Bob Hope achieved immense success as an investor in California real estate. Someone once asked him what his formula for success was and he replied that he simply drives to the end of the road where development was occurring and purchased the next piece of land,
In today’s market many investors are focused on being in the right place at the right time, and of course that is important. But Hope was a more patient investor. What Hope was really saying is that if you find where the right place will be, the right time will eventually come. It is a strategy that worked well in California because the population was growing fast. It was not rocket science but purchasing commercial real estate in the path of population growth is an effective strategy.
Future population growth is what makes Florida a prime investment opportunity for the commercial real estate investor.
During the recession in 2008, Florida experienced its first decline in population growth. Things have turned around.. At the end of 2012 the U.S. Census report of the Florida has the third largest population growth of any state. Many demographers are predicting that within 2 to 3 years, and certainly before the next census Florida will pass New York as the third most populous state in the country.
The beaches sun and weather have always been magnets drawing people to Florida. But the cost of housing is also a key factor. The housing market in Florida is very favorable to buyers as compared to housing costs in other states.
Taxes are also an important factor. Florida does not have an individual income tax and its property taxes rank in the middle among all states. Overall the state ranked fifth in the country for the best in taxes. The shift in population will also make Florida more important politically. As the population grows Florida could add more seats in the US House of Representatives.
Population growth will help fuel the economy. For the commercial real estate investor it does not mean that you can be careless about investing in commercial real estate Florida. You still need to do your homework. However the long term steep growth trend line in Florida is reassuring to the commercial real estate investor. Even if a particular asset has not reached its full potential now there is a good chance that continued economic growth will allow the right time and the right place to converge.