florida

Retail Construction Trends: 2023-2025 /  by Guest User

Retail construction in Florida remains at historic lows, with less than 1 million square feet added annually.

In 2023, only 6 projects were completed, with 5 more in 2024, and just 3 scheduled for 2025. Notably, 70% of the projects in the 3-year pipeline are mixed-use developments. Explore the full list of new projects by clicking the link below.

Banking Evolution in Florida: Trends and Transformations (2022-Present) /  by Mauricio Abela

Welcome to our new series, "Banking Evolution in Florida: Trends and Transformations (2022-Present)." In recent years, the banking landscape in Florida has undergone significant changes, reflecting broader national trends and unique regional dynamics. From the steady decline in the number of physical bank branches to the strategic expansions by major players, the way Floridians bank today is markedly different from just a decade ago.

This series aims to delve into the factors driving these changes, highlight key players shaping the industry, and explore the impact on consumers and communities across the state. We will examine the strategies of major banks, the rise of digital banking, and the implications of mergers and acquisitions. Whether you’re a banking professional, a consumer, or simply interested in the financial trends affecting Florida, this series will provide valuable insights and a comprehensive overview of the evolving banking sector.

Florida Retail Property Sales Plunge 65% in 2023, Cap Rates Surge by 120 bps /  by Guest User

In a stark turn of events, Florida's retail property market experienced a substantial downturn in 2023, witnessing a staggering 65% plummet in sales volume compared to the previous year. Major metropolitan areas saw transaction volumes dwindle to just $1.0 billion across 28 sales, marking a stark contrast to the record-breaking $3.0 billion in sales seen in 2022.

Notably, prices in 2023 tumbled by 12% compared to the previous year. The average capitalization rate paid in 2023 stood at 6.75%, signaling a significant 20% decrease in value for asset sales over $15 million. Amid these challenging circumstances, investors like Woolbright anticipate a turnaround in 2024, with hopes pinned on the Federal Reserve's potential interest rate cuts to reignite the retail property market.

Florida's Banks Dominated by the Top 10 /  by Guest User

There are about 50 companies with bank branches in Florida, but nearly two thirds of the 4000 branches in Florida are operated by the 10 biggest banks.

Even among the top 10, the top four: Wells Fargo, Truist, Band of America and Chase are all in "the 400 Club" and each of them operates over 400 branches. While Florida's population has record growth, the top 10 banks are still shrinking by 1.5%. In 2023, they closed 41 branches out of the nearly 3,000 they operate in the state. Amongst the top four, Wells Fargo and Truist both shrank by about 5% which is a substantial contraction. On the other hand, Bank of America and Chase basically remained unchanged. In 2023, Fifth-Third Bank grew by 10% and TD Bank grew by nearly 5%. As Florida's population continues its record growth, Woolbright predicts that over the next 5 years, Florida's banks will start to expand once again with much of that growth likely coming from the smaller banks.

Starbucks leads Florida Restaurant Expansion in 2023 /  by Guest User

Today, 113 different companies operate 15 or more restaurant locations in Florida. Collectively, they operate just over 14,000 restaurants in the state. 

In 2023, there was a net increase of 172 new restaurant locations or a growth rate of 1.2%, which is in line with the pace of population growth. Starbucks was Florida's restaurant growth leader with 38 new stores. The top 8 companies accounted for nearly all of the net gain. On the other hand, there were three companies, Burger King, Boston Market and Subway, that combined closed just over 100 stores in 2023. To achieve the 1.2% growth, the restaurant companies opened 519 new locations and closed 347, so there is a constant battle with small gains in this highly competitive business.

Florida’s Big Box Growth Flat in 2023 /  by Guest User

Last year, Florida’s retail occupancy held steady with 288 big box stores opening and 296 closing.

In recent years, there were 3 openings for every 2 closings, but in 2023, Bed Bath & and Tuesday Morning closed a combined 101 stores which cancelled out the expansions. In 2024, Woolbright forecasts a return to big box openings far exceeding closings.

Florida Retail Property Sales Plummet 65% in 2023 /  by Guest User

In 2022, Florida's retail property sales saw a record $3.0B in sales, but in 2023 the transaction volume in the major metropolitan areas dropped to only $1.0B across 28 sales.

In addition, the price levels in 2023 fell by 12% as compared to 2022. The average capitalization rate paid in 2023 was 6.75% for asset sales over $15M. Woolbright, like many investors, expects that retail property values and volumes to improve significantly in 2024 as the Federal Reserve cuts interest rates.

Florida Big Box Growth 2023 /  by Guest User

Over 70% of retail GLA is leased to "Big Boxes" is the shopping center ecosystem. In 2023, far more anchors opened than closed.

Dollar General and Publix led the 100 companies operating big box stores in Florida. Today's leaders are far different than past years where mega chains like Walmart, Target, Lowes, Home Depot and Costco dominated.

Florida Retail Development: 2021-2024 /  by Guest User

It was great to be back at ICSC Florida after two years without the conference. Enthusiasm was high as attendance neared pre-pandemic levels.

I had the honor of hosting the Special Industry Groups Development forum, where I shared insights on the market and the upcoming retail developments in Florida. In the video below, I breakdown over 2,000 hours of research my team conducted over the last 12 months that will give you all you need to know.

Download the full presentation deck.

FL COVID Update /  by Mauricio Abela

As of today, Florida has vaccinated about 2.0M people, 85% of whom are over 65. At this rate, Florida is on track to vaccinate its 4-5 million residents over age 65 in the next 4-6 weeks. Since about 80% of the state’s deaths and hospitalizations have been for those over 65, this is a godsend. Thanks to all those who are working hard to make this happen! Our best days are just ahead.

Hat tip to @jhaskinscabrera on Twitter

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