Florida Commercial Real Estate Booms on Financial, Tech Executive Migration

South Florida’s real estate market presents a complex picture, with a bifurcation between struggling condo sales and booming luxury and commercial sectors. Condo sales in Miami-Dade and Broward have dropped sharply, primarily due to high mortgage rates and financing challenges, yet luxury condo sales priced over $1 million are on the rise, highlighting a market divided by affordability. Meanwhile, South Florida’s commercial real estate, especially retail, is thriving as an influx of high-net-worth individuals, financial executives, and tech leaders relocates to the area, transforming cities like West Palm Beach into vibrant year-round economic hubs. Retail vacancy rates there are near historic lows, supported by mixed-use developments such as CityPlace that combine office, residential, and commercial spaces to meet demand. Despite a slight decline in condo values and slower growth in taxable real estate value, South Florida continues to attract residents and investors, driven by favorable tax policies, population growth, and evolving urban dynamics. The market’s future hinges on whether demand can revive broadly, particularly for affordable housing, while luxury and commercial sectors maintain momentum.