Florida Outlook Weekly “FLOW”.
Weekly Financial Summary of Florida
Week Ending Jan 18th, 2026.
The week ending January 18, 2026 offered a mixed yet instructive picture of Florida’s financial landscape.
Governor Ron DeSantis’s final State of the State speech produced the most debated proposal – eliminating the non‑school portion of property taxes on homestead properties. DeSantis argued that homeowners should not pay “perpetual rent to the government,” and pledged to support a constitutional amendment to achieve this. Local governments warned that such a move would blow a hole in their budgets, threatening parks, libraries and other community services. Debate over the plan will dominate the 2026 legislative session and
has important implications for municipal finance and local bond markets.
Insurance reform continued to reshape the market. Governor DeSantis announced that Citizens Property Insurance Corporation will slash premiums by an average of 8.7 % statewide and up to 13.4 % in South Florida, the first such reductions since 2015.
The cuts were made possible by tort‑reform legislation, which has reduced litigation costs and attracted 17 new private carriers, and by Citizens’ shrinking policy count (down from
1.4 million policies in 2023 to under 400,000). Meanwhile, Palm Beach County quietly strengthened its portfolio returns by investing $1 billion in Israel Bonds over several years; officials said the bonds yield about one percentage point more than U.S. Treasuries, generating tens of millions in extra revenue and potentially allowing tax reductions.
Capital flows into Florida real estate remained robust. JLL arranged a $22.8 million fixed‑rate loan from BankUnited for the 149,375‑sq‑ft Tampa Bay Center shopping center, which is fully leased to retailers such as Floor & Decor, Ashley Furniture and Dollar Tree.
Development firm Accesso spent $70 million on a 76‑acre site in Osceola County to build
Ovation Orlando, a 670,000‑sq‑ft mixed‑use entertainment district with 740 hotel rooms and experiential retail, with groundbreaking expected in early 2026. SRS Real
Estate Partners brokered a $27.4 million sale of two single‑tenant Crunch Fitness properties in Lake Worth Beach and Texas, while Largo Capital lined up non‑recourse loans
for retail centers and a hotel across Port St. Lucie, Fort Pierce and Crystal River. The Business Observer also noted a $14.15 million land sale in Fort Myers for a planned retail development and renewed support for St. Petersburg’s $6.8 billion Gas Plant District redevelopment.
In banking, the Federal Reserve and Florida Office of Financial Regulation approved Brazilian
fintech Banco Inter to establish a state‑licensed international branch in Miami. The branch will provide regulated credit and banking products to U.S. and non‑U.S. residents, expanding Inter’s cross‑border services. Lake City‑based First Federal Bank agreed to acquire Fidelity Bank’s mortgage division, NOLA Lending Group, retaining most employees and extending mortgage services across Louisiana, Mississippi and Florida. In asset management, the Florida Retirement System revealed that its $1.97 billion allocation to insurance‑linked securities (ILS) funds delivered annual returns of 8.7–23.2 % and raised the ILS portfolio’s three‑year average to 14.7 %, outpacing its hedge‑fund
benchmark. Glenmede appointed Joe Coconate as Florida regional head to grow its private wealth presence in the state. Overall, Florida’s economy showed strength with the Florida Council of 100’s CEO Economic Outlook Index rising to 100, signalling optimism about sales, investment and hiring, even as unemployment ticked up to 4.2 % with job losses in
construction and manufacturing.
The week’s developments illustrate Florida’s dual identity: a state courting investment through tax reform and insurance relief while accelerating large‑scale real‑estate and infrastructure projects. At the same time, policymakers must balance ambitious tax cuts with the fiscal realities of local governments. Investors should watch legislative debates over property taxes, continued insurance reforms and cross‑border banking expansions, as well as the evolving appetite for alternative assets like ILS. Florida’s momentum entering 2026 is strong, but sustaining it will require careful management of public finances and continued diversification
beyond tourism.
Insights & Forward View
Key Insights
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Tax reform versus fiscal stability: Governor DeSantis’s proposal to eliminate local
property taxes on homesteads could reshape Florida’s tax system but faces resistance from municipalities reliant on property‑tax revenue.
Investors should watch the constitutional amendment process and potential impacts on municipal bonds and local services. -
Insurance reforms yield tangible relief: Premium cuts at Citizens show that tort
reforms and depopulation efforts can lower costs for homeowners. Continued
rate relief will depend on maintaining litigation reforms and attracting private carriers. -
Cross‑border financial expansion: Banco Inter’s new Miami branch illustrates Florida’s
emergence as a hub for Latin American fintech and banking. Increased competition from foreign entrants could spur innovation and cross‑border capital flows. -
Robust real‑estate financing despite macro uncertainty: Deals ranging from Accesso’s $70 million land purchase to Largo Capital’s loans and JLL’s industrial financing show strong investor and lender confidence in Florida assets.
Capital is available for well‑located projects, even as rates remain elevated. -
Alternative assets gaining traction: The Florida Retirement System’s strong ILS returns may encourage other institutional investors to increase allocations to catastrophe risk.This trend could influence availability and pricing of reinsurance coverage.
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Economic optimism amid labour market bifurcation: The Florida Council of 100’s CEO index reached 100, signalling robust expectations for sales and hiring, yet
unemployment rose to 4.2 % with job losses in construction and manufacturing.
Diverging signals warrant close monitoring of sector‑specific employment trends. -
Infrastructure and megaproject momentum: Ongoing support for the $6.8 billion Gas Plant District redevelopment and the launch of Ovation Orlando indicate appetite for transformational projects. These will drive construction jobs and require innovative financing structures.
Outlook – Next 30 Days
Florida policymakers will begin debating Governor DeSantis’s proposed property‑tax elimination and related constitutional amendment. Expect intense scrutiny from local governments and bond investors over the fiscal implications, as well as counter‑proposals that preserve essential services. Insurance regulators will finalise Citizens’ rate‑cut filings and evaluate whether additional carriers qualify for depopulation programs. The Florida legislature may advance rural economic‑development bills and infrastructure funding tied to the Rural Renaissance program. On the capital‑markets front, more loan transactions and groundbreakings are likely as developers race to lock in financing before anticipated interest‑rate cuts later in the year. International banks and fintechs could seek licences following Banco Inter’s approval, while asset managers will monitor catastrophe‑bond pricing as Florida’s ILS success draws new capital. Meanwhile, rising unemployment in construction and manufacturing bears watching; continued job losses could dampen consumer spending and slow retail sales, even as CEOs project strong growth. Investors should stay alert to early 2026 earnings reports from Florida‑based banks and insurers for signs of margin pressure or benefits from rate cuts.
About this report: This weekly summary highlights major deals, adviser moves, policy developments and market data for Florida’s wealth‑management and insurance sectors. For questions or media inquiries, please contact the author.
