Ybor City’s transformation continues with the opening of another high-profile restaurant inside one of the neighborhood’s historic buildings.

Tommy’s Chophouse officially opened July 31 at 1622 E. Seventh Avenue, bringing a modern steakhouse concept to the ground floor of the historic Kress building.

But the opening represents more than another addition to Tampa’s restaurant scene.

Tommy’s arrives as hundreds of new residential units, major mixed-use developments and millions of dollars in historic renovations begin changing the economic dynamics of Ybor City.

For commercial real estate, the restaurant provides another example of the investment increasingly flowing into one of Tampa’s oldest neighborhoods.

A New Restaurant Inside a Historic Ybor Landmark

Tommy’s Chophouse occupies the ground floor of the historic Kress building along Seventh Avenue.

The building dates to 1929 and previously housed an S.H. Kress & Co. five-and-dime store. More recently, a portion of the ground floor was occupied by U.S. Customs and Border Protection.

Transforming the space into a modern restaurant was not simple.

Owner and operator Kenneth Emery and his restaurant group spent approximately three years bringing the space from concept to opening.

The historic nature of the building created unique construction challenges. The restaurant ultimately installed an all-electric kitchen using induction burners and an electric broiler rather than a traditional gas or wood-fired cooking system.

One of the building’s most unusual existing features — a massive vault — has also been incorporated into the restaurant and transformed into a private dining room.

The result is a modern restaurant built around the character of an almost century-old Ybor City property.

A Different Kind of Steakhouse

Emery, whose restaurant group also operates Burwell’s Stone Fire Grill in Charleston, has described Tommy’s as an “approachable steakhouse.”

Instead of building the menu entirely around expensive traditional steakhouse cuts, Tommy’s emphasizes alternatives such as Wagyu picanha and hanger steak alongside familiar options including New York strip and prime ribeye.

The restaurant also offers seafood, chicken and pasta dishes.

Local sourcing plays a role in the concept as well, with the restaurant working with Tampa Bay-area suppliers including Versaggi Shrimp and Red’s Farm in Riverview.

Tommy’s is intentionally more casual than the traditional white-tablecloth steakhouse. There is no formal dress code, helping position the restaurant for both special occasions and more frequent neighborhood dining.

That distinction could become increasingly important as Ybor’s residential population grows.

Hundreds of New Residents Are Coming to Ybor

Tommy’s is opening at an important moment for Ybor City.

Historically, the district has been heavily associated with nightlife, bars and entertainment along Seventh Avenue.

But significant residential development is beginning to change that equation.

Nearby projects including The Stevedore and Olivette are bringing a combined 766 apartments to the area, while additional housing has arrived through projects such as La Unión Residences.

More development is underway through Gasworx, the massive mixed-use redevelopment connecting Ybor City with the Channel District and Water Street area.

Those new residents could fundamentally change the economics of businesses operating in Ybor.

Restaurants that historically depended heavily on visitors and weekend nightlife could increasingly gain access to customers living within walking distance.

That creates the potential for a more traditional neighborhood economy where restaurants, coffee shops, retailers and service businesses generate activity throughout the week rather than primarily during nightlife hours.

Gasworx Is Changing the Geography of Ybor City

One of the largest forces behind Ybor’s transformation is Gasworx, developer Darryl Shaw’s massive redevelopment project on the western side of the district.

The project is bringing apartments, offices, restaurants, retail and public spaces to previously underutilized land between Ybor City and downtown Tampa.

Its impact could extend considerably beyond the boundaries of the development itself.

For decades, Ybor City and downtown Tampa have functioned as relatively distinct districts despite being located only a short distance apart.

Gasworx is helping fill the physical gap between them.

As development continues, the area stretching from Water Street and the Channel District through Gasworx and into historic Ybor could increasingly function as one interconnected urban corridor.

Tommy’s Chophouse sits directly within that evolving environment.

Ybor Is Becoming More Than a Nightlife District

Perhaps the larger story is the changing mix of businesses choosing Ybor City.

Tommy’s isn’t arriving alone.

Longtime Tampa fine-dining institution Mise en Place has relocated to Ybor, while new restaurants, coffee shops and entertainment concepts continue opening or planning locations throughout the district.

These businesses diversify an area historically dominated by bars, clubs and late-night entertainment.

That diversification is important for commercial real estate.

Neighborhoods supported by residents, restaurants, retail, offices and entertainment typically generate activity across more hours of the day and appeal to a wider range of tenants.

More residents can support more restaurants.

More restaurants and retailers make the neighborhood more attractive to residents.

And that combination can increase demand for additional development.

It creates the type of reinforcing development cycle that has transformed other neighborhoods throughout Tampa.

Historic Buildings Are Becoming Development Assets

Tommy’s also demonstrates the value of Ybor City’s historic building stock.

In many rapidly growing Florida markets, redevelopment means demolition followed by ground-up construction.

Ybor offers developers a different opportunity.

Its historic cigar factories, storefronts and commercial buildings provide architectural character that would be extremely difficult — and expensive — to recreate today.

The Kress building illustrates how those structures can be repositioned for modern commercial uses while retaining their historic identity.

Other significant restoration projects are occurring throughout the neighborhood as investors recognize the potential of these properties.

That combination of historic architecture and modern development is becoming one of Ybor’s strongest competitive advantages.

Commercial Real Estate Investment Follows Population Growth

The transformation occurring around Tommy’s demonstrates a fundamental commercial real estate principle:

Businesses follow people.

Hundreds of apartments create potential customers.

Those customers support restaurants, coffee shops, grocery stores, fitness concepts and service businesses.

Those businesses make the neighborhood more desirable.

And increasing demand creates additional opportunities for developers and investors.

Ybor City appears to be entering that cycle.

The neighborhood already possesses something most new developments cannot manufacture — more than a century of history, recognizable architecture and one of Florida’s most distinctive commercial districts.

Now significant residential and mixed-use investment is being layered onto that foundation.

The Next Chapter of Ybor City

Tommy’s Chophouse may be one restaurant, but its opening provides another indication of where Ybor City could be heading.

The district is gradually evolving from a destination primarily associated with nightlife into a neighborhood where more people can live, work, eat and spend their daily lives.

Gasworx is bringing significant new development.

Hundreds of apartments are adding residents.

Historic buildings are being restored.

Restaurants and retailers are following.

And the areas separating Ybor, Channelside and downtown Tampa are becoming increasingly connected.

For commercial real estate investors, developers and tenants, that combination is worth watching.

Tommy’s Chophouse isn’t simply opening in today’s Ybor City. It is making a bet on what Ybor City is becoming.

ExtendedReach USA covers commercial real estate, development, infrastructure and economic growth throughout Florida and the Southeast.