We are pleased to announce that the results of our New Miami Investment Survey are out.
To assess what other business leaders are thinking about the pace and nature of economic recovery in South Florida, we commissioned The Bilzin Sumberg New Miami Investment Survey. 200 top executives in the community provided their opinions on the issues critical to our region’s future, and weighed in on chief areas for growth as well as obstacles to Miami’s economic progress.
Miami Business Leaders Cautiously Optimistic about City’s Economic Future; Continued Growth Expected in 2013
The survey confirms growing confidence in the business community that the economy is improving – albeit slowly. Despite an unprecedented global financial crisis and host of political events, both domestic and international, which could affect the pace of recovery, a majority of Miami business leaders believe the South Florida economy is ‘growing slowly’ and that this trajectory will continue through 2013. More than half of those surveyed (52 percent) see the economy as ‘growing slowly’ with seven percent responding that it is ‘strong and growing.’ Only 16 percent believe the economy is weak.
At the same time, respondents cite a number of obstacles to growth that need to be addressed – most notably in the arena of transportation infrastructure.
Following are some key findings from our survey:
- Growth comes largely from real estate, tourism and hospitality: Close to 60 percent of respondents see investment pouring into real estate over the next 12-18 months, with condominium homes (33 percent) and multifamily rentals (38 percent) being the most attractive assets. Of survey respondents, 13 percent attribute growth to the hospitality and leisure sectors, with 73 percent of respondents believing current conditions for tourism to be better than they were a year ago.
- Individual investors dominate South Florida investment: Nearly half of respondents believe that individual investors (48 percent) will serve as the primary source of investment over the next 12-18 months.
- Financing environment continues to improve: More than half (58 percent) of respondents believe the financing environment has improved since 2011, with the chief sources of capital and debt financing being venture capital funds (30 percent) and community banks (27 percent).
- Latin America dominates investments but other regions are increasing in activity in South Florida: Latin America remains the top market for inbound investment, with 72 percent of respondents believing Brazil will be the primary source of activity, followed by Venezuela (16 percent). The next 12-18 months should see an increase in investment from beyond the Americas, with China (28 percent) and Russia (27 percent) viewed as the largest growth markets.
For a downloadable copy of the full report, please click here. Stay tuned for upcoming posts where we take an in-depth look at specific survey topics.