2025 Commercial Real Estate Outlook for Southwest Florida

Looking forward to growth in 2025

The Florida commercial market continues to grow in certain sectors and sizes. Many landlords and investors are seeing a strong demand for second generation spaces and smaller unit sizes. Many of the existing tenants signed leases with unfavorable rates because they originally leased during the real estate boom of the 2000’s or at the beginning of COVID and have decided to exit the market after many years of success. Many new retail centers have been built and are in the process of being built now with many of the units being from 1500 to 3000 sq ft in size and many national and mid size retailers are doing the same in their new locations such as Fifth Third Banks new locations, Little Caesars drive thru locations. Investors have also shown their confidence and willingness to work with many local owner operators of multiple locations.

In this market Collier Realty and Management is here to help with you with the location and purchase of the strong retail and multi-family opportunities in this market with a strong upward potential of rental income and asset appreciation. We are also able to help you with the purchase of real estate investment purchases with our relationships with different financial institutions and advisors that can assist with using your 401K or Self Directed IRA. If you do not have a 401K or Self Directed IRA will be happy to get you the necessary information and advisor to assist with the setting of one up.

We are proud to present our report on the current market outlook. This report is designed to equip investors with actionable insights and nuanced market intelligence as they navigate evolving conditions across the country. Our investment and financing professionals are here to help you capitalize on today’s trends—and prepare for tomorrow’s.

Florida’s Gulf Coast: A Prime Market for Commercial Investment

As we move through 2025, the commercial real estate market continues to present strong opportunities for investors in Southwest Florida. Nationally, retail real estate remains a resilient asset class and the conditions are particularly favorable for savvy commercial property owners and buyers.

Collier County’s high-income, fast-growing population base and tourism-fueled economy create exceptional demand for well-located retail and service-oriented commercial spaces. Southwest Florida consistently attracts both permanent residents and affluent seasonal visitors, supporting a diverse range of retail tenants from fine dining and wellness to financial services and boutique retailers.

Market Dynamics in Favor of Investors

Retail vacancy rates are near historic lows, with multi-tenant centers at all-time-low vacancy and single-tenant spaces reporting rates below long-term averages.
Time on market for retail spaces is the shortest in over a decade, averaging 9.3 months, with food service and fitness tenants leading leasing demand.
Foot traffic has grown across property types, especially in fast-casual dining, grocery, and medical retail, making neighborhood and unanchored strip centers high-performing assets.
Retail construction is at a historical low, creating scarcity and competition for quality space—which puts upward pressure on rents and helps maintain high occupancy.

Why Southwest Florida?

As part of Florida’s prosperous Gulf Coast, Southwest Florida is situated within one of the most desirable commercial corridors in the nation. In-migration continues at a high pace, while zoning restrictions limit overdevelopment—preserving the value of existing commercial holdings.

Consumer spending remains strong, with general merchandise, food, and wellness categories seeing steady growth.
Medical and service-sector tenants are expanding into retail centers, particularly to meet the demands of the growing 65+ demographic.
Retail landlords are increasingly targeting backfill opportunities, with value-oriented brands like Aldi, Dollar Tree, and Five Below aggressively expanding.

What It Means for You

At Collier Realty & Management, we specialize in helping commercial property owners and investors maximize the potential of their assets. Whether you’re considering repositioning a property, evaluating a strip center acquisition, or planning a 1031 exchange into a low-maintenance net-leased asset, now is a strategic time to act.

We offer:

Expert commercial real estate advisory
Leasing strategies for high-credit tenants
Portfolio repositioning and valuation
Local insight backed by national trends

Partner with Local Experts Who Understand the Southwest Florida Market

Collier Realty & Management is your dedicated partner in Southwest Florida commercial real estate. We offer localized strategies with the backing of decades of experience and a finger on the pulse of regional economic trends.

Let’s unlock your property’s potential.

📍 Proudly serving Southwest Florida including Naples, Bonita Springs, and Marco Island

Don't Miss Out! Contact Us Now.

Edward Blackburn

Edward@SWFLCommercial.com
Naples (239) 263-0349 | Punta Gorda: (941) 947-8547

1415 Panther Lane, Suite 443, Naples, FL 34109