Rachael Kratz, an attorney in Gunster's Real Estate practice, recently moderated a panel titled "A Tale of Two Markets: Multifamily Challenges and Condo Opportunities in Tampa" at Bisnow's Tampa Bay State of the Market. In a follow-up conversation with Bisnow, Rachael shared her observations on the current state of Tampa's housing market and what developers should keep in mind as they evaluate opportunities across the spectrum. Tampa's real estate market continues to attract attention from developers and investors alike, but success in today's environment demands more than enthusiasm about the region's growth trajectory. Stakeholders must approach each project with discipline, thorough due diligence, and a clear understanding of the community they are building for.
A Market That Rewards Thoughtful Execution
Tampa remains a fundamentally strong and attractive real estate market, but it is not one where every project will succeed simply because demand exists. Developers and owners need to be deliberate about the basis, timing, location, and amenities of their projects. Getting deals across the finish line today requires a more structured approach, with careful attention to what Tampa buyers, whether local or relocating, actually want.
The luxury condominium segment has shown particular resilience. Projects like Pendry Residences Tampa, which combines hotel services with luxury residential living while maintaining separate resident access, illustrate the type of thoughtful amenity planning that is resonating with buyers. On the other hand, the multifamily sector is navigating a more competitive leasing environment with increased inventory, making investors more cautious about where they deploy capital.
Due Diligence as the Foundation of Every Deal
Across all asset classes, the margin for error in today's market is narrow. Before breaking ground, developers must carefully evaluate land basis, construction costs, insurance exposure, financing terms, and operational expenses. These considerations should be addressed at the earliest stages of structuring a deal—not revisited after commitments have been made.
Developers who are not already taking a proactive approach to due diligence should consider shifting their strategy. Early identification of risks and potential obstacles is what separates projects that move forward smoothly from those that stall or underperform.
Affordable Housing Requires Coordination and Creativity
The panel also explored the growing need for affordably-priced housing in the Tampa Bay region. Developing affordable housing presents its own unique set of challenges, requiring close coordination between private developers and public entities such as the Tampa Housing Authority. These projects must pencil financially while also serving the community, and making them work often demands creative deal structures and strong partnerships between the public and private sectors.
How Gunster Supports Developers Through Every Phase
Gunster's Real Estate Practice works with multifamily, mixed-use, and condominium developers at every stage of a project's lifecycle — from site acquisition and due diligence through entitlements, financing, development, leasing, and sales. As a Florida-based firm, Gunster brings deep familiarity with the state's legal and regulatory landscape, and the practice is distinguished by its focus on practical, deal-oriented advice.
That support begins with the purchase and sale agreement, extends through the review of environmental, structural, and other due diligence reports, and continues through the creation of corporate structures for financing, lease negotiations, and eventual disposition. The goal is always the same: identify risks early, solve problems efficiently, and keep the project moving while protecting the client's interests.
Looking Ahead
Tampa's real estate market offers meaningful opportunity, but capitalizing on that opportunity requires forethought and discipline. Developers and investors who approach projects with a clear-eyed understanding of costs, market dynamics, and community needs will be best positioned to succeed — whether they are building luxury residences on the waterfront or affordable housing that meets the needs of a growing population.
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As a full-service law firm, Gunster provides legal counsel to leading organizations and individuals from its 13 offices statewide. Established in 1925, the firm has expanded, diversified, and evolved, but always with a singular focus: Florida and its clients’ stake in it. A magnet for business-savvy attorneys who embrace collaboration for the greatest advantage of clients, Gunster’s growth has not been at the expense of personalized service but because of it. The firm serves clients from its offices in Boca Raton, Coral Gables, Fort Lauderdale, Jacksonville, Miami, Naples, Orlando, Palm Beach, Stuart, Tallahassee, Tampa, Vero Beach, and its headquarters in West Palm Beach. With more than 320 attorneys and consultants and 300 committed support staff, Gunster is ranked among the top 200 largest law firms by the National Law Journal and has been recognized as one of the Top 100 Diverse Law Firms by Law360. More information about its practices, industries, offices, and news is available at www.gunster.com.
