Unlocking Coastal Luxury: The St. Joe Company's Watersound Town Center as a Catalyst for Retail Real Estate Growth

The retail real estate landscape is undergoing a seismic shift, with investors increasingly favoring destinations that blend luxury, convenience, and community. Nowhere is this trend more evident than in The St. Joe Company's Watersound Town Center in Inlet Beach, Florida—a project poised to redefine coastal living and commerce. With high-end tenant signings, phased development, and a strategic focus on lifestyle amenities, this initiative represents a rare opportunity for investors to capitalize on a rapidly growing market.

The Power of High-End Tenant Acquisitions

The St. Joe Company has mastered the art of curating tenant portfolios that attract both affluent residents and tourists. The recent addition of Johnnie-O, a premium golf apparel brand, underscores this strategy. Their 13,000-square-foot flagship store—part of a new multi-tenant retail building—caters to South Walton's growing luxury market while signaling confidence in the area's economic vitality.

Adjacent to Johnnie-O, Quest Hospitality Concepts' high-end sports tavern (slated for a 2025 opening) further solidifies the center's appeal. This venue, offering elevated American pub fare and craft cocktails, will anchor the entertainment sector, drawing diners and social gatherings. Combined with existing tenants like Ambrosia Prime Seafood & Steaks and Summer House Lifestyle, the mix creates a destination that transcends basic retail—it's a lifestyle ecosystem.

Phased Development: Mitigating Risk, Maximizing Returns

The phased approach to expansion ensures steady progress while minimizing financial risk. As of Q2 2025, the center has already achieved 169,000 square feet of leasable space, with construction underway on its third phase of Watersound Executive Suites—adding 12 new offices to the 25 already leased. This demand-driven strategy guarantees capital is deployed where it's needed most: in spaces with proven tenant interest.

The ultimate goal—a 400,000-square-foot build-out—will include retail, dining, offices, and cultural venues. A covered event pavilion and green spaces already host community gatherings, enhancing foot traffic and tenant retention. By 2025, the addition of Starbucks, Halo Salon, and Nigel's Bananas will further diversify the tenant base, ensuring year-round activity.

Investors should note The St. Joe Company's stock trajectory, which has outperformed broader real estate indices amid its strategic developments.

Why Act Now?

1. Location, Location, Location: South Walton's status as a premier Florida destination—boasting pristine beaches and a thriving tourism economy—ensures steady demand.
2. Leasing Momentum: The full lease-up of the first Executive Suites phase proves institutional and corporate demand is robust.
3. Scalability: With 50% of its total vision already realized, Watersound offers a rare chance to invest in a project with proven execution and scalable upside.

Risks and Considerations

While risks such as construction delays or shifts in tenant preferences exist, The St. Joe Company's track record of adaptive planning (e.g., prioritizing office space after rapid leasing) mitigates these concerns. Furthermore, the diversified tenant mix—spanning luxury retail, fine dining, and professional services—reduces reliance on any single sector.

Conclusion: A Coastal Gem Ready to Shine

Watersound Town Center is more than a real estate project—it's a lifestyle destination in the making, backed by strategic tenant acquisitions and phased development. For investors seeking exposure to a high-growth coastal market with both residential and commercial synergies, this is a once-in-a-decade opportunity.

The numbers don't lie: a 400,000-square-foot vision with 2025's high-end openings positions The St. Joe Company for sustained value creation. Those who act now will secure a stake in a project that's already outperforming expectations—and is primed to do so for decades.

Invest today. The tide is rising.

South Walton's occupancy rates consistently outperform statewide averages, reflecting the area's enduring appeal.