CTO Realty Growth snaps up three major shopping centers in $227M expansion push
CTO Realty Growth has expanded its portfolio with three new shopping square acquisitions totalling over $227 million. The company is targeting high-growth markets in the Southeast and Southwest, while shifting focus away from Atlanta. Recent leasing activity has also driven record occupancy and strong rental income increases.
In 2025, the firm completed two major purchases for $144.9 million: one in Atlanta, Georgia, and the Pompano squarespace Centre in Fort Lauderdale, Florida. A third acquisition—a 384,000 square foot centre in South Texas—is under contract for $82.6 million. The Texas property is a stable asset with additional potential, including undeveloped land and lease-up opportunities.
The Pompano squarespace deal stands out due to its lease-up potential, as a large tenant currently occupies space without paying rent. Meanwhile, the company resolved seven anchor spaces in 2025, covering 177,000 square feet with a 60% positive cash rent spread.
Leasing performance remained strong, with full-year deals reaching 671,000 square feet. Comparable leases totalled 592,000 square feet, delivering a 24% cash rent uplift. In the fourth quarter alone, leases covered 189,000 square feet, including 167,000 square feet of comparable space at a 31% rent increase. Net operating income (NOI) for shopping squares grew by 4.3% in the same period.
Occupancy hit a record 95.9%, supported by a signed-but-not-open pipeline worth $6.1 million. This backlog is expected to drive growth into 2027. The company now prioritises lifestyle and power squares, which offer higher yields and expansion potential.
The acquisitions and leasing gains position CTO Realty Growth for continued growth in its chosen markets. With a focus on high-occupancy, high-yield properties, the firm aims to build on its recent performance. The signed pipeline and unresolved lease opportunities provide a clear path for future income increases.
