Top 10 Commercial Real Estate Trends in Florida for 2023

The commercial real estate market in Florida is expected to remain strong in 2023, driven by a number of key trends, including the rise of e-commerce and last-mile logistics, evolving work models and flexible spaces, repurposing and experiential concepts, high demand for medical office properties, and continued investment in the industrial sector.

This article will explore the top 10 commercial real estate trends in Florida for 2023, and provide insights into the factors driving these trends and their potential impact on the market.

1. Rise of E-commerce and Last-mile Logistics:

The growth of e-commerce has significantly impacted the industrial real estate market, leading to a high demand for strategically located warehouses, distribution centers, and mini hubs to facilitate efficient last-mile delivery.

2. Evolving Work Models and Flexible Spaces:

The office real estate sector is undergoing a transformation as remote and hybrid work models gain prominence. This shift is expected to result in an increased demand for flexible office spaces.

3. Repurposing and Experiential Concepts:

The retail sector has been greatly affected by e-commerce, necessitating the development of creative strategies to repurpose retail spaces.

4. High Demand for Medical Office Properties:

There is a strong demand for medical office properties in 2023.

5. Education Locations:

The education sector is experiencing growth in the state’s commercial market, including private schools, colleges, and technical training institutions utilizing vacant spaces in malls and shopping centers.

6. Continued Investment in the Industrial Sector:

Both Forbes and Shelton anticipate ongoing investment in the industrial sector.

7. Financial, Technology, and Professional Service Companies:

Financial, technology, and professional service companies are increasing their presence in the South Florida market, absorbing office space.

8. New Mixed-use Developments:

Numerous new mixed-use developments are attracting tenants by integrating live-work-play functionalities.

9. Redevelopment and Repositioning Opportunities:

There are opportunities for redeveloping and repositioning aging buildings, including retrofitting bathrooms, digitizing directories, and modernizing common areas.

10. Creative Repurposing or Innovative Uses of Retail Properties:

The shifting demand provides commercial brokers with opportunities to explore creative repurposing and innovative uses for retail properties.

Conclusion:

The commercial real estate market in Florida is undergoing a number of significant changes, driven by a variety of factors, including the rise of e-commerce, changing work models, and demographic shifts.

These trends are creating new opportunities for commercial real estate investors and developers, while also presenting challenges for those who are not prepared to adapt.

By understanding the key trends shaping the Florida commercial real estate market, investors and developers can position themselves to capitalize on the opportunities that lie ahead.