Plaza Boulevard Photo Gallery

The primary trade area encompasses Panama City and surrounding Bay County, with a population of 182,000 and a daytime workforce of 95,000. Median household income is $52,400, slightly below the national average, supporting value-driven retail. Age demographics skew toward 35-54 year olds at 28%, families with children under 18 at 22%, and retirees at 18%, influenced by military presence from Tyndall Air Force Base and tourism. Retail spending per capita is $12,500 annually, focused on groceries and apparel, per Nielsen data, but economic volatility from seasonal employment poses risks to sustained footfall.

Plaza Boulevard competes with Pier Park (1.2 million sq ft, 95% occupancy, $25/sq ft rents) to the east, which draws 5 million annual visitors via upscale dining and entertainment, eroding market share for fashion tenants. Local alternatives include Panama City Mall (declining at 75% occupancy) and strip centers along 23rd Street. CoStar reports a 10-mile radius with 4.5 million sq ft of retail space, leading to saturation in general merchandise; however, Plaza Boulevards Walmart anchor provides a defensive edge with 2.5 million annual visits, stabilizing co-tenancy draw.

Base rents average $18-$22 per square foot NNN, with common area maintenance fees at $4.50/sq ft and percentage rents kicking in at 6% over $300/sq ft sales threshold. Lease terms typically span 5-10 years with 3% annual escalations and renewal options at market rates. Advantages include tenant improvement allowances up to $20/sq ft for qualified lessees. Risks involve exposure to hurricanes, with the center in a flood zone requiring elevated insurance premiums averaging 15% above national norms. Operational quality is average, with recent HVAC upgrades but aging facade noted in 2022 inspections, potentially increasing future capex for landlords and indirect costs for tenants.