Megamall project could face tough market

The positive development buzz in Sarasota-Bradenton of late seems to begin and end with the Mall at University Town Center.

The $315 million, two-story enclosed mall in north Sarasota County, currently under construction just west of the Interstate 75 University Parkway exit, has a myriad of eager followers. That long list includes brand-starved customers, nervous traffic planners, contractors in everything from windows to painting to landscaping, and, certainly, prospective tenants.

But there could be one hitch for the developers, a joint venture between University Park-based Benderson Development and Bloomfield Hills, Mich.-based Taubman Centers. That comes from a new report from commercial real estate market data firm Reis, which says rental rates and occupancy rates at malls and shopping centers nationwide remain significantly below pre-downturn highs.

Mall asking rents in the fourth quarter, for example, only climbed 0.5% over the previous quarter, the report states. Plus, the nationwide vacancy rate, while it dropped slightly, from 10% in the third quarter to 9.8% in the fourth quarter, remains too high for landlords to gain pricing leverage.

The report, of course, could have little impact on the Mall at University Town Center. Mall officials, in multiple previous interviews, say leasing has moved along briskly. The project itself is already an outlier, being one of the few megamalls under construction nationwide. The mall is expected to open in October, and at least half the stores will be new to the market, executives say.