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.
Retail leasing fundamentals in Tampa remain solid despite headwinds caused by continued disruptions in the supply chain and lingering pandemic-related concerns. Current vacancy is 3.1% (compared to 3.3% in Q2 2022), which is down over the past year and is well below the national average, estimated at around 4.4%.
Retail demand in Tampa has been consistently strong over much of the past decade, driven by solid population gains, wage growth, and steady consumer spending.
Rent growth has accelerated in recent quarters due to strengthening overall leasing fundamentals following the lifting of some pandemic safeguards. Average asking rents as of Q4 2022 are at $23.35/SF, which is nearly $1 up from Q2 2022 when the asking rate was $22.38/SF, up roughly 4% in half a year’s time.
There is currently 800K+ SF of new retail space underway, and 885,000 SF has been delivered in the trailing 12-month period. While the pace of new development is falling short of previous years, an uptick in demand bodes well for future development.
Retail investment sales activity over the last year has totaled roughly $1.7 billion in total transaction volume, fueled by considerable investment volume in Q1 and Q2 2022. Q1 2022 broke records for transaction volume with nearly $600M in retail property sales. It was the second highest quarter of retail real estate sales in the area, illustrating just how feverish investor appetite has been over the last year.
Retail investors continue to target deals in secondary markets like Tampa and Orlando as they seek higher yields, which is becoming harder and harder to achieve. Increased competition for assets is forcing an acceleration in overall retail pricing with the average price per SF growing by 10% year over year and by nearly 15% in the last two years. CoStar’s forecast calls for pricing to continue to rise through 2023 before beginning to level out in early 2024.
The most significant single-property trade over the last year took place in Q1 2022 when the Crosswynde (1502 Marsh Cove Ct) sold for $82.5M at a price of $238/SF with a vacancy rate of 0% at the time of sale.
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 Q4 2022
Vacancy Rate: 3.1%
Net Absorption Rate: 1.9M
Average Cap Rate: 5.9%
Deliveries (12 Months): 885K SF
Rental Growth (12 Months): 7.7%
Significant Retail Commercial Real Estate Sales Tampa Q4 2022
1) Crosswynde * 1502 Marsh Cove Ct
Rating: 3*
Year Built: 2001
Building SF: 346,585
Vacancy: 0%
Sale Date: 1/13/2022
Price: $82,564,888
Price/SF: $238
2) 3139 Little Rd
Rating: 3*
Year Built: 2019
Building SF: 62,382
Vacancy: 0%
Sale Date: 3/30/2022
Price: $34,642,922
Price/SF: $555
3) 8840 Strength Ave
Rating: 3*
Year Built: 2019
Building SF: 56,796
Vacancy: 0%
Sale Date: 3/30/2022
Price: $33,357,078
Price/SF: $587
4) 4270 W Spruce Ave
Rating: 3*
Year Built: 2013
Building SF: 39,733
Vacancy: 0%
Sale Date: 4/20/2022
Price: $24,611,500
Price/SF: $619
Cap Rate: 5.5%
5) Grand Central at Kennedy * 1208 E Kennedy Blvd
Rating: 3*
Year Built: 2007
Building SF: 81,629
Vacancy: 19%
Sale Date: 6/24/2022
Price: $22,651,232
Price/SF: $277
6) The Corner at Westshore II * 1810 N Westshore
Rating: 3*
Year Built: 2014
Building SF: 27,286
Vacancy: 0%
Sale Date: 4/20/2022
Price: $22,518,928
Price/SF: $294
7) Clearwater Collection * 21800 US Hwy 19 N
Rating: 3*
Year Built: 1995
Building SF: 134,362
Vacancy: 0%
Sale Date: 11/10/2022
Price: $19,703,905
Price/SF: $147
8) 7400 US Highway 19 N
Rating: 4*
Year Built: 2005
Building SF: 109,939
Vacancy: 0%
Sale Date: 10/06/2022
Price: $19,285,492
Price/SF: $175
9) 7244 US Highway 19 N
Rating: 4*
Year Built: 2005
Building SF: 104,925
Vacancy: 0%
Sale Date: 10/06/2022
Price: $18,798,272
Price/SF: $175
10) The Shoppes at Park Place * 7200 US Highway 19 N
Rating: 4*
Year Built: 2005
Building SF: 65,031
Vacancy: 0%
Sale Date: 10/06/2022
Price: $17,473,672
Price/SF: $269
Significant Retail Commercial Real Estate Leases Tampa Q4 2022
1) The Shoppes at Park Place – South Pinellas
Leased SF: 50,000
Quarter: Q2 2022
Tenant: Academy Sports + Outdoors
Tenant Rep: Colliers
Leasing Rep: CBRE
2) Top of the Heights – Northwest Tampa
Leased SF: 45,969
Quarter: Q4 2022
Tenant: Habitat for Humanity
Tenant Rep: Colliers
Leasing Rep: RMC Property Group
3) The Piers Shopping Center – Pasco County
Leased SF: 45,528
Quarter: Q2 2022
Tenant: American Freight
Tenant Rep: Transwestern Realty
Leasing Rep: Bruce Strumpf, Inc
4) The Oaks – Pasco County
Leased SF: 44,000
Quarter: Q1 2022
Tenant: EOS Fitness
Tenant Rep: Meridian Retail Group
Leasing Rep: Phillips Edison & Company
5) Bloomingdale Square – East Tampa
Leased SF: 41,425
Quarter: Q3 2022
Tenant: Bealls
Tenant Rep: Not Listed
Leasing Rep: Regency Centers
Significant Retail Commercial Real Estate Construction Projects Tampa Q4 2022
1) The Shops at Big Bend * SW Big Bend Rd
Rating: 3*
Start: December 2022
Completion: June 2023
Building SF: 67,880
Developer / Owner: Boos Development Group / Bayview Properties Ltd
2) Proposed Anchor / Grocery * 8224 Little Rd
Rating: 4*
Start: April 2022
Completion: April 2023
Building SF: 45,00
Developer / Owner: Not Listed / Pantropic Design
3) The Hub at Bexley * 16935 Focus Loop
Rating: 3*
Start: October 2021
Completion: March 2023
Building SF: 44,00
Developer / Owner: Not Listed / Pantropic Design
4) 4616 Avenue Longchamps
Rating: 3*
Start: January 2022
Completion: August 2023
Building SF: 42,000
Developer / Owner: Not Listed / Not Listed
5) EoS Fitness * 17322 State Road 54
Rating: 3*
Start: July 2022
Completion: February 2023
Building SF: 40,000
Developer / Owner: Not Listed / Not Listed
View the Tampa Industrial Real Estate Market Report Here