South Florida (generally defined by the three major counties Miami-Dade, Broward and Palm Beach) is the seventh-largest metropolitan statistical area in the nation. The region is home to approximately one-third of Florida’s combined population of more than 5.5 million citizens. South Florida has the third largest consular corps in the United States, with approximately 70 consulates and 25 foreign trade offices from the major countries in Latin America and the Caribbean as well as Europe and Asia. Approximately 60% of the population is in the prime working ages. The region’s strong tourism industry and seasonal residents help fuel the market, providing solid demand and strong consumer spending. South Florida is also the base for a large number of corporate headquarters and major operations, including: American Express, AutoNation, Motorola, Carnival, Templeton, Ford, Office Depot, Ryder, Citrix & others.
The South Florida office market consists of more than 222 million square feet (msf) of space. Numerous corporate headquarters call South Florida home, including two Fortune 1000 companies and 10 companies with revenues in excess of $1 billion. Historically, South Florida’s tenant mix differs from the rest of the nation. Compared to the national average, the tri-county area has a notably higher percentage of medical and legal tenants.
The South Florida retail market consists of more than 311 msf of space. Tourism plays a crucial role in keeping the retail market afloat. The tourism industry has an economic impact of $57 billion in Florida. As shopping patterns evolve, the retail market moves ahead due in part to technology and growing infrastructure for local and foreign consumer demand.
The South Florida industrial market consists of more than 416 msf of space. There are several factors that drive the region’s industrial sector. The Miami International Airport serves approximately 35 million passengers per year, and the Port of Miami has an annual economic impact in Miami of about $18 billion. About 40% of all U.S. exports to Latin and South America pass through Florida.
With its proximity to Latin America, South Florida serves as the headquarters for more than 1,400 multinational Latin American operations (which add up to more than $221 billion in annual revenues) including corporations such as AIG, American Airlines, Cisco, Disney, Exxon, FedEx, HP, Kraft Foods, Microsoft, Oracle, SBC Communications, Sony, Visa, and Wal-Mart. With such a strong international presence and a healthy forecasted recovery, South Florida is a market that is positioned well for investors.
Avison Young opened its South Florida offices in 2012 with 30 members joining from Flagler Real Estate Services. In June 2013, Avison Young acquired WGCompass, a West Palm Beach-based retail and office brokerage and property manager with client relationships across the state of Florida, adding 25 members to the Avison Young South Florida team. Avison Young’s South Florida operations provide best-in-class services to local, national and international clients while also networking with the firm’s other offices across the U.S. and Canada.