Tampa-St. Petersburg Retail Market Report
Relocations, Retirees and Resorts —
Demand Drivers Face Constrained Construction
Demand for available space growing as supply additions stall. Tampa-St. Petersburg's appeal to tourists and retirees has long served as a backbone for consumer spending. Recently, the market has also become a hotspot for relocating young adults. Quality-of-life considerations and ample employment opportunities, with a bevy of corporate relocations like Pfizer and ID.me, are boosting in-migration. An expanding metro populace underscores the need for new shopping choices for consumers. However, supply has failed to keep pace with demand. Fewer projects were completed during the first six months of 2022 than in any opening half over the last 15 years. This imbalance of supply and demand pushed vacancy to a decade-plus low in June. Strong demand drivers amid shrinking availability will serve as a catalyst for continual asking rent growth.