State of the Economy: St. Pete looks to develop more properties, Welch talks on Rays deal
/Downtown St. Pete has experienced incredible population growth over the last few years, accounting for 48% of Pinellas County’s growth since 2020 | st. pete rising
Since 2020, St. Petersburg has accounted for 48% of the population growth in Pinellas County with over 265,780 residents, and that number should continue to increase thanks to planned new development.
The population data and latest market trends were presented Wednesday, March 27th, at the City of St. Petersburg’s State of the Economy event hosted at the ARK Innovation Center in the Innovation District.
Here are some of the market insights city officials and community stakeholders shared during the event:
New development opportunities, city actions
A rendering of the proposed new Tampa Bay Rays stadium and SURROUNDING ENTERTAINMENT DISTRICT | Tampa bay rays and hines
Tampa Bay Rays President Matt Silverman, one of the guest speakers, presented an overall summary of the redevelopment of the former Historic Gas Plant District - which will be the largest development to occur in the city’s 136 year history.
The new 30,000-seat ballpark will be at the heart of the $6.5 billion redevelopment, which calls for 4,800 residential units, 1,200 affordable/workforce housing units both on- and off-site, and 8 million square feet of mixed-use development.
“We aspire to build a great neighborhood, a live-work-play destination, and honor the Gas Plant District that thrived there before baseball,” Silverman said.
Silverman said with new office buildings, hotels, and shops, there will be daily activation regardless of baseball season.
The first phase, which includes the envisioned ballpark, would open in 2028. The full buildout will take nearly two decades of work.
The envisioned retail and restaurant activation the rays and hines plan to bring to the historic gas plant district | Tampa bay rays and hines
“That's 20 years for individuals and businesses to gain experience, build capacity, grow, and flourish,” Silverman said, stating how the venture partners plan to engage with different organizations on business training programs.
“When complete, 70 acres of asphalt will be converted into a thriving neighborhood and one that actually generates property taxes,” Silverman said. “This transformational project will not be easy. It will not be without its hiccups. But the end result will be powerful, and it will be a great source of pride.”
Mayor Ken Welch said the city and the Rays are nearing a formal development agreement.
“We want to make sure it’s done right,” said Welch. “So, there’s no deadline. We’re in the best position that we’ve been in. I’m confident we’re going to get it done.”
ARK Invest CEO Cathie Wood, another guest speaker, also voiced her endorsement of the stadium and redevelopment plan.
a rendering showing rays fans celebrating throughout the reimagined district | tampa bay rays and hines
The City of St. Petersburg’s Economic & Workforce Development Director Brian Caper highlighted other projects the city is working on.
The city plans to form a master plan study on District 2, St. Pete’s northernmost district which is home to some of the city’s largest private employers, such as Jabil, HSN, and Raymond James.
The master plan will launch later this year to help recommend actions to increase desirability for areas like the Carillon Office Park.
The city will also be soliciting proposals from developers for commercial, retail, and housing opportunities in the Deuces, St. Petersburg's historic 22nd Street corridor.
Commercial market insights
issued construction permits topped 33,000 in 2023, representing over $1.3 billion in construction value | city of st. petersburg
In 2023, the city of St. Pete issued over 33,000 construction permits, representing over $1.3 billion in construction value.
Class A office space, which is located in prime locations offering high-end amenities, is still one of the most in-demand assets from private companies.
In 2023, the citywide Class A vacancy jumped to 11%, the highest it’s been in five years, while rent decreased to $27.62 per square foot.
Meanwhile, downtown Class B and C buildings, which are generally older and in less desirable locations, have a 4.7% vacancy in downtown St. Pete with rents averaging $28.38 per square foot.
The majority of available office space is outside of downtown St. Pete. class a office space continues to BE DESIRED, espeically in downtown | city of st. petersburg
“For a developer to invest in new office products, they seek rents that are closer to $70 per square foot. This indicates that not only do we have a ways to go for the market to generate new offices, and it really highlights the importance of private-public partnerships,” Caper said.
Proposed projects and those in the works such as the redevelopment of the Historic Gas Plant District, which will have over 1.4 million square feet of office space, and The Central, formerly known as Orange Station, will bring 125,000 square feet of Class A office space, representing the first Class A office space constructed in downtown St. Pete since the 1980s.
Watch the full 2024 State of the Economy event or view the presentation here.
