What $1 billion in real estate investment means for Tampa Bay

Writer: Andrea Teran

June 2024 — Tampa Bay is experiencing a real estate renaissance, with more than $1 billion in new investments fueling transformative developments across the region. From luxury living and mixed-use complexes to strategic office renovations and multifamily housing projects, Tampa Bay is solidifying its status as a dynamic urban hub.

Leading this charge is the ambitious Water Street Tampa project. Currently in its $3 billion second phase, the development aims to transform the Channelside District with a built-to-suit office tower, luxury condominiums, and an entertainment-centric mixed-use block. This phase not only enhances the district’s vibrancy but also supports Tampa’s broader urban expansion efforts, providing a modernized living and working environment. As part of this initiative, ARC Realty Group is set to build the 39-story ORA Hotel and Residences, adding 622 units with luxury amenities such as a rooftop infinity pool, a helipad, and a signature restaurant. 

“We’re really excited about working in this area and being part of the growth. We see the future of this city,” Luigi Novembre, vice president of real estate development and sales at ARC, told the Tampa Bay Business Journal.

Simultaneously, Tampa International Airport is investing approximately $790 million in its new Airside D terminal, the first new terminal in nearly two decades. This 16-gate, three-level facility will feature the airport’s signature hub-and-spoke design, automated people movers, and advanced security screening systems. The expansion is crucial for accommodating increasing air traffic and supporting the region’s burgeoning tourism and business travel sectors.

In the realm of luxury living, Pendry Hotels & Resorts, in collaboration with Two Roads Development, is developing a 37-story tower in downtown Tampa. Valued at $200 million, Pendry Tampa has already generated significant buyer interest, with sales surpassing $200 million as of late 2023. The tower will offer 220 guestrooms and 207 private residences, complete with high-end amenities such as a private rooftop pool, floor-to-ceiling windows, and private terraces, significantly enhancing the upscale living options in the area.

Read more: Dreaming of a downtown

Meanwhile, the Gasworx development is set to rejuvenate Ybor City and its surrounding neighborhoods. As one of Tampa Bay’s largest projects, Gas Worx will integrate residential, commercial, and recreational spaces, blending historic preservation with modern urban living. This mixed-use project will play a significant role in bridging Ybor City with the Channel District, fostering a cohesive urban environment.

Office space in St. Petersburg is also receiving a substantial upgrade. The City Center office tower is undergoing a multimillion-dollar renovation to incorporate modern amenities. The 242,115-square-foot tower, currently 88% occupied, will feature a redesigned lobby, a state-of-the-art fitness center, a new conference center, and updated exterior entrances with enhanced landscaping. These upgrades underscore St. Pete’s status as a top office market, boasting one of the lowest vacancy rates in the nation at just under 12%.

In a notable move, SouthState Bank is relocating its regional headquarters to downtown Tampa’s iconic Rivergate Tower, leasing 17,000 square feet on the 29th floor. This decision reflects a significant trend of companies moving back to the central business district, highlighting confidence in downtown Tampa’s growth prospects. SouthState’s relocation comes on the heels of its $2 billion acquisition of Independent Bank Group, signaling strong growth and expansion plans.

The multifamily housing market in Tampa Bay is also showing signs of recovery after hitting bottom. Projects like MetWest Residential by Zom Living and MetLife are moving forward, supported by a $63 million construction loan from TD Bank. The 375-unit apartment building is strategically timed to meet the expected demand surge in the coming years. Despite high construction costs, Tampa Bay remains one of the nation’s most stable rental markets, with a minimal rental decrease of just 1.6% over the past year.

This surge in development is complemented by a robust sense of business confidence, with 90% of executives reporting an increase in customer demand over the past six months, according to the latest Capital Analytics Business Sentiment Survey (CABSS). This confidence aligns with proactive business strategies across the region, indicating that companies are not only meeting but potentially exceeding market expectations. As these projects come to fruition, the economic and social fabric of Tampa Bay could transform, attracting more residents, businesses, and tourists to the area.

Read more: Q1 business sentiment survey highlights renewed confidence

Top image: screengrab via Water Street Tampa

For more information, please visit: 

https://waterstreettampa.com/
https://www.tampaairport.com/
https://www.pendryresidencestampa.com/
https://www.gasworx.com/
http://www.tampacitycenter.com/
https://www.southstatebank.com/
https://zomliving.com/