With population trends as a primary driver of commercial real estate, it appears that Florida will continue to generate high-growth in 2019, thanks, in part, the new tax law.
U.S. migration to Florida has always been fueled, at least in part, by its lack of a state income tax. This benefit is amplified under the new federal law’s $10,000 cap on deductions for state and local taxes (SALT), including property taxes, as well as a $750,000 cap of the size of loans on borrowers could deduct mortgage interest. The loss of these deductions translates to higher tax liabilities for residents in high-tax states, such as New York, New Jersey and Connecticut. A high-net-worth family’s move to Florida’s sunny, business-friendly shores can mean significant tax savings, even in the current environment of rising interest rates and escalating home prices.
Population growth tends to come with increasing demand for housing, rental apartments, office space and restaurants and retail, which bodes well for Florida’s CRE outlook in 2019.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email email@example.com.