Sarasota, Florida, stands out as large-scale retail development gains momentum
Large-scale retail development remains relatively uncommon across much of Florida as rising construction costs and limited available sites continue to constrain new projects. Sarasota has emerged as one of the exceptions.
The Sarasota market currently has roughly 910,000 square feet of retail space under construction, representing 1.7% of the existing inventory. By comparison, Miami has the largest retail pipeline by square footage, at 1.3 million square feet, which will expand the market's inventory by 0.9%.
Retailers and developers have looked to tap into the region's population growth. Sarasota has added roughly 100,000 residents over the past five years, an increase of 11.6%, compared with national population growth of about 3.2% over the same period.
Much of the development pipeline follows a similar formula. Developers secure a major anchor tenant, most commonly a grocery store, then build out surrounding space for restaurants, service-oriented retailers and other complementary uses. There are several examples of this happening across the Sarasota region.
The former Sarasota Square mall is being redeveloped into an open-air, mixed-use town center, with the newest phase being anchored by Whole Foods, while retaining existing tenants such as Costco and Trader Joe's. The project will ultimately replace the now-demolished enclosed mall with a mix of retail and residential uses.
Elsewhere, developers are pursuing new grocery-anchored centers in some of the region's fastest-growing communities. North River Marketplace in Venice is anchored by Publix, while SeaFlower Village Center in Bradenton is also anchored by a Publix. Both projects include additional retail space and multifamily development.
Whole Foods is constructing another store at Marketplace at Heritage Harbor in Bradenton, while regional grocer Detwiler's Farm Market recently signed a lease for a future build-to-suit location. Other large build-to-suit projects underway include Dick's House of Sport at The Mall at University Town Center and a Life Time Fitness location in Lakewood Ranch.
The concentration of grocery-anchored and mixed-use projects has made Sarasota one of the state's most active retail development markets. While most projects remain heavily preleased before opening, developers continue to add new supply in response to retailer demand and the region's sustained population growth.
(CoStar Analytics | By Michelle Rumore)
If you have questions or would like to read the related article, please contact us via email, and we will send you the link.