Tampa Bay’s Retail Real Estate Market Set to Lead Florida

It’s been another busy year in the Tampa Bay area’s retail real estate space. According to a recent report published by CoStar, Tampa Bay is set to surpass the $1B mark in retail sales for the fourth consecutive year. With sales projected to hit $1.1B, Tampa Bay is expected to outpace Miami, which is forecasted to reach $1B for the year. The largest sale was a Home Depot in Pinellas County, which sold for $23M.

In the face of high interest rates, the market has proven its resiliency, just as it did in 2023 when transaction volumes slowed due to rising interest rates. High sales volumes can also be attributed to an influx of out-of-state investors looking to move their money from various markets in the Northeast and West Coast. The relatively low cost of purchasing retail real estate in Tampa Bay makes these investments feel like a good bargain.

Looking ahead, retail real estate asset prices are likely to increase due to low vacancy rates and a construction pipeline at a decade-low. With construction costs still looming large, expect an increase in credit tenants looking to enter the market and willing to pay the costs associated with ground-up construction. This trend will further compress cap rates and lead to higher sales prices, continuing the trajectory we’ve seen in today’s market.

If you are looking to purchase any real estate asset in the Tampa Bay area and want to learn how I can help with your real estate needs, feel free to reach out to Zachary Ellis at 813-493-3437 or zellis@lqcre.com.

Link to the article on Co-Star ( Must have login Access to Co-Star )