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 concerns post-pandemic. However, these factors are being counterbalanced with the fact that Florida is the fastest growing state in terms of population in the country, and many people are moving to Tampa specifically.
In general, 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. Current vacancy is 3.1% (compared to 3.1% in Q1 2023), which has remained steady over the past year and is well below the national average, estimated at around 4.4%.
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 Q2 2023 are at $24.61/SF, which is nearly $0.50 up from Q1 2023 when the asking rate was $24.13/SF, up roughly 2% during the past 3 months (quarter to quarter).
There is currently 876,798 SF of new retail space underway, and 1 million 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 $1.6 billion in total transaction volume, fueled by considerable investment volume in Q4 and Q2 2022. Q1 2022, from a little over a year ago, still holds 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 Q2 2023 when the Westfield Brandon (303 – 675 Brandon Town Court) sold for $220M at a price of $296/SF with a vacancy rate of 0% at the time of sale. The Tampa shopping center was built in 1995.
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 2023*
Vacancy Rate: 3.1%
Net Absorption Rate (12 Months): 1M
Average Cap Rate: 5.9%
Deliveries (12 Months): 1M SF
Rental Growth (12 Months): 7.6%
Significant Retail Commercial Real Estate Sales Tampa Q2 2023*
1) Westfield Brandon (303 – 675 Brandon Town Court)
Rating: 4*
Year Built: 1995
Building SF: 743,398
Vacancy: 0%
Sale Date: 05/24/2023
Price: $220,000,000
Price/SF: $296
2) Tesla Sales & Services Center (4601 34th St N)
Rating: 3*
Year Built: 2023
Building SF: 100,000
Vacancy: 0%
Sale Date: 3/31/2023
Price: $26,250,000
Price/SF: $263
3) 2201 Dr Martin Luther King Dr
Rating: 1*
Year Built: 1954
Building SF: 4,892
Vacancy: 0%
Sale Date: 6/30/2023
Price: $20,748,693
Price/SF: $4,241
4) 7400 US Highway 19 N
Rating: 4*
Year Built: 2005
Building SF: 104,925
Vacancy: 0%
Sale Date: 10/06/2022
Price: $19,285,492
Price/SF: $175
5) 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: $179
6) 2741 – 2801 E County Line
Rating: 3*
Year Built: 2022
Building SF: 60,191
Vacancy: 0%
Sale Date: 1/5/2023
Price: $17,913,356
Price/SF: $298
7) The Shoppes at Park Place (7200 US Highway 19 N)
Rating: 3*
Year Built: 2005
Building SF: 65,031
Vacancy: 0%
Sale Date: 10/6/2022
Price: $17,473,672
Price/SF: $269
8) 21800 US Hwy 19 N
Rating: 3*
Year Built: 1995
Building SF: 134,362
Vacancy: 0%
Sale Date: 11/10/2022
Price: $15,996,448
Price/SF: $119
9) EOS Fitness (5891 S Gornto Lake Rd)
Rating: 3*
Year Built: 2022
Building SF: 40,350
Vacancy: 0%
Sale Date: 5/5/2023
Price: $13,450,000
Price/SF: $333
Cap Rate: Not Listed
10) Central Plaza Shopping Center (3201 – 3365 Central Ave)
Rating: 2*
Year Built: 1957
Building SF: 73,190
Vacancy: 0%
Sale Date: 03/23/2023
Price: $13,262,500
Price/SF: $181
Significant Retail Commercial Real Estate Leases Tampa Q2 2023*
1) Town & Country Plaza – Northwest Tampa
Leased SF: 50,000
Quarter: Q2 2023
Tenant: Not Listed
Tenant Rep: Not Listed
Leasing Rep: Bay Street Commercial Real Estate
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) Harbour Island Athletic Club – Downtown Tampa
Leased SF: 40,636
Quarter: Q1 2023
Tenant: Life Time Athletic
Tenant Rep: Not Listed
Leasing Rep: Not Listed
4) 31200 US Highway 19 N – North Pinellas
Leased SF: 37,348
Quarter: Q4 2022
Tenant: Not Listed
Tenant Rep: Not Listed
Leasing Rep: LandQwest Commercial
5) Northwood Plaza – North Pinellas
Leased SF: 36,000
Quarter: Q2 2023
Tenant: Spirit Halloween
Tenant Rep: Not Listed
Leasing Rep: Crossman & Company
Significant Retail Commercial Real Estate Construction Projects Tampa Q2 2023
Properties Under Construction: 62
Total Square Feet Under Construction: 876,798
Percentage of Inventory: 0.5%
Preleased: 77.7%
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) Publix (32265 Overpass Rd)
Rating: 3*
Start: January 2022
Completion: May 2023
Building SF: 46,00
Developer / Owner: Not Listed / Not Listed
3) N Dale Mabry Hwy
Rating: 3*
Start: January 2023
Completion: November 2023
Building SF: 45,500
Developer / Owner: Not Listed / LandQwest Commercial
4) Proposed Anchor / Grocery * 8224 Little Rd
Rating: 4*
Start: April 2022
Completion: February 2024
Building SF: 45,00
Developer / Owner: Not Listed / Pantropic Design
5) 4616 Avenue Longchamps
Rating: 3*
Start: January 2022
Completion: September 2023
Building SF: 42,000
Developer / Owner: Not Listed / Not Listed
* Source: Courtesy of Costar Group Inc.
Tampa Commercial Real Estate Reports
Tampa commercial real estate reports for different sectors of the economy in the region that are updated on a periodic basis.
View the Tampa Industrial Real Estate Market Report Here