Is Tampa a Good Place to Invest in Retail Real Estate?
Tampa, in central Florida on the Gulf Coast, is a sunny and vibrant place with a rich history. People can enjoy its beaches and modern culture. There’s something for everyone in Tampa.
But what is truly unique about Tampa? In the ever-changing landscape of business opportunities, Tampa stands out as a compelling place for motivated entrepreneurs. The state’s diverse and robust economy offers numerous opportunities for entrepreneurs looking to start profitable businesses. Moving to Florida can be a big move for any business person.
Tampa Retail Development Companies Report
Florida is the nation’s fastest expanding state in terms of population, with many people relocating to Tampa in particular. In general, Tampa’s retail demand has been consistently robust for much of the past decade, due to significant population growth, salary growth, and sustained consumer spending. The current vacancy rate is 3.3%, up +0.2% from Q3 2023, and the vacancy rate for real estate in Tampa has stayed stable over the previous year and is significantly lower than the national average, which is anticipated to be approximately 4.5%.
There is now 563,141 square feet of new retail space under construction, with approximately 1 million square feet delivered in the last 12 months. While new development is slowing compared to prior years, an increase in demand bodes well for future growth.
Retail investment sales activity over the last year has totaled around $1.6 billion in transaction volume, driven by significant investment volume in Q4 and Q2 2022. Q1 2023, which occurred a little more than a year ago, still maintains records for transaction volume, with approximately $600 million in retail property sales. It was the second biggest quarter for retail real estate companies sales in the area, demonstrating how strong investor demand has been over the last year.
Retail investors continue to pursue purchases in secondary areas like Tampa and Orlando in search of greater yields, which are proving increasingly difficult to get. Increased competition for assets is causing an acceleration in total retail pricing, with the average price per square foot increasing by 10% year over year and over 15% in the last two years.
Investing in Tampa Real Estate
- Tampa’s economy has grown in recent years due to finance, healthcare, tech, and tourism. With more money to spend, retail investors have a good shot at success.
- A bigger population means more shoppers, and that’s true in Tampa. More people in an area usually means better results for retail and real estate.
- Tampa is a hit with tourists because of places like the Florida Aquarium and Busch Gardens. Real estate and retail in these popular spots can bring in a lot of money.
- High rental rates and not a lot of empty spaces show that the retail real estate market is strong.
- Some areas might be better for retail investment due to things like the people who live there, the foot traffic, and how close it is to other businesses or attractions.
Look into it yourself and talk to local real estate pros to make a smart choice. Check out Tampa’s past and future to see if it lines up with your investment goals and how much risk you’re okay with.
