TAMPA, Fla. — Tampa's secret is out, leading to more people with deep pockets moving here.
The market for high-end living is blossoming in Tampa. While city leaders and developers move to build affordable housing, they are also targeting an untapped luxury market.
The move to high-end luxury is working for developers. Tower I of the brand new Ritz-Carlton Residences Tampa, located along iconic Bayshore Boulevard, sold out in record time. Tower II, still under construction, is selling out fast.
Prices for Tower II range from around $1.5 million to over $6 million and are subject to change depending on market factors.
"We like to think of ourselves as a builder of communities, not just buildings," Nick Perez, President of the Condominium Division at Related Group, said. "My father started the company in 1979 in affordable housing, and then that progressed into market rate in the 80s and 90s, and condominiums in 2000."
The Related Group is the developer of the Ritz-Carlton Residences Tampa.
He told me that a lot has changed in Tampa over the past decade. That includes a high walkability score, live-work-play communities, affordability compared to other cities across the country, and proximity to water.
"For Tampa, would something like a Ritz exist 10 years ago?" I asked. "Or has Tampa grown to the point where we've become a city that people look at as not only beautiful but luxurious?"
"There's a lot in that question. I would say Miami, even Miami, 10 years ago; who knows if we were going to have this development, right? I think COVID-19 for everyone in Florida, on the development side, has spurred and accelerated what we always believed in. So, it's no shock that Tampa has ridden that wave. Also, just look at the core basics or the underlying economics and drivers of the Tampa market. You have lower unemployment than the national average. You have a lower cost of living. You have a strong office market when you compare it to the East Coast of Florida and the main urban centers. But now we jump to the luxury market, and I think Tampa is the center of luxury development, and it will be; it's ready for it."
The Ritz-Carlton Residences are a step above. Perez compared it to living in a hotel—only residents own their units. This is a niche market that he believes will only get bigger.
"We thought Tampa was ready for a step above with five-star Ritz-Carlton Residences. Historically, Tampa hasn't been a high-rise living market, and I think we've introduced that and had great success," Perez said.
Apartment complexes are also entering the luxury game. AER Tampa apartments, which stands for Arts Entertainment Residences, started leasing units on July 1.
"I feel like for the view and for the location, I preferred AER more," AER resident Kenya Ramirez told me. "I think our amenities are much better. We have a bigger pool. We have a sauna. Surprisingly, the other high rises did not have saunas. A few years ago, I thought I would leave and move out and go to Miami, but now that I see all the new changes, I actually like it, and I think I am going to stay here."
AER boasts 31 stories of luxury living, with the top floor offering 360-degree views of Downtown Tampa, including sunrises and sunsets. The location is unbeatable. It's in the heart of the Tampa Riverwalk, feet from the Straz Center, and a bike ride, walk, or water taxi away from Armature Works, Sparkman Wharf, and a quick trolley ride to Ybor City.
"It's more about that lifestyle. We're offering culture, lifestyle, and fitness. So coming here, not just getting an apartment, you're transitioning into a full lifestyle," Jessica Santa, Property Manager for AER Tampa, said.
Santa was so excited about the location she moved her family here.
"I've worked at numerous properties, and I see the potential in this property that where it's offering the culture, where I can take them to a show, I can take them to the Children's Museum, I can take them to the pool, you know, and then I can work out as a mom and have that great health and fitness for my kids," Santa said.
"Is that why a place like this now can exist in Tampa, where maybe 10 years ago, someone wouldn't invest?" I asked.
"Absolutely," Santa said. "And it can exist now because we now have the Riverwalk. You know, people can cruise along."
Monthly rents at AER range from around $2,800 to over $6,000, depending on the unit size.
The median rent for Tampa, according to Zillow, is $2,100.
For years, I have reported on the housing crisis in Tampa. Most recently, profiling a young mom stuck on multiple waitlists.
At a recent news conference celebrating a new affordable housing complex, I met Tampa Mayor Jane Castor.
"How important is the luxury of helping bring that class of people to the city with high-paying jobs? Does it raise the city up? Or does it push people out?" I asked.
"No, it raises the city up," Mayor Castor said. "We don't ever want to push anyone out. You know, our diversity is really what defines Tampa as the greatest city in the nation, and so we want to ensure that we have housing available at every single level."
"What does that mean to have people that now don't want to go to Miami and want to come to Tampa because the city has been so beautified, the walking trails have expanded?" I asked.
"Yes, well, that is part of our successful growth. As we grow into the future, we are bringing in those companies that want to move their headquarters or expand here, and we're bringing in those individuals who can afford the luxury housing. We're also bringing in those highly skilled jobs and ensuring that our residents are trained to participate with those high-paying jobs," Mayor Castor said.
