Despite some high-profile store closures like Toys ’R’ Us, brick-and-mortar retail in Northeast Florida is actually as healthy as it’s ever been.
That’s according to a report from Colliers International of Northeast Florida, a commercial real estate and investment services firm.
Findings include:
Records are being set
Retail occupancy in the market and average rents being paid are at record levels— 96 percent and $14.80/square foot, respectively.
More dirt is being turned
New construction is historically low, resulting in conservative approaches to expansion and funding — though construction is starting to pick up as existing stock fills up.
“As vacancy rates have dropped and rents have increased, developers can actually build new product instead of just releasing old product that was existing,” said Jason Ryals, executive vice president of Colliers International Northeast Florida.
Food is a sure bet
Steady growth in the grocery category continues, with no signs of slowing down as the region’s population continues to expand. Publix, Sprouts Farmers Market, ALDI, Earth Fare, Lucky’s and Save A Lot are all looking for more spots in the region, according to the report.
“The capital markets lend on grocery because they see the resiliency to the internet, so developers can get easier financing if they develop for grocery stores,” Ryals said.
The era of entertainment
Ryals said retailers in the region are defying the online shopping trend by reinventing themselves, as retailers have always had to do.
“Retail is transitioning into entertainment,” he told WJCT News. “Instead of boxes of soft goods, of jeans and shirts and appliances, it’ll be Drew Brees’s new concept, [Surge Adventure Park],at Regency with the trampoline and the rock climbing.”
See the entire Colliers International Northeast Florida Q3 retail report here.
Contact Jessica Palombo at 904-358-6315, jpalombo@wjct.org or on Twitter at @JessicaPubRadio.
