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CrowdStreet names Tampa-St. Pete a top real estate market
Source: CrowdStreet names Tampa-St. Pete a top real estate market • St Pete Catalyst
Published: on February 17, 2021
By: Margie Manning
The Tampa-St. Petersburg area ranks No. 8 on a new list of 20 of the best places to invest in 2021.
The list of top real estate markets was compiled by CrowdStreet, an online crowdfunding platform for commercial real estate deals.
Feldman Equities used the CrowdStreet platform last year to recapitalize First Central Tower in downtown St. Petersburg.
“With strong population growth, no state income tax, a business-friendly environment and a Sunbelt location, Tampa-St. Petersburg is an attractive market across nearly every asset class,” the new report said.
The report listed CrowdStreet’s favorite markets in several real estate sectors.
• Tampa-St. Pete ranked No. 5 in the hospitality sector.
While hotels were the hardest hit of all types of real estate in 2020, leisure destinations are also likely to bounce back faster than others once there are wide-spread vaccinations for Covid-19, CrowdStreet said.
“When ranking our top hospitality markets, CrowdStreet looked for demand drivers within the leisure space such as cultural amenities, entertainment venues, tourist attractions, and one-of-a-kind destinations,” the report said.
• In the office sector, Tampa-St. Pete was No. 8.
The sector entered 2021 with a high level of uncertainty and central business districts will face headwinds over the next one to three years, but “we do believe the urban core, even in the hardest hit cities, will recover by 2025,” CrowdStreet said.
CrowdStreet is more enthusiastic about suburban offices which are typically cheaper to rent, offer more space per worker and have free parking.
“When ranking our top office markets, CrowdStreet looked for strong population and employment growth trends and an above-national-average net absorption. They typically offer attractive nearby amenities, lively entertainment, and/or accessibility to nature,” the report said.
• Tampa-St. Pete ranked No. 10 in the multifamily acquisition sector.
“The outlook for multifamily is positive, with favorable tenant demographics, all-time low interest rates, and a spike in single family values,” CrowdStreet said.
• In the industrial sector, CrowdStreet ranked Tampa-St. Pete as No. 12.
“As a percentage of retail sales, e-commerce sales were already growing at double digit rates over the past decade and were only accelerated by the pandemic. The increase in e-commerce sales, which requires more square footage than traditional retail, has driven the continued demand for industrial space. Class B manufacturing-oriented properties have also enjoyed low vacancies and strong rent growth.
“The industrial sector will need to meet growing demand for this type of real estate by finding land in strategic locations with enough space to accommodate its large footprints. CrowdStreet views land limitation as a driver for rent growth, low vacancies and increased tenant renewal rates.”