Alan Kennedy, Managing Director, Hines

May 2026 — In an interview with Invest:, Alan Kennedy, managing director of Hines, emphasized the strength of the commercial real estate market in South Florida, while highlighting Fort Lauderdale’s growing role within a broader regional story shaped by migration, redevelopment, and long-term demand. “Fort Lauderdale is one of the greatest opportunities not just in South Florida, but in the United States. It offers a very high quality of life, access to major amenities, and a central location within the tri-county region. It has a lot going for it,” Kennedy said.

How would you describe the state of the commercial real estate market in South Florida?

The state of the commercial real estate market in South Florida is strong. There continues to be demand. That demand might not be coming from the same out-of-market companies that were arriving during the height of COVID, but we are still seeing healthy activity. What is happening now is more organic growth from companies already operating in the market, and that is an encouraging sign because it reflects a deeper level of confidence in the region.

We also continue to see inbound interest from companies looking to establish offices in South Florida. In many cases, it may not be a headquarters move, but it could be a second or third regional office. South Florida remains an attractive place to do business. It is a business-friendly state, it offers a strong quality of life, and it continues to benefit from many of the same fundamentals that have made it attractive for years.

What is driving demand across different commercial real estate asset classes in the region?

There are some long-standing drivers that continue to support demand, including South Florida’s connectivity to international markets and its importance as a logistics hub. Those advantages remain intact. The region’s geography, its access to Latin America, and its role in broader trade networks all continue to support business activity across asset classes.

What is newer is the migration of financial services companies from the Northeast. We have seen a large number of finance-related businesses, including wealth management firms and private equity groups, establish a presence here. That movement has created real demand for office space and has added to the broader business ecosystem in the region.

A lot of that is driven by economics, including the lack of state income tax, but it is also driven by quality of life. South Florida offers a strong lifestyle proposition, and businesses appreciate operating in an environment that is less heavily regulated than some other markets. That combination makes it easier to attract companies and talent.

Another important factor is the local workforce. We are seeing graduates from South Florida universities become stronger candidates for professional roles, and more of them are choosing to stay in the region rather than leave. That means the market is better equipped to support its own growth. It is no longer only a story of attracting outsiders. There is also a stronger local pipeline helping sustain momentum.

The region also works as an interconnected whole. Miami has international visibility, Palm Beach has its own distinct appeal, and Fort Lauderdale offers a more affordable and corporate-friendly alternative. With transportation links such as Brightline helping connect these places, companies can think about South Florida as one region with several different options depending on their priorities.

What opportunities are emerging as a result of these dynamics?

The biggest opportunity is the ability to meet steady demand. For a developer, that is a promising position to be in. There is clear interest in the market, and that gives confidence in pursuing new projects or repositioning existing assets.

Some would say the multifamily sector is slightly overbuilt, but the expectation is that the market will absorb that supply over the next few years. South Florida continues to attract full-time residents, and that should help support occupancy over time. More broadly, economic forecasts point to additional demand ahead, which means the market should remain active.

Rent growth in South Florida has also been remarkable. That level of growth is not something anyone should expect to continue indefinitely, but it does say something important about the market. It shows that people value being here and are willing to pay to gain access to the region. That underlying willingness supports confidence in long-term investment.

Another key point is that the demand is not seasonal. The people moving here are increasingly permanent residents rather than part-time occupants. That creates a more stable demand base and makes it easier to plan around infrastructure, services, and future development.

What challenges is the industry facing?

The challenges are the kinds of growing pains that come with any major market. Infrastructure is one of them. Traffic is another. Access to quality schools matters, especially for people deciding where to live and work long term. Cost of living is also an issue, particularly when thinking about the working population and whether they can afford to live near the urban core.

Affordability is a real concern. In many growing cities, working-class residents are pushed farther away from city centers, and South Florida faces that same pressure. Those are not unique problems, but they are important, and they need to be addressed thoughtfully if the market is going to continue growing in a balanced way.

At the same time, there are benefits that come with increased attention and capital. High-profile investors and business leaders help raise the visibility of the market, and that can support broader regional growth. Still, the challenge is making sure growth remains functional, accessible, and sustainable for a wide range of people.

What are Hines’ priorities for South Florida moving forward?

South Florida is a key growth market for Hines in the U.S. Sunbelt. We view it as a place with strong demand, strong fundamentals, and a very good long-term outlook. It is a quality place to do business, and that matters when you are thinking about where to focus time and capital.

It is also a market where relationships matter. The people are engaged, the business community is active, and it is a place where doing business feels collaborative. When you have strong demand, a good location, and a business environment supported by great people, it becomes a very attractive market for further investment.

How do you see the market evolving over the next five to 10 years?

Growth is ultimately driven by people, and people need places to live, work, and shop. As South Florida continues to attract new residents and businesses, existing assets will face increased pressure, and that will create opportunities for new development.

One of the defining characteristics of South Florida is that land is limited. The region sits between the ocean and the Everglades, so it does not have the same ability to expand outward that many other markets do. That means redevelopment will play a major role in the next chapter of growth.

Older and obsolete properties will increasingly be replaced by newer uses. That is an important dynamic because it means South Florida can continue evolving through urban redevelopment rather than simply pushing farther into undeveloped land. In many ways, that is a more responsible growth model and one that can create more dynamic urban environments.

Is there anything else you would like to highlight about the region?

Fort Lauderdale is a significant opportunity within South Florida and an increasingly attractive market on a national basis. It offers a very high quality of life, access to major amenities, and a central location within the tri-county region. It has a lot going for it, even if it is sometimes overshadowed by Miami and West Palm Beach.

Part of that has to do with inventory. Fort Lauderdale has not been overbuilt, which means there is less high-quality available space than in some competing markets. That lack of availability can make it seem quieter than it really is, but in reality it points to opportunity. As more companies and investors look across the full South Florida region, Fort Lauderdale is in a strong position to benefit.

It is also important to understand that Miami, Fort Lauderdale, and West Palm Beach are not competitors in a zero-sum sense. They support one another. Growth across the region can be shared, and each city offers something different. That is part of what makes South Florida so compelling.

Fort Lauderdale, in particular, has an advantage in affordability relative to other urban areas in the region. It gives people an opportunity to move from suburban areas into more urban environments without facing the same level of cost seen in places like Brickell or downtown West Palm Beach. That supports a healthier and more active urban core.

Overall, Fort Lauderdale is a market whose value is becoming more visible. As more people recognize its strengths, it is likely to play an increasingly important role in South Florida’s future.