While the first thing that pops in people’s minds when they think of purchasing property in Miami is a vacation beach home or a family home, one of the sectors that has become a serious hotspot is commercial real estate. When it comes to buyer-side commercial investments, Florida as a whole is one of the top picks nationwide according to the National Association of Realtors.
Here are some of the reasons commercial property buying has seen such a huge surge in the past years:
Strategic Location & Attractive Lifestyle
One of the lures for Miami on every front and for every industry has always been its strategic location. As the gateway to the caribbean and Latin America, it is a convenient place for South American or international investors to position their property investments and to build international business models with more global reach. Miami’s pro-business economy, resort style living and thriving metropolitan neighborhoods are also a great place to live or to visit as business is being conducted or tended to.
While current activity in the residential property sector is indicative of the high demand for living spaces among international buyers, the trends in industrial real estate such as warehouses and logistics spaces reveal how well the local economy is doing. Traditionally, South Florida’s tried and true cash cow has been commercial properties used for retail shopping plazas, hotels, medical facilities and office spaces. But with online businesses selling goods that require manufacturing, storage and shipping, more and more investors have been on the hunt for locations in which to do this.
Location is important especially for distribution warehouses, which require proximity to the places the company ships to and an airport. Ground and maritime transportation are just added perks and rarely happen all in one place; Miami happens to have all 3 and allows for proximity to Latin America and the caribbean for companies that want to ship there. And with consumers demanding reduced shipping times ( once acceptable at 7 days or more; now it’s common practice to get goods delivered within 48 hours) the location of your distribution center is of utmost importance.
Subscription based services are another business model that is steadily on the rise, affecting the demand for warehouse properties. The surge of new companies entering the South Florida market and the expansion of established ones like Amazon and Apple have been adding momentum to an e-commerce boom. Local press has been following Amazon’s announcements about their new headquarters closely, building more and more buzz about the possibility of Miami being the next headquarters for the e-commerce behemoth. Now Apple has been added to the conversation as they begin a new bidding war among American cities interested in becoming their next headquarters.
It seems there are more and more people in the city each day; it’s not your imagination. In the past 5 years, the city has seen around 500,000 new residents with a population rate increase of 1.88% in 2016. With more people comes more demand for products which comes with a need for more space in which to house and distribute those products- thus more commercial properties selling. Whether it’s inventories sold online or in traditional retail, the space continues to be in demand and foreign investors will continue to cash in on this demand.
Miami is undoubtedly a sound investment for anyone looking to purchase commercial real estate. That is why financing companies like The Q Kapital, that understand the international property buying processes in the U.S., specifically in Miami, are so important. To help foreign investors get the help needed to secure the investment opportunities this growing burst in development has to offer.