Tampa Bay region leading Florida in retail construction
By Ashley Gutbal Krizer
Tampa Bay Business Journal
Published: Aug 29, 2014

Some major retail developments under way in Tampa Bay have catapulted the region to the top spot in Florida, in terms of square footage under construction.

The Bay area - in this instance, Hillsborough, Pinellas, Hernando, Pasco, Manatee, Sarasota and Polk counties, as defined by CoStar Group Inc. - has 1.43 million square feet under construction, according to a report JLL released Wednesday.

That's just a bit more than Miami, which has 1.42 million square feet under construction. The Mall at University Town Center accounts for the vast majority of Tampa Bay's square footage, coming in at 880,000 square feet. Click here to see construction on the mall progress.

Florida is seeing a strong upswing in retail construction statewide: "More than 29 percent of all new retail deliveries in the United States in the second quarter of 2014 occurred in Florida, and its major cities are absorbing the space well,” JLL wrote it in its report.

Nationally, there's 45 million square feet under construction, according to JLL.

It's good news not just for shoppers and developers, but for those looking for indicators of an economic recovery that finally feels permanent. Retailers expand in places where they identify two trends: Population growth and discretionary income.

And while retailers are on the move, it's only in the best neighborhoods, said Justin Greider, vice president of retail brokerage for JLL in Central Florida.

"What we've really seen out of a lot of retailers is that they're willing to pay considerably more to be in an A location,” Greider said. "And they're not willing to pay anything to be in a B location.”

Tampa retail brokers say it's becoming increasingly difficult to find space in prime locations - Tom+Chee, a new-to-market grilled cheese concept, is struggling to find a location, and Tijuana Flats moved fast to snap up two locations in South Tampa in mid-August because there's such high demand in that neighborhood. Greider said restaurants have become the No. 1 retail tenant on the move, though all users - including traditional stores and health care facilities - have been in expansion mode for years.

But there's been a shift in mood in the last six to nine months, Greider said.

"The best description I've heard is that it feels like the recovery has finally taken root,” he said. "It's not a palm tree with two-by-fours holding it up anymore.”

Ashley Gurbal Kritzer is a reporter for the Tampa Bay Business Journal.