There are many different aspects of businesses in Florida. Companies must deal with the basics of the business such as selling their product. This includes manufacturing, packaging, shipping, marketing, advertising and other activities. Companies also must ensure their accounting is being done and they know their profits and losses. They need to deal with hiring and firing employees, payroll and other aspects of their labor force. However, in order to do these things, the company must have a building or buildings to conduct all these aspects of the business.
There are many different real estate developers in Florida. These various developers are responsible for constructing many different buildings and other structures. These are very costly projects, but they can be very profitable as well. However, they need the money upfront to pay for the costs so they can earn money after everything is built and they can sell and lease the various spaces in the buildings. This means that they must work with banks and investors to obtain loans.
Companies in Florida looking to build office buildings, strip malls, factories, warehouses or types of commercial buildings have different options for how they will accomplish their goal. One is to buy land where there is existing commercial real estate with buildings on it and try to renovate the existing buildings or tear them down and build new ones. The other is to buy vacant land and build the structures they want on that land.
There are many large office parks and buildings throughout Florida. These buildings are generally owned by one owner and then the individual spaces are leased to various businesses who pay rent each month. The landlords/owners of these properties can earn a significant amount of money from these leases, but it is important that they keep the spaces filled with current tenants to ensure they are receiving rent for every space.
There are many office buildings, shopping centers, hotels, recreation areas and other types of commercial real estate in Florida. The main objective of the owners of these various commercial properties is generally to make money. Owning these types of properties can generate income through the rent of the tenants, but they can also be very good investments for the owners. The hope is that the value of the property will rise over the time they own it, and down the road they can sell it for millions more than they originally paid.
Many people in Florida have good ideas for businesses, but in order to convert those ideas into actual businesses the owners will need money to get them off the ground. This is because businesses oftentimes will need money not only to develop a product, but also to obtain a place where they can have offices, warehouses and other needs for their business. Therefore, these young companies will need to either purchase or lease commercial real estate.
Some companies in Florida own the real estate they do business on. Other companies prefer to rent their premises. This can be very lucrative for the landlord, particularly when the real estate can be portioned out for use by multiple commercial tenants. However, just like real estate in general, the commercial real estate market fluctuates and buildings are sometimes worth more than at other times. Recently the market has been fairly hot, so there have been a number of sales as owners are trying to make the most on their investments.
Miami's commercial real estate market has been hot for several years now, but the risks are real. The recent sale of a large office building helps illustrate the potential upside and downside.
Commercial real estate is big business in South Florida -- maybe even the biggest. It is connected to all of the state's major industries from tourism and housing to banking, government and health care. If there is a business sector that requires property, commercial real estate, in some form or another, will come into play.
The burgeoning population of millennials in Florida is having a profound effect on commercial real estate transactions in the state. At more than 75 million individuals, millennials - those born between 1980 and 1997 - are the largest consumer group ever to have to lived in the United States. And their collective decisions are making an impact on real estate development in the Sunshine State.