Florida’s commercial real estate market is experiencing a significant boom, driven by a surging population, favorable tax policies, and a robust economy. This influx of residents and businesses is fueling record-high retail occupancies, substantial property acquisitions, and a notable expansion in various commercial sectors across the state.
Florida’s Commercial Real Estate: A Hotbed of Investment
Florida’s commercial real estate sector is witnessing unprecedented growth, attracting significant investment due to its dynamic economy, expanding population, and advantageous tax environment. Experts highlight a sustained migration of high-net-worth individuals, financial executives, and tech leaders to South Florida, particularly since the pandemic.
- Population Growth: Nearly 90,000 new residents have moved to Palm Beach County in recent years, transforming it from a seasonal resort into a year-round city.
- Favorable Tax Environment: Florida’s tax policies make commercial real estate investments highly profitable.
- Corporate Relocations: Companies like Foot Locker are moving their operations to Florida, and Publix is expanding its footprint with new supermarkets.
Key Investment Highlights
Recent transactions underscore the market’s vitality:
- Hotel Acquisitions: Excel Group acquired the Residence Inn and Hampton Inn & Suites in Coconut Creek for $21.17 million. These 105-room hotels, built in 2019 and 2014 respectively, are strategically located near Seminole Casino Coconut Creek and HCA Florida Northwest Hospital.
- Retail Property Value Surge: A small retail property in Miami’s Design District sold for $35 million, more than tripling its value from a decade ago. This reflects the district’s booming retail rents, which have tripled between 2019 and 2024.
- Multifamily Ventures: Invesco Real Estate and Bozzuto formed a $1 billion joint venture, making their first acquisition of a 220-unit property in Orlando. This venture aims to capitalize on recovering market fundamentals through value-add investments.
The Self-Storage Boom
Miami-Dade County is experiencing a significant surge in self-storage facilities, reflecting deeper lifestyle and economic shifts. This growth is driven by:
- Population Influx and High Housing Costs: More people are seeking extra storage due to smaller living spaces.
- New Generation of Renters: Gen Z renters are increasingly utilizing self-storage as a lifestyle tool.
- High Street Rates: North Miami boasts the county’s highest average street rate for self-storage at $221/month.
Top self-storage growth areas in Florida include:
- Wesley Chapel: 672% increase in storage capacity from 2014-2024.
- Wildwood: 443% spike in inventory, with 82% of local storage built in the last decade.
- Middleburg: 319% growth in self-storage inventory, linked to remote work and housing pressures.
Future Outlook
The sustained growth in Florida’s commercial real estate market is expected to continue, fueled by ongoing population migration and strategic investments. The development of integrated, mixed-use projects, combining office, residential, and commercial spaces, is creating built-in foot traffic and driving down vacancy rates. As financial services and innovation hubs expand, they are fostering a self-sustaining cycle of growth and demand across the state.
Sources
- Florida Sees Surge in Commercial Real Estate, | Florida Realtors.
- Excel Group Acquires 2 Hotels Near Sawgrass Coconut Creek FL, Asian Hospitality.
- Design District Retail Buildings Sell For Nearly $4K Per SF: The South Florida Deal Sheet (July 21, 2025), Bisnow.
- Miami-Dade’s self-storage surge a boom for real estate | Real Estate, IslanderNews.com.
- Invesco, Bozzuto Launch $1B JV With Florida Buy, Multifamily Housing News.