Tampa Bay's retail market recording negative absorption of -34,660 square feet in the fourth quarter (versus positive 91,875 square feet a year ago) might not tell the full story, according to a recent report from Colliers. For one, that figure narrowed significantly from -126,275 square feet seen in the third quarter, as supply is becoming more limited.
Also, vacancies did not skyrocket. The fourth quarter rate of 4.4 percent was only 0.1 percent higher than the third quarter and 20 basis points higher than in the 12 months prior. Throughout the region's Pasco County, Westshore/ NW Tampa, and I-75 Corridor, vacancies were consistently low in neighborhood community centers. The rate was only 2.2 percent in the I-75 Corridor, while the other two were 3.7 percent and 3.4 percent respectively.
In the third and fourth quarters, no new supply and construction was reported.
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"With tenant activity focused on high-traffic locations, rental rates remained strong, reflecting confidence in Tampa’s retail sector," Colliers explained.
Total leasing in 2024 slipped to 343,935 square feet compared with 369,945 from the previous year. In terms of sales, the average of $192 per square foot "remains strong" despite being down from 2023, according to Colliers.
"While some national retailers, such as Big Lots and Party City, shuttered locations, major tenants like Dick’s Sporting Goods (135,000 SF, Westshore) and Kohl’s (55,131 SF, Pasco) expanded," the CRE firm said.
"This shift highlights market resilience, with well-positioned retailers backfilling key vacancies and driving absorption."
While there was some volatility with transactions in 2024, Colliers noted that "long-term fundamentals indicate stability, particularly in well-located retail centers with strong tenant demand," for sales activity. It also said that tenant demand is particularly strong for fitness centers, fast casual restaurants and grocery stores.
The top purchase in the 2024 report went to JBL Asset Management, LLC's $30.4 million acquisition of a 98,547-square-foot neighborhood center. EoS Fitness commanded the biggest lease thanks to its 38,392 square foot space. The fitness firm was followed by Barnes & Noble and Black Friday Deals, which took 21,725 and 17,036 square feet of space, respectively.
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