The commercial real estate brokers at Bounat work diligently to compile a comprehensive list of the top commercial real estate activity in the Florida region on a frequent basis.
Tampa’s retail market has the lowest availability rate in Florida. Since mid-2021, the market has maintained a sub-5% availability rate and averages around 3.4% as of the third quarter of 2024. The construction pipeline is down to a near-decade low, with 420,000 SF under development. The lack of available space, coupled withlittle to no pipeline, has impacted the market’s leasing activity and subsequent absorption.
Several sectors have seen availability fall over the past year, except for Strip Centers, Malls, and General Retail. There is potential for General Retail’s vacancy to increase further over the coming quarters as companies like Family Dollar and Walgreens have announced they will be closing stores across the country.
However, even with the slight increase in those sectors, availability remains around all-time lows. Power Centers have seen the steepest decline in availability year over year, dropping from 5.1% to 4.7%.
Tampa’s retail leasing volume has been declining for four consecutive quarters. In fact, the second quarter of 2024 was one of the worst quarters for leasing volume in the past decade, with just under 600,000 SF. The Tampa market recorded roughly 1.25 million SF of leasing activity over the first six months of 2024, down approximately 35% from the first half of 2023’s leasing volume.
Over the past few years, discount stores, fitness centers, and grocery stores have continued to spur much of the leasing demand for larger boxes, and that trend has held through the first half of 2024. Tenants like Sprouts Farmers Market, Five Below, and DollarTree have committed to several 10,000-SF+ leases over the past year. Food and beverage, as well as beauty-related tenants, have dominated the demand landscape for smaller, inline retail spaces.
Roughly 420,000 SF is currently under construction, a decline of 60% of what was under development this time last year. Approximately 80% of what is currently under construction is pre-leased, and the largest availability in the pipeline is just 12,000 SF.
Retail construction starts reached an all-time low in the second quarter, with just 85,000 SF breaking ground. The few projects that have broken ground this year have either been built-to-suits or a retail component of a larger mixed-use project.
Retail asking rents increased 5.9% year over year, making Tampa one of the top ten markets in the country for rent growth. Current levels are down from a peak of roughly 8.5% that the market recorded in the latter half of 2022. While year-over-year growth has slowed, asking rents increased an impressive 40% over the past five years. In fact, Tampa has been a leader in the country in terms of rent growth over both the past five and ten years. The Tampa retail market was a sub-$20/SF in 2019 and now boasts an average asking rent of $26.00/SF on a triple net basis.
You can view our commercial properties in Florida to see what real estate assets are available for lease/sale.
Tampa Retail Real Estate Statistic Highlights Q2 2024*
Average Cap Rate: 6.4%
Net Absorption Rate (12 Months): 889K SF
Vacancy Rate: 3.0%
Rental Growth (12 Months): 5.9%
Deliveries (12 Months): 1.2M SF
Tampa Retail Real Estate Sales Statistics Q2 2024*
Sales Comparables: 593
Average Cap Rate: 6.4%
Average Price / SF: $281
Average Vacancy at Sale: 1.7%
Significant Retail Commercial Real Estate Sales Tampa Q2 2024*
Below are the top retail real estate sales inked in Tampa during the last 12 months.
1) Lake Brandon Plaza (11201 – 11255 Causeway Blvd)
Rating: 3*
Year Built: 1999
Building SF: 177,696
Vacancy: 0%
Sale Date: 10/27/2023
Price: $38,000,000
Price/SF: $214
2) Shoppes at New Tampa (1738 – 1932 Bruce B Downs Blvd)
Rating: 4*
Year Built: 2002
Building SF: 158,540
Vacancy: 0%
Sale Date: 10/27/2023
Price: $35,000,000
Price/SF: $221
3) Bass Pro Shops (10501 Palm River Rd)
Rating: 3*
Year Built: 2015
Building SF: 132,734
Vacancy: 0%
Sale Date: 2/29/2024
Price: $33,442,900
Price/SF: $252
4) 6665 22nd Ave N
Rating: 3*
Year Built: 2018
Building SF: 109,231
Vacancy: 0%
Sale Date: 9/21/2023
Price: $32,030,982
Price/SF: $293
5) North Pointe Plaza (15001 – 15421 N Dale Mabry Hwy)
Rating: 4*
Year Built: 1990
Building SF: 107,994
Vacancy: 0%
Sale Date: 10/27/2023
Price: $24,900,000
Price/SF: $231
6) 2495 Gulf to Bay Blvd
Rating: 3*
Year Built: 1995
Building SF: 114,225
Vacancy: 0%
Sale Date: 6/4/2024
Price: $23,000,000
Price/SF: $201
7) Stadium Toyota (5088 N Dale Mabry Hwy)
Rating: 3*
Year Built: 1970
Building SF: 73,075
Vacancy: 0%
Sale Date: 10/23/2023
Price: $17,173,561
Price/SF: $235
Cap Rate: Not Listed
8) EOS Fitness (17634 Harper Run)
Rating: 3*
Year Built: 2023
Building SF: 42,311
Vacancy: 0%
Sale Date: 10/13/2023
Price: $13,600,000
Price/SF: $321
Cap Rate: 7.0%
9) Seminole Oaks (10202-10390 Seminole Blvd)
Rating: 3*
Year Built: 2004
Building SF: 63,575
Vacancy: 0%
Sale Date: 8/10/2023
Price: $$11,800,000
Price/SF: $186
Cap Rate: Not Listed
10) 10320 US-301
Rating: 3*
Year Built: 2024
Building SF: 11,373
Vacancy: 0%
Sale Date: 7/2/2024
Price: $11,280,000
Price/SF: $992
Cap Rate: Not Listed
Significant Retail Commercial Real Estate Leases Tampa Q2 2024*
Below are the top retail real estate leases signed in Tampa during the last 12 months.
1) Public Storage – South Pinellas
Leased SF: 300,000
Quarter: Q4 2023
Tenant: Public Storage
Tenant Rep: Not Listed
Leasing Rep: Not Listed
2) Coastal Way – Hernando County
Leased SF: 103,500
Quarter: Q2 2024
Tenant: BJ’s Wholesale Club
Tenant Rep: LandQwest
Leasing Rep: Brixmore Property Group
3) 11638 Rhombus Ct – Pasco County
Leased SF: 80,000
Quarter: Q4 2023
Tenant: CubeSmart LP
Tenant Rep: Not Listed
Leasing Rep: Not Listed
4) 1701 E 2nd Ave –Downtown Tampa
Leased SF: 68,781
Quarter: Q4 2023
Tenant: Tampa Pickleball Crew
Tenant Rep: Not Listed
Leasing Rep: A.L. Commercial
5) The Factory St. Pete –South Pinellas
Leased SF: 51,000
Quarter: Q2 2024
Tenant: St. Pete Athletic
Tenant Rep: Axxos
Leasing Rep: Axxos
Significant Retail Commercial Real Estate Construction Projects Tampa Q2 2024
Properties Under Construction: 38
Total Square Feet Under Construction: 429,048
Percentage of Inventory: 0.2%
Preleased: 80.0%
1) 26946 Halter Loop
Rating: 3*
Start: June 2024
Completion: December 2024
Building SF: 40,000
Developer / Owner: Not Listed / Bissett McGrath Properties
2) Kohl’s (FL SR 34)
Rating: 3*
Start: May 2024
Completion: May 2025
Building SF: 35,000
Developer / Owner: Not Listed / Fort Union
3) 5602 Land O’ Lakes Blvd
Rating: 4*
Start: January 2024
Completion: November 2024
Building SF: 32,500
Developer / Owner: Not Listed / Dave Mitchell Holdings, LLC
4) Phase 2 – R1 (6471 Streamfield Cir)
Rating: 3*
Start: Febuary 2024
Completion: October 2024
Building SF: 28,060
Developer / Owner: Not Listed / KW Partners, LLC
5) 4424 Friendly Way
Rating: 3*
Start: January 2023
Completion: September 2024
Building SF: 23,720
Developer / Owner: LEMA Construction & Developers / Avalon Park Group
* Data is courtesy of CoStar Group Inc.