Visit Florida reported a 3.4% increase in those vacationing in the area in part of 2008 compared to 2007. Florida's popularity has increased hospitality investments and luxury hotels have been recently renovated. If loan availability slows for these types of investments current businesses should see an increase in their profits. Subsequently, travelers may see higher rates from current establishments that take advantage of increasing demands. Office vacancy rates have gone up such as Tampa that reported a 14.7% increase, St. Petersburg 17.0% and Fort Lauderdale 12.6%. Although office sales have declined compared to prior years, new companies are still moving to the area such as Fidelity Investments in Jacksonville. Industrial markets saw a slight increase because of higher export activities that includes exporting to Latin America.
Current sales may leave some real estate companies disappointed but experts speculate Florida's existing tourism industry will rebuild confidence in the commercial market as well as residential.
Jessica Benoit
The Burish & Serena Team
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