Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.
Top Retail Market to Watch: Tampa, FL
Like other Florida metros hard-hit by the Great Recession, Tampa’s retail market is now recovering its momentum. Job growth and demand for space are both set to improve in 2015. Across retail subtypes, Chandan Economics reports the vacancy rate declined to 6.3% in the fourth quarter of 2014, in spite of a spike in completions. Asking rents increased by just 1.1% over the year but are projected to accelerate by late 2015.
Supermarkets are among the retailers expanding or looking to expand in the Tampa market. Trader Joe’s opened a location in Tampa in 2014 and, in early 2015, completed another in St. Petersburg that drew crowds to its grand opening. Organic and specialty grocers Whole Foods, Lucky’s Market, Sprouts Farmers Market, and Earth Fare are each rumored to be on the lookout for locations in the area. Developers have begun to answer a broader call for more development, but currently less than 2 million square feet of retail space is under construction. In the ranks of potentially catalytic projects, the owner of the Tampa Bay Lightning has proposed an ambitious redevelopment project to revitalize the waterfront district near Amalie Arena, adding close to 3 million square feet of office, restaurant, and retail space.
To read more on Tampa and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.
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