A Mixed Shopping Bag
by Laurel S. McQueen

The opening of six new shopping centers (four in Hillsborough County and two in Sarasota) during the summer months gave a much-needed boost to the region's retail leasing figures. However, the bankruptcy closing of the Roberd's furniture stores plus the fact that several other anchors went dark tempered the otherwise outstanding numbers.

In Hillsborough, 591,965 sf of new space opened, 97 percent of it leased. On the other hand, 137,120 sf of anchor space also went dark during the six-month period. The county's vacancy rate dropped just one half percent. Annual absorption, however, which had been in a net occupancy loss position six months ago, now exceeds the half million-sf mark.

The northwest sub-market was the county's biggest gainer because of the opening of Phase II of the Plaza at Citrus Park with its four big box anchors and six smaller stores. The Publix-anchored Shops at Citrus Park also opened, 100 percent leased. The sub-market's weighted average rents dropped by $.50 per sf.

The southeast sub-market was the county's other big gainer. The Centro Ybor entertainment complex was due to open 95 percent pre-leased. King's Crossing, a Publix-anchored neighborhood center, opened during the summer 92 percent pre-leased. Ybor Square was removed from the survey in this market. It is being redeveloped as office space.

The sub-market's weighted average rent jumped by $1.48 per sf - the region's highest gain by nearly a dollar.

Hillsborough's other two sub-markets saw modest leasing gains.

South of the bay, nearly all of the six-month leasing activity for Sarasota County was in the Venice area. Venice Commons and the Shops of Englewood opened, adding 127,112 sf to the market, 95 percent pre-leased. The net affect for the county was a modest absorption gain. For the northern and central parts of the county, total activity amounted to a net loss in occupancy of 6,840 sf. Sarasota continues to have the region's highest rents, which moved up $.58 per sf.

In Manatee County, two anchors closing pushed the county's net periodic leasing to a net loss in occupancy level. Strong leasing reported in May kept annual absorption in a positive position. The vacancy rate climbed 1.6 points, while average rents moved up by $.20 per sf.

Pinellas saw a net loss in occupancy in all three of its sub-markets, causing annual absorption to move to a net loss position. The vacancy rate increased 1 percentage point. Annual absorption has been in a net loss position for two-and-a-half years. As a consequence, this sub-market has the region's highest vacancy rate, which jumped up 1.3 points during this period. South Pinellas saw fairly large net losses at three centers, with small gains at only four. The market's annual absorption level is in a net loss position for the first time in four years. The vacancy rate climbed 1.4 points.

Pasco County's modest net periodic absorption was not enough to overcome the net loss experienced six months ago. But the effect on the vacancy rate was minor, and the weighted average rental rate increased $.40 per sf.

Across the region, a number of anchor spaces are empty but remain under lease. This space is not reflected in the counties' regular vacancy rates. The figures in parentheses below indicate what each county's vacancy rate would be if this vacant anchor space was accounted for.

Hillsborough 117,500 (7.6%)	Manatee 68,800 (9.3%)
Pinellas 188,220 (10.3%)	Sarasota 50,000 (6.8%)

Shopping centers that have been fully leased for two or more periods do not appear in the survey charts. All shopping centers continue to be updated in the database each half-year. For a complete survey call the Maddux Report 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.