Florida Commercial Real Estate Favored by Executives

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Real Estate

Florida commercial real estate is certainly in the eyes of corporate real estate executives across the nation. This is encouraging news to residents and businesses in Florida, particularly developers, investors and brokers in the commercial real estate industry.

In the survey of corporate real estate executives conducted by Conway Data Inc.’s magazine “Site Selection” in October 2010, Florida ranked sixth among the 50 states in terms of business climate. These executives rated the states based on ten factors that impact business site location decisions, one of which is directly related to commercial real estate.
These ten factors are the following:

•      Land and building availability and costs
•     Utility infrastructure
•     Transportation infrastructure
•     Work force talent or human resources
•     Local and state taxation
•     Incentive programs for new businesses and expansion programs
•     Relevance and flexibility of incentive programs
•     Regulatory and business permitting systems
•     State, county and city economic development programs
•     Higher education resources

These are the other states, along with Florida, which topped the 2010 Business Climate chart of “Site Selection”:

1.    North Carolina
2.    Texas
3.    Georgia
4.    Tennessee
5.    South Carolina
6.    Florida
7.    Louisiana
8.    Virginia
9.    Alabama
10.    Arizona

In another chart of this same survey which considered factors other than the votes of corporate real estate executives, Florida also ranked high. It ranked 14th. It got high points in the number of new plants that started operating in the state.

The high ranking of Florida this year is an indication that the state is on its way to recovery from its problems which largely arose from the collapse of the housing sector, and later, from the monstrous BP oil spill disaster. In the 2009 Top Ten Business Climate ranking by “Site Selection,” Florida was nowhere to be found. It was North Carolina which endured.

Corporate real estate executives, however, had confidence in the ability of Florida to recover because they still rated Florida relatively higher, putting the state ninth in their rankings in 2009.

From other reports in October and November, there were a number of companies that moved to Florida and companies that expanded their operations in the state.

In November, AAR Corp., supplier of services to the aerospace and defense industries, announced that it will move its airlift services and aircraft modification operations to facilities near the Melbourne International Airport in Melbourne, Florida in 2011.

Chromalloy, considered the largest independent supplier of aircraft engine parts and components, has also announced its plan to expand its newly-launched 150,000-square-foot casting center in Tampa. It is set to built another facility, a 40,000-square-foot ceramic core production complex, adjacent to this casting center.

These are just two of the companies who have acquired Florida commercial real estate for the expansion of their operations in the state.

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