Economic Growth and Why Investing in Boca Raton Makes Sense

Posted by Jean-Luc Andriot on Wednesday, July 6th, 2016 at 11:01am.

Boca Raton welcome sign
In 1909 there were no high-rise condominiums, Mizner Park didn’t exist and the population was at a whopping 40 people. Today, Boca Raton has grown exponentially and continues growing with a population close to 90,000 part and full time residents. Along with an expanding population, the business field is developing as well. There are several reasons businesses are targeting this area as a place to expand. At the same time newer companies move in, so will more people. These are the obvious reasons for the spurt in economic growth. In this week’s blog we uncover more logic, to share the economic discernment and why it makes sense to invest in Boca Raton.

Recently, the Sun Sentinel announced two major purchases both from global investors that focused up two existing properties in Boca Raton. The Boca Center was sold for $13.5 million dollars to Eden’s from South Carolina.
In another article from the same paper a story revealed that Marcus & Millichap purchased the Arbor Oaks Apartments at a mere $77 million. Both of these deals closed within days of each other, leading us to believe that these companies are expecting growth over the next several years and have targeted our fine community to do so. It makes perfect sense to buy a shopping center with a population of 89k people living in town. But, what about an apartment complex? Marcus and Millichap (a giant commercial real estate investment firm) must be forecasting a higher population looking to migrate into this area. Why else would you invest in that type of money for an apartment complex? Another point to make here is that Boca is a great place to expand your investment portfolio. Boca Raton was recently voted “Best Cities for Jobs”. That being said, this is an area that has been climbing up the ‘real property ladder’ and it seems to be well worth the climb.

With the $1.1 trillion dollars of global capital expecting to flow into the commercial real estate markets, this is an area to keep close eye on. Financial advisers recommend people to look for ways to diversify their real estate portfolios. They are also suggesting investments where the middle class will rise and think of investing in Boca Raton property as a long-term opportunity. We’re seeing this now with Boca Raton from the East to the West part of town. With more millennials moving into the workforce and town, they are the demographic buying and selling starter-homes. We should see more of a push in home sales from this generation over the next few years as long as the economy stabilizes. The younger generation seems to be looking at nearby places like Florida Atlantic University as investment properties. However, that won’t negate the Baby Boomers from wanting to stick around. With places like the Boca Raton Regional Hospital and the extensive medical program at FAU, seniors don’t have to travel far for world-class medical care.

This is one HUGE reason they will remain in this area for the time being. Other than the extraordinary health care, this area is also notorious for recreational activity on the waterways. Places like Gumbo Limbo are waiting for an opportunity to expand their parking for visitors and staff. Gumbo Limbo is a part of the Greater Boca Raton Beach and Park District.

It's also home of FAU students studying biology and marine life. While the park hosts many fundraisers with their Non-Profit “Friends of Gumbo Limbo” they need the city to step in to expand parking for the facility. This type of expense will help to bring in more visitors to the area. Visitors spend money and keep our city thriving. This is one of the infrastructure projects currently on the list, waiting approval. The infrastructure of Boca Raton remains intact. But, the city is working on several projects focused on improvements. With traffic continuing to be a big issue, there’s talk of Tri-Rail expanding to the FEC tracks. However, this will take some time. The new transit system will be called Brightline that will increase transportation options for the area. The board is encouraging residents to speak up when it comes to these types of changes. Regardless of the public transportation, Boca isn’t hurting for new communities to be built. However, we do foresee that providing alternative transportation may attract more people since it will be easier to commute.

*According to the South Florida Business Journal, Project P2P could add up to 838 jobs with a confidential technology company. The deal has to be approved by the Palm Beach County Commission for approval. If they do approve this deal, then the classified organization could receive up to $6.14 million dollars as an incentive for economic growth. This is great news for those heading in the IT sector or who are already there and looking for a great community to work and live.
In the same article, they announced that this could be one of the last companies to receive the Florida Flex Program. The Florida Flex Program, formerly known as Quick Response Training or QRT, offers incentives to new and existing businesses for training and expansion. In order for these businesses to be eligible there are some strict criteria. This program is designed for business that produces exportable goods and services. For more information on Florida Flex Program, visit www.workforceflorida.com.

For those of you wanting to sell property during an election year, could mean the cost of rising home prices which could deter some people from buying. In the luxury market, there may be an influx of sellers with the uncertainty of a new president and an insecure economy. Which could mean several alternatives for those buying a home as well. With the onset of ‘Brexit’ and market getting crushed, many investors are scratching their heads, contemplating their next move. The predictions are strong with more of a global market taking a lead in our economic expansions. Boca Raton is a global community with people from every walk of life calling it home. What we should expect to see is more international sales developing in both real estate and business investment, something the city can truly benefit from. Regardless of what is happening in the rest of the world, our battles here in “The City for All Seasons” has just begun. Boca Raton is still a small town with a lot of potential. This community boasts something for everyone and the town does it in a way that’s upscale and hip. Of course we’re partial, and can’t fathom why anyone would want to live anywhere else. One thing is certain, it’s exciting to watch as the town grows and becomes one of the most favored cities in South Florida to live and invest.

If you’d like to learn more about Boca Raton properties, contact our professional and seasoned staff.

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