Alex Hernandez, President, Hernandez Construction & Development
In an interview with Invest: Alex Hernandez, president of Hernandez Construction & Development, discussed the state of the South Florida market. “We’re heading in the right direction as a community, with local businesses and governments working together to position South Florida as a globally recognized region,” he said.
What have been the company’s key milestones or major updates over the past year?
One of our major milestones this year was the completion and opening of Bridge Point Commerce Center West—one of the largest single projects we’ve delivered. The 1.6 million-square-foot facility is now fully constructed and currently in the leasing phase. Building on that momentum, we’ve begun work on another exciting project in Doral: Bridge Point Doral Distribution Center. We’re serving as the contractor for this 2.6 million-square-foot development, which will include seven buildings. It’s a significant achievement on the construction front.
On the development side, we’ve broken ground on three new self-storage facilities—one in Opa-locka, where site clearing is complete and we’re awaiting permits, and two more in the suburbs of Chicago. Securing deals in our home market is always competitive, so we’re especially proud of the Opa-locka project.
The third major area of growth is our corporate expansion and diversification. We’re broadening our expertise and adding new product types. We’ve brought on key leaders and expanded our leadership team with strategic roles that will help us move beyond industrial and self-storage. We’re especially excited to be launching our multifamily platform in the near future.
How do you view the state of the commercial construction and development sector in South Florida?
From the end of last quarter into the beginning of Q1 2025, there was a noticeable pause in activity as the market awaited key developments — such as election results, Federal Reserve decisions, and ongoing tariff discussions. This period of uncertainty created headwinds, but so far, we haven’t seen any major positive or negative impacts — it has felt more like a holding period.
Despite that, market fundamentals remain strong. Interest is returning, with projects being revitalized and restarted. Bank financing has also begun to ease, which is an encouraging sign. South Florida continues to demonstrate resilience, staying insulated from broader national challenges. With solid fundamentals and a wave of exciting developments, the region is thriving. Local governments have done a fantastic job fostering a pro-growth, pro-development environment. South Florida’s appeal extends beyond the national stage, attracting continued global interest.
What makes South Florida a strong market for commercial real estate construction and development projects?
Across the board, the fundamentals of development are rooted in growth — both population growth and overall economic expansion. As a community, we’re moving in the right direction, with local businesses and governments working together to position South Florida as a globally recognized region. Advancements in arts, entertainment, and public transportation are further evidence of the region’s progress. These fundamentals make South Florida an attractive place to invest, with growing global recognition and strong long-term potential.
Having been rooted here for 22 years, Hernandez Construction & Development is excited to leverage its full suite of services. As new players enter the market, opportunities are expanding. While South Florida remains a challenging environment for development, our proven track record and deep local knowledge give us a competitive advantage, helping newcomers navigate the region’s complexities.
Within your operations in South Florida, which key services are driving growth and demand for Hernandez at the moment?
We’ve launched a new entity, Nova Construction Management — a division focused on smaller projects and tenant improvements, including tenant coordination services. In addition, Hernandez Construction and Hernandez Development Services provide a broad range of solutions, from owner’s representation to construction management across multiple asset classes throughout Florida.
By concentrating our development initiatives on the asset classes where we have deep expertise, we’re able to support new investors and market entrants more effectively. This comprehensive suite of services positions us to meet diverse client needs and capitalize on emerging opportunities in the region.
Could you share key developments in your approach to smart buildings and other emerging trends that enhance sustainability and functionality?
This is an interesting topic, and it’s one that will play a significant role moving forward. We are launching a built-to-rent (BTR) platform, which will involve residential projects. Our history includes adopting LEED certifications and sustainable practices in industrial buildings. As we move into residential development, it’s exciting because it opens up more opportunities for smart home technologies and advanced building management systems.
South Florida benefits from a strong energy source through FPL, but creativity and alternative energy solutions, such as solar programs, are growing rapidly. The conversation around energy production, self-sustaining systems, and efficient energy use is evolving, particularly with the rise of data centers and their significant power consumption. Sustainability and conservation energy measures will remain central to our discussions and practices moving forward.
This is not a short-term trend but a long-term evolution. ESG (Environmental, Social, and Governance) initiatives continue to drive investments, and we remain committed to integrating these principles into our projects. Sustainability and innovation will stay at the forefront of our approach as we adapt to the changing demands of the industry.
Have you noticed a change in client expectations for new construction and development projects?
It’s interesting to see the industry shifting back to the basics. In a constrained market like South Florida where labor shortages and material scarcities continue, the focus is increasingly on building strong, functional teams. While recent years emphasized systems and training, the current priority is fostering expertise through mentorship and developing well-rounded individuals.
As technology advances and roles become more specialized, the industry is rediscovering the value of mentor-mentee relationships and a deep understanding of foundational skills like scheduling and project management. This shift is exciting because it encourages collaboration and teamwork, revitalizing the team-based approach that’s essential for project success. Moving forward, mentorship and a renewed focus on fundamentals will be key to nurturing new talent and ensuring teams can adapt to the market’s evolving demands.
Beyond workforce and pricing challenges, what are the primary obstacles affecting the construction and development environment in South Florida?
One of the newest challenges we’re monitoring is the discussion around tariffs, and their full impact is still uncertain. Changes in immigration policy have also introduced disruptions. Our approach is to stay proactive: understanding potential implications early and getting ahead of these issues, particularly for projects in the early stages of development and pricing.
Other headwinds include continued uncertainty around interest rates, although capital markets appear more comfortable with current stabilization. Construction costs remain unpredictable. While we had hoped to see a decline in costs with the broader market slowdown, emerging factors like tariffs may counteract that trend.
Are there any important topics we may have missed that you would like to highlight?
One of the most important topics today is the collaboration between businesses and local government. While there’s ongoing discussion about red tape and inefficiencies at the federal level, the real opportunity lies in strong local partnerships. Productive dialogue between local governments and businesses is key to addressing challenges like permitting delays and development risks.
This is crucial for improving efficiency, driving growth, and maximizing economic impact. In a dynamic market like South Florida, public and private sectors need to work together to create win-win outcomes.
Alex Hernandez, President of Hernandez Construction & Development, was recently featured by Capital Analytics Associates, a leading provider of business intelligence across top U.S. markets.
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