SOUTHEAST SNAPSHOT, OCTOBER 2007

Tampa, Florida Multifamily Market

Buyers continue to look toward the Tampa market for second homes and retirement homes, resulting in some of the strongest sales of higher end condominiums, many priced above $400,000. Developers continue to plan more and more mixed-use projects in the Tampa area, giving people   condominiums with shops, salons and spas right outside their doors. Buyers want easy access to retail without having to get in their cars and drive. Office condominiums are also selling very well because people like the idea of working where they live.

The Grand Bohemian in St. Petersburg combines a hotel, luxury condominiums and restaurants. It has generated a lot of excitement among the mayor and city council because of the effect it is expected to have in revitalizing downtown. Another promising high-end development is Enchantment Beachfront Residences on Clearwater Beach, which is also expected to increase the value of property in the area. The Village at Indian Rocks Beach combines retail on the first floor with condominiums up above. This project allows residents to walk to local shops while also enjoying the beach across the street. The developer is bringing several new retailers to Indian Rocks Beach, increasing the uniqueness and value of the entire area.

Development in the Tampa Bay area continues to be focused either on the beaches or city centers. People still want to be on the water, but they also want to be where the action is, prompting few new developments in the suburbs.

Most of the new mixed-use projects also include upscale rental apartments to accommodate those who might not be comfortable buying at this time. As for tenants, Florida continues to be a strong market for the second-home buyer. More international buyers are coming to Tampa and other Florida markets to buy condominiums as second homes. The United States continues to be one of the most stable economies in the world and Florida is looked upon internationally as a stable and desirable place to invest. New loft-style developments in trendy intown neighborhoods have become a popular choice for young professionals  looking to make their first purchase. Near downtown Tampa, the Channel Side neighborhood has proven to be very hip and trendy and attractive to young professionals.

The denser, urban areas near the region’s city centers should continue to grow in the future as developers look to older space, such as shopping malls, for redevelopment. The beaches of Clearwater are also ripe for redevelopment.

The market is going through some changes right now, but within the next 9 to 12 months, the current inventory of homes will be absorbed because of the continued influx of residents into Florida every day. The current market should prove to be a temporary situation.

— Brenda Genant is vice president of sales, Florida, for Coldwell Banker The Condo Store.


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