Is Tampa the New Miami?

ORLANDO—Over the past few years, the majority of the conversation about the Florida's commercial real estate rebound has focused on Miami—and for good reason. Miami grew the fastest of the nation's large cities from 2010 to 2014. 

However, because Miami is maxing out on available affordable opportunities, other Florida cities—such as Fort Lauderdale and Tampa—are showing the most potential for development and growth. GlobeSt.com caught up with Jeffrey Gouveia, Suffolk Construction's president and general manager, to get his thoughts on these trends and what's driving them.

GlobeSt.com: Why and how are the Tampa and Fort Lauderdale markets growing?

Gouveia: Tampa and Fort Lauderdale have common attractive qualities to developers: less expensive and more accessible land, close proximity to "sun and sand," and desirable lot availability. Fort Lauderdale is currently seeing an influx of new luxury hotels and residential buildings along the beach promenade, the first such development in approximately 5 years. In Tampa, the $1 billion facelift to downtown Tampa, an example of work, live and play urban infill, is comparable to some of the large scale projects in Miami, like Miami Worldcenter.

GlobeSt.com: What drivers are causing this growth?

Gouveia: Miami has seen tremendous development, and so "slam dunk" real estate deals are tougher to find. For instance, a 1.25-acre site on the Miami River at Biscayne Bay sold for $125 million dollars. Some developers just feel the margins are too tight, and so Fort Lauderdale and Tampa are benefitting.

Additionally, while a statewide issue, the shortage of skilled workers is another factor that has developers entering different markets. Having more leeway in project budgets makes it possible to account for higher labor costs.