Florida retail space grows as demand stays strong

Florida continues to add retail space faster than much of the country, while occupancy remains high and retail asking rents continue to rise, according to a new report.

The state holds about 11% of the nation’s existing retail space but accounted for 26% of new retail supply added in the first half of 2026, according to Colliers' 2026 The State of Florida Retail report.

Statewide occupancy stood at 96.2%, and vacancies have remained below 4% since 2021.

Retail asking rents increased 2.1% over the past year, slightly faster than the 1.9% U.S. average, reaching an average $35.17 per square foot statewide. More than 8 million square feet of retail space was still under construction at midyear.

Florida retail sales also grew slightly faster than the national rate. In the second quarter, retail sales were up 2.8% in Florida, compared with 2.6% nationally, according to the Colliers report.

Florida also continues to outpace the nation in retail sales growth. In the second quarter, retail sales were up 2.8% in Florida, compared with 2.6% nationally, according to the Colliers report.

Investment activity varies by market

Retail property sales were far from uniform across the state.

Transaction volume jumped 161% year over year in Tampa, 89% in Orlando and 67% in Palm Beach during the first half of 2026, the Colliers report stated. Volume fell 55% in Miami, 17% in Jacksonville and 12% in Broward County.

For Realtors working with retail properties, the numbers show why local market conditions matter. Sales activity, vacancy rates and rents can vary significantly from one Florida market to another.

Orlando, for example, had a 4.7% retail vacancy rate in the second quarter, with average triple-net asking rents of $31.24 per square foot. Tampa’s vacancy rate was 5.9%, with rents averaging $29.75, while Palm Beach posted a 4% vacancy rate and rents of $30.14.

Colliers also pointed to Florida’s broader economic growth as a driver of retail demand. The state added nearly 197,000 residents in 2025, welcomed a record 143.3 million visitors, and eliminated the state commercial lease tax in October 2025.

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