South Florida is poised to benefit from an interesting economy in 2023 where nothing is certain, but recent population trends provide investment opportunities, making it a good time to be building commercially in this region.
What’s caused much of the growth in South Florida is the migration of people from a range of other locations in the U.S., most notably New York City. Based on LinkedIn membership data (shown below), the moves have been from northern climates to the south, and from California eastward.
Because so many people have moved to South Florida, the demand for housing has increased dramatically.
Many young professionals and empty nesters are choosing to live in urban areas, where they can be close to work, shopping, and entertainment while enjoying life in the sunshine. Developers have responded by building new multi-family properties in these urban areas, with many buildings featuring high-end amenities, such as rooftop pools, fitness centers, and outdoor living spaces, within walking distance to restaurants and shopping.
But with inflation and the logistical problems of the pandemic, housing costs have also risen. This means that many residents are turning to rental properties as a more affordable housing option. This has led to an increase in demand for multi-family units and buildings, such as apartment complexes and condominiums.
The need for lower-cost rentals has increased dramatically. And while construction has increased for every type of housing, inventory (and pricing) hasn’t kept up with demand. As a result, the region’s housing costs have increased significantly since the pandemic. And, at the same time, the need for attainable housing has also increased dramatically.
This population boom has also increased the demand for commercial and retail space, to service these new residents. Again, developers have responded by building office space, retail stores, and other commercial properties.
And another trend in confluence with population rise is the growing importance of ecommerce. As more consumers turn to online shopping, the demand for distribution centers and warehouses has increased. These buildings house products that are purchased online, and they require large amounts of space and specialized infrastructure, such as loading docks and climate control systems. South Florida’s strategic location and proximity to major ports make it an ideal location for these types of facilities.
As a result, investors are interested in industrial parks, light industrial buildings, and last-mile distribution facilities, as noted in the graph below. (Source: 2023 Colliers Global Investor Outlook)
Danto Builders has been a part of this activity and growth.. The development, design, and construction of these projects can be complex and have a variety of considerations and moving parts. Being in the area for over 40 years gives Danto Builders the advantage of having resources and knowing how to move project work efficiently and effectively.
Industrial design build
As discussed above, industrial design projects can be complex, with a lot of considerations and moving parts. Danto Builders has done many of these projects over the past decades so they are aware of the challenges that may come up, from the land-use approvals and design to the  County and City permits, access to utilities, and construction.
Because of the nature of industrial construction, an experienced contractor should provide both support and guidance, as well as all aspects of the construction itself.
Successful commercial construction projects (including warehouses and other commercial facilities) begin with thoughtful design, which includes researching the area to determine what is needed, and to avoid problems that can arise during the later phases of the project. Danto Builders is proud to be working on the South Dade Industrial project at the moment, and is happy to speak with you if you’re planning this type of project.
With all the moving parts involved, from supply and labor shortages to infrastructure demands, it can be challenging to finish a project on time and within budget. It’s critical to find a construction expert who resolves these types of issues every day.
Multi-family construction
Similarly, multi-family housing development, design, and construction has its own challenges. When multiple entities are involved, such as local government, CRA or HUD (for subsidized housing), there are additional steps that need to be taken and milestones to be met. All parties need to be aligned and in-sync to get the project finished efficiently and effectively.
Danto Builders has been involved in a number of these projects and is proud to be currently building an elderly affordable housing facility in North Miami. They’re happy to speak with you if you’re working on this type of project.
Every construction project is different and unique. Danto Builders appreciates how important it is to understand each and every client’s needs and do what they can to meet those needs in every project. If you have questions about these trends, or have a specific commercial construction project planned, please feel free to reach out to Danto Builders at (954) 229-2006 to talk about it.