Springtime is the best time of year to talk about the Central Florida retail market. The weather is nice, the area’s tourism and employment sectors are on the upswing, consumer spending is up, and retailers and developers are responding positively. From the arrival of several retailers new to the market to robust urban growth, the area is looking toward a very healthy 2015.
The International Council of Shopping Centers released its 2014 Florida Retail Report last August. The report states that recent population growth strong consumer spending and increased tourism have resulted in increased demand for retail space in Florida. Also, as retail sales in the U.S. as a whole have steadily increased since 2010, the report states that since late 2011 growth in Florida sales has been outpacing national retail sales growth.
Many retailers that are new to the Central Florida market are taking advantage of the healthy economy. According to Danielle O’Hara Murphy, a senior associate in SRS’ Orlando office, “The Orlando Market has long awaited, and is welcoming several organic/fresh grocers like Trader-Joe’s, Sprouts and Earth Fare. Fresh/healthy fast food chains with higher quality options are on the rise with the addition of Noodles & Company, Fresh to Order and Sushiology.”
Another growing trend in the area is the popularity of the brew house/eatery/sports bar concept. Described as the “Artisan Approach that meets lifestyle needs” by the partners of Crafted Block & Brew, which opened its doors early this year and has experienced interest from the local market, these concepts boast a higher quality of food, service, and unique array of menu options. O’Hara Murphy pointed out, “Darden is doing extremely well on I-Drive with the addition of Yard House. Others have had success with similar concepts like The Smiling Bison, Rusteak, and Bloodhound Brew. Because of the growing demand for a higher quality of food and bar theme, coupled with a family-friendly atmosphere, other concepts are looking to spread their wings throughout Central Florida, including The Brass Tap, newly formed Terra Mia in Lake Mary/Altamonte and Duffy’s Sports Grill.”
Many retailers that have already found success in the market are continuing to expand in the area as well, including Asbury Automotive, BJ’s Restaurant & Brewery, Corner Bakery, Hand & Stone Massage Spa, Honest-1 Auto Care, Max Muscle Sports Nutrition, Noodles & Company, Pacific Dental, Red Robin Gourmet Burgers, Texas Roadhouse, The Egg & I, and Skyfall.
Central Florida is also benefiting from some large and distinct new retail developments. One example is Hamlin, a master-planned development located in the Horizon West planning area in southwest Orange County. The 640-acre community will include 1,700 single-family and multi-family residences and over two million square feet of commercial space including a neighborhood shopping center, a regional power center and office uses.
O’Hara Murphy said, “Scott Boyd’s development is changing southwest Orlando in a big way. The number of homes being built, the county funded recreation/sport center under construction and The Hamlin project are massive. They will change the Disney corridor to become more ‘locals – focused’ with ease of entry and exit from Highway 429. These developments and thoroughfares will also bridge two areas of Orlando together, which have always been far apart. People will be able to work in Maitland and live in southwest Orlando, with a short 30 minute commute.”
Additional developments of interest include:
- I-Drive 360, an entertainment complex in Orlando
- The Crosslands, a 420,500 square foot retail development in Kissimmee
- Lake Nona, a master-planned community in southeast Orlando
- Fourteen transit-oriented developments at or near SunRail’s first 12 stations
The ICSC report also discusses the trend toward growth in city centers throughout Florida. “The population in the city centers of Florida’s largest metropolitan areas grew rapidly from 2000 to 2012.
According to U.S. Census data, the population of Orlando’s city center grew the most, increasing 34.2% over the period.” According to O’Hara Murphy, the downtown Orlando area is experiencing similar development. “The Dr. Phillips Center for the Performing Arts opened in 2014, a Major League Soccer stadium is scheduled to open in 2016, and a 68-acre mixed-use, transit-oriented, urban-infill neighborhood called Creative Village is in the planning stages as well.”
The growth of new and existing retailers as well as exciting new commercial developments in Central Florida should boost the confidence and interest of area consumers and businesses alike.
Written by Janie French, Director of Business Development