Commercial Property in Cape Coral Heating Up!

Last week, we had the first of a two-part overview of the commercial real estate market in Cape Coral. Today, I want to narrow our focus down to two hot spots: the Community Redevelopment Agency area and the Pine Island Road corridor.Currently, there is about $800 million worth of CRA development in the pipeline, and this should usher in a dramatic change to downtown Cape Coral.The CRA is cultivating the eastern segment along Cape Coral Parkway to offer more of an urban lifestyle. Some notable projects in the works include a 75-unit Hampton Inn and the Terraces at Rosa Vista, both located on Southeast 47th Terrace Street.
Rosa Vista will include up to five stories of about 23,000 square feet. Retail shops and restaurants will be on the ground level, with offices on the upper floors. The Villagio project near the Cape Coral Bridge on Southeast 47th Street will be comprised of two, 12-story towers with residential units, restaurants and other retail space. There will also be a 15-acre mixed-use development known as Cape Vincent. Piazza di Venezia is a 20-acre development two blocks from Coronado Boulevard and Cape Coral Parkway.Not to be overshadowed by the CRA, Pine Island Road is shaping up to become Cape Coral's future corridor of commerce. The corridor is one of the only areas in Cape Coral where large tracts of commercial land are available, and this has attracted national "big box" chains. Publix will locate a new center that is under construction at the intersection of Burnt Store Road to serve the growing neighborhoods in the west (another Publix is planned for Del Prado Boulevard and Kismet Parkway).
A Super Wal-Mart is planned to open on Pine Island Road across from the German American Social Club. Near this location is a 200-acre site being proposed for a regional mall. In order for a mall to be considered regional, it must have a minimum of at least 1 million square feet of retail space with a population of at least 250,000 within a 10-mile radius. Clearly there is enough land to build the retail space and it has adequate out parcels. The surrounding population of 168,000 is expected to exceed the 250,000 requirement by the time the mall is built.However, there are still significant barriers to overcome before the mall developer can begin construction. Pine Island Road must be widened to accommodate the increase in traffic, utilities must be available, zoning must be approved, and the mall's likely designation as a Development of Regional Impact requires even further government approval. All four barriers come down to time and money, so we may not see this project actually built for another five to seven years.Even with the large amount of planned new commercial construction, demand and rents in Cape Coral should remain strong. The current deficit of available commercial space and Cape Coral's swelling population growth are projected to attract enough tenants to meet supply as these new buildings are completed.