Inside the 2025 Downtown Development Guide: Grappling with growth amid market headwinds
/Downtown st. pete as seen from Mirror Lake | St. Pete Rising
New zoning changes, the rapid rise of both commercial and residential development, and efforts to revitalize neighborhoods are shaping the evolving identity of the Sunshine City.
This Tuesday, the St. Petersburg Downtown Partnership released its 2025 Downtown St. Pete Development Guide, an annual resource that offers an overview of the latest economic activity to encourage sustainable growth among public and private stakeholders.
St. Petersburg Mayor ken welch speaking at the summit | st. pete rising
“The data, trends, and projects on the horizon really comprise the blueprint for how we continue to grow with purpose, intention, and resilience,” Mayor Ken Welch said during the Partnership's Development Summit hosted at the new EDGE Collective office building in downtown’s EDGE District.
“That word ‘resilience’ has a new meaning for us today more than it did a year ago,” Welch continued. “In the past year, we've seen the strength of our city tested. The hurricanes of 2024 dealt us a powerful blow, but we are building stronger and more rapidly than many folks thought possible. Businesses are reopening, residents are supporting one another, and neighbors helping neighbors. Our momentum is back.”
This year’s Downtown Development Guide highlights several key trends:
The downtown housing market
In 2024, seven residential projects were announced for downtown St. Pete, totaling 883 housing units.
There are six rental developments currently under construction downtown, with 25 more proposed.
Currently, there are 9,400 existing residential units in downtown St. Pete, with an additional 8,050 units either proposed or under construction. These include apartments, condos, and townhomes.
Among these, more than 700 market-rate condos are in development, including The Residences at 400 Central, which recently topped out.
While many condo and apartment residents come from states like New York, California, Illinois, Georgia, and Washington, D.C., the majority are relocating from within Pinellas County. This is driven by the amenities and appeal of downtown living, as well as the number of residents displaced by the back-to-back hurricanes. About 70% of the condo units are owner-occupied and serve as permanent residences.
Regarding market-rate apartments, the average asking rent in the downtown St. Petersburg submarket is $2,350 per month, according to CoStar.
Construction of 400 central and Art House two of the newest condo developments in downtown st. pete | st. pete rising
Like many metropolitan areas experiencing population growth, St. Petersburg relies on workforce and affordable housing to support its local economy. To address this growing need, the city has implemented several initiatives:
In 2020, the City of St. Petersburg introduced a comprehensive 10-year plan called Housing Opportunities for All. The plan focuses on creating new affordable multifamily units, single-family affordable housing, home purchase assistance, preserving existing affordable housing options, and incentivizing workforce housing development through density bonuses and new accessory dwelling unit (ADU) construction. The plan is expected to impact approximately 8,000 households.
To support these efforts, St. Pete's Housing and Neighborhood Services created an ordinance granting local tax exemptions to properties with 50 or more units, provided at least 20% of those units are designated for residents earning at or below 60% of the area median income (AMI). If all units are affordable, a developer can receive a full 100% tax exemption.
As of December 1, 2024, more than 400 workforce and affordable units were planned throughout the city that will benefit from this exemption.
In 2024, St. Petersburg became the first city in the county to utilize a new tax abatement program made possible by the Live Local Act.
The downtown office market
The current market offers 2 million square feet of total office space with a 7.7% vacancy rate. Class A offices account for 78% of the total supply. Downtown St. Petersburg is set to add 390,000 square feet of office space through mixed-use developments.
Major tenants in downtown St. Pete include Duke Energy, Truist Bank, Merrill Lynch, and Amwins Insurance, which recently occupied a full floor at 200 Central. Raymond James and Dynasty Financial both expanded by adding a floor at 200 Central. Civil engineering firm George F. Young also relocated to a 13,000 square foot space in downtown.
Several projects are underway that will deliver more office space such as Halcyon, an 11-story office building offering 125,000 square feet of Class A office space, representing the first Class A office building constructed in downtown St. Pete since the 1980s.
Mack feldman of Feldman equities (left), Vice President of Development of Echelon Cody LeClair (speaking), and Casey Ellison of Ellison Development | st. pete rising
Despite recent growth, various market factors are hindering many residential and commercial projects.
During a Q&A panel, several industry experts spoke about the current challenges facing developers.
“Developers typically face several challenges early on. You have a very high cost of land and construction costs, you also have significant insurance costs. Interest rates are still very high as well," Cody LeClair, Vice President of Development of Echelon.
Echelon is currently building a 20.5-acre mixed-use project in north St. Pete called Echelon City Center and a 33-story apartment tower in downtown St. Pete called 3rd and 3rd.
Casey Ellison of Ellison Development, the firm behind The Central in the EDGE District, acknowledged that regulatory and bureaucratic risks will always exist. However, he praised St. Pete's elected officials and staff for their collaboration with developers.
Mack Feldman of Feldman Equities, the developer behind the planned 49-story Waldorf Astoria Residences at 150 2nd Avenue South, discussed how the city charter safeguards the waterfront park system through a citywide referendum process.
A rendering of the waldorf astoria residences, which would become the city's first hotel-branded luxury condominium | CUBE 3 Architects
“For us as a city to have this permanently protective amenity has been a huge advantage for everyone,” Feldman said.
“In our case, because we own the office building between the proposed Waldorf tower and the park, and we are putting a permanent covenant on the height of the Northern Trust building,” continued Feldman. “So even if I sell it, which I'm not planning to, no one can ever tear it down and build something taller than what it is today.”
Feldman simultaneously announced the launch of the website for the new St. Pete Waldorf Astoria Residences and said a sales center will open in the next few months.
