Tampa Bays LTM Retail Sales Performance Leads Florida

In the past 12 months, the Tampa Bay retail market has achieved $1.1 billion in sales, making it Florida's top market for retail investment. This surpasses Miami, which recorded around $1 billion. Most transactions in the area were smaller, with only a dozen deals exceeding $10 million. The largest sale was a $23 million Home Depot store on Gulf to Bay Boulevard in Clearwater, priced at about $200 per square foot. Retail sales in Tampa Bay have returned to pre-pandemic levels but still fall short of the record highs in 2021 and 2022, when sales exceeded $1.8 billion yearly. Around 1,000 sales took place each year during these record years, propelled by the lowest interest rates in history. Last year fewer than 700 sales and megadeals involving power centers have become rare. In 2021-2022, the biggest retail transaction was Pasadena Shopping Center, home to tenants including Walmart Neighborhood Market, Bealls Outlet, and Ace Hardware, which sold for $33 million. In the past year, 75% of under-$10 million purchases have been made by private investors. Much of this activity has been for single-tenant net-leased assets, including gas stations, pharmacies, and fast-food restaurants. One of the biggest was a new Chick-fil-A in Riverview that sold for $3.45 million, or $690 per square foot, to a Miami investor. One of the standout transactions this year was Washington Property Group’s $10 million purchase of the Macy’s at Westshore Plaza, which will be redeveloped into 900,000 square feet of retail, office space, a hotel, and 1,700 apartments. Looking ahead, Tampa Bay remains a strong retail investment market. With low availability (under 4%) and a decade-low construction pipeline, the area is set for continued growth. Nearly 40 properties built in the last two years have sold for an average of $3.9 million, higher than the $2.3 million average for older properties

News | Tampa Bay leads Florida in retail sales volume over the past year