While not all trends are positive in Tampa’s retail sector, the market remains “steady,” according to a report from Colliers.
Despite this stability, net absorption dropped sharply in the first quarter, falling to -168,104 square feet—more than four times the negative absorption seen in the previous three months. The majority of these losses were concentrated in Pasco County (-114,718 square feet) and along the I-75 Corridor (-61,951 square feet).
Also, vacancy increased by 30 basis points quarter-over-quarter and 50 basis points year-over-year. But it's not all bad news, as the category in Tampa remains below historical averages.
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"Retail vacancy remains low at 4.7%, underscoring Tampa’s market stability despite national closures and evolving retail strategies," Colliers explained.
"Neighborhood centers remain among the tightest asset types, while power centers experienced uneven performance due to big-box transitions. Lifestyle and outlet centers reported stable vacancy, largely due to limited turnover."
The CRE firm added that leasing performance was strong, noting that "high-profile" move-ins such as H-Mart's 47,000 square feet and Pickleball Kingdom's 40,000 square feet, drove the activity.
The leasing helped drive up average direct asking rates by 19 cents per square foot NNN year-over-year to $29.47, although the figure was down from the fourth quarter's $29.71.
While store closures have led to some issues nationally for retail, demand is continuing to outpace deliveries in Tampa. In fact, no new completions were recorded in the first quarter, as 19,400 square feet was under construction in the market.
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