In commercial real estate, keeping a close eye on economic trends is essential for success. In this blog post, we will delve into the national economy, Florida's economy, and what it all means for commercial real estate.
Our aim is to showcase how, even as the national economy undergoes a slowdown, Florida continues to shine as an ideal hub for commercial real estate investors, businesses, and developers.
National Employment
Before we explore the strength of Florida's commercial real estate sector, let us first assess the national economy. According to the latest data from the Bureau of Labor Statistics (BLS), nonfarm employment experienced a gain of 216,000 jobs in December, bringing the total to 157,320,000.
While this appears positive, it's crucial to note that 2023 employment increased by 2.7 million, a downward trend from the 2022 increase of 4.8 million. Clearly, the economy is slowing down.
Noteworthy contributions to the national job gains came from government employment, which accounts for approximately 14.6% of total jobs, with an increase of 52,000 jobs in December and 672,000 jobs annually. Government employment also accounted for about 25% of the nation’s annual job gains.
Healthcare, representing around 11% of total jobs, also played a significant role, adding 37,700 jobs monthly and 654,000 jobs annually. Healthcare employment represented about 24% of the nation’s annual job gains.
The industrial warehouse sector, however, experienced a slowdown. Transportation and warehousing showed declines of 22,600 jobs monthly and 62,700 jobs annually.
Florida's Economy
In contrast, Florida's economic landscape shines brightly. Let's explore some additional economic statistics that highlight Florida's resilience:
- Population: Florida comprises approximately 6.8% of the U.S. population.
- Employment: The state's employment accounts for roughly 6.3% of U.S. employment.
- Annual Employment: Florida contributed an impressive 9.8% to the annual increase in U.S. employment.
- Monthly Employment: Florida represented nearly 18% of the nation's monthly employment change from October to November.
It is good to be in Florida. The state's economic performance remains as robust and resilient as ever. For those involved in the commercial real estate sector, this translates into an enduring opportunity for investment.
Commercial Real Estate
Florida's strong economy is closely linked to its commercial real estate market. As businesses flourish and our population continues to grow, the demand for commercial real estate remains consistently strong. Real estate is space for people - more people and more jobs means more demand for commercial real estate.
While the national economic slowdown may inject some uncertainty into the market, Florida's steady performance offers a valuable hedge against such economic challenges. It's important to note that Florida's real estate market has displayed resilience even during challenging times, making it a reliable choice for long-term investment.
Whether you are contemplating commercial real estate investments or simply seeking to stay well-informed about economic trends, Florida's enduring appeal should not be underestimated.
Contact me, Gary Ralston, if you have any questions.