Tampa, FL Shopping Center Market Report
Tampa Market Overview
Tampa’s retail market has excelled over the past several years, driven by new and expanding tenants capitalizing on the market’s significant population growth. Retail rent growth is expected to outpace the national average for the foreseeable future, indicating a positive long-term outlook for the market. Limited availability and a well-leased pipeline have impacted leasing activity. Strong market fundamentals have maintained high investor interest in Tampa’s retail market, with over $1 billion in total sales volume in the last 12 months. It ranks as the second most heavily transacted retail market in Florida over the past year.
Market Performance
- Tampa’s retail asking rent growth is noteworthy, ranking within the top five markets in the U.S.
- Tampa’s retail market has demonstrated a remarkable streak of 12 consecutive quarters of positive absorption.
- Pasco County has attracted the majority of retail demand, boasting the highest retail availability rate in Tampa, standing at 4%.
- The sale price averaged $273 per square foot at an average cap rate of 6.2%.
Rents | Vacancy | Construction
South Tampa has experienced the fastest pace of rent growth, with an approximately 8% year-over-year (YOY) increase.
Asking rent growth in the Tampa retail market increased by 7.2% YOY as of Q4 2023, to a current rate of $25.22. Westshore, housing the upscale International Plaza Mall, and the regions of Downtown Tampa and Downtown St Petersburg command the highest average rents, exceeding $30 per square foot. The consistent tenant demand has driven Tampa’s availability rate to a near-all-time low of 3.4%. Vacancy stands at 3.2% as of Q4 2023. Approximately 610,000 square feet is currently under construction, with 80% of it already accounted for.
Sales
Tampa continues to be a significant market for retail investors, recording $1.4 billion in investment volume over the past year. While there have been a few large transactions, the majority of retail trades YTD have been under $10 million. Notably, South Florida-based North American Development Group acquired the 85% occupied Brandon Mall for $220 million, or $295 per square foot.
Private buyers have dominated this price point, constituting 80% of the buyer pool.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 3.2%
- Rent Growth: 7.2%
- Deliveries SF: 862K
- Absorption SF: 625K
- Sales Volume: $1.4B
