Good Eats for the South Florida Housing Market
South Florida is positioned to continue as a prime restaurant haven as international restaurant expansions continue not only in Miami, but also in Fort Lauderdale and Palm Beach. More than 44 million tourists spent an average of $315 a person on food and beverage during their visits, for an estimated total of $8.8 billion. As a result, more and more retail food and beverage businesses are leasing commercial space as consumers influence the local retail real estate market.
Plenty of Strong Appetites
Restaurant spending accounts for approximately 25% of all retail spending. Developers and landlords are diversifying their commercial spaces to include food and beverage tenants in order to attract other retailers. In turn, the restaurant sector provides more local employment opportunities. Tourism provides the restaurant industry with a stable source of foot traffic to contribute to the local economy.
More Bang for Your Buck
The lower cost of living in Fort Lauderdale and the Palm Beaches compared to New York, Los Angeles, and Miami is what initially draws people in to these areas. While Miami is a booming hub for the restaurant industry already, the cost of living there is about 37.1% higher than the national average. Fort Lauderdale and Palm Beach are beginning to offer the same high-end atmosphere with similar attributes at a lower cost of living compared to other metropolitan areas. Rent, gas, and restaurant prices are likely to be less expensive in areas other than Miami. This, along with the multitude of job opportunities made available, attracts a younger demographic which establishes a brand in these areas, especially Fort Lauderdale.
Consumers influence retail real estate. Where we shop and where we eat are prime examples. More restaurants in specific South Florida locations, driven by not just locals but also tourists, lead to demographic changes and emerging urban neighborhoods which also lead to real estate opportunities and changes in the housing market. Bottom line: Where we enjoy having food has an impact not only on our appetite but also the real estate market.
From the Trenches,