- April 1, 2016
The retail market from Tampa to Sarasota has been steadily adding space during the past four years, even as overall vacancy has fallen and rental rates have increased. This stems, in large part, from the regional economy's recovery and population growth.
While many new stores are service-oriented outlets like fitness centers, and there is generally less traditional development occurring, new retail centers are attempting to capture changing consumer preferences and capture shoppers' desire for both value and experience.
Desirable properties, meanwhile, have gained in value, pushing capitalization rates down to levels not seen in a decade.
Interestingly, vacancy and rental rates mirror their levels from 2006, which is generally considered the height of the past decade's commercial real estate cycle. Vacancy stood at 5% at the end of the third quarter. In 2006, it finished the year at 4.9%. Rental rates today are being quoted at $14.43 per square foot, whereas in 2006 the quoted rate for the region was $14.58 per square foot.
Amount Publix Super Markets Inc. spent to acquire the Northwood Plaza in Clearwater earlier this year. The 203,797-square-foot center, which sold for $261.61 per square foot, represents the region's largest retail sale to date in 2016.
Total square footage in the largest new retail property in the region under construction at the end of the third quarter. Costco at Citrus Park is being developed by Edgewood Properties at 8712 W. Linebaugh Ave., in Tampa. The store is slated to open in February 2017.
The highest rental rate on a per square foot basis in the region, in downtown St. Petersburg. The lowest average rental rate in the area is in Hernando County, where space averages $11.44 per square foot.
Square footage of the largest new retail space delivered in the region in 2016. Tri-City Plaza, in Largo, is owned by Kimco Realty Corp. In all, the center measures 197,062 square feet and is occupied by Publix, LA Fitness, Ross and more than a half-dozen restaurants.
Per square foot rental rate for Tampa central business district (CBD) at year-end 2015, vs. $24.55 for the suburban Westshore submarket.
Class A vacancy in Tampa CBD's 13 buildings as of December 2015, vs. 11.3% in Westshore, with 42 buildings.
1.7% to 18.6%
Difference in vacancy rates between the South Tampa area, which has the region's lowest vacancy, and Tampa's downtown, which has the highest amount of uncommitted space on a percentage basis.
Amount of space in the largest regionwide lease deal of 2016, from Tampa to Sarasota. 2Infinity Trampoline Park committed to the space in RMC Property Group's Liberty Square center in Lakeland. Polk County has had the most retail absorption thus far in 2016, with 332,362 square feet.
Amount of retail space, in square footage, either under construction or delivered between Tampa and Sarasota in 2016 to date. Of the total, 752,755 square feet is being built. The total market contains just more than 225 million square feet. Northwest Tampa has been the site of the most construction this year, while Manatee County has been the site of the most deliveries of new product.
Average retail vacancy throughout Tampa to Sarasota as of Sept. 30. The rate is down from a high of 7.6% in 2009 and 2010, and has fallen from 5.5% at the end of last year.