The recent listing of WestShore Plaza in Tampa, Florida, by Washington Prime Group (WPG) has sparked significant interest within the commercial real estate community. As one of Tampa’s most well-known shopping centers, its sale presents exciting possibilities for investors and developers. However, it also raises questions about the future of the site, its redevelopment, and its impact on the surrounding area.
WestShore Plaza has been a staple of Tampa’s retail landscape for decades, strategically located at the bustling intersection of Westshore and Kennedy boulevards. Owned by Ohio-based real estate investment trust Washington Prime Group, the mall has seen substantial investment over the years, including WPG’s acquisition of the Macy’s department store for $10 million in late 2024 to secure full ownership of the property.
In April 2024, WPG received approval from the Tampa City Council for ambitious redevelopment plans to transform the mall into a 3.5-million-square-foot mixed-use development. The vision included entertainment venues, retail spaces, restaurants, office buildings, medical facilities, hotels, and residential units. Despite these plans, WPG faced challenges in securing financing, and the mall’s listing indicates a potential pivot toward involving new investors or partners to bring these ideas to life.
The property’s strategic location and entitlements for mixed-use development make it a highly attractive asset. Potential buyers could include:
Mixed-Use Developers:
Developers with expertise in large-scale, integrated projects, such as Brookfield Properties, The Related Group, or Hines, may see WestShore Plaza as a blank canvas for creating a vibrant, multi-functional space. These players often prioritize transforming properties into live-work-play destinations, aligning perfectly with the approved redevelopment plans.
Private Equity and Institutional Investors:
Firms like Blackstone, Starwood Capital, or Apollo Global Management might acquire the mall as part of a long-term investment strategy. These buyers may seek to reposition the property through phased redevelopment or partnerships.
Retail-Focused Investors or REITs:
Retail-focused real estate investment trusts such as Simon Property Group or Kimco Realty Corporation could view this as an opportunity to revive a retail hub while integrating experiential components to attract tenants and visitors.
Local or Regional Developers:
Developers with deep ties to the Tampa Bay area may take a community-centric approach to redevelopment, ensuring the project meets the needs of local businesses and residents.
Such buyers could focus on balancing national and local tenants to create a space uniquely tailored to Tampa.
The buyer’s identity will significantly influence the direction of redevelopment. Several potential scenarios could emerge:
Continuing WPG’s Vision:
A buyer aligned with WPG’s original plans could expedite the transformation into a mixed-use hub, integrating the pre-approved elements of residential units, entertainment venues, office spaces, and more.
Modifying the Redevelopment Strategy:
Some buyers may revisit the plans to address current market trends, such as increasing demand for residential spaces or medical facilities. A focus on health-conscious amenities, coworking spaces, or even technology-driven smart buildings could emerge.
Scaling Back or Delaying Redevelopment:
Investors prioritizing long-term value might hold the property without immediate redevelopment, opting instead for gradual updates to the mall’s retail offerings or waiting for more favorable market conditions.
The sale and subsequent redevelopment of WestShore Plaza will undoubtedly impact Tampa’s commercial real estate market in several ways:
Property Value Growth:
A successful redevelopment could elevate surrounding property values, making the Westshore Business District an even more desirable location for businesses and residents.
Increased Economic Activity:
By transforming the site into a vibrant mixed-use space, the project could attract significant foot traffic, benefitting nearby restaurants, hotels, and retail businesses. However, it could also require infrastructure upgrades to manage congestion.
Shaping Tampa’s Urban Landscape:
The redevelopment of WestShore Plaza would align with Tampa’s ongoing urbanization efforts, further enhancing the city’s appeal as a hub for young professionals, families, and retirees seeking walkable, amenity-rich neighborhoods.
Competition with Nearby Retail Centers:
WestShore Plaza’s transformation could challenge nearby retail destinations, such as International Plaza. However, it could also spur innovation and collaboration, with both malls serving complementary roles as key attractions in the region.
The listing of WestShore Plaza comes at a pivotal time for Tampa, a city experiencing rapid population growth and economic expansion. For commercial real estate professionals, this sale represents a unique opportunity to shape one of Tampa’s most iconic properties. Whether the eventual buyer continues WPG’s vision, modifies the plans, or takes an entirely new direction, the future of WestShore Plaza will undoubtedly set the tone for further development in the city.
For local investors, business owners, and residents, this is more than just a real estate transaction—it’s a moment that will shape Tampa’s identity.
