Florida New Hotspot for Business Sales! Prices up 30%.
While buyers favored certain sectors, location also influenced decision making. The largest number of businesses are typically bought and sold in California, New York, Florida, and Texas. However, each are different in terms of state governments, economies, and ways of responding to the pandemic.
Overall, Florida reported the highest number of transactions in Q1 2021, a 12% YOY increase. It also has the lowest unemployment rate at 5%, plus lower tax burdens, lower cost of living and affordable housing. Florida is also among the top states for inbound migration.
In contrast, California and New York are among the top states for outbound migration. New York business for sale transactions fell 28%, while California transactions fell 16%. New York’s unemployment rate is 9%, while California’s is 9%. Plus, California and New York imposed stricter lockdowns and battled tough winter surges.
While Texas has a lower cost of living than California and New York, Texas business for sale transactions fell 17%. And while Florida and Texas both have more relaxed pandemic restrictions, Texas got hit hard by a surge of infections over the winter, plus a severe winter storm and power outage. Florida’s infection rate remained relatively flat.
“West coast of Florida (Tampa Bay) is hot with buyers. If you can show numbers it’s a huge plus, but just having inventory with decent lease rate is going very well,” said one business broker.