The retail market in North Florida was hot in 2022 and according to industry experts, the trend should continue into 2023. Commercial real estate developers looking for investment opportunities in the state may find plenty of opportunities in the region.
What should investors know about the North Florida retail market?
Facts about the North Florida retail market
North Florida had a below-average vacancy rate for retail properties in 2022 at 3.9%, compared to the national average of 4.2%. Developers built nearly 600,000 square feet of new retail space in the fourth quarter of 2022 and more new construction is underway.
Trends to consider
It seems that millennials did not kill fast food after all, at least not in North Florida. Quick service offerings, such as fast food restaurants and drive-thru coffee shops are among the fastest-growing retail categories in the North Florida market. Discount stores, such as Dollar Tree and Family Dollar, have also been expanding. Junior anchor spaces are experiencing high demand and big-box spaces, which have struggled in recent years, are also seeing an increase in interest.
Tips for taking advantage of commercial real estate trends
Commercial investors interested in cashing in on North Florida’s retail market should consider these tips:
- Choose locations where demand is high
- Base decisions on current performance instead of projections
- Exercise due diligence
- Keep cash reserves high and leverage low
The future looks bright for commercial real estate development in North Florida. However, market conditions are always shifting so anyone thinking of investing should do their homework first.