When V Pizza was looking to expand in 2016, Gainesville seemed like a strong place to anchor its fourth store. The Jacksonville-based restaurant now has 14 locations in Florida. Sales volume at its downtown Gainesville shop is generally strong, according to David Villmow, the company’s chief growth officer.
The restaurant rakes in better business when the Gators perform well on the football field, Villmow said. In down seasons, foot traffic is more sparse.
Meanwhile, inflation has augmented the cost of ingredients and labor.
“So labor goes up, and your costs of your goods go up, [and] you have to produce a product at a price point that people still find palatable,” Villmow said. “You better hope you’re capitalized enough.”
Soaring insurance premiums have also weighed on small businesses, especially in Florida, where storm activity has intensified in recent years, prompting some insurers to flee the state.
For now, V Pizza is generating enough revenue to keep its stores afloat and turn a profit, Villmow said.
One of its competitors didn’t make it, and the property where it operated hasn’t had an occupant in about six months. It’s one of Gainesville’s many commercial spots languishing on the market amid price pressures and shifting demand for retail and office space.
What happened to Wild Pie?
The Wild Pie storefront on Northwest 13th Street has been vacant since April, when the plant-based pizza restaurant went dark.
“The concept itself may [not have] quite hit the mark,” said Nick Robinson, senior vice president at Avison Young, a global commercial real estate firm with operations in Florida. “They weren't seeing very high sales numbers.”
There are more than 60 pizza restaurants in Gainesville, according to July data from OysterLink, a resource platform for the restaurant and hospitality industry. Many congregate in locations near student apartment complexes.
The summer months are especially challenging for small franchises in college towns. The exodus of students between May and August makes success during the remaining months of the year even more critical.
Wild Pie had its Gainesville grand opening in January 2025. It shut down about three months later, right before summer break. The closure came soon after its operators closed their flagship Jacksonville location.
Robinson and his team are working to fill the space. They recently helped close the deal on the store adjacent to Wild Pie that houses Foxtail Coffee and Kelly’s Ice Cream.
Negotiations like these take time and abundant capital, Robinson said. Although it can look like a commercial property has been abandoned, there’s often plenty of activity going on behind the scenes, he added.
“We’re talking about a space that is over $1 million just for the buildout,” Robinson said. “The landlord is not just going to sign anybody who comes to the table first.”
Commercial landlords generally favor tenants with name recognition and deep pockets. That’s one reason properties may sit idle on the market long after an occupant leaves. The owner forgoes the short-term revenue they could fetch from leasing to a small business as they wait for a high-paying, long-term renter. And properties closest to UF command a premium.
“The most expensive dirt per square foot in Alachua County is directly across from the University of Florida campus,” said John Thomas, a Gainesville-based commercial realtor with Better Homes and Gardens.
Independent restaurants along or near University Avenue can survive only if they offer something unique, Thomas said. And Wild Pie had plenty of competition.
“You can get a lot of pizza in a lot of places,” Thomas said. “If you’re in that walking distance or bike distance, how many places do you have to go by before you reach that corner to get a pizza?”
Outlook for offices
Office leasing is by far the weakest link in Alachua County’s commercial property market, said Eric Ligman, director of the commercial land division at real estate firm Bosshardt Realty.
The same is true nationwide. Offices haven’t roared back to life the way many executives envisioned they would after pandemic lockdowns.
With desk chairs still empty, some businesses are realizing they don’t need the extra space.
That’s contributed to soaring office vacancy rates and rising defaults, The Wall Street Journal previously reported.
But Ligman said there’s reason for optimism as UF faculty and staff stream back onto campus.
Then-Interim President Kent Fuch announced in July a return-to-office mandate for all university employees.
Fuchs cited space constraints among the reasons UF offered flexible work arrangements during the pandemic. The university is now working to build out its offices to accommodate the influx.
“A lot of people either quit or they went back into the office, which I think is a plus,” Ligman said.
The enduring hurdles
Interest rates, although trending downward, remain a significant overhang in commercial real estate.
The Federal Reserve began hiking rates in 2022 to combat inflation and stabilize prices. The high cost of borrowing dented property values and curbed lending to owners.
That, among a confluence of other factors, pushed rents higher.
“You tack on a higher interest rate, and then you tack on high property taxes and high property insurance,” said Brian Oen, a local real estate advisor. “Then [landlords] have to command a higher rent to offset the operating costs of that property.”
Steep build-out costs present another challenge, according to Craig Carter, a local commercial realtor with Coldwell Banker.
Outfitting an empty property can be pricey. Landlords often provide a tenant improvement allowance to assist a new occupant with necessary modifications.
“I have some properties that are sitting empty that still have dirt floors,” Carter said. “So the cost for me to put a tenant in there is going to be astronomical.”
Carter said he’s also doling out lavish incentives, such as three months of free rent, to attract renters.
“I’m going to do everything, including bend over backwards, do a flip and wash your car for you,” Carter said. “We need tenants.”