Semi-annually, an organization called Society of Industrial and Office Realtors – SIOR – gathers to compare notes on what’s happening around the country.
This year’s soirée is in Florida and begins today, and I’ll have more on this year’s spring conference in next week’s column.
However, having not seen places like Savannah, Charleston, and Hilton Head, we decided to get our wanderlust on and cover some turf.
The weather cooperated as beautifully as the bugs. I’ve rarely seen such beauty in the architecture and countryside or encountered such a nice group of people. We’ll be back!
You may be wondering what a sojourn to the southeast has to do with commercial real estate? Only these.
The Southeastern region (Florida, Georgia and South Carolina, in particular), boasts a diverse economy, significant population growth and varied market conditions. For instance:
Population growth: The Southeast has been experiencing rapid population growth, driving demand for various types of commercial real estate, such as retail spaces, office buildings, and residential developments. The deep water ports in Savannah and Charleston receive and distribute goods from around the globe.
Economic diversity: From technology hubs like Atlanta to tourism-driven markets like Orlando, the Southeast showcases a diverse range of industries. Augusta, Georgia has become a cybersecurity hub. These economic drivers can provide demand for all sectors of our industry: office, retail and industrial spaces.
Infrastructure development: The Southeast has seen significant infrastructure investments, including new highways, airports, and ports. These developments cause a need for industrial and logistics properties.
Resilience to natural disasters: The region’s resilience to hurricanes and other natural disasters has prompted innovations in building design and construction techniques, which can inform risk management strategies for commercial real estate investors.
Regulatory environment: The regulatory environment varies across states in the Southeast, impacting zoning laws, tax incentives, and development regulations. Florida has no state income tax and other states provide incentives for relocating a business here. Understanding these nuances is crucial.
Overall, studying the Southeast’s commercial real estate market can provide valuable lessons in adapting to demographic shifts, economic trends, and regulatory changes that affect the industry.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.
