of specific real estate development issues helps us better understand our clients’ needs, and we can walk you through the entire process. Board Certified Real Estate Attorney Stephen R. Moorhead has been general counsel to the Home Builders Association of West Florida, Inc. for nearly 20 years and has represented a host of builders and developers. R. Todd Harris has significant experience in land use approvals having appeared before the following counties in Northwest Florida: Bay, Escambia, Okaloosa, Santa Rosa and Walton, as well as numerous other governmental agencies.
This is not intended to be legal advice for any specific situation and the reader should consult their attorney regarding their situation.