If you’ve driven along Highway 79 in recent years, you’ve probably noticed a change in the landscape.

The West Bay corridor in and around Panama City Beach is becoming an increasingly active area for residential, commercial, healthcare and infrastructure development. New communities are taking shape, businesses are moving into the area, and several major projects are already underway.

And there is still more to come.

One of the most recognizable developments along Highway 79 is Latitude Margaritaville Watersound, a 55+ community located along the corridor.

The community has continued to grow since sales began in 2021, reaching 2,635 home sale contracts by September 2026. Now, plans are moving forward for a second phase that is expected to add approximately 3,500 additional homes, bringing the community to approximately 7,200 planned homes across its two phases. Groundbreaking for Phase Two is projected for mid-2027.

That continued residential growth is also creating demand for something else: more places to shop, dine, receive healthcare and take care of everyday needs.

One of the major pieces of that growth is Watersound West Bay Center, a planned lifestyle shopping and dining destination adjacent to Latitude Margaritaville Watersound.

The center is planned for approximately 500,000 square feet of commercial space and is designed as an open-air, pedestrian-friendly destination for residents and visitors.

Construction is already underway on one of the center’s most anticipated additions: a new Publix Super Market.

Publix Is Under Construction

The planned Publix is approximately 50,000 square feet and is expected to include a pharmacy, deli and bakery, with an adjacent liquor store. Additional retail space is also planned around the store.

For residents of Latitude Margaritaville, Ward Creek and surrounding communities, the addition represents a significant change in everyday convenience. What was once an area where many necessities required a drive elsewhere is becoming a place where more services will be available closer to home.

And Publix is only one piece of the larger West Bay Center development.

As more people call the area home, additional businesses and services are following the residential growth.

Watersound West Bay Center is planned to include a variety of retail, dining and service businesses, while nearby communities continue to add new homes. The goal isn’t simply to add individual projects, but to create more of the amenities and services needed to support a growing year-round population.

Residential and commercial growth aren’t the only changes taking place along the corridor.

A new FSU Health hospital is currently under construction near Highway 79 and Phillip Griffitts Sr. Parkway.

FSU currently lists a 2028 targeted opening for the Panama City Beach hospital. The first phase is planned to include 80 beds along with services including emergency medicine, general surgery and diagnostic imaging.

The broader FSU Health campus is also developing into a healthcare hub for the growing area, adding another major component to the long-term evolution of the Highway 79 corridor.

Another important part of the West Bay story is its proximity to Northwest Florida Beaches International Airport.

Highway 79 provides a direct connection between the airport and Panama City Beach, putting the growing residential and commercial corridor within a convenient drive of air travel.

As the surrounding population increases and development continues, the airport’s role in the region becomes an important part of the bigger picture. The combination of residential communities, commercial development, healthcare and access to the airport is helping transform Highway 79 into more than simply a route to the beach.

The most interesting part of the West Bay story may be that the development is happening on several fronts at once.

• New homes are bringing more residents.
• New retail and restaurants are following the population growth.
• Healthcare infrastructure is expanding.
• The airport continues to serve as a major regional connection.

The result is a corridor that is gradually becoming more self-contained, with more of the conveniences people look for in their everyday lives located within the same growing community.

For longtime Panama City Beach residents, the changes along Highway 79 are easy to notice. For people who have recently moved to the area – or are considering making the move – understanding what is happening around West Bay provides a glimpse into how this part of Northwest Florida is evolving.

Some projects are already under construction. Others are planned for the coming years. And new announcements will continue to shape the story.

West Bay isn’t a finished destination. It’s a community in the process of taking shape.