Why so much Westchase Commercial Real Estate?

Westchase residential real estate has braved the real estate downturn and is stabilizing more quickly than some other Tampa suburbs, but why is the commercial lease story different? 

Why is there so much commercial space for lease in Westchase?

Every morning Westchasers travel to and for their morning brew. Those who eat lunch and spend their weekend free time in Westchase fill the many Westchase restaurants and bars in the several commercial plazas including the two Westchase Town Centers, Publix Shopping Plaza and the Hampton Lakes Retail Plaza.

Try to book a hair appointment with your favorite hairdresser, fight for a spot at the bar at , wait for a table at or and get on the end of the line on a weekend morning at Starbucks. 

These businesses are busy. So why aren't new businesses lining up to fill empty retail space in Westchase and surrounding areas?

Bruce Swain of Real Property Specialists, Inc., is charged with leasing space in the Westchase Town Center across from .

When asked to speculate on why some space stays vacant for long periods of time, he cites several reasons including:

• Tenants seeking aggressive price per square foot reductions vs. landlords that are unwilling or unable to agree those aggressive terms.
• Non-responsive commercial real estate agents.
• Banks that lend money for development of commercial retail centers often tie the hands of landlords and require specific range of price per square foot in their financing documents.  If that range is broken, a large up front payment may be required by the landlord.

"Lowering the price per square foot on a retail space can cost more up front than the slow bleed of a vacant space," he said.

A look around Westchase Town Center and you see a healthy mix of tenants.

Bruce believes that his consistent “work ethic and aggressive hunt for retail tenants” has caused his town center to currently have a higher occupancy rate than other local plazas.

Other Westchase area shopping centers aren't fairing as well.

Ray Pironti, president and owner of Mainsail Insurance Solutions, echos many of Bruce’s sentiments adding “an increase in commercial foreclosures makes the purchase option more attractive for possible tenants than a lease option.”

Ray invests in residential and commercial real estate and owns commercial real estate in Westchase. 

“Westchase commercial owners are required to pay Westchase Community Development District Tax which is exponentially higher than the CDD that applies to residences in the same district," he said. "This makes creating a positive cash flow for commercial leases challenging for commercial landlords.”

Another possible side effect of lowering the price per square foot in lease space is the effect on sale value should the landlord decide to sell the unit.  Lower price per square foot cost on existing leases diminishes value in a potential purchaser’s viewpoint.

But there are some optimistic signs for Westchase commercial property.

“In the last 30 to 45 days, inquiries from potential tenants has spiked," Ray said. "There seems to be a lot of interest in Westchase commercial space.”