St. Pete’s condo boom brings a wave of commercial space

The ground-floor commercial spaces at 400 Central in downtown St. Petersburg. Developer Red Apple Real Estate says approximately 25,000 square feet of retail and office space remains available for lease. Photo provided. Downtown St. Petersburg has added hundreds of luxury condominiums in recent years, but the new towers aren’t just places to live. They also bring office space, restaurants and storefronts that developers are trying to fill. At 400 Central, about 25,000 square feet of ground-floor commercial space remains available, including a restaurant location of approximately 12,500 square feet. The building has about 60,000 square feet of retail and office space along Central Avenue and 5th Street, according to Kevin King, director of Florida operations for developer Red Apple Real Estate. Dynasty Financial Partners has leased approximately 17,000 square feet along 5th Street. More than 15,000 additional square feet has been leased to other tenants, including Volta Wine + Market, PNC Bank, Michael Saunders & Company and a Pilates studio that has not yet been publicly identified. None of those ground-floor businesses had opened when King spoke with the Catalyst . He expects Volta to open first and said the business is preparing an announcement. King said 400 Central continues to receive serious inquiries from prospective tenants. A significant amount of that interest comes from businesses already operating elsewhere in St. Petersburg. The 46-story 400 Central and 42-story Art House added a combined 545 condominiums downtown , with both buildings welcoming their first buyers in late 2025. For restaurants, shops and service businesses, hundreds of potential customers living upstairs can be appealing. King discussed how the residential component factors into conversations with prospective commercial tenants. “Is it enough to sustain a business? I’m not sure of that,” King said. “But it helps to have that relationship with residents who are just right upstairs.” The St. Petersburg Downtown Partnership’s development guide lists approximately 1.7 million square feet of downtown commercial space, with a 9.1% vacancy rate and average asking rents of $36.96 per square foot. Across Pinellas County, office vacancy fell from 8% in the second quarter of 2026 to 7.5% in the third quarter, according to Pinellas County Economic Development , citing CoStar data. The wider Tampa Bay retail market had a 3.6% vacancy rate in the third quarter, according to Cushman & Wakefield . The region also recorded approximately 164,000 square feet of negative net absorption during the quarter, meaning businesses vacated more retail space than they occupied. Alison Barlow, CEO of the St. Petersburg Innovation District, said startups and smaller businesses frequently seek one to three offices, while maritime companies are looking for workshops with adjoining office space. “We have very little available space in the district,” Barlow said. “We are frequently referring interested folks to downtown or other areas of town. We need more capacity.” Interest comes from both existing St. Petersburg companies looking to expand and businesses from other states and countries considering a move to the city, she said. Barlow does not believe commercial development is outpacing demand, particularly downtown and in the Innovation District. King, meanwhile, said he remains optimistic about downtown’s commercial market. “I think you have to take a long-term view,” King said. “Are there going to be moments of uncertainty? Of course.” Share Tweet Share Related Topics: 400 Central Business condominiums Dynasty Financial Partners retail St. Petersburg Click to comment Subscribe to the Daily Spark Get the latest right to your phone Subscription Form Name Email Subscribe Subscribe to the Daily Spark Get the latest right to your phone Subscription Form Name Email Subscribe You may like