Florida’s staggering 2.8 percent unemployment rate two years out from the onset of the COVID-19 pandemic stems from corporate and retail expansions particularly in the Miami-Dade, Broward and Palm Beach counties, whose combined net retail absorption totaled 4.6 million square feet last year, almost 66 percent more than in pre-pandemic 2019. With the imbalance of supply and demand, Florida sustains high levels of rent growth.
Beth Azor, CEO of shopping center owner Azor Advisory Service, says, “That even if a recession is imminent, Florida, and in particular South Florida, has enough tenant demand to overcome any foreseeable obstacles…I think we are going to be insulated; I see my tenant sales, I see the huge demand, I see the lack of supply because nobody is developing,” says Azor.
Another key factor to Florida’s “insulation” is population growth which continues to explode, up 15.9 percent from April 2020 to June 2021 as well as exceeding 20 million residents, making it the 3rd most populous state behind California and Texas.
With high demands and low supplies, Florida is able to insulate themselves from a lingering recession and avoid the effects of nationwide inflation. Read more about new developments in Florida’s market here.
