Looking forward to growth in 2025
The Florida commercial market continues to grow in certain sectors and sizes. Many landlords and investors are seeing a strong demand for second generation spaces and smaller unit sizes. Many of the existing tenants signed leases with unfavorable rates because they originally leased during the real estate boom of the 2000’s or at the beginning of COVID and have decided to exit the market after many years of success. Many new retail centers have been built and are in the process of being built now with many of the units being from 1500 to 3000 sq ft in size and many national and mid size retailers are doing the same in their new locations such as Fifth Third Banks new locations, Little Caesars drive thru locations. Investors have also shown their confidence and willingness to work with many local owner operators of multiple locations.
In this market Collier Realty and Management is here to help with you with the location and purchase of the strong retail and multi-family opportunities in this market with a strong upward potential of rental income and asset appreciation. We are also able to help you with the purchase of real estate investment purchases with our relationships with different financial institutions and advisors that can assist with using your 401K or Self Directed IRA. If you do not have a 401K or Self Directed IRA will be happy to get you the necessary information and advisor to assist with the setting of one up.
We are proud to present our report on the current market outlook. This report is designed to equip investors with actionable insights and nuanced market intelligence as they navigate evolving conditions across the country. Our investment and financing professionals are here to help you capitalize on today’s trends—and prepare for tomorrow’s.
Florida’s Gulf Coast: A Prime Market for Commercial Investment
As we move through 2025, the commercial real estate market continues to present strong opportunities for investors in Southwest Florida. Nationally, retail real estate remains a resilient asset class and the conditions are particularly favorable for savvy commercial property owners and buyers.
Collier County’s high-income, fast-growing population base and tourism-fueled economy create exceptional demand for well-located retail and service-oriented commercial spaces. Southwest Florida consistently attracts both permanent residents and affluent seasonal visitors, supporting a diverse range of retail tenants from fine dining and wellness to financial services and boutique retailers.
Market Dynamics in Favor of Investors
- Retail vacancy rates are near historic lows, with multi-tenant centers at all-time-low vacancy and single-tenant spaces reporting rates below long-term averages.
- Time on market for retail spaces is the shortest in over a decade, averaging 9.3 months, with food service and fitness tenants leading leasing demand.
- Foot traffic has grown across property types, especially in fast-casual dining, grocery, and medical retail, making neighborhood and unanchored strip centers high-performing assets.
- Retail construction is at a historical low, creating scarcity and competition for quality space—which puts upward pressure on rents and helps maintain high occupancy.
Why Southwest Florida?
As part of Florida’s prosperous Gulf Coast, Southwest Florida is situated within one of the most desirable commercial corridors in the nation. In-migration continues at a high pace, while zoning restrictions limit overdevelopment—preserving the value of existing commercial holdings.
- Consumer spending remains strong, with general merchandise, food, and wellness categories seeing steady growth.
- Medical and service-sector tenants are expanding into retail centers, particularly to meet the demands of the growing 65+ demographic.
- Retail landlords are increasingly targeting backfill opportunities, with value-oriented brands like Aldi, Dollar Tree, and Five Below aggressively expanding.
What It Means for You
At Collier Realty & Management, we specialize in helping commercial property owners and investors maximize the potential of their assets. Whether you’re considering repositioning a property, evaluating a strip center acquisition, or planning a 1031 exchange into a low-maintenance net-leased asset, now is a strategic time to act.
We offer:
- Expert commercial real estate advisory
- Leasing strategies for high-credit tenants
- Portfolio repositioning and valuation
- Local insight backed by national trends
Partner with Local Experts Who Understand the Southwest Florida Market
Collier Realty & Management is your dedicated partner in Southwest Florida commercial real estate. We offer localized strategies with the backing of decades of experience and a finger on the pulse of regional economic trends.
Let’s unlock your property’s potential.
📍 Proudly serving Southwest Florida including Naples, Bonita Springs, and Marco Island
2025 Retail National Investment Forcast for Tampa – St. Petersburg Florida
Florida’s Residential Influx Facilitating Low Vacancy Across Tampa-St. Petersburg
Expansion at metro’s edges warrant retailer move-ins. Continued demand by businesses has held Tampa’s vacancy rate below 3.5 percent since mid-year 2022. Both national and international retailers are drawn to the market’s growing population and burgeoning outer submarkets. Japanese store chain Daiso will be arriving in Northdale, while Utah-based soda shop Swig will open their second Florida location in Lutz. As outer areas grow in population, consumer demand will rise, providing positive rent movement among retail assets. North Hillsborough and Pasco County both recorded double-digit percent rent growth last year, and could be poised to retain some of that momentum in 2025. Both submarkets reported little discrepancy between single-tenant and multi-tenant occupancy, showcasing the strong retailer demand in the outer areas that has led to historically tight vacancy. Nearly all Tampa submarkets entered 2025 with sub-3.5 percent vacancy, with the rates in Pinellas County and the Sarasota-Bradenton area only slightly higher.
Investors target properties in and around downtown. After increasing last year, transaction volume may keep growing in urban submarkets like Pinellas and Central Tampa. If mid-week foot tra c continues on the path of improvement noted last year, retail property fundamentals for assets here may improve, drawing more investors. Flood risks will likely continue to be a concern for buyers, which may shift some attention to properties further inland. Investment activity may grow in areas such as the Interstate 75 Corridor, North Hillsborough and East Pasco County as a result. Additionally, with segment vacancy rates below the metrowide average, these submarkets may also attract buyers seeking stable multi-tenant assets.
2025 MARKET FORECAST
NRI Rank 3: Rapid revenue growth and few weaknesses aid Tampa in holding a top three placement again this year.
EMPLOYMENT: Employment growth will tick up this year, increasing the role count by 21,000 jobs. The leisure and hospitality sector will likely lead this improvement once again this year.
CONSTRUCTION: A construction pullback will result in the least new square feet since 2012, raising inventory by 0.4 percent in 2025. New supply is centered around the Sarasota-Bradenton area.
VACANCY: A reduced construction pipeline will help nudge vacancy down to 3.1 percent by year-end. The rate is set to remain under 3.2 percent for a fourth consecutive year.
RENT: Average asking rent growth will continue to slow following large post-pandemic gains. Even so, the metro’s rate will increase to $23.45 per square foot by the end of December.