Up the Down Trendline
by Laurel S. McQueen

For the Tampa Bay region as a whole, third-quarter business park leasing was on par with second quarter. But each sub-market flipped its position: Up where it was down in second quarter; down where it was up.

Hillsborough County's total net quarterly absorption was down 42 percent from the second-quarter level. The vacancy rate slid a slight 0.3 percentage point. For the third quarter in a row, annual absorption hardly changed. West of I-275, move-outs topped move-ins, after three quarters of solid leasing. Annual absorption dropped 26 percent from the second-quarter level. The vacancy rate moved up 1.1 points. Construction was completed during the quarter on 35,000 sf of speculative space at Roth Industrial Park.

East of I-275 net quarterly absorption improved slightly from the second-quarter report. Annual absorption was up 14 percent while the vacancy rate dropped 1.6 points. Construction was started on a total of 337,140 sf of spec space spread between Fairfield Distribution VI and VII and Walden Woods Business Center. Construction was also started on a build-to-suit at Oak Creek for Black & Decker Corp.

Pinellas County recorded a substantial improvement over the second quarter with nearly three times as much space absorbed. Annual absorption, however, barely changed, as this quarter's absorption level was similar to the third quarter of 1999 that dropped out of the moving rate. The vacancy rate dipped 0.9 point.

In the Pinellas Gateway net quarterly absorption improved 48 percent over the previous quarter, pushing the vacancy rate down 0.9 point. Annual absorption moved up 32 percent. Construction was completed on 61,800 sf of spec space at Park West at Gateway Centre. Construction started on 233,600 sf of additional spec space split between Parkway 3000 at Gateway Centre and the new 34th Street Industrial Park.

Absorption in Manatee County moved up from a net loss in occupancy last quarter. Annual absorption more than doubled. Factoring out Palmetto Corporate Center, which continues to have 80 percent of the county's vacant space, the vacancy rate is just 1.7 percent. Construction was completed during the quarter on spec space at Brethauer's Industrial Park and Cygnet Business Center. New construction was started on spec space at Brethauer's and at Parkland Center. A build-to-suit was started at Saunders Road Industrial Park.

Sarasota County also rebounded from a flat position last quarter. Annual absorption, however, dropped 19 percent as this quarter's net was less than half what was recorded third quarter a year ago. Ten-thousand sf was completed at Northgate Business Center. Construction was started on a total of 25,000 sf of spec space split between Jacaranda Commercial Center and Northgate Business Center.

Pasco County moved from substantial absorption last quarter to a net loss in occupancy this quarter. Annual absorption dropped 34 percent, but the vacancy rate was not affected. Polk County also dropped in net quarterly absorption. Actually, move-ins totaled 200,550 sf, but the bankruptcy of a large company at Lakeland Airside Center wiped out most of the gain. Annual absorption, however, was effectively unchanged. Construction was completed during the quarter on a 45,000 sf expansion for KeyMark at Ruthven Center Knight's Station.

Hernando County's annual absorption dropped 58 percent. Across the region 1.6 million sf of speculative space has been completed this year. An additional 1.3 million sf is currently under construction, with 741,300 sf of announced spec space still in the pipeline. For more detailed information on the survey call the Maddux Report's Research Department at 727/321-3225.

NOTE: Office buildings fully leased for two or more quarters do not appear in the survey charts. All office buildings are updated each quarter. Previous quarterly data is revised as new information is received. Survey charts may include sublease space, which is not included in analysis numbers.
For more complete information call the Maddux Report's Research Department at 727/321-3225.