Publix Breaks Ground at Watersound West Bay Center, Signaling a New Chapter for the State Road 79 Corridor

Growth along the northern stretch of Panama City Beach has been steady for years, but recent announcements suggest the momentum is accelerating into something far more transformational. In December, The St. Joe Company confirmed the commencement of development on a new Publix Super Market at Watersound West Bay Center, marking a major milestone for one of the region’s fastest-growing corridors.

Planned at approximately 50,000 square feet, the Publix will include a full-service pharmacy, deli, bakery, and an adjacent liquor store — features that position it as both a daily convenience and a neighborhood anchor. Beyond the grocery store itself, the project also introduces roughly 11,000 square feet of additional inline commercial space, setting the stage for a broader mix of retail and service offerings.

A Lifestyle Center Takes Shape

Watersound West Bay Center is envisioned as far more than a single-store destination. When fully built, the center is planned for approximately 500,000 square feet of commercial space, designed as an open-air, pedestrian-friendly shopping and dining environment. Its location is strategic—adjacent to Latitude Margaritaville Watersound and positioned to serve residents and visitors throughout the State Road 79 corridor.

Momentum is already visible on site. A standalone, multi-tenant building totaling approximately 18,000 square feet is nearing completion, with spaces anticipated to be ready for occupancy in early 2026. As additional phases come online, the center is expected to evolve into a true community hub, blending everyday errands with dining, services, and social gathering spaces.

Retail Follows Rooftops — and the Rooftops Are Here

The announcement underscores a fundamental principle of thoughtful development: retail follows rooftops. Since sales began in 2021, more than 2,170 homes have been completed within Latitude Margaritaville Watersound alone, with plans calling for approximately 3,500 homes in Phase 1 of the community. Nearby, the Ward Creek area continues to take shape, with nearly 1,600 homes planned across the Bayside, Salt Grass, and Breakwater neighborhoods.

Add to that the ongoing construction of the FSU Health medical campus, and it becomes clear why commercial demand along State Road 79 has intensified. What was once a quieter stretch of roadway is quickly becoming a fully realized growth corridor—one that requires convenient, high-quality retail and service infrastructure to support its expanding population.

Anchored by a Trusted Brand

For St. Joe, securing Publix as an anchor tenant represents both practical and symbolic wins. Publix has long been associated with consistency, service, and community integration—qualities that align with the broader vision for Watersound West Bay Center.

“Commencing development of the Publix at Watersound West Bay Center marks an exciting milestone for this center,” said William Brock, vice president of commercial real estate for St. Joe. “This step brings us closer to delivering a highly anticipated shopping destination to the area, specifically for the nearby residents of Latitude Margaritaville Watersound and Ward Creek communities. The scale and pace of growth along the State Road 79 corridor underscores the need for thoughtfully planned commercial offerings, and this center, anchored by a quality brand like Publix, is designed to meet that demand.”

The statement reflects a broader strategy focused on intentional growth rather than reactive expansion. By planning commercial development in tandem with residential and medical growth, St. Joe continues to shape places that feel cohesive, convenient, and community-driven.

What It Means for Panama City Beach

For residents of northern Panama City Beach and surrounding areas, the Publix at Watersound West Bay Center represents more than a new grocery option. It signals a shift toward greater self-sufficiency in daily living: shorter drives, expanded choices, and a growing sense of place.

The development also reinforces the area’s long-term trajectory. As infrastructure, healthcare, housing, and retail converge along State Road 79, the corridor is emerging as one of northwest Florida’s most compelling growth stories. Watersound West Bay Center, anchored by Publix and supported by a diverse mix of future tenants, is poised to play a central role in that evolution.

In many ways, the groundbreaking marks both an arrival and a beginning. For a community already defined by momentum, the addition of Publix brings everyday convenience closer to reach, while signaling that the next phase of growth is not just coming, but is already underway.