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 3.3%, which is up +0.2% compared to Q3 2023, and the vacancy rate for retail real estate in Tampa remained steady over the past year and is well below the national average, estimated at around 4.5%.
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 2023 are at $25.56/SF, which is up $0.35 from Q3 2023 when the asking rate was $25.21/SF, up over 2% during the past 3 months (quarter to quarter).
There is currently 563,141 SF of new retail space underway, and nearly 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 Brandon Town Center (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 Q4 2023*
Average Cap Rate: 6.2%
Net Absorption Rate (12 Months): 445K SF
Vacancy Rate: 3.3%
Rental Growth (12 Months): 7.8%
Deliveries (12 Months): 947K SF
Tampa Retail Real Estate Sales Statistics Q4 2023*
Sales Comparables: 662
Average Cap Rate: 6.2%
Average Price / SF: $276
Average Vacancy at Sale: 4.0%
Significant Retail Commercial Real Estate Sales Tampa Q4 2023*
Below are the top retail real estate sales inked in Tampa during the last 12 months.
1) Brandon Town Center (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) 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
3) 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
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) 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
6) 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
7) 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
Cap Rate: 7.8%
8) 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
9) 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%
10) 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
Significant Retail Commercial Real Estate Leases Tampa Q4 2023*
Below are the top retail real estate leases signed in Tampa during the last 12 months.
1) Coastal Way – Hernando County
Leased SF: 86,071
Quarter: Q3 2023
Tenant: Not Listed
Tenant Rep: Not Listed
Leasing Rep: Brixmore Property Group
2) 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
3) International Plaza – Westshore
Leased SF: 50,000
Quarter: Q2 2023
Tenant: Dick’s Sporting Goods
Tenant Rep: Not Listed
Leasing Rep: Not Listed
4) 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
5) 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
Significant Retail Commercial Real Estate Construction Projects Tampa Q4 2023
Properties Under Construction: 40
Total Square Feet Under Construction: 563,141
Percentage of Inventory: 0.3%
Preleased: 72.4%
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) Proposed Anchor / Grocery * 8224 Little Rd
Rating: 4*
Start: April 2022
Completion: February 2024
Building SF: 45,00
Developer / Owner: Not Listed / Pantropic Design
4) The Yard at Waterset
Rating: 3*
Start: June 2022
Completion: July 2024
Building SF: 32,435
Developer / Owner: Not Listed / Newland
5) Echelon City Center – Carillon Pky
Rating: 3*
Start: October 2022
Completion: April 2024
Building SF: 28,000
Developer / Owner: Echelon LLC / Echelon at Uptown, LLC
* Data is 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