MARKET SPOTLIGHT | Southwest Florida Retail Market

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.