By Gary Tasman
For years, commercial property growth in Cape Coral lagged behind the city’s white-hot residential market. That trend, however, is changing. Commercial development is now booming in Cape Coral, thanks to simple economics. A large supply of residents and consumers creates a large demand for retail and commercial businesses.
Cape Coral’s population has grown by more than 25% to 200,000 residents in just the last 10 years. Between now and 2025, we can expect to see it increase by another 10%. Take a quick drive down any of Cape Coral’s main transportation corridors, and you’ll see dozens of sites under construction, new businesses, and development opportunities. This trend will continue for many years to come.
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For more than a decade, Pine Island Road has been the focus of commercial growth in Cape Coral. This trend started in the early 2000s with the introduction of big box stores like Kohl’s, Target, and BJ’s Wholesale, as well as car dealerships and shopping centers.
“Because the city was pre-platted primarily into residential lots, it was challenging for these early developers to gather enough property to build a large commercial complex,” explains Shawn Stoneburner of Cushman & Wakefield Commercial Property SWFL. “But the city’s been very supportive of growth, especially along Pine Island Road. We’re now seeing a second wave of commercial development.”
These new projects not only take advantage of vacant space, but also revitalize some stagnant properties. A new Fairfield Inn is under construction near the intersection of Pine Island and Pondella Roads, providing the City’s only hotel north of the Midpoint Bridge. The northeast end of Pine Island Road has also recently seen the opening of a new Nissan dealership, as well as a groundbreaking for Pine Island Village, a large retail and commercial project.
“Pine Island Road is just one area where developers have an opportunity to make their mark,” says Stoneburner. “But there are also opportunities along Cape Coral’s other two main arteries, Del Prado Boulevard and Cape Coral Parkway. We see health care, entertainment, hospitality, and auto dealerships as strong markets for continued growth.”
Cape Coral’s downtown has recently seen a flurry of activity, including new banks, retailers and restaurants, with more on the way. A Chase bank is in the works, as well as the long-awaited Village Square, a 250,000 square foot mixed-use facility that will combine both residential and commercial space when completed.
“South Cape is filling in, but there the market isn’t saturated yet,” explains Stoneburner. “Our brokerage recently placed a large property under contract on Cape Coral Parkway near Del Prado, and we’re excited about the development potential.”
Investors looking towards the future of the Cape Coral market may want to consider two other areas with strong development potential. Burnt Store Road presents great opportunities for growth, thanks in part to a rapidly growing population in Northwest Cape Coral. The current Burnt Store Road widening project will also benefit developers as access to Northwest Cape and Punta Gorda improves.
A second area with great potential lies along US-41 from Del Prado to Burnt Store Road in Charlotte County. While not technically in Cape Coral, this corridor has easy access to the Cape and land available as commercial and industrial sites. A projected I-75 interchange will spark future growth, and smart investors will be ready to take advantage of the opportunity.
To learn more about existing space available and development opportunities in Cape Coral, contact Cushman & Wakefield Commercial Property SWFL, your go-to team for commercial brokerage needs. Our team knows the community and has access to the data that you need to make your next move in one of the fastest-growing markets in Florida.