New Project Development in the St Petersburg Commercial Real Estate Market

Greater downtown St. Petersburg is under rapid development, to feature a new arts and retail environment. The new commercial atmosphere is to accommodate the city's quickly multiplying office and multi-family property residents. The heart of downtown is undergoing revitalization. Major projects are underway across the spectrum of commercial real estate development, including new research facilities, micro-breweries, cultural amenities, restaurants, retail shops, office spaces, and high-rise multi-family properties.

Public Recreation and Cultural Amenities

The Museum of the American Arts and Crafts Movement: A 5-story museum space of 172,000 square feet (SF) will be Tampa Bay's largest museum, at a development cost of $70 million. The new museum is currently under construction on 3.5 acres, located on 4th Avenue North (between 3rd and 4th Streets).

The James Museum of Western & Wildlife Art: At 100 Central Avenue, the new Western and Wildlife themed art museum is anticipated to open to the public in late 2017. Between 400 to 500 premier artworks will be on permanent display. In addition to the museum's 30,000 SF gallery space, it will also feature sculpture space, a store, a café, event space, and a 120-seat theater.

Retail

Downtown Waterfront: The Downtown Waterfront Master Plan, approved by the St. Petersburg City Council, included development of the downtown area extending along the waterfront from Lassing Park to the Coffee Pot Bayou. The plan will link the waterfront to an array of amenities and activities for area residents and visitors. It will also expand utilization of assets key to metro area economic development, including the St. Petersburg Port and the St. Petersburg Municipal Marina.

Pier Park: The new $46 million St. Petersburg pier development, was approved by the City Council back in May 2015. Construction on the 34-acre site is scheduled to continue throughout 2017. Plans include a market, education center, a public park with gardens and a splash pad. Construction of the new waterfront commercial sites and amenities is expected to be finished in late 2018.

ONE St. Petersburg: More than 17,000 SF of retail space will be included, along with a hotel and multi-family development, in the mixed-use project at at Beach Drive NE and Straub Park. Construction is expected to be completed in 2018.

Hospitality

Pheil Hotel site development: Red Apple Group (a New York development firm), purchased both the old Pheil Hotel (built in the 1920s) and the adjacent old bank building. Demolition of both buildings began in late 2016. The land, which is among the downtown area's most valuable remaining for development, sold to Red Apple for an undisclosed price above the $15 million asking price. It is anticipated that the new development will include 40-story mixed-use building as well as a hotel at 400 Central Ave.

The Galaxy Hotel: The boutique hotel will be 11 floors, with a total of 100 rooms, located at located at 316 1st Street North.

ONE St. Petersburg: A 13-story hotel with 174 rooms (adjacent to the 41-story condominium tower) will be included in the previously mentioned mixed-use high-rise project.

Office

400 Central Ave site: In addition to the hotel to be constructed as part of Red Apple Group's new project at the 400 Central Ave site, St. Petersburg has pushed the city's case to Red Apple for development of a significant number of offices spaces at that location.

490 First Building: 113,000 SF of office space, sold by the Tampa Bay Times is to become available during 2017, after renovations are completed. (The newspaper will continue to occupy three floors of the building.)

Echelon City Center: A 2.8 million SF mixed-use project has been proposed for Carillon Park, to include office spaces, retail shops, multi-family, and a boutique hotel. The projected timeline for development is five to seven years, at a total cost estimated between $600 - $700 million.

Industrial

Power Design: The nation-wide electrical contractor is investing more than $3 million into expansion of its 70,000 SF headquarters. The improved facility will include a manufacturing and distribution center of 34,326 SF, and 19,600 SF of office space. (The expansion is projected to provide 60 new jobs.)

FedEx: The company's new 236,976 SF distribution center is planned for construction at 1960 102nd Avenue North.

Johns Hopkins All Children’s Hospital and Research Center: The $85 million research facility is under construction at 5th Street and 6th Avenue South. Schedule to be completed in 2018, the 225,000 SF development will include a research lab, simulation lab, research office spaces, and a 250-seat auditorium. The new medical research facility will provide workspace for approximately 200 faculty members, researchers, doctors, nurses, and support staff.

Jabil: Global manufacturer and one of Tampa Bay's largest companies, Jabil is remodeling their 69,000 SF facility, located at 10001 16th Street North, to house a new R&D lab and engineering functions focused on development of wearable technology.

St. Petersburg Police Headquarters: The new $81 million police station, under construction at 1301 1st Avenue North (just across the street from the old station). Projected completion of the, expansive 167,519 SF development is late 2018.

Multi-Family

The Salvador: Currently under construction at 2nd Street South and Dali Blvd, the green-certified 13-story condominium development overlooking Tampa Bay will include 74 condo units and 3,300 SF of retail space.

St. Petersburg II Apartments: An 8-story apartment building with 348 units is under development between 2nd and 3rd Avenues South. The multi-family project is being developed by NRP Group (which also built the nearby Beacon 430 apartment complex).

ONE St. Petersburg: The expansive mixed-use ONE project includes a 253 condominium units in its 41-story high-rise, making it Pinellas County's tallest building.

Overview

The total number of residential units in the downtown area has increased by nearly 20% over the past five years. And, in the past three years, 10 corporations have moved their offices to downtown Petersburg. The growing residential and office population along with current development to promote a vibrant arts and retail district at the heart of St. Petersburg are promising signals for long-term downtown stability.

And, the yet-to-be-fully-shaped initiatives for a future "Innovation District" construction projects around the University of South Florida, St. Petersburg campus appear promising for additional broad-scale mixed-use development around the university micro-economy.

Notably, it is argued that the downtown area is in need of much additional office space, however double digit vacancy rates 14.5%for Q2 2017 (Cushman & Wakefield) along with the significant number of new vacancies to be created by development currently underway, make that point arguable.

Generally, greater downtown St. Petersburg is receiving extensive investment in new commercial real estate development. From downtown revitalization initiatives, to commercial expansions in the Gateway/Carillon area, St. Pete's real estate market is in a highly dynamic period.