Supported by Booming Economic Indicators, Retail Vacancy Hits Record Low in This Central Florida Market
Tampa Continues to Outperform National Trends Into 2020

By Brian Alford
CoStar Group
Published: Mar 10, 2020

The average vacancy rate in the Tampa retail market had compressed another 40 basis points in 2019, falling below what was already the lowest mark ever recorded by CoStar. This came despite Tampa once again being among the highest retail supply markets last year.

Retail demand continued to outperform the national average, with almost 1.5 million square feet of positive net absorption in the area. The record-tight market conditions have led to an extended period of some of the highest retail rent growth in the United States. Even with some mild cooling expected in 2020, annual rent growth in the Tampa market is still nearly three times the national average.

With most market fundamentals at or near record levels in Tampa, and with population and job growth rates consistently above the national average, retail investors continue to be drawn to Central Florida's Gulf Coast. Retail sales volume in the Tampa market exceeded $1 billion for a record eighth consecutive year. Liquidity also remained relatively high, averaging slightly above 5% during this cycle.