Executive George Scorsis Discusses Boom in Florida’s Commercial Real Estate

Posted On Wednesday, 13 October 2021 21:31

Many industries have been uprooted or subjected to extreme shifts by the pandemic – a pendulum of uncertainty caused by disease. 

While the pandemic left no industry untouched, the real estate industry saw some surprising restructuring, particularly the commercial real estate sector, as businesses shut down for social distancing to help flatten the curve.  

One state that has been able to weather the storm and find some sunshine in the commercial sector has been Florida. Although office occupancy declined in parts of the state during the pandemic, there has also been a tremendous uptick in corporate relocations, entrepreneur and businessman George Scorsis said. 

“It will take some time for the dust to settle as corporations make their moves,” Scorsis said. “Some may settle into permanent remote work while others still value in-person interactions and look forward to opening the offices again. The pandemic spurred advancements in technology including increased filtering and monitoring of air quality in commercial spaces.”

Office space has actually flourished in South Florida, where large companies have kept the industry afloat, despite the state’s continuing battle with the coronavirus, according to Globe St.

“Occupancy was off the charts. Average daily rates were off the charts. Some of my hotel owners who had gone from crazy numbers like 9% occupancy were now full and at rate said they had never been able to charge before,” said Suzanne Amaducci-Adams, partner and head of real estate at Bilzin Sumberg in Miami. 

There are over 2.1 million Commercial Real Estate businesses in the United States as of 2021, according to Ibis World, which equals roughly 11.27 billion square feetof office space worth around $2.5 trillion. 

Global industry research company IBIS World has kept its fingers on the pulse of the real estate industry for decades. Its most recent deep dive into the commercial real estate industry shows hope for the industry. 

The most recent report shows that the industry is expected to rebound as the economy recovers from the pandemic and the unemployment rate continues to decline. 

 “I imagine there will be more safety features and opportunities in the next couple of years than people can imagine,” George Scorsis added. “Companies can go where they want because they have time to make decisions – and many are heading to Florida.”  

“Over the next five years, office space is expected to remain relatively in demand. Additionally, amid shifting preferences for remote work, demand for office space is expected to be limited until the latter half of the outlook period as business activity remains suppressed,” according to the report

Still, the consulting company expects that real estate values will increase while demand for services like commercial leasing, development consulting, brokerage and property management are also likely to increase. 

But nothing lasts forever. Some real estate experts believe that the booming residential housing market in Southwest Florida, for example, has already peaked. 

Signs of a correction appeared a few months ago, when buyers began to turn away because of high prices driven by a combination of strong demand and low inventory, according to the Fort Myers News-Press

"We can't have double- and triple-digit improvement numbers that can go on forever," said Denny Grimes, president of his team at Keller Williams Realty in Fort Myers. 

To some degree, those are the natural swings of real estate, with or without a pandemic, according to Scorsis. For those looking for a welcoming place for their business, The Sunshine State remains “a smart choice,” Scorsis said. 

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