Image by Shutterstock.com

While a potential recession may be worrying some, business is still good in the Sunshine State, say the heads of Florida's largest law firms.

The presidents, CEOs and managing partners of Florida's most established and sprawling law firms offered their insights to the Daily Business Review on what is top of mind as 2019 winds down and 2020 approaches.

Technology-driven disruption, an uptick in international work and the meteoric rise of Florida's marijuana industry are all top-line trends. Unsurprisingly, and given the warning signs, the shadow of an economic downturn also hangs over the coming year.

Many firms are beginning to bulk up their countercyclical bankruptcy practices. An estimated 533 restructuring attorneys have moved laterally this year, according to ALM data. Last year only 413 bankruptcy attorneys made a lateral move. Gibson, Dunn & Crutcher; Jones Day; Morgan, Lewis & Bockius; and Mayer Brown have all reinforced their bankruptcy practices in the past few months in anticipation.

Scott Meyers

But few, if any, of the major firms headquartered in Florida share the pessimism and are following suit. Clients are still optimistic, they say.

"Our clients are remaining very bullish," said Scott Meyers, who was tapped in August to be Akerman's next chairman and CEO.

"We keep recession on our mind and inquire about it to our practice and industry groups," said Holland & Knight managing partner Steve Sonberg. "People are generally bullish."

Al Dotson, managing partner of Bilzin Sumberg, is positive as well, rattling off several projects that are planned or underway: The Metrorail expansion into Broward ("We're just getting started," he said), a $5 billion renovation of Miami International Airport, and continued development of the 160-acre luxury automotive club Drivers Club Miami.

"I'm very bullish on real estate," Dotson said.

Al Dotson

Many of these big projects are evidence of an increased appetite for public-private partnerships that will continue to fuel growth, Dotson said. He brought up the $2 trillion transportation bill that Congress and the Trump administration tentatively agreed to in April as an indication of the federal government's determination to invest in infrastructure. And he added that so-called opportunity zones will continue to attract investors.

Created by the 2017 tax law, opportunity zones offer up a reduction or deferment of capital gains taxes for developers who build in low-income areas designated by the state. Florida hosts 427 opportunity zones, with 68 of the designated areas located in Miami-Dade, according to the Miami-Dade Beacon Council.

As of May, at least five opportunity zones were put up for sale on the South Florida market.

"My optimism stems from an increase in demand, the fact that government is getting more creative in funding, and a sense that government will continue to support expansion," Dotson said.

Technological Change

Nearly all leaders agreed that technology would continue to be a driving force for change in the coming year.