Posted on: February 9, 2018
The retail industry continues to strengthen the commercial real estate market in Florida, even with big changes in the way people are shopping.
Both brick and mortar stores as well as online retailers are buying up space—and the future looks bright.
We’d like to share a few recent articles with you that highlight how retail is positively impacting commercial real estate in the sunshine state and discuss why it’s a great time for Canadians to consider a foreign investment:
The expansion of healthcare facilities has also contributed to the strong commercial real estate market in Florida. The University of Florida recently opened its new 168,000 square foot tower, doubling the size of its campus. As the demand for access to health services continues to grow, medical real estate will have a significant positive impact on the market.
- CBRE Reports 8 New Trends That Will Shape Retail Sector By 2030
World Property Journal
CBRE’s The Future of Retail 2030 report also highlights some of the ways physical stores are changing. They predict that shopping malls will become general multi-purpose destinations, with more services based around healthcare, education, and leisure.
Establishments geared towards well-being will also grow, thanks to millennials’ interest in looking and feeling good. We can expect to see more fitness centers occupying malls, urban areas, and residential properties.
Retail and leisure will become even more intertwined. Stores will shift towards showrooms with integrated leisure elements, delivering customers an experience that aligns with their brand. This will become a unique advantage to physical stores—one area where online retailers can’t compete.
- Think Malls Are Dead? Not So Fast
Amid concerns about a decline in the popularity of malls, new research shows that stores are adapting in order to maintain successful physical retail locations.
The Q3 2017 Situs report on commercial real estate indicates that savvy stores are using new technology, like data analytics tools that monitor customer traffic patterns in a store, to improve their store layout and design—ultimately improving the shopping environment for consumers.
Kenneth Riggs, president of real estate research firm Situs, advises commercial real estate investors to carefully consider retail opportunities and look for properties that are using technology in creative ways to stay ahead of the curve and deliver an optimized customer experience. This is the key to success for physical retail locations
The online retail industry is booming as well—American e-commerce company Wayfair recently announced that it will open three new distribution centers in Florida.
Governor Rick Scott said, “I am proud to announce that Wayfair has chosen to expand in Florida with three new locations in Tampa, Orlando, and Miami. This expansion will also create 100 new jobs across our state, which is further proof that our work to make Florida the most business-friendly location is helping encourage global companies to invest in our state.”
This news will likely give a boost to the local economy and signal to other companies that Florida is an ideal location for expansion and development.
With physical retail locations adapting to meet the needs of today’s consumers, as well as the boom in e-commerce, the demand for commercial real estate in Florida will continue to grow. The increasing demand for healthcare services has also boosted the medical real estate market. It’s a great time for Canadians to consider investing in these types of properties.
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