What’s driving Multi Family Housing, medical facility, and hospitality construction growth in Southeast U.S.? Employment and Affordability!
“The Southeast region continues to generate steady gains in commercial real estate performance as positive employment momentum converges with generally limited development pipelines,” says John Chang, first vice president, research services, at Marcus & Millichap Real Estate Investment Services. “Tight vacancy rates remain supportive of rent growth across the majority of the region, reinforcing asset values.”
Georgia
Georgia is anticipated to outperform the nation for the fifth year in a row for not only job creation, but also population growth and real estate expansion.
“Powering this building surge is the state’s population gain, which will exceed the national average this year, at 1.4 percent for Georgia versus 0.8 percent for the U.S.,” said Jeffrey M. Humphreys, director of the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business. ‘New multifamily starts will rise by 6 percent. ”
Florida
With Miami and Orlando’s rapidly developing technology industry and vibrant economic growth makes Florida the perfect place for investors. According to an analysis by the University of Central Florida (UCF), published in Urban Land, “The state’s economy is expected to expand by 3.7 percent—about 1.2 percentage points higher than the average rate for U.S. growth—with Florida poised to become a $1 trillion economy by 2018.”
This would make Florida’s economy the 16th largest in the world, according to the World Bank. Job growth is growing steadily, fueling rent growth and low vacancies. Orlando’s growing medical communities and colleges, comes the need for multi family housing, luxury and affordable high-rises, as well as micro apartments. Jacksonville is forecasted to have a 3 percent job growth this year, out pacing the national average.
St. Pete, Florida is also expected to a strong economic growth, with the addition of mixed use developments in hospitality, residential, and medical communities.