Downtown Sarasota Redux

This time last year, the buzz throughout Southwest Florida’s commercial real estate market focused on the pending debut of the Mall at University Town Center; and whether its opening would establish a new center of gravity for the region’s retail sector.

Last week, even as the mall celebrated a successful first year, the fear that it would siphon away shoppers from downtown Sarasota continued to recede.  If anything, the new mall has proven that our market—with its steady growth, upscale demographic, and diversifying economy—can comfortably support several major retail hubs.   As it turns out, more will be needed.

Downtown Sarasota Developing
Still, it is hard not to feel a tinge of excitement as one ponders the evolving shape of downtown Sarasota.   

Building cranes punctuate the skyline, new shops and restaurants dot the streets; and several major infrastructure upgrades—including the new State Street parking garage and traffic roundabout at Orange Avenue and Main Street—have just been completed.   Now, a city once accused of rolling up the sidewalks at the end of each day steps-out and stays lively until long after the sun goes down.

Thanks to the hundreds of millions of dollars streaming into new residential development downtown and along the bay, the city’s commercial real estate landscape is looking equally bright.

Currently under construction—or in some stage of permitting—are no less than 15 major construction projects involving new condominiums, town homes, rental apartments, hotels; and commercial spaces.

Within easy walking distance of downtown Sarasota, these projects have already attracted sizeable numbers of new residents to the neighborhood, along with the increased tax base and high levels of discretionary spending their presence will generate.

Entrepreneurs please take note:   With over 1,300 residential rental units, hundreds more condominiums and over 1,000 new hotel rooms rolling out in downtown Sarasota over the next few years, new shops, restaurants, and other commercial services will be needed to cater to this major new influx of year-round residents and visitors.

Rosemary Rising
Downtown Sarasota’s Rosemary District is also poised for redevelopment, with many of the aforementioned residential and hotel projects situated in or near the historic 128-year-old enclave.

When all is said and done, nearly 800 new apartments, 100 new condominiums and nearly 50,000 square feet of office and retail space will bring new life to the once-blighted neighborhood.

Retail vacancy rates in downtown Sarasota are hovering at around 5%, with the diminished supply generally pushing leasing rates higher.  Still, downtown leasing rates are considerably lower per square foot than in many other areas of Sarasota and Manatee Counties.

Urban SRQ Roots
Now entering its 40^th year, Michael Saunders & Company has been a proud citizen of downtown Sarasota since we opened our first mainland sales office—at Main Street & Osprey Avenue—nearly 25 years ago.   Early next year, our downtown office will begin its next 25 years at newer, larger quarters at the corner of Main Street and Orange Avenue—immediately facing the new traffic roundabout.

We love downtown Sarasota and look forward to its next chapter.  Joining our talented team of residential agents at the new Main Street office, will be our equally accomplished team of sales and leasing agents from the company’s Commercial Division.

Vintage Downtowns
There are outstanding commercial opportunities available in the region’s other vintage downtowns, including those for Bradenton, Venice, Punta Gorda, Englewood and Boca Grande.   Each of these is experiencing its own commercial renaissance while preserving the historic charm and walkability that have attracted previous generations to explore and enjoy these appealing waterfront communities.

If opening a retail store, restaurant or other type of commercial service is your passion, there could hardly be a more opportune time to indulge it.   With significant new population growth taking place throughout Southwest Florida, the opportunities to service the region’s commercial needs are currently endless.