Overall office absorption in the Tampa Bay region continued a strong march through the year as it moved into the third quarter. The quarterly pace jumped ahead by 45 percent. A closer analysis by county, however, shows that only Pinellas and Sarasota progressed substantially.
Hillsborough County experienced its second straight moderate quarter, with four of six sub-markets again recording net occupancy losses. The vacancy rate slipped up 2 percentage points, while annual absorption was unchanged. Oddly enough, the county's net quarterly absorption differed from third quarter 1999 by just 65 sf.
The downtown Tampa market recorded a second successive net occupancy loss, most notably at One Mack - Cali Center. The sub-market's annual absorption dropped 60 percent. Downtown's Class A vacancy rate climbed 1.1 points to 11.7 percent. Over the last year the Class A market has seen a net loss in occupancy of 83,435 sf. The Class B and C rate dipped slightly to 24.1 percent.
Westshore saw significant activity, primarily as Corporate Center I reached a 97 percent occupancy level. Overall in Westshore, the vacancy rate dropped 2.4 points, while annual absorption soared 73 percent. The sub-market's Class A vacancy rate plummeted 4.3 points to 5.8 percent. Nearly 830,000 sf of Class A space has been absorbed over the last year.
Absorption in the I-75 Corridor went from active to a slight net loss this quarter. The vacancy rate jumped 3.8 points as Pinebrooke V and Highland Oaks II were completed.
Pinellas's net absorption nearly tripled. However, it was all caused by the completion of Franklin Templeton Group's second building at Carillon. The Class A vacancy rate rose 1.7 points. Gateway's Class A vacancy rate moved up 2.5 points to 18.3 percent. Gateway saw the region's highest change in Class A rental rates with the weighted average rent increasing $0.93 per sf.
The Countryside market netted 9,145 sf in absorption, but this was completely negated by a net occupancy loss in the Dunedin and north sub-market of 10,610 sf. Countryside's vacancy rate dropped 0.6 point to 4.1 percent.
Construction was started on 380 Park Place in Bayside. Due for completion in first quarter 2001, the building will increase the sub-market's Class A space by 11 percent. Currently, Class A space is 4.8 percent vacant, while Class B and C space is 4.9 percent vacant.
Sarasota's vacancy rate dipped 0.7 of a point, with net absorption that was double the second-quarter level. Absorption was almost equally divided between the downtown Sarasota market and the suburban Sarasota market. Construction was completed during the quarter on the second building at the Gateway to Sarasota and Kane Plaza.
Manatee's annual absorption fell 64 percent, as moderate leasing from 3rd quarter 1999 dropped out of the moving rate, replaced by a small loss in occupancy.
Activity was reported at only three buildings in Pasco County, resulting in a very small net loss in occupancy.
While activity was reported at slightly more buildings in Polk County, the result was the same as in Pasco - minor net absorption and an unchanged vacancy rate.
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.
