The MICRO and the MACRO of Tampa Bay
MICRO: The Answer to Affordability?
Across the Urban Core, Micro Retail and Residential Projects Are Popping Up. Could the Smaller Square Footage Answer Concerns of Local Affordability?
Micro units, characterized by small-scale spaces typically ranging from 100 to 500 sq feet, have been gaining traction in urban areas for its ability to foster local entrepreneurship and revitalize communities. In Tampa, neighborhoods around the urban core, notably Ybor City, Tampa Heights, Downtown, and North Hyde Park have begun to embrace this trend, with popularity and affordability highlighting its potential.
MICRO: Retail and Residential in Ybor City and Tampa Heights
In Ybor City, the "Merry Little Market" pop-up shop exemplifies micro retail's impact. Developed by Nimble Retail, this 8x24-foot prefabricated shop hosted Procure, a boutique featuring items from women and minority-owned businesses. The initiative received an Award of Excellence at the 42nd Hillsborough Planning & Design Awards, underscoring its success in activating vacant spaces and supporting local entrepreneurs.
Additionally, the "Miles Ybor" project is underway in Ybor City. This mixed-use development will offer 120 fully furnished micro-units alongside 20,000 square feet of retail and office space, further integrating micro retail into the community.
In Tampa Heights, plans have been filed for a 6.2-acre mixed-use development that includes a new 110,000-square-foot YMCA, office and retail spaces, and residential units. A portion of the retail space is dedicated to small, minority-owned businesses, indicating a commitment to fostering micro retail in the area.
Micro Residential in Downtown and North Hyde Park
In Downtown, the Residences at 701 Whiting Street feature micro apartments: at 8-stories, the building will rise approximately 100 ft, yielding 62,000 sq ft. The 104 studio-sized apartments will range from 400 to 450 sq ft. Completion is near. The interiors will feature robotic technology in its furniture, specifically an “Ori-Cloud Bed” which raises and lowers to maximize interior space.
Across the river in North Hyde Park, at “Niche” micro units also feature robotic furniture. Of the 251 units in the building, 117 will be fewer than 500 sq ft and 60 of those will be “micro” with the robotic furniture. The developer claims this creates an “attainable rent level for young professionals who desire to live alone in a prime location.”
Micro Gives The Young, The Ambitious, and The Defeated a Shot
Micro units, whether residential or commercial, are a true paradox in action. Typically, affordability and location operate at an inverse. Micro accomplishes both at the same time. The city is a place where people see economic opportunity. Unfortunately, the typical larger retail and residential units have priced out the otherwise ambitious young (or old) professional. These Micro units are a true answer to housing and entrepreneurial affordability. I look forward to seeing more bright and ambitious minds have a seat at our table and contribute to our growing urban core.
Hyde Park Village: New Tenants, Closure of Pottery Barn and Goody Goody. More Luxury.
Hyde Park Village in Tampa is undergoing significant transformations, marked by the closure of long-standing tenants and the introduction of new luxury retailers.
Closure of Pottery Barn and Goody Goody
Pottery Barn, a major retailer in Hyde Park Village, will vacate its space at 802 South Village Circle, when its lease ends in April 2025. The store was part of a 25,000-sq-ft building that also housed Pottery Barn Kids and April Cornell.
WS Development, the Boston-based owner of Hyde Park Village, plans to redevelop the block currently occupied by Pottery Barn, Pottery Barn Kids, and Kittenish. The redevelopment aims to align the building's aesthetic with the neighborhood's intimate and cohesive character.
Goody Goody Burgers, an iconic Tampa eatery, closed its Hyde Park Village location on September 29, 2024. The decision was influenced by multiple factors, including the challenging economic climate and strategic efforts to strengthen and streamline the company's core restaurant concepts. The Goody Goody location at Tampa International Airport remains operational and select menu items are available at the Columbia Cafe on the Tampa Riverwalk. It will surely be missed as a casual food spot.
Introduction of New Luxury Tenants
In recent years, Hyde Park Village has attracted several luxury brands:
Zimmermann: The Australian luxury fashion label opened a 2,000-sq ft store in the summer of 2022, marking its first location on Florida's west coast.
Rag & Bone: The American fashion brand opened a 3,191-sq-ft shop, further enhancing the village's upscale retail offerings.
Palihouse Hyde Park Village: A European-style boutique hotel featuring 36 oversized guest rooms and an intimate lobby lounge and cocktail bar, opened in the third quarter of 2022, becoming the first hotel in the neighborhood.
These developments reflect WS Development's strategy to elevate Hyde Park Village's retail mix by introducing high-end brands and enhancing the overall shopping experience. The planned redevelopment of the Pottery Barn block is expected to attract additional luxury retailers, further transforming the village into a premier shopping destination.
The closures of Pottery Barn and Goody Goody Burgers, while marking the end of an era, pave the way for new opportunities and a refreshed retail landscape in Hyde Park Village. The introduction of luxury tenants aligns with the village's ongoing transformation into a vibrant, upscale shopping and dining destination.
Making the Connection: Palm Beach X TPA
WS Development owns The Royal Poinsettia, an ultra-lux iconic outdoor Palm Beach shopping mall. It’s 180,000 sq ft of shopping features gardens and palm trees and is designed around two central courtyards featuring the world’s most iconic luxury brands: Cartier, Hermes and the like.
At this mall, WS is making plans for more retail, notably a larger Cartier store at 3,700~ sq ft. Where will Cartier move its smaller store to? A Tampa family has connections to the new development, and Cartier is looking to make a footprint in Tampa - a brand that doesn’t currently have a presence here. With the Goody-Goody closure, Pottery Barn moving out, and the ownership’s interest in high end retail experiences, there’s no doubt Hyde Park Village will see top luxury brands secure leases in these spaces very soon. The lower tier brands will need to find new spaces - will they find tenancy at a traditional mall or will we see them in future phases of Downtown Retail- perhaps Water Street Phase 2…hopefully the latter.
An Investigation Begins into the Flooding of Tampa Areas that Are Not in Flood Zones. A City and Countywide Investigation Independent of Government Is Underway.
In the aftermath of Hurricane Milton, which brought unprecedented flooding to North Tampa and areas traditionally considered low-risk for such events, both City and County officials have initiated independent investigations to understand the causes and prevent future occurrences.
Initiation of Independent Investigations
On October 16, 2024, Tampa City Councilman Luis Viera called for an independent and objective investigation into the stormwater infrastructure and the handling of the flooding in North Tampa and the University Area. He emphasized the need to understand why neighborhoods not typically prone to flooding experienced such severe impacts.
Hillsborough County's Initiative
Parallel to the city's efforts, on October 23, 2024, the Hillsborough County Commission launched an independent investigation into flooding issues during recent hurricanes, including Milton. Engineering consultant Black & Veatch has been contracted for $500,000 to conduct a comprehensive study encompassing every city in the county, neighboring counties, and various stakeholders.
Process and Timeline
The investigation will proceed in phases:
Phase 1: Document and map the extent of flooding impacts from Hurricane Milton, analyze regional impacts using model data, conduct public outreach, and identify potential flood mitigation strategies. This phase is targeted for completion by June 2025.
Subsequent Phases: Evaluate and implement recommended mitigation projects, assess long-term infrastructure improvements, and develop policies to enhance future flood resilience.
Potential Outcomes
The investigations aim to:
Identify Causes: Determine the factors contributing to the unexpected flooding, including potential infrastructure failures or inadequacies.
Develop Mitigation Strategies: Propose actionable solutions to prevent similar incidents, such as infrastructure upgrades, improved maintenance protocols, and enhanced emergency response plans.
Enhance Transparency and Accountability: Provide residents with clear information about the findings and steps being taken to address the issues, thereby rebuilding trust in local governance.
A Strong Foundation Is Good for Us All
We must rebuild our region not the way it was before, but stronger. When the Federal government is looking at our region for grants and other programs, they are going to want to see an effort to increase our resiliency. When insurance carriers are evaluating their risk, they are going to give high marks to a region that has invested in its own risk mitigation. This investigation is the start of peeling back the layers of what went right, wrong, and what we need to build that strong foundation for future storms, and there will be more coming…it’s just a matter of how strong we are when they arrive.
How Has the Storm Season Affected Real Estate Sales in Tampa Bay? A Look at the MLS Data.
Recent hurricanes, particularly Helene and Milton, have significantly impacted Tampa's housing market, leading to increased inventory, longer listing durations, and declining home sales.
Increased Inventory and Prolonged Market Time
Following Hurricane Milton, Tampa experienced a surge in active listings and a slowdown in sales activity. New listings dropped from 775 on September 27th to 555, and pending sales decreased from 741 to 561. This trend indicates a growing supply of homes and a slowdown in sales activity.
Declining Home Prices
The influx of listings and reduced buyer activity have exerted downward pressure on home prices. Tampa is among the top metros with the largest year-over-year decreases in new listings (-36.1%), median sale prices (-0.5%), and pending sales (-27.5%).
Impact on New Home Construction
Hurricanes have also affected new home construction. In October 2024, U.S. single-family homebuilding fell by 6.9%, with a significant 10.2% decline in the South, largely due to hurricane impacts. This reduction in new construction contributes to the overall housing market dynamics, affecting both supply and pricing. The availability of well-priced dirt for builders also contributed for new home construction, but with the recent flooding of many homes on the market, builders will now have the opportunity to gather more developable land.
Insurance Challenges
The hurricanes have exacerbated Florida's ongoing home insurance crisis. Even before the storms, Florida homeowners were paying the highest premiums in the country due to the state's hurricane exposure. Now, with Milton causing extensive damage, both wind and flood insurance claims are expected to skyrocket, placing additional pressure on the already fragile insurance market.
Broader Market Implications
The cumulative effect of these factors has led to a cooling housing market in Tampa. Homeowners are facing challenges in selling properties, often resorting to price reductions to attract buyers. The increased inventory and prolonged market times reflect a shift towards a buyer's market in the region.
In summary, MLS data indicates that recent hurricanes have led to increased housing inventory, longer listing durations, and declining home prices in Tampa, reshaping the real estate landscape in the area. Many homes that were flooded are on the market, providing an opportunity to developers.
🎤 TBD POD Highlights
This month, our host, Garrett Greco, interviewed some of the most fascinating people in our community. If you have missed, here is a quick a full breakdown:
October 18th - Roger Germann, CEO of Florida Aquarium
October 25th - Emergency Operations Center’s Team
October 29th - Phil Michaels, Red Bull Flugtag
October 31st - Riley Tuff, Lead Emergency Planner for the City of Tampa
November 1st - Ian Anderson, Publisher and President of TBBJ
November 8th - Nick Dicosola, St. Pete Box
November 15th - Patrick Manteiga, La Gaceta Newspaper
November 22nd - Nolan Gray, Author of Arbitrary Lines
November 29th - Ron Francis, Artist
Check out some of our social media clips that you might enjoy:
In the early days of Tampa, there wasn’t much for the immigrants to hold onto. Soon after their arrival, social clubs started popping up: Italian, Cuban Club and many more.
TGH is building workforce housing for employees of TGH and USF Health to address housing crisis
Why do American Downtowns look completely different than they did 100 years ago?
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