Florida has long been a magnet for commercial real estate investors, and for good reason. With its growing population, thriving economy, lack of state income tax and favorable landlord-tenant conditions, the Sunshine State offers diverse opportunities for both domestic and international investors. Recently, Pensacola has emerged as a standout market. Here, we’ll explore why Florida’s commercial market is thriving, why Pensacola is a city to watch and how Calloway Title and Escrow has become a trusted partner in fueling the region’s growth.
Florida Commercial Real Estate Market
A Rapidly Growing Population and Strong Performance Across Sectors
Florida continues to experience steady population growth, with many people relocating for sunnier weather, favorable tax policies and a high quality of life. According to recent statistics, Florida still boasts one of the fastest-growing populations in the country, with the U.S. Census Bureau reporting a net gain of more than 64,000 domestic residents from July 2023 to July 2024.
Florida’s commercial real estate market is among the strongest in the country, and it’s one of the top states for new construction projects. Warehouses, retail centers, office spaces and hospitality properties all show steady growth trends. In general, investors find Florida’s market to be both financially rewarding and low-risk, offering a favorable environment for long-term growth.
Pensacola, Florida Commercial Real Estate Market
A Bright Spot for Commercial Development
While cities like Miami and Orlando often take center stage, Pensacola is quietly emerging as a promising market for commercial real estate in Florida. Positioned along the Gulf Coast, Pensacola combines natural beauty with growing economic opportunity.
Several factors contribute to Pensacola’s growing appeal:
- Population Growth
Like the rest of Florida, Pensacola has seen steady population growth. “Just 10 years ago, the downtown population was about 600, but that number has since skyrocketed to more than 5,000,” according to this article. “The city’s affordability, military presence, coastal charm and growing job market make it a top destination for retirees, remote workers, healthcare professionals and military families,” says Nicole St. Aubin with Realty Masters of Florida. - The Shift to Remote Work
The rise of remote work has allowed more individuals to relocate to desirable areas such as Pensacola. This article explains, “The transition into remote work also left behind an abundance of office space after 2020, which has since created new opportunities for businesses to establish themselves in the downtown area.” - Booming Tourism Industry
Tourism remains a significant economic driver in Pensacola, with Visit Pensacola reporting record-breaking visitation in 2024. This article explains that the appeal of downtown Pensacola as a destination for both businesses and tourism is evident in the city’s infrastructure improvements, such as the airport’s terminal expansions and development and reinvestment in hotels, like the Hilton Garden Inn.
Key Projects
Hilton Garden Inn in Downtown Pensacola
Calloway Title and Escrow recently completed the title work and facilitated the closing for the Hilton Garden Inn Pensacola Downtown, following a string of Florida deals our team has worked on over the last several decades. The hotel is strategically located 1.8 miles from Bayview Dog Beach and a 16-minute walk from Saenger Theatre. The property is around an 18-minute walk from Wayside Park, 0.9 miles from Pensacola Visitor Information Center and 4.3 miles from the Fairfield Village Shopping Center.
Known for handling complex commercial title transactions nationwide, our efforts here add to our growing reputation as a trusted partner for Florida’s commercial real estate community.
Additional Momentum
Beyond hotels like the Hilton Garden Inn, other key projects shaping Pensacola’s future include the Bluffs industrial campus expansion, University Town Plaza redevelopment, Project Lionheart and improvements to the Downtown Waterfront.
Obstacles to Developing Real Estate in Pensacola
While the opportunities in Pensacola are abundant, challenges remain. Two of the biggest obstacles that businesses, investors and developers face are parking, as well as land development and zoning regulations. While the zoning overlay in downtown provides a 100 percent discount on parking requirements for local businesses, and the city has passed a new building height ordinance if certain requirements are met, the limited number of public and private parking spaces and the complex zoning requirements remain an issue for bringing in national brands and franchise establishments.
However, partnering with an experienced commercial title company can make a difference. Our team conducts thorough research to ensure that a property complies with local zoning laws and land use regulations. We also uncover any existing restrictions, resolve discrepancies or encumbrances related to zoning or land use before the transaction closes and can provide zoning endorsements as part of the title insurance policy.
Pensacola’s Future Is Bright – And Calloway Title Is Here to Help
“Real estate remains a stable investment in this part of Florida, and with property values continuing to appreciate, downtown Pensacola will likely remain a hotspot for commercial real estate for many years,” states this article. “…As real estate values increase, larger chains will undoubtedly pursue opening new locations along and near Palafox Street.”
At Calloway Title and Escrow, we’ve helped many commercial real estate professionals navigate the Florida market. Pensacola and the rest of the state offer a diverse mix of investment opportunities to suit every strategy and budget. If you’re looking to expand your portfolio in Florida or anywhere in the nation, Calloway Title will help you close the deal. Visit www.titlelaw.com to work with us on your next commercial transaction.
