The 55-acre development along Colonial Boulevard will replace an existing Costco location and could generate additional retail development opportunities in Southwest Florida.

Construction is officially underway on a new Costco Wholesale location in Fort Myers, Florida, marking another major retail investment in Southwest Florida’s expanding commercial real estate market.

The membership-based warehouse retailer is developing a new store on approximately 55 acres near the intersection of Colonial Boulevard and Plantation Road, with additional frontage along Metro Parkway.

Costco acquired the property in May 2026 for approximately $55 million, representing a land acquisition cost of roughly $1 million per acre.

The new development will replace Costco’s existing location at 717 Cypress Lake Drive, approximately 5.5 miles away, providing a larger retail facility designed to accommodate growing customer demand.

Although construction activity has accelerated in recent months, an official grand opening date has not been announced. Current reporting indicates the new warehouse is expected to open sometime in 2027.

$55 Million Land Purchase Highlights Strong Retail Demand in Fort Myers

Costco’s acquisition represents a significant commercial land transaction in the Fort Myers market.

The 55-acre property, positioned along one of the city’s primary east-west commercial corridors, was reportedly purchased by its previous owners approximately 20 years ago for $3 million.

The property’s subsequent sale to Costco for $55 million demonstrates the substantial appreciation that strategically located commercial land can experience as surrounding markets develop.

The transaction also illustrates the importance national retailers place on large, well-positioned properties with access to established transportation networks and growing residential populations.

Colonial Boulevard serves as a major transportation corridor connecting Interstate 75, central Fort Myers, and surrounding residential and commercial communities.

For commercial real estate investors and developers, Costco’s substantial investment reinforces the continued demand for large-scale retail development sites throughout Lee County.

Construction Progresses Along Colonial Boulevard

Site preparation began moving forward during the summer of 2026 after the City of Fort Myers issued its final site-work permit on June 16.

A preconstruction meeting followed in August, allowing development activity to accelerate.

By October, construction crews and heavy equipment were actively working on the property near Colonial Boulevard and Plantation Road.

The new warehouse is expected to be more than 20,000 square feet larger than Costco’s existing Cypress Lake Drive location.

Plans also call for an expanded fueling operation, helping address some of the congestion and capacity challenges associated with the current facility.

The larger development footprint will provide additional room for warehouse operations, parking, circulation, and supporting infrastructure.

What Happens to the Existing Costco on Cypress Lake Drive?

The new Colonial Boulevard warehouse is expected to replace Costco’s existing location at 717 Cypress Lake Drive, which originally opened in September 1999.

The existing facility has experienced increasing congestion as Fort Myers and surrounding communities have continued growing.

According to local commercial real estate reporting, Costco has considered converting the existing warehouse into a Costco Business Center.

Costco Business Centers differ from traditional warehouse locations by placing a greater emphasis on products and supplies for restaurants, offices, convenience stores, and other commercial customers.

However, a final conversion plan has not been formally confirmed by Costco.

If the conversion moves forward, the Cypress Lake Drive property could continue operating as an important commercial destination while serving a different customer base.

Could the New Costco Attract Additional Commercial Development?

Large-format retailers such as Costco can significantly influence surrounding commercial real estate markets.

Warehouse clubs generate consistent customer traffic, often attracting shoppers from multiple communities within a broad trade area.

This activity can create opportunities for complementary retail and service-oriented businesses seeking locations near established shopping destinations.

Potential users that may benefit from the area’s increased retail activity include quick-service restaurants, financial institutions, medical offices, automotive service providers, and other convenience-oriented businesses.

For developers, the surrounding Colonial Boulevard corridor may become increasingly attractive for future retail pad development, ground leases, and build-to-suit opportunities.

However, the availability of development sites and their suitability for individual tenants will depend on zoning, access, utilities, and existing property restrictions.

Costco Continues Expanding Across Southwest Florida

The Fort Myers project is part of a broader wave of Costco development throughout Southwest Florida.

In East Naples, construction is progressing on another warehouse at the southeast corner of Collier Boulevard and Rattlesnake Hammock Road.

That development is planned to include approximately 162,700 square feet of retail space, extensive parking, and a freestanding fueling station.

Meanwhile, Costco has also announced plans for its first Cape Coral warehouse at 600 Chiquita Boulevard South, near Pine Island Road.

The proposed Cape Coral project includes an approximately 165,000-square-foot warehouse and a fueling facility.

Together, these projects demonstrate Costco’s continued interest in expanding its Southwest Florida presence as the region’s population and retail demand increase.

What Costco’s Expansion Means for Fort Myers Commercial Real Estate

Costco’s $55 million land acquisition and subsequent development represent a major investment in Fort Myers’ commercial real estate market.

The project highlights the value of strategically positioned commercial land along major transportation corridors, particularly properties capable of accommodating large national retailers.

As Southwest Florida continues attracting new residents, businesses, and investment, demand for retail services and supporting commercial development is likely to remain an important consideration for property owners and developers.

For commercial real estate brokers, investors, and developers, the new Costco reinforces the importance of identifying properties near established retail destinations and expanding residential communities.

With construction underway and an anticipated opening in 2027, the Colonial Boulevard development will be an important project to monitor as Fort Myers continues its commercial expansion.