In recent years, Fort Lauderdale’s downtown area has experienced significant growth, with new buildings, businesses, and developments popping up across the city. However, despite this progress, Fort Lauderdale remains in the shadow of two other major cities in South Florida: Miami and West Palm Beach. Miami has long been celebrated for its vibrant culture, nightlife, and exciting business environment, while West Palm Beach is known for attracting immense wealth and high-profile companies. These factors have made it more challenging for Fort Lauderdale to fully emerge as a top business destination in South Florida, even though it has made strides in recent years.
Corporate Relocation Challenges in Fort Lauderdale
During the Covid-19 pandemic, a wave of companies relocated to South Florida. Unfortunately for Fort Lauderdale, most companies chose Miami and West Palm Beach as their new homes. Major firms like Citadel, Goldman Sachs, Blackstone, and Apollo Global Management preferred the allure of Miami’s excitement and West Palm Beach’s wealth, leaving Fort Lauderdale behind in the corporate relocation race.
While Fort Lauderdale’s office market is in good shape compared to many other large U.S. cities, it didn’t experience the same level of growth or attention as Miami or West Palm Beach. The city’s business community continues to wonder whether they can catch up and attract some companies still looking to expand in South Florida.
Competing for Big Companies: Fort Lauderdale’s Struggles
Fort Lauderdale’s downtown office space has a lot to offer, with new construction underway in places like Flagler Village. The city is also home to big tech companies like Chewy, Citrix and UKG, which have set up shop in Broward County. Additionally, Fort Lauderdale boasts more affordable housing, good schools, and a family-friendly atmosphere, making it an attractive place for employees to live and work.
However, the city still lacks a strong, high-profile advocate who can promote these advantages to large corporations looking for a new location. Unlike Miami, which had a strong push from local leaders to attract tech companies, and West Palm Beach, where wealthy executives built connections with Wall Street, Fort Lauderdale hasn’t had the same level of promotion. The city is missing a figure to push for growth and make it more appealing to companies considering relocating.
Fort Lauderdale’s Missed Opportunities in Corporate Relocations
One of the reasons Fort Lauderdale has struggled to attract big companies is the different industries it focuses on compared to Miami and West Palm Beach. Miami and West Palm Beach have drawn in high-end industries, such as finance, which have led to high-dollar leases and a major boost to the local economy.
Fort Lauderdale, on the other hand, has been more successful in attracting companies from industries like aviation and medical devices, which typically relocate to suburban areas rather than downtown office towers. Even the tech companies in Broward County, such as Citrix Systems and Magic Leap, tend to set up in suburban locations like Cypress Creek. While this has worked for some industries, it means Fort Lauderdale has missed out on the financial firms and other high-profile companies that Miami and West Palm Beach have successfully attracted.
When it comes to the financial services industry, West Palm Beach is home to some of the largest wealth management offices in Florida, with Miami coming in second. This makes it difficult for Fort Lauderdale to compete, as the financial talent and major firms are concentrated in those two cities. As a result, Fort Lauderdale developers have not focused on building high-end, trophy office buildings that would attract large financial companies. While cities like Miami can demand $100 per square foot for top-tier office space, Fort Lauderdale’s downtown office rent averages around $50 per square foot, showing the difference in market demand.
The Future of Fort Lauderdale: What Lies Ahead for the City
Despite its challenges, the city is working to raise its profile and attract more businesses. The city’s downtown is becoming a more vibrant urban center, and it has been labeled as an “18-hour city,” meaning there is activity throughout most of the day and evening. As the city continues to grow, the number of people living in downtown Fort Lauderdale has risen by more than 35% between 2020 and 2023. Fort Lauderdale expects more growth, anticipating a 28% population increase by 2028 due to new apartment and condo developments. This growing population could transform the area, attracting businesses looking to tap into the expanding talent base.
Many of Fort Lauderdale’s business leaders believe the city’s growth is still somewhat of a hidden gem. As more people move downtown and the city improves its amenities, it is starting to catch the attention of companies in other South Florida counties. Some businesses in Miami and West Palm Beach are now looking at Fort Lauderdale as an option, especially as more of their employees live in the area.
To attract these companies, landlords in downtown Fort Lauderdale are investing in upgrading their office spaces and offering high-end amenities to compete with Miami and West Palm Beach. With its growing population, affordable office space, and efforts to improve downtown, Fort Lauderdale may still have the opportunity to land some big corporate names in the future.
Fort Lauderdale is a Growing Potential as a Business Hub
However, there are still challenges. Many companies that moved to Miami and West Palm Beach during the pandemic did so because of the cities’ connections to wealthy executives and strong business leaders.
Fort Lauderdale will need to build similar relationships and offer incentives to convince companies that it is just as competitive a location. Additionally, Miami and West Palm Beach both have downtowns on the water, offering office buildings with better views than those in Fort Lauderdale. This can be a significant selling point for companies looking for high-end office space.
In the end, while Fort Lauderdale hasn’t yet reached the level of success seen in Miami and West Palm Beach, it is still growing and improving. The city may not have won gold in the corporate relocation race, but with its rising population and increasing investment in its downtown, there is hope that it can attract more businesses in the future. As the city continues to develop, Fort Lauderdale may finally be able to compete on the same level as its South Florida neighbors.
