Reasons why you should invest in commercial real estate in Miami
From a historical point of view, Florida has been one of the strongest commercial real estate markets in the country, with South Florida leading the way. Being that the city of Miami is the cultural, economic and financial center of South Florida, it comes as a no surprise that investing in commercial real estate in Miami is a good idea. However, it’s not just the strong growing population and tax-friendly laws that make it a fertile ground for the commercial estate. There are multiple reasons that ought to point you in this direction, and we will proceed with naming just a few.
The Miami vibe
Before we dive into more detailed explanations, let’s mention a few key factors that make Miami such an enticing place for commercial real estate:
- a large number of attractive real estate properties to choose from
- a diverse cultural offering for any kind of business
- big segments of the population flock to Miami for travel purposes
- a common point for international business, especially from South America is the City of Miami
- global players from China, Canada, Germany, Singapore, Saudi Arabia, and Qatar are a continuous source of investment
Population and business are ever growing
The whole area of South Florida has shown a constant growth in population since 1900, with an average of that growth being 2%. Miami is no exception. What’s more, the city’s business growth since 2010 is steadily increasing. The wage growth follows with a recorded 3.3% increase. Both of these measurements outpace the national average. The two of these factors do wonders for the economy in Miami. If you plan on moving, we suggest that you hire Pro Movers Miami, as well as invest in commercial real estate in Miami as quickly as you can.
Retail growth in Miami is blooming
In the year 2015, Miami has seen 5% growth in hospitality employment. This was the all-time high in jobs in that sector. And that’s not the end of it. The current year brings us much to look forward to. A $1.7 billion project of Miami Worldcenter that takes up 450K square feet ought to be finalized in June. Also, let’s not forget the $1 billion Brickell City Centre. These are among the largest construction project, both promising a lot for the commercial real estate in Miami. Investments in this place continue to grow and show no signs stopping.
When talking commercial real estate in Miami, one has to mention taxes
There is no personal income tax. You heard us well – none whatsoever. Many investors and entrepreneurs consider this to be the reason as good as any to come here and reduce their tax burden. If you listen to Chief Executive Magazine, you’ll learn that Florida itself is the number 2 rated state for business. Additionally, 20% of US businesses that export have found their place in Florida. Factors such as the cost of living, tax rates, average income, etc are a great shower of the living and business situation in Miami. If this city has piqued your interest, and the idea of living there seems like the right thing to do, hiring Miami packing services will make the moving process tremendously easier.
An abundance of foreign investors
If you plan on moving to Miami, information worth knowing is that the whole state of Florida was the number one state where foreigners bought and sold commercial property in the year 2017. Investments from all over the world, China, Canada, Spain, Germany, and UAE, to name a few, make the commercial real estate in Miami bloom. Even the Latin American countries with poor economic performance have set their eye on Miami. They see the investment into this market as a way of exiting their financial crisis. As one of the anchoring cities, Miami feels this financial income greatly.
The REIT’s part
Real estate investment trust integrated with low-interest rates and a strong job market has had a big impact and probably made commercial real estate in Miami to what it is today. The city’s population has grown by nearly 8% in the last 5 years. The combination of increased residents with institutional investment from outside developers has resulted in otherwise impossible growth. Both domestic and global investors have seen South Florida as an area that can generate capital growth. This resulted in even more investments.
A positive forecast
So, as mentioned, consistent growth in population, home building, and healthy tourism have shaped Miami into a haven for capital. These important factors combined with constant construction projects are seen as a positive sign of growth throughout many other CRE sectors. And, while on the subject of CRE, there is a highlight worth noting. Miami-Dade retail is posting positive growth in the quarter for Q1 2018 in multifamily sales. One can only conclude that there has never been a better time to invest in commercial real estate in Miami. In order to illustrate our point that we share with many experts even more, we will present clear show-tells:
- The economy continues to grow with no signs or intentions of stopping
- Many media sources have Florida in the Top 10-20 states for business
- The tax-friendly climate in the state ranks number 1 in the southeast and number 4 in the whole USA by the Tax Foundation
- The unemployment has been on a steady decline ever since 2010
- Demand for commercial real estate can be seen through vacancy rates that are constantly dropping
- Climate, education, and lifestyle make Miami one of the more desirable places for living