Marcus & Millichap

Tampa-St. Petersburg Retail Investment Forecast

Outlook 2019

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Population Surge Bolsters Retail Demand; More Investors Look Outside Metro Core

Tampa Bay retail sector thrives on robust residential growth. Employment opportunities and a favorable quality of life will help to lure 52,000 residents to the metro in 2019, matching the prior year’s growth rate and generating the need for additional goods and services. The boom in residential construction to accommodate the influx of people is especially robust in Northern and Southern Hillsborough County as well as Pasco County. In these areas new master-planned communities are taking shape. To the north of Tampa, fast-growing Lutz will receive the largest retail project scheduled for completion this year, the 160,000-square-foot Cypress Creek Town Center. There is also a growing demand for retail options in the cores of Tampa and St. Petersburg where a surge of apartments and condos are being delivered. The Westshore Marina District in South Tampa will add nearly 100,000 square feet of retail space this year, helping to ease vacancy in the area, which has remained below 3 percent since late 2016. Metrowide, vacancy will hover just below equilibrium, encouraging another rent increase in 2019.

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