Current Health of the Naples Florida Retail Scene

The retail scene in Naples Florida has enjoyed a fairly strong “season” in 2012 thus far. Having had the lead role in the development and leasing of some of the finest retail properties in Naples, like the Mercato, The Village on Venetian Bay and other Publix anchored shopping centers, I have tried to keep close tabs on the sales performance of many of my retail clients. Here in Naples, the strong selling season lasts about six months, November-May, with four months being the strongest. In 2011 the more solid retailers experienced 5-10% sales growth over the prior year. In 2012 I expect that most retailers will have 10-20% growth. Some top restaurants have even experienced stronger sales performance. To keep things in perspective however, before we all get too exuberant here, remember it takes a 100% growth to offset a 50% drop like many have experienced in the Great Recession that theoretically ended a year or two ago. Nonetheless, the trend line is in the right direction.

This backdrop bodes well for the retail scene, and makes for improvements in the vacancy levels of most shopping centers. Those shopping centers that have strong locations and strong management generally have pruned down their vacancies and have started to gain pricing power in their rental rates. Rental rates are creeping back up, concessions are drying up, and the pendulum is again shifting.

In terms of major anchor spaces, the sheer number of big spaces (over 15,000 square feet) has probably been cut in half over the past 2-3 years, with some areas having very limited vacant inventory. Fifth Avenue is one area that has rebounded very nicely, with very few vacancies remaining. The active North Trail commercial corridor always has been strong, and the Mercato has set a new tone for the community. As you  go further north in to Bonita and Estero the picture isn’t nearly as rosy. Those areas still have considerable healing to go through and lease rates are very competitive (a general barometer to the retail health).

When considering a retail location it is so very important to have a knowledgeable commercial real estate specialist provide you with the local market knowledge in determining: what trade areas are best suited for your business, what the real market rates are, and how to structure a win-win deal with the landlord. Retailing is certainly difficult enough in and of itself, so make sure you have someone on your side to make the right moves! For a report on possible retail locations for your business please email me and I’ll respond to you shortly:

Dougall McCorkle, MBA
Sales Associate and Commercial Specialist
Premier Commercial, Inc., Licensed Real Estate Brokers

Direct: 239.213.7234
Cell: 239.860.3368
dougall@premiermail.net