When Gov. Ron DeSantis issued statewide social distancing measures on April 1, it was done to head off predictions that Florida could follow New York’s lead in hospitalizations and deaths from COVID-19.
As we watched the Florida economy grind to a halt—particularly in the state’s southern counties, it seemed that we had somewhat dodged a viral bullet. This positive outcome has recently been overshadowed by quickly rising infections, with the state setting multiple records for new cases in late June and July.
While the initial lockdowns seemed to have worked initially and were less strict than certain states, businesses were severely impacted. With doors locked shut, workers furloughed, and some places filing for bankruptcy, the Greater Fort Lauderdale Alliance and Broward County issued a survey to gauge the pandemic’s economic impact. The research also strives to better understand the needs of businesses and identify opportunities to provide support.
Between April 20 (three weeks into the quarantine) and May 29 (nearly two weeks after Phase 1 of re-opening), the two groups began outreach to Broward businesses. Data collection resulted in 1,000 responses from businesses in all of Broward’s 61 counties, as well as 18 responses from Palm Beach, Miami-Dade, St. Lucie, Columbia, and Cook counties.
Of the responding businesses:
In addition, the distribution of survey responses mirrored the county’s jobs distribution:
If there is any good news in the survey results, more than three-quarters of respondents (81%) said that their companies were open for business. Of these, 47% reported they were operating at regular hours and 34% at reduced hours.
Although 19% were not in operation during the studied period, it appears that remote work played a vital role in allowing many businesses to remain open. Sixty-six percent of respondents reported that either all (43%) or some (23%) of their employees were working remotely. Thirty-four percent indicated that they did not adopt this work option.
This data gets to the economic heart of the matter—the bottom line for business and employees. Ninety percent of the respondents reported that the pandemic caused revenue losses, with 52% indicating their revenue had decreased by more than 75%. An additional 38% reported a decrease between 25% and 50%. Only 10% of businesses reported no revenue decrease (8%) or an increase (2%).
A closer look at job sectors provides an even clearer picture of the economic toll COVID-19 has taken on Broward businesses.
The vast majority of companies (82%) applied for assistance through various federal and state programs. Although 241 respondents (18%) indicated they did not submit a single application for relief, the remaining companies (82%) applied for one or more stimulus sources.
In many ways, that’s the most difficult question to answer. While the survey presents a better picture of COVID-19’s initial impact on Broward’s economy, the situation remains unclear as caseloads rise. Nevertheless, the data does provide insight into what worked for businesses and what didn’t during the lockdown, and potential areas for improvement and government support.
This is a conversation that needs to happen immediately. As of this writing, Florida has sequential spikes in new cases, ongoing debates about mask-wearing mandates, and businesses closed and fined for failing to adhere to COVID-19 preventative guidelines.
Morris Southeast Group continues to monitor the economic impact of the pandemic. And we will update our clients, colleagues, and readers as events unfold.
If you have any questions about CRE investing or services, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.
Broward County and its economy are enjoying good times. Development is on the rise, companies are moving here (like our recent deal with Polenghi Group) and other companies are expanding here, such as retailers Hobby Lobby, Whole Foods Market and Trader’s Joe’s. When “luxury” and non-essential retail grows in a region, it is a sure sign in the rise of personal disposable income.
The median household income for Broward County families from 2006-2010 (most recent period of data collection) was $51,694, compared with $47,661 for all of Florida and $43,605 for Miami-Dade County. Palm Beach County had the highest median household income, at $53,242, according to American Community Survey.
Meanwhile, Broward County’s population grew by 6.9 percent from 2010 to 2014 (U.S. Census Bureau) and now stands at roughly 1.9 million residents. And we’re not just adding people, we are adding jobs. The county’s unemployment rate is currently 4.8 percent compared with 5.4 percent from a year ago.
Two of the largest developments that are getting set to begin are The Manor@Flagler Village in Fort Lauderdale and Dania Pointe in Dania Beach.
Manor@Flagler Village (rendering is shown here) will be a mixed-use project with 382 upscale apartments and 22,476 square feet of retail. Related Group is the developer and their target audience for the project are millennials.
Dania Pointe has been years in the making and is huge, encompassing some 100 acres of land with 1,000 linear feet fronting I-95. Plans call for a regional open-air mall plus about 500,000 square feet of retail, office and residential space. Local folks will recall that some of the land was formerly occupied by Boomers, a family entertainment center and go-cart complex, and Dania Beach Hurricane, a wooden roller coaster that shut down in 2011. The development team is comprised of Kimco Realty, Robert Shapiro’s Master Development and Terry Salzman’s Salzman Real Estate Advisors. The project is slated to be built in phases and probably will not be complete until sometime in 2018.