ALEX: Welcome to The Local Business Playbook, I'm Alex, and today we're tackling a topic that I think every Florida small business owner has probably had a conversation about at some point — the state of retail real estate.
JAMIE: And I'm Jamie! And honestly, Alex, this one hits close to home. You drive down any major corridor in Florida and you see these big empty storefronts and you think — okay, what is actually happening out there?
ALEX: Right, and the headline you hear constantly is 'retail real estate is dying' — but here's the thing. That's only part of the story. Because some formats? They are absolutely thriving.
JAMIE: Which is exactly what we're digging into today. Five specific retail formats that are not just surviving — they're growing. And I think some of these are going to surprise people.
ALEX: So before we get into the five formats, Jamie, let's just set the scene a little bit. Why is traditional retail struggling in the first place? Because it's not just one thing, right?
JAMIE: Oh, it's definitely not just one thing. You've got e-commerce obviously being the big one — Amazon basically rewired consumer expectations. But then you also have overstored markets, meaning we just built too many malls and strip centers in this country.
ALEX: Florida especially. Like, we went through decades of just — build it and they will come.
JAMIE: Exactly! And then consumer behavior shifted. People want experiences now, not just transactions. So if a store is just a place to pick up a product you could have delivered tomorrow? That's a tough sell.
ALEX: Totally. Okay so with that backdrop — let's get into the formats that ARE working. Number one?
JAMIE: Number one is neighborhood grocery-anchored centers. So these are your smaller strip centers, usually anchored by a grocery store — think a Publix, an Aldi, a Winn-Dixie — and then surrounded by complementary service tenants.
ALEX: Oh, this makes so much sense for Florida. Because every neighborhood needs a grocery store. That's a guaranteed traffic driver.
JAMIE: Guaranteed! And what's smart about this format is that the grocery store pulls people in multiple times a week, and then those people are walking past the nail salon, the dry cleaner, the local sandwich shop. It's a built-in customer funnel.
ALEX: So for a small business owner, being a co-tenant in one of these centers is actually a really strategic move. You're essentially borrowing the grocery store's foot traffic.
JAMIE: Exactly. And vacancy rates in grocery-anchored centers have stayed really low compared to enclosed malls. Investors love them, landlords love them — and small businesses should love them too.
ALEX: Alright, number two — what've we got?
JAMIE: Number two is experiential retail. And I know that phrase gets thrown around a lot, but hear me out — this is the format that is genuinely redefining what a store even is.
ALEX: Like, give me an example. What does experiential retail actually look like in practice?
JAMIE: So think axe throwing bars, escape rooms, paint-and-sip studios, cooking class spaces, golf simulators — these are all retail or hospitality spaces where the experience IS the product. You're not buying a thing, you're buying a memory.
ALEX: And those are booming in Florida. I feel like every month there's a new one of these concepts opening somewhere in Tampa or Orlando or Miami.
JAMIE: Because they work! And here's the key insight — Amazon can't deliver an axe throwing experience to your door. These formats are inherently local and inherently in-person. That's their moat.
ALEX: That's such a good point. It's e-commerce proof by definition. Okay, number three?
JAMIE: Number three is medical and health-use retail. So this is the conversion of former retail spaces into urgent care clinics, dental offices, physical therapy centers, med spas — that whole category.
ALEX: Wait, so like — old Sears buildings becoming hospitals basically?
JAMIE: Ha, kind of! On a smaller scale, yeah. You're seeing a lot of those mid-size anchor spaces get converted. But even at the strip center level, medical tenants have become really desirable because they sign long leases, they bring consistent traffic, and — crucially — they can't move online.
ALEX: Right, you can't get a root canal delivered. Well, not yet anyway.
JAMIE: Let's hope not! But this is huge in Florida specifically because of our demographics. We have an aging population, we have a lot of retirees, and healthcare demand here is just — it's enormous and growing.
ALEX: So if you're a healthcare-adjacent business — even something like a wellness studio or a vitamin shop — positioning yourself near medical tenants is a smart play.
JAMIE: Smart play, absolutely. You're riding that same wave of health-conscious, medically-engaged foot traffic. Okay — number four, and this one is interesting because it's kind of a hybrid.
ALEX: Ooh, I love a hybrid. What is it?
JAMIE: It's service-based retail — so businesses where you have to show up in person to get the service. Hair salons, barbershops, pet grooming, alterations, auto repair adjacent services. These are the businesses that have always been around but are now becoming more valuable real estate tenants.
ALEX: Because they fill the gap that e-commerce left. Like, I can buy dog food on Amazon, but I still need someone to groom my dog.
JAMIE: Exactly that! And landlords have realized this. They used to kind of look down on service tenants — they wanted flashy retail brands. But now? A solid barbershop or a busy nail salon is a dream tenant because they pay rent consistently and they drive repeat visits.
ALEX: And for our listeners who own these kinds of businesses — this is actually leverage you have in lease negotiations right now. You are a desirable tenant in a way you maybe weren't ten years ago.
JAMIE: Use that leverage! Don't undersell yourself. Landlords need you. Okay — and number five, this might be my favorite one.
ALEX: Okay, what is it? Don't make me wait.
JAMIE: Pop-up and flexible retail spaces. So these are short-term, often month-to-month retail concepts — sometimes in temporary structures, sometimes in shared marketplaces, sometimes in rotating vendor halls. Think of a local artisan market that operates out of a permanent indoor space.
ALEX: Oh, like those makers markets and vintage halls that have been popping up everywhere? There's a couple in the Tampa Bay area that are just packed every weekend.
JAMIE: Yes! And what's brilliant about this format is that it lowers the barrier to entry for small businesses dramatically. You don't need to sign a five-year lease to test your concept. You can get a booth, see if people want what you're selling, and grow from there.
ALEX: It's almost like an incubator for retail businesses. You're de-risking the whole thing.
JAMIE: Totally de-risking it. And from the property owner's perspective, these flexible spaces keep buildings active and generating revenue even when they can't fill traditional long-term leases. It's a win-win.
ALEX: So to recap the five formats — grocery-anchored neighborhood centers, experiential retail, medical and health-use conversions, service-based retail, and flexible pop-up spaces. All thriving while big box retail struggles.
JAMIE: And the common thread through all five of them? They offer something that can't be replicated online. Whether that's convenience, an experience, a service, or just the joy of being somewhere in person — that's the secret sauce.
ALEX: I love that framing. It's not that retail is dying — it's that retail that was just a warehouse for products is dying. Retail that gives people a reason to show up? That's alive and well.
JAMIE: That's exactly it. And Florida is actually really well-positioned for this shift because of our population growth, our tourism, our year-round outdoor culture — people here want to be out and about.
ALEX: Great point. Alright, I think that's a really solid place to land this episode. Jamie, any final thoughts before you take us out?
JAMIE: Just — if you're a Florida small business owner sitting on the fence about your next location decision, I hope this gives you a clearer lens for evaluating your options. Not all retail real estate is created equal, and knowing which formats are thriving could genuinely change the trajectory of your business.
ALEX: Couldn't have said it better. Thanks so much for hanging out with us today, everyone.
JAMIE: And if you want to keep the conversation going, head over to our website — you'll find show notes, resources, and a whole library of episodes just like this one all about growing your Florida small business. We'll see you next time on The Local Business Playbook!