The Canada Miami Connection is part of a growing trend in South Florida investment
South Florida might as well be part of the Caribbean investment chain. It’s unique geolocation allows it to receive international attention, and is one of the top places for foreign investment. And why not? It’s as close to the US as one can get (that’s a little South Florida humor). Seriously though, the warm weather, beautiful city, and world-class tourism industry have created an environment where the wealthy can own a second home and be close to the islands of the Caribbean. Now South Florida has also become an attractive destination for large foreign institutional investors from places like Canada, Spain, the UK, Germany, Singapore, France, Argentina and more. Miami in Particular plays with the big boys and this young city is seen in the same light as Chicago, Washington, Los Angeles, and New York City. The difference is that South Florida carries better pricing power.
Big Money Moves in South Florida
Apotex, a large Canadian Pharmaceutical company plans to relocate to South Florida. Other Canadian companies are doing the same. That means more, and longer term, Canadian investment in South Florida.
And Europe is just as busy here. Bayerische Versorgungskammer (BVK), an investment fund out of Germany, bought 1111 Lincoln Road (and an adjacent property) for $283 million. That’s a new level of investment in Lincoln Road. Last year alone Germans invested more than $317 million in commercial real estate in South Florida. Just five years ago, the second and third largest investors in South Florida commercial real estate were Argentina ($120.3 million) and Brazil ($39.1 million).
What We See Here Every Year
In some Miami high-rise buildings, upwards of half of the units are owned by foreign nationals and are free-and-clear of debt, making them easier to hold. Perfect for escaping Canada’s long cold winters. Anecdotally, when Winter comes, the parking garages in many Brickell condos are filled with license plates from New York, New Jersey, and Canada. Come summer, there are plenty of extra parking spots to enjoy.
Many Canadians end up relocating to South Florida permanently. Why?
- Many owners get tired of the back and forth
- The tropical lifestyle
- No state tax
- Lower cost of living
- Easy access to the Caribbean and South and Central America
- South Florida is the number one point of departure for the Cruise Industry
Many Canadian banks and financial institutions call South Florida home, and with the expansion of the Panama Canal, Miami is positioned as one of the top cities in the US in terms of future opportunities. Those opportunities and the amazing lifestyle will keep the Canadian investor coming to South Florida.
We see lots of opportunity for this beautiful and vibrant city. Do you see it too?