2 min read January 2022 — Avalon Park Group integrates global reach with an entrepreneurial spirit to provide innovative investment opportunities in the region while attracting diverse talent. “The pandemic also accelerated people’s belief that you can have a nice lifestyle in Florida compared to other regions of the country. It’s a young, dynamic state with changing industries and it’s growing rapidly,” Beat Kahli, president and CEO, told Invest:.
What have been the major highlights for Avalon Park Group over the past 18 months?
We saw incredible growth between 2019 and 2021. Instead of hunkering down during the pandemic, we kept our office open the whole time while adhering to health protocols and vaccinations every step of the way. We bought 3,000 acres in Daytona Beach in the summer of 2020 at a time when many in the industry were hesitant and waiting to see how things played out. We quickly saw the acceleration of a lot of things during the pandemic, including digitalization. We opened buildings with business incubation spaces, known as “the fifth floor.” These are offices that can be rented and which give people the resources and access to run their business. It has been a great innovation for us over the past two years. I was surprised how the market in COVID would go higher every day. The pandemic also accelerated people’s belief that you can have a nice lifestyle in Florida compared to other regions of the country. It’s a young, dynamic state with changing industries and it’s growing rapidly.
How has demand for your services shifted?
Looking at our segments, we did not have to lay off anyone. We were not as affected as back in 2008 during the financial market meltdown. Most of our businesses profited based on our location in Florida, which was always open throughout the pandemic. It is a little bit surreal to have business go well during a pandemic but our group thrived. We still have to see where the pandemic goes, especially with rising inflation and wages. Prices have also increased as a result of the supply chain issues. People now are buying a home because they need it, not to flip it for investment.
What is the role of international investment in Florida today?
When I first came to Florida, not a lot of people in Europe knew about Orlando. The international reputation of Florida is twofold: tourism and retirement. But Orlando only has an average age of 31, so it is younger than many international cities. And there is massive growth here. If Florida was its own country, it would be the 13th-largest economy in the world. In two to three years, Florida will have a bigger population than Australia. When people look at Florida and see you can buy a 2,000-foot home with a pool and garage for $400,000, it is a bargain relative to other markets. It makes Florida very attractive. I think international investment used to be concentrated in other regions, but it has changed. The state’s cost of living makes it a great time to relocate. We have no state income tax and we’re also seeing growth in affordable housing. We have 8 million people within a 100-mile radius around Orlando. When it comes to future development, Central Florida will see the most growth. There is a lot of land and great infrastructure here. You are never far away from an international airport. When I look at the next 25 years, I see healthcare and space as bigger industries than tourism in Central Florida. It is a great opportunity right now to grow any business in our region.
What is your outlook for Avalon Park Group over the next two to three years?
After a booming couple of years, we will be in for some stabilization, and maybe a little retreat. I do not think it will be overnight but we want to maintain a long-term view. The supply chain challenges will ease at some point. The Federal Reserve is increasing rates next year but I don’t expect that to be a dramatic change. The real estate will not just keep going up and up, and I think a soft landing would be healthy in this case, so I don’t see the microeconomics for a crash that we saw in 2008. Florida is a boom-and-bust economy so it is important to pay attention when buying, holding or selling. Markets that dip are opportunities to buy at a lower cost. We are in a much more globalized world, too. Today something can happen in China that can cause a crash in Orlando. My advice is to be careful and fasten your seatbelts.
For more information, visit:
