Sales volume and prices reached new heights in 2003 with over $250 million in properties traded. Neighborhood and community centers sold for a median price of $90 per sf, up from $64 per sf in 2002.
"Prices were up for all shopping center types with the exception of regional centers," notes Steven M. Ekovich, Marcus & Millichap's regional manager in Tampa. He says the average price decline in the regional centers category was "due to the inexpensive sales of the defunct Tampa Bay Center property for $24 per sf and the Markside Mall for $20 per sf."
Topping the sales list in 2003 was the one-million-sf Westshore Plaza at 250 Westshore Plaza which went for $116.8 million, or $110 per sf, last September. Neighborhood and community centers in Pinellas County recorded a large gain in 2003, reaching $67 per sf, up from $41 per sf in 2002.
"Retail properties of all types have registered strong appreciation in Pinellas County in 2003, indicating investors' positive long-term outlook for the area," Ekovich says.
Single-tenant net-lease properties will also continue to appreciate in 2004 as investor demand surpassed supply. "The imbalance between potential purchasers willing sellers in 2003 resulted in a mild increase in the median price per sf, from $149 to $152, together with a concurrent decrease in sales volume to $100 million, from $148 million in 2002," the M&M executive says.
In neighboring St. Petersburg and Clearwater investors also sought stable properties, pushing the median price per sf up by 9%, to $180 in St. Petersburg and $192 in Clearwater. "In both cities, the number of transactions exceeded that of the prior year, with strong restaurant sales," Ekovich says.
Restaurants were in demand throughout the metropolitan statistical area in 2003. Sales volume nearly equaled last year's mark. The median price was up 22% from 2002 to $180 per sf.
"Improving employment and tourism have spurred investor interest in restaurants," the broker says. Buyers preferred Pinellas County restaurants over Hillsborough County establishments. The median price per sf rose by 22% in Pinellas and only 2% in Hillsborough.
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