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When Hurricane Ian powerful Category 5 struck the beautiful shores of Florida in September of 2022, it left a trail of destruction and devastation in its wake across Florida’s. The impact was felt not only by residents but also by the commercial real estate sector, both of which suffered significant losses totaling an estimated $113 billion in cumulative damage. However, Florida’s resilience and determination have paved the way for a remarkable recovery in the state’s commercial real estate market. 

Immediately following Hurricane Ian, an extensive assessment was conducted to evaluate the damage inflicted on Florida’s commercial real estate. Properties, ranging from office buildings to retail centers, hotels, and industrial facilities, were inspected to determine the extent of the destruction. The evaluation helped in understanding the scale of the recovery effort required. 

In the aftermath of Hurricane Ian, some commercial properties faced extensive damage, making restoration financially unfeasible. However, this challenge opened the door to adaptive reuse, where damaged structures were repurposed for alternative commercial uses. This approach stimulated economic diversification by attracting new industries and businesses to the state, fostering innovation and creating employment opportunities. 

The recovery of Florida’s commercial real estate sector following Hurricane Ian stands as a testament to the resilience and determination of its people. Through collaborative efforts, innovative design practices, and adaptive solutions, the state has not only rebuilt what was lost but has also laid the foundation for a stronger and more sustainable future. The recovery process serves as an inspiration for other regions facing similar challenges, demonstrating that with unity and a forward-thinking approach, the road to recovery can lead to new opportunities and growth. Read more about the Florida commercial real estate market’s recovery post-Hurricane Ian here! 

A 0.7-acre lot located at 1511-1547 Hammondville Road in Pompano Beach was just purchased for $1.8 million by rapper Kodak Black (featured Billboard 100 artist). The site features a 3,800-square-foot building and a 4,900-square-foot building. Kodak Black, legal name Bill Kahan Kapri, is considering renovating one of the buildings and tearing down the other to build anew. The new owner plans to transform the property into a “luxurious retail space” including a restaurant.

To read more about this transaction, click here.

The Brightline train will soon be offering a speedy alternative to one of Florida’s largest tourist destinations, Orlando, a city that receives nearly 70 million visitors per year thanks to its elaborate mecca of theme parks. The South Florida based rail company currently serves Miami, Aventura, Fort Lauderdale, Boca Raton, and West Palm Beach. Driving between Miami and Orlando takes about 3.5 hours, and the train will shorten the ride to less than 3 as it reaches speeds of up to 125 MPH. The Orlando Brightline station is expected to open in 2023 and will be located inside Terminal C at Orlando International Airport. 

Brightline is the only privately owned and operated rail company in the United States. They currently offer two types of tickets, SMART (standard fare) and PREMIUM (business class). The latter offers access to a pre-boarding lounge, larger seats, and complimentary snacks and beverages onboard. However, snacks and beverages (alcoholic and nonalcoholic) are available for purchase with the standard fare. SMART starts at $10 one-way when traveling from Miami to West Palm Beach. PREMIUM tickets are about $35 one-way. Pricing for the Orlando route has yet to be released. Travel Off Path recommends purchasing tickets online in advance as fares tend to be higher in-person at the station. 

In 2022, Brightline carried 1.23 million passengers across South Florida. The railroad powerhouse is expected to grow beyond central Florida and into the western side of the state. Read more about Brightline’s future plans here and purchase a ticket here.

Downtown Fort Lauderdale’s urban core, a 2.2-square-mile area between Sunrise Boulevard, the Avenue of Arts, Davie Boulevard, and U.S. Highway One, has gained 5,095 new residential units in the past five years, more than that of the downtown areas of Austin and Atlanta combined.

Jenni Morejon, the Fort Lauderdale Downtown Development Authority’s executive director, reports, “We are outpacing growth in terms of new rental units, and the pandemic has fueled a lot of that.”

Since the pandemic, South Florida rents have increased by as much as 32% year-over-year. This increase can be attributed to the influx of professionals and executives from New York, California, and other parts of the U.S. The average household income in downtown Fort Lauderdale has also increased a staggering 20.2% from last year to $146,358 a year. Read the report here.

The City of West Palm has officially given the green light to redevelop the Northwood District. The plan, created by Gilbert Benhamou’s Immocorp Capital, includes 382 apartments, 63,200 square feet of commercial uses and roughly 13,000 square feet of public space located on 4.7 acres. The Northwood Square project will tie together the Northwood and Currie mixed-use districts. The site spans from 23^rd Street north to 25^th Street, from the FEC Railway east to Broadway Avenue.

To read more about the Northwood Square project, Click Here.

Procacci Development corporation proposed a mixed-use project in Fort Lauderdale. The city’s Development Review Committee is reviewing plans for the 2.4-acre site located on Bayview Drive. The site currently has a 101,803-square-foot office building that would be demolished for the project. Sunrise & Bayview Partners, managed by Phillip Procacci, purchased the site in 2014 for $7.9 million. The new project would include 180 multi-family units, 4,400 square feet of restaurants, 1,350 square feet of retail, 5,750 square feet of offices, and a 505-space parking garage. The residential units will be bigger in size ranging from 1-3 bedrooms, with many of the units being 2-3 bedrooms. The demand for larger apartments has recently increased due to the influx of south Florida residents fleeing other high-tax states.

To read more, click here.

Many companies have decided to move their headquarters to south Florida due to the opportunities available. Common reasons for the moves include quality talent and workforce availability; multicultural and more pragmatic cities; and south Florida’s business-friendly reputation within it’s major cities. See below to learn more about where the companies are coming from and what they do:

Citadel & Citadel Securities
  – Financial firms
– Chicago to Miami

FundKite
– Financing for small businesses
– New York to downtown Miami

Belong
– Proptech company
– California to Brickell Miami

KruseCom
– Information technology
– New Jersey to West Palm Beach

SH Hotel & Resorts
– Private investment firm
– Los Angeles to Miami

El Al Israel Airlines Ltd.
– Airline
– New York City to Margate

AerCap
– Aircraft leasing company
– Los Angeles to Miami

West Marine
– National retailer of boating supplies and retail
– California to Fort Lauderdale

Windstar Cruises
– Cruise leisure company
– Seattle to Doral

American Queen Voyages
– Cruise line
– Indiana to Fort Lauderdale

Blockchain.com
– Cryptocurrency Exchange
– New York City to Wynwood Miami

To read more, click here.

South Florida Business Journal is reporting plans of HomeSense store in Sawgrass Mills mall in Sunrise, Florida. The City Commission is considering a site plan revision requested by the owner of Simon Property Group. The mall owner would create a new entrance directly into the store for more convenience to the customers. HomeSense was founded by TJX Companies in 2001 and was launched in the United States in 2017. Sawgrass Mills is the second-largest mall in South Florida.

To read more about Sawgrass Mills potential plans of site revision, click here.

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.

Seacoast Bank Corporation of Florida is set to acquire Professional Bank, one of South Florida’s largest community banks to close in the first quarter of 2023. Professional Holding Corporation is the parent company of the Coral Gables-based Professional Bank. Professional Bank holds nine locations across Miami-Dade, Broward, and Palm Beach counties. Both banks have similar cultures and shared business values related to underwriting, credit culture, and customer-focus. Seacoast Bank maintains $10.8 billion in assets and $9.2 billion in deposits as of June 30, making Seacoast the largest community bank in South Florida. The acquisition of Professional Bank will accelerate their growth as they expand in the South Florida market.

Read more about the Seacoast acquisition by clicking here.