If I were buying commercial real estate in Florida right now, I would focus on three property types: second generation restaurant space, small bay industrial, and Section 8 workforce housing. Each one has deep demand from tenants and a supply problem that works in the owner's favor.
I field calls every week from buyers, tenants, and owners across Palm Beach, Martin, St. Lucie, and Indian River counties. These three asset types come up again and again, and the numbers behind them hold up. Here is why each one belongs on your list, whether you are a first-time commercial investor or adding to an existing portfolio.
1. Second generation restaurant space
A second generation restaurant space already has the grease trap, hood, and kitchen infrastructure in place. That single feature is what makes it one of the easiest retail spaces to lease in Florida today.
Why shell space is so hard to lease to restaurants
Building out a restaurant from shell space, with no grease trap and no hood, is getting expensive. Recent buildout estimates I've seen run $250,000 and up before a tenant serves a single meal.
That cost shrinks the tenant pool fast. For a local, independent restaurateur, a quarter-million-dollar buildout is often a non-starter. What's left is mostly corporate and franchise operators with the capital to convert raw space, and that is a shallow pool.
Why second gen space leases fast
When the trap and hood are already in place, the next tenant only needs an interior refresh. The cost to open drops sharply, and the pool of qualified tenants gets much deeper.
I get calls and emails every week from operators looking specifically for second generation restaurant space. If you want a retail property where leasing risk is low, this is one of the first places I would look.
What to check before you buy:
Age and condition of the hood system and grease trap
Capacity of the trap relative to likely future concepts
Parking ratio and zoning that allows restaurant use
Whether the existing equipment conveys with the sale or stays with the tenant
2. Industrial: small bay warehouse and supply restricted markets
Industrial is my second pick, and I approach it with buyers from two angles: small bay warehouse buildings, and industrial property in municipalities that are restricting new industrial supply.
Small bay warehouse and contractor bays
Small bay warehouses are units of roughly 1,000 to 5,000 square feet with grade level roll up doors. They are one of the most in-demand product types in South Florida.
The reason is simple. Plumbers, electricians, landscapers, and other trades need somewhere to park work trucks and store equipment. In HOA heavy markets across Palm Beach, Martin, and St. Lucie counties, they can't keep that at home. The more gated communities an area has, the more valuable small bay space becomes.
Vacancy on this product runs very low. Investors sometimes push back that small bay rents can't be pushed as hard as other asset types. That may be true, but consistent occupancy makes up for it:
You often buy the building fully leased and cash flowing from day one
You don't need an aggressive pro forma to make the numbers work
Maintenance is mostly roof and structure, with no 2 a.m. calls about a broken toilet
Industrial where municipalities restrict new supply
My second industrial strategy is to look for municipalities that are limiting new industrial zoning while approving more residential development. Those new residents need contractors, suppliers, and service businesses, and those businesses need industrial space.
The tighter a city restricts industrial, the more valuable the existing inventory becomes. That applies to a building that's already up and to vacant land already zoned industrial.
In Palm Beach County, this puzzle isn't hard to put together. Few municipalities want to expand their industrial zoning. With limited ability to build new supply, these properties tend to hold up well in a downturn.
3. Section 8 and workforce housing multifamily
My third pick is multifamily positioned for Section 8 and workforce housing tenants. It can be one of the simplest value-add plays available to apartment investors today.
A different kind of value add
Multifamily has been the favorite asset class of the last few years, and buyer demand is still strong. Most investors studying a rent roll ask the same question: how do I increase income?
One answer is to look at the Section 8 payment standards for the property's zip code. Voucher rents are set by zip code, so in wealthier areas, often closer to the water, they can be surprisingly high. In some cases they exceed what the building collects from market-rate tenants today.
When that gap exists, shifting units to voucher tenants can raise income without a major renovation.
Why demand isn't going away
I talk with people looking for rentals every day, and it's a hard market. Palm Beach County is an expensive place to live, and many households are stretched. I expect the response to be more vouchers and more workforce housing projects, which supports demand for this strategy long term.
Who this works for
Buyers looking at their first multifamily acquisition
Current owners who want to increase cash flow on an existing building
Investors hunting for a value-add trade with extra yield
This strategy isn't something to be scared of, but it does have moving parts. Review the local housing authority's payment standards and inspection requirements, and check local fair housing rules before changing your tenant mix. I'm happy to walk you through the numbers on a specific property.
Thinking about buying commercial real estate in Florida?
Second generation restaurant space, small bay industrial, and Section 8 multifamily all share the same strength: steady tenant demand that outpaces supply. That is what protects your income when the market shifts.
Every recommendation I make starts with the numbers: an income approach valuation and real sales and lease comparables, not a figure chosen to win an assignment. If you're buying, selling, or leasing office, retail, industrial, multifamily, or land in Palm Beach, Martin, St. Lucie, or Indian River County, let's talk.
The first step is a conversation, not a commitment. I'll look at the property, review comparable pricing in the immediate submarket, and give you a written recommendation at no cost or obligation.
Casey Prindle | Nicklaus Vance Commercial Division (561) 221-1871 | casey@caseycre.com 5340 Donald Ross Road, Suite 100, Palm Beach Gardens, FL 33418
New to leasing? Read How to Lease Your First Commercial Space in Palm Beach County.
This article is for informational purposes only and is not financial, legal, or tax advice. Consult your own advisors before making an investment decision
