The demand for downtown Tampa condominiums has increased the annual number of approved project permits, which totaled US$1 billion for the first time ever. The number includes more than $689 million in commercial and $356 million in residential projects in the fiscal year that ended in September 30. It reflects particular costs for both rehabilitation projects and new construction as it takes into account the rising prices of construction materials.

Two years ago, the city of Tampa, Florida has imagined its residential components to establish a name of its own. During the early quarter of 2004, real estate developers and its realtors have realized the potential of downtown Tampa as a hot spot for urban living. According to city officials, the number of permits granted this year has doubled compared to 2004.

This number shows that specific real estate projects are coming around and is planning for the development. Although many projects have been washed out for one reason or another, even better and committed developers have picked up these properties. Currently, there are condominium projects in the planning stage and under construction. These would add approximately 6,000 residential units in 30 different communities in downtown Tampa.

Among these new entries is Crescent Heights Inc., which is planning a 29-story cylindrical tower with 879 units, which expects each unit to be sold at around US$200,000 and up. Two current projects are already underway. Sky Point, developed by Novare Group Inc., features 400 units priced at around US$170,000 and up. The Pinnacle Place Development Partners LLC has a two 40-story condominium tower, which will offer 170 units for each that are priced at US$300,000 and up.

According to the Greater Tampa Association of Realtors, during February 2005, the median price of each condominium unit was priced at $US 152,200. One of the most talked about developments in the condominium scale is Donald Trump’s Tampa Tower. Recently announced, the tower will consist of 190 units priced from US$700,000 and up. Almost sold out, the construction is expected to start by May next year. Once the Trump Tower is finished, it will be the largest condominium built in Tampa. According to local Tampa brokers, the downtown condominium boom not only attracts investors, it also draws homebuyers who wish to escape from the bustling East Coast Florida.

Approximately 50 percent of the condominium units have already been sold since the announcements of the July 2004 projects. On the other hand, the continuous condominium boom is not exclusive to Tampa Bay. Tampa’s neighboring area St. Petersburg also had a record-breaking year with city permits amounting to US$41 million in new construction. The total construction projects' value have increased by 66 percent since 2001.

Although the condominium constructions are unstoppable, the probable rising of construction material could be a hindrance and issue for developers to move forward. According to city officials, as long as the developers keep their commitment, and their fellow officials follow through the plans on the improvement of the Tampa area, everything will turn out fine. The local government wishes to complete projects such as a new art museum, the River Walk, and the Ashley Drive redesigning. As long as the development of the real estate industry works in hand with the government’s continuous support, the growth of Tampa area will continue to increase.

 SHANE VANDERLEELIE & ASSOCIATES PA

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