Q&A: Centennial Bank’s Stewart Talks Super Bowl LV in Tampa

With the string of recent sporting event cancellations across the U.S. due to COVID-19, we turn an eye toward next year’s Super Bowl LV in Tampa and its potential impact on Central Florida’s CRE industry.

We caught up with Chris Stewart, market president at Centennial Bank Tampa Bay, to discuss next year’s big game as well as CRE in Tampa as a whole.

Q: How will Super Bowl LV in Tampa Bay impact the local commercial real estate industry?

Chris Stewart

A: Tampa Bay prepares to host the largest sporting event in the U.S., several infrastructural changes will take place to accommodate the influx of visitors to the city. In addition to this, the role of commercial real estate, from retail to hospitality, is significant. Tampa last hosted the Super Bowl in 2009, a time when the economy was on the cusp of a downturn, which impacted spending. We are anticipating additional new hotel development and completions ahead of next February, with properties like the 125-room Cambria in Madeira Beach, set to open in May 2020. In addition to the economic impact to the area the week leading up to the marquee event, the experience will serve as a live commercial. Super Bowl attendees will go back to their respective communities across America and talk about their time in Tampa Bay, which in turn can lead to additional tourism and possible relocations to the area.

Q: What submarkets in Tampa are you seeing the most growth and opportunity for new commercial development?

A: Two of the submarkets that are experiencing a boom in new development are Water Street in Downtown Tampa and the Westshore area. Both areas have seen significant contributions invested for growth, which is causing a ripple effect into other surrounding areas, like Midtown and Uptown. When we’re underwriting new deals, we’ve found that new development typically follows markets that are active employment centers, like Westshore. Commercial real estate developers are identifying these markets for opportunities to cater to existing density with live-work-play developments. With this trend, we hope that the surrounding areas will also see some much-needed revitalization.

Q: On the lending side, what product types are most active?

A: There has been a flurry of new hospitality development throughout the Southwest Florida region. Tampa Bay reached record tourism revenue in 2018, and we’re seeing an increase in all property types, from those that cater to travelers with disposable income to spend on luxury and resort stays, to modern, millennial-oriented brands. As an example, we recently closed on a refinance deal for a resort in Treasure Island, and Tampa Bay is getting its first five-star hotel property on Water Street. On the flip side, we’re seeing new brands from major hotel flags enter the market, like Aloft and Cambria, which target next gen visitors.

Another product type that is active now, and will continue to be, is single and multifamily housing. Tampa is the fourth fastest-growing city in the U.S., so there is such a strong demand for housing.

Q: What do you predict the financing landscape for commercial real estate will look like in 2020?

A: With interest rates remaining stable this year, demand across all commercial real estate product types is projected to remain strong. From a financial perspective, for every deal that we evaluate, it’s important to find a balance between remaining cautious, while also being optimistic about growth in areas that have key differentiators. The primary market factors we look for when identifying the viability of a potential deal are demographics in an area, demand drivers, like employment and population growth, and how that particular project fits within the surrounding community overall.

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