SOUTHEAST SNAPSHOT, JUNE 2008

Tampa Retail Market

The retail center paradigm has continued to shift from traditional enclosed malls to power centers and open air or lifestyle centers. With these unique projects, developers are attempting to carve a niche in their respective markets and ensure the success and longevity of their projects. The country’s stagnant economy and the mortgage crisis have affected the commercial market and new projects are certainly feeling the effects. Many retailers are now pulling out of or retrading deals, pushing back openings and closing underperforming stores; however, established retail developers are lining up with institutional money to acquire key urban and suburban sites.

Currently the majority of new commercial development is taking place in the New Tampa market, with over 3 million square feet to be developed by 2011. Echo Development recently opened much of their 720,000-square-foot powercenter, located at the northwest corner of Interstate-75 & State Route 54. The Groves at Wesley Chapel is tenanted by Dick’s Sporting Goods; Best Buy; Bed Bath & Beyond; Ross Dress For Less; Michaels; a Toys “R” Us/Babies “R” Us combo store, T.J. Maxx; and an 18-screen Cobb Theatre. The Shops at Wiregrass, located at State Road 56 and Bruce B Downs, is anticipated to open in the fourth quarter of this year. The project is being developed by joint venture partners Forest City Enterprises and The Goodman Company. Wiregrass will be anchored by Dillard’s, Macy’s and JC Penney. The open air, lifestyle center will contain over sixty specialty stores and restaurants, totaling more than 750,000 square feet. On the southwest corner of I-75 and State Road 56, the Cypress Creek Town Center and the contiguous The Crossings at Cypress Creek will total more than 1 million square feet. Cypress Creek Town Center will have a Super Target, Kohl’s, Sports Authority, AMC Theatres, Staples, Old Navy, Books-A-Million, Circuit City and many small shops/outparcels. Richard E. Jacobs is developing the project. Issues with environmentalists have pushed back the anticipated opening to an unspecified date.

In the Westshore market, MetLife has broken ground on their Metwest Project, which is located along Boy Scout Boulevard across from the International Plaza, The mixed-use development is slated to feature approximately 72,000 square feet of retail and restaurants, 750,000 square feet of new office space and a 10-story hotel. Metlife plans to open the project in the fourth quarter of this year. Swedish home furnishing giant Ikea has broken ground on a 353,000-square-foot store adjacent to the Ybor City Historic District. The store is projected to open next summer.

Southshore Commons, to be located just south of Tampa in the Apollo Beach market, is a proposed 1.6 million-square-foot mixed-use development. The project is being developed by Equity and Nationwide Realty Investors. It will be located at the intersection of I-75 and Big Bend Road on the southwest corner. The development is slated to open in March 2010. The project’s components will include more than 1 million square feet of retail, 490,000 square feet of office, a 16-screen theatre and 250 hotel rooms.

New tenants to the Tampa area include Dick’s Sporting Goods, hhgregg, Gander Mountain, Aldi, LA Fitness, dd’s, Total Wine, Giordano’s, Pizzeria Uno and Sears Home Appliance Showroom.

— JR Dupell is a partner and Rebecca Hallum and Michael Chadwick are agents at The Shopping Center Group in Tampa, Florida.

©2008 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.