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Southwest Florida's retail properties have rebounded considerably from the economic recession of the past decade, when vacancy rates overall topped 11.4%. As of the end of the second quarter, vacancy for all retail sectors in Charlotte, Lee and Collier counties stood at 5.8%, according to data from commercial real estate research firm CoStar Group.
At the same time, rental rates have edged upward steadily over the past year for malls, shopping centers, stand-alone retail and power centers as positive absorption has gained momentum.
Construction, meanwhile, while significant as compared to other Florida submarkets, has remained largely in line with population growth. Moreover, a trio of major retail properties built in the three counties recently have been delivered fully occupied, and new projects on the horizon are expected to follow that trend.
Still, vacancy disparity between geographic area like Naples in Collier County and North Fort Myers in Lee County remains a concern, with gaps of more than 15%.
Rental rates, too, differ wildly, with Naples commanding rents of $31.17 per square foot on average, while Fort Myers' retail properties fetch only $10.49 per square foot.
504,829
The amount of retail space either delivered or under construction in the second quarter.
5.8%
Overall retail vacancy in Southwest Florida as of June 30. At the end of the second quarter of 2015, the rate was 6.7%. Estero has the lowest retail vacancy, at 2.4%, while North Fort Myers has the highest, at 15%.
29,343
Square footage of the largest retail lease executed in the region in the second quarter. Around the Clock Fitness renewed its commitment for 1141 Northeast Pine Island Lane, in Cape Coral, in a deal with Commercial Realty Specialists LLC.
0
The amount of new retail space under construction in Charlotte County as of June 30. By contrast, nearly 377,000 square feet was being added in Collier and Lee counties.
$15.48
Average rental rates in the region across all retail product types. Rents range from a low of $10.49 per square foot in Fort Myers to an average $31.17 in Naples. The rate is up 5% from a year ago.
1,694,501
The total retail square footage positively absorbed in the three counties from the third quarter of 2015 to the end of the first half of 2016.
1,083,391
The amount of new square footage built in Southwest Florida in the past year, in 56 buildings.
122,383
The size, in square footage, of the largest new retail project in 2016 in the three-county area. Kite Realty Group completed its 13100 Tamiami Trail E. project, which was fully occupied at the time of delivery, in Collier County in the first quarter.
86,337
The size, in square footage, of the largest retail project under construction as of June 30. Flagler Realty & Development Inc. plans to complete the 14610 Tamiami Trail N. project in Collier County in the third quarter of 2016.
$33.39
The highest asking rent of any retail property type in the three-county region as of the end of the second quarter. Collier County “power center” rents top those of Lee County by $20.15 per square foot.
Source: CoStar Group Inc.
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