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NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Cohen & Steers (NYSE: CNS) announced today that funds managed by the Private Real Estate Group of Cohen & Steers and the Investment Management business of Acadia Realty Trust (NYSE: AKR – "Acadia"), a publicly traded owner and operator of retail properties in the U.S., have entered into a joint venture to own The Walk at Highwoods, an open-air community shopping center in Tampa, Florida.
The Walk at Highwoods is a 141,000 square foot power center located approximately 20 miles northeast of downtown Tampa in a high-growth suburban area. The center is fully occupied by national and local retailers and tenants including HomeGoods, Michael's, Dunkin', F45 Training, and European Wax Center. The center sits in close proximity to I-75 and additional retail properties, including a Walmart Supercenter, Publix, and Home Depot, that drive significant traffic to the center and altogether create a strong retail hub in the Tampa metropolitan area.
Tampa's favorable tax environment and growing technology and financial sectors have contributed to its strong economic growth over the last decade and have made it an attractive market for corporate relocations and expansions. As a result, Tampa has seen considerable population and employment growth over the last five years, significantly outperforming the average of the top 50 U.S. metros according to CoStar Group. Northeast Tampa has experienced retail rent growth of 6.4% over the last 12 months and a low vacancy rate of 2.3%, indicating the submarket's appeal to retail businesses and consumers alike.
James S. Corl, Head of the Private Real Estate Group at Cohen & Steers, said:
"We are pleased to partner with Acadia, whom we have known since their IPO in 1994 and who share a similar view with us that open-air shopping centers are well-positioned entering a new economic cycle given robust demand and limited new retail construction. The Walk at Highwoods should continue to benefit from Tampa's growth and Acadia's retail real estate operating expertise. We look forward to partnering with Acadia to drive long-term value in this shopping center for our investors."
Open-air shopping centers are at their highest occupancy level of the past 16 years at 95.7% nationally and are the most highly occupied of any major commercial property type in the U.S. according to CoStar Group. Open-air shopping centers were also the best performing private core real estate sector in 2023 according to NCREIF. To learn more about Cohen & Steers' open-air shopping center investment thesis, please read our whitepaper: The Retail Renaissance has arrived in private real estate investing.