SHOPPING CENTERS TAMPA TO NAPLES Guide to rents The definitive aiden hawkins ASSOCIATE +1 (813) 600-5908 aiden.hawkins@matthews.com License No. SL357790 (FL)
This guide? What’s in
Since its inception, this guide has been the industry standard for aiding investors in understanding the position of their assets in the overall market. Utilized by institutional and professional investors, developers, and private clients, this guide provides the data and resources necessary to make informed investment decisions effectively as you navigate the shopping center market from Tampa to Naples.
Whether you're the owner of a single shopping center or a large portfolio within Southwest Florida, The Definitive Guide to Shopping Center Rents will provide you with immediate actionable information to:
› Protect your cash flow
› Increase your leverage as an owner
› Secure your wealth
Ultimately, you will thoroughly understand where your shopping center in Southwest Florida stands and how to plan for the future.
3 Disclaimer: This information has been produced by Matthews Real Estate Investment Services™ solely for information purposes and the information contained has been obtained from public sources believed to be reliable. While we do not doubt their accuracy, we have not verified such information. No guarantee, warranty or representation, expressed or implied, is made as to the accuracy or completeness of any information contained and Matthews REIS™ shall not be liable to any reader or third party in any way. This information is not intended to be a complete description of the markets or developments to which it refers. All rights to the material are reserved and can-not be reproduced without prior written consent of Matthews Real Estate Investment Services™. 04 Meet Matthews™ 06 Tampa & Naples Retail at a Glance 10 Sample Rents 09 Understanding the Big Picture 08 Rent Distribution Contents Table of
Meet Matthews™
Who We are
Matthews Real Estate Investment Services™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Matthews™ delivers superior results through the firm’s industry revered work ethic, unique culture, collaboration, and advanced technology.
Since 2015, Matthews™ has experienced unprecedented growth adding over 600 real estate professionals to serve clients. Founded in El Segundo, CA, and strategically positioned in 25+ offices across the United States, Matthews™ continues to expand into new markets.
What we do
Matthews™ redefines what clients expect by accelerating the evolution of how the commercial real estate industry services clients through technology. By leveraging technology and industry-leading resources, Matthews™ is committed to growing and preserving client wealth and adding value to their investment strategy.
When you hire Matthews™, you have the power of investment professionals strategically positioned across the country to sell your deal. We have access to the largest database of capital from private and institutional investors. With our collaborative culture, agents from across the country work together to source buyers through the Matthews™ network.
Proven track record
Our professional team of agents have many years of experience with representing the top institutions, developers, and private clients in commercial real estate. We hire the best and provide them with top of the line support, systems, and materials with the goal of exceeding expectations
Full-Service Real Estate Solutions
Our
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19,326 TRANSACTIONS 600+ AGENTS & EMPLOYEES 1,000,000+ CLIENT BUYER DATABASE $52.8 Billion IN DEALS CLOSED
centralized client services
specialization and collaboration across all divisions to provide an array of commercial real estate solutions for our clients.
foster
CAPITAL MARKETS › Debt & Structured Finance › Equity LEASING › Landlord Representation › Tenant Representation INVESTMENT SALES › Shopping Centers › Net Lease Retail › Multifamily › Industrial › Healthcare › Office › Self-Storage › Hospitality › Auction Services
Representative Your Matthews™
Aiden Hawkins
ASSOCIATE
DIRECT +1 (813) 600-5908
MOBILE +1 (305) 394-5735
aiden.hawkins@matthews.com
License No. SL357790 (FL)
Aiden Hawkins serves as an Associate at Matthews™, specializing in the acquisition and disposition of shopping centers and net lease properties, primarily in the Tampa market. He also serves as a retail leasing professional through landlord and tenant representation. Aiden’s unwavering commitment and dedication to the industry make him a valuable resource for his clients throughout the entire transactional process. He ensures his clients consistently feel supported and aids them in defining clear objectives that align with their long-term financing goals.
EDUCATION
B.A. Economics, Minor in Business Florida State University
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at a Glance Tampa retail
Similar to numerous markets throughout the U.S., the Tampa market is experiencing an imbalance between supply and demand. Since mid-2022, the availability of retail spaces has consistently stayed below 4%, leading to a shortage of space that is affecting leasing operations. The majority of construction projects are either already leased out or tailored to specific tenants’ needs, offering minimal assistance to prospective lessees in search of space.
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■ Mall ■ Power Center ■ Neighborhood Center ■ Strip Center ■ General Retail ■ Other Retail ■ Tampa ■ United States VACANCY RATE Source: CoStar Group 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Forecast ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’26 ’27 CURRENT QUARTER RBA VACANCY RATE Malls 11,675,039 6.3% Power Center 7,433,273 3.9% Neighborhood Center 48,828,033 4.3% Strip Center 13,941,511 3.5% General Retail 93,665,576 2.4% Other 275,853 0% Market 175,819,255 3.3% Source: CoStar Group
at a Glance Naples retail
The vacancy rate in the Naples retail market remains steady at 3.9%, virtually unchanged from a year ago, with only a slight increase of 0.1% observed during this period. Within this timeframe, 94,000 square feet of retail space has been completed, while 66,000 square feet have been occupied.
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■ Mall ■ Power Center ■ Neighborhood Center ■ Strip Center ■ General Retail ■ Other Retail ■ Naples ■ United States VACANCY RATE Source: CoStar Group 70% 60% 50% 40% 30% 20% 10% 0% Forecast ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ’26 ’27 CURRENT QUARTER RBA VACANCY RATE Malls 1,792,355 4.8% Power Center 879,289 9.4% Neighborhood Center 8,771,195 4.8% Strip Center 1,951,279 1.6% General Retail 10,384,885 1.8% Other 259,753 48.7% Market 24,048,756 3.9%
Source: CoStar Group
Rent Distribution per sf
Less asking rent than 2% of all Tampa and Naples properties.
Less asking rent than 2% - 16% of all Tampa and Naples properties.
Less asking rent than 16% - 50% of all Tampa and Naples properties.
Higher asking rent than 50% - 84% of all Tampa and Naples properties.
Higher asking rent than 84% - 98% of all Tampa and Naples properties.
Higher asking rent than 98% of all Tampa and Naples properties.
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ZONE 1 ZONE 2 ZONE 3 ZONE 4 ZONE 5 ZONE 6
<$7.33 $14.80 $22.27 $29.74 $37.21
The Big Picture Understanding
How to Maximize Income
RENTAL INCREASES & PROPERTY APPRECIATION
The goal of a landlord/owner is to increase the income earned from rents and fees during which the property is held by either increasing the rents or selling the property at the highest price possible. The key to maximizing your income is to charge a competitive but realistic monthly rent. The average rent per square foot in Southeast Florida for a shopping center property is $22.27.
Analyzing Your Shopping Center
RENT, VACANCY, RENOVATIONS, & MARKET PERFORMANCE
As demonstrated by the normalized distribution graphs on the previous pages and with the data provided above, you are able to determine the health of your multifamily property. So long as your rent falls within the same Zone (standard deviation), you are considered to have an average investment. By comparing your property to similar shopping center properties in Southeast Florida, you can more accurately determine a competitive and realistic rent for your tenants. Having a high rent is not a bad thing so long as your vacancy is low. Conversely, having low rent and vacancies is not bad; however, increasing your rent to market rent is recommended if demand is present. Should your rent fall in high or low Zones with high vacancy, it might be a good idea to analyze how the market is performing, as your investment is considered risky.
A strong market with strong demand will support rent increases. A good indicator of a strong market is when the population increases or development occurs. In markets that haven’t seen a lot of new multifamily construction, it’s important to analyze the improvements other shopping centers have undertaken.
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Sample Rents
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ADDRESS CITY SF LEASED RENT/SF/YR LEASE TYPE 720 S Dale Mabry Hwy Tampa 2,804 $38.00 Modified Gross 111 Tamiami Trl Port Charlotte 4,189 $22.91 NNN 3601-3639 Tamiami Trl N Naples 1,624 $35.00 NNN 25987 S Tamiami Trl Bonita Springs 1,612 $20.00 NNN 1081-1251 Toledo Blade Blvd North Port 1,050 $25.00 NNN 5914-5940 Palmer Blvd Sarasota 1,200 $20.00 Modified Gross 19970-19976 S Tamiami Trl Estero 1,204 $35.00 NNN 19970-19976 S Tamiami Trl Estero 800 $35.00 NNN 1900-1918 N Himes Ave Tampa 1,000 $18.00 NNN 6902-7008 Hanley Rd Tampa 1,440 $22.00 NNN 715 S Howard Ave Tampa 1,350 $35.00 NNN 15250 S Tamiami Trl Fort Myers 1,150 $18.00 Gross 4996-4998 E Busch Blvd Tampa 8,200 $8.00 NNN 2852-2890 Ringling Blvd Sarasota 6,000 $22.00 Modified Gross 15201 N Cleveland Ave North Fort Myers 1,215 $24.00 NNN 2220-2226 E Brandon Blvd Valrico 1,500 $22.00 Modified Gross 917-923 E Oak St Arcadia 600 $21.00 Modified Gross 917-923 E Oak St Arcadia 1,800 $21.00 Modified Gross 11200 E Dr Martin Luther King Jr Blvd Seffner 1,400 $30.00 NNN 5321 E Fowler Ave Tampa 1,765 $32.00 NNN 18011 S Tamiami Trl Fort Myers 2,350 $19.50 NNN 313-331 Airport Rd S Naples 1,000 $22.20 Modified Gross 7050 Winkler Rd Fort Myers 900 $25.00 NNN 4815-4817 E Busch Blvd Tampa 1,804 $35.00 NNN 2112-2114 Gulf Gate Dr Sarasota 1,662 $22.00 NNN
Sample Rents
11 ADDRESS CITY SF LEASED RENT/SF/YR LEASE TYPE 2733-2757 SE Highway 70 Arcadia 4,724 $9.00 NNN 14447-14463 N Dale Mabry Hwy Tampa 2,340 $18.00 NNN 1341 Del Prado Blvd S Cape Coral 900 $35.00 Gross 102 Flagship Dr Lutz 1,295 $18.00 NNN 12951 Metro Pky Fort Myers 1,600 $15.00 NNN 2378 Surfside Blvd Cape Coral 1,420 $30.00 NNN 17420 N US Highway 41 Lutz 800 $20.00 NNN 11502-11574 Tamiami Trl E Naples 1,500 $22.50 NNN 6610 E Fowler Ave Tampa 1,020 $20.00 Modified Gross 1575 Pine Ridge Rd Naples 2,417 $20.50 NNN 1825 Tamiami Trl Port Charlotte 750 $20.00 NNN 8970 Fontana Del Sol Way Naples 1,214 $18.00 Modified Gross 1701-1761 State Road 60 E Valrico 1,104 $19.00 NNN 8951 Bonita Beach Rd SE Bonita Springs 3,916 $20.00 NNN 5311-5437 Airport Pulling Rd N Naples 1,800 $18.00 NNN 1202 E Busch Blvd Tampa 873 $16.00 NNN 24850 Old US 41 Rd Bonita Springs 3915 $11.90 NNN 2249 Ringling Blvd Sarasota 750 $31.20 NNN 8610 N Suwanee Ave Tampa 1204 $21.00 NNN 20451 S Tamiami Trl Estero 1,650 $16.50 NNN 1717-1721 9th St W Bradenton 6721 $11.00 Modified Gross 4100 Bee Ridge Rd Sarasota 1000 $17.50 NNN 8750 Gladiolus Dr Fort Myers 3390 $7.00 NNN 1168-1258 Jacaranda Blvd Venice 800 $28.50 Modified Gross
SHOPPING CENTERS TAMPA TO NAPLES Guide to rents The definitive aiden hawkins ASSOCIATE +1 (813) 600-5908 aiden.hawkins@matthews.com License No. SL357790 (FL)