Rapid population growth in the Southeast is driving demand for many types of commercial real estate, including retail space, office buildings and residential developments. This is historic downtown Charleston, South Carolina. (File Photo: Jeffrey Greenberg/Universal Images Group via Getty Images)
Every six months, an organization called the Society of Industrial and Office Real Estate (SIOR) meets to share ideas about what's going on across the country.
This year's soiree is taking place in Florida and starts today. I'll have more to say about this year's spring conference in next week's column.
However, we hadn’t yet seen places like Savannah, Charleston, or Hilton Head, so our wanderlust was tickled and we decided to visit a few places.
It was a fantastic trip, the weather was as good as the bugs. It's rare to see such beautiful architecture and countryside and meet such lovely people. We'll be back!
You may be wondering what a stay in the Southeast has to do with commercial real estate. Here's what it has to do with it.
The Southeast region (particularly Florida, Georgia, and South Carolina) boasts diverse economies, significant population growth, and diverse market conditions. For example,
Population Growth: The Southeast is experiencing rapid population growth, which is driving demand for many types of commercial real estate, including retail space, office buildings, and residential developments. The deep-water ports of Savannah and Charleston receive and distribute goods from all over the world.
Economic Diversity: From tech hubs like Atlanta to tourism-driven markets like Orlando, the Southeast is home to a diverse range of industries. Augusta, Georgia, is a cybersecurity hub. These economic drivers can create demand for all sectors of the industry, including office, retail and industrial space.
Infrastructure Development: The Southeast is experiencing significant infrastructure investment, including new highways, airports and ports. These developments are creating a need for industrial and logistics real estate.
Resilience to Natural Disasters: The region's resilience to hurricanes and other natural disasters drives innovation in building design and construction techniques, and informs risk management strategies for commercial real estate investors.
Regulatory Environment: The regulatory environment varies among the Southeast states, affecting zoning laws, tax incentives and development restrictions. Florida has no state income tax, and other states offer incentives for relocating your business. Understanding these nuances is important.
Overall, studying the Southeast commercial real estate market can provide valuable lessons for adapting to the demographic shifts, economic trends, and regulatory changes that impact the industry.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange and can be contacted at abuchanan@lee-associates.com or 714.564.7104.