Year, Sad End
by Laurel S. McQueen
march through 2000 of Tampa Bay's office absorption ground
to a halt in the fourth quarter. The overall quarterly pace
dropped 42 percent. However, for the full year 2000 it was
a prettier picture, with regional absorption up 38 percent.
County's net fourth quarterly absorption was almost non-existent,
presaging the year's total, which ended with a slight 3 percent
dip compared to the 1999 level. The vacancy rate moved up
0.6 percentage point from a year ago. Across the county, Class
A space netted 746,730 sf absorption during 2000, dropping
1 point to a 10.6 percent vacancy rate. The county's weighted
average rent moved up $.30 per sf.
Tampa market had the quarter's only significant absorption
movement. Absorption for the year moved up 9 percent from
1999. Downtown's overall vacancy rate was down 1.2 points
from a year ago, but the Class A rate was up 1.8 points to
saw a large drop in occupancy during the fourth quarter as
the move to new space continued. This quarter's drop is not
quite as great as last quarter's increase. Annual absorption
for the year soared to nearly 400,000 sf from a net loss in
1999. This submarket had the county's largest rent increase,
moving up $.49 per sf.
boom in the I-75 corridor also added over 300,000 sf of new
space to that submarket during the year. As a result, the
vacancy rate climbed 5.4 points. Annual absorption dropped
40 percent from the 1999 level.
County's fourth-quarter absorption was down 54 percent, but
absorption in 2000 was 55 percent higher than in 1999. The
new Franklin Templeton Group's building at Carillon, which
opened during the third quarter, represented 59 percent of
the county's annual absorption. Overall, the county's vacancy
rate was down 0.5 point from a year ago.
Pinellas's absorption was 58 percent below the 1999 level
with only the downtown Clearwater market reporting positive
annual absorption was more than double the 1999 level, but
if the new Templeton building is removed from the figures,
the market saw a 39-percent decline in absorption. The vacancy
rate moved down 1.4 points during the year.
St. Petersburg's 2000 absorption jumped 33 percent from the
level a year ago. The vacancy rate dropped 2.9 points. Class
A space, however, saw a 1.7-point increase, ending the year
at 8.3 percent vacant.
County's vacancy rate dropped 1.7 points during the year.
Annual net absorption of 328,000 sf was the highest recorded
since the Maddux Report began surveying the market in 1985.
It was 17 percent higher than in 1999. The suburban Sarasota
market garnered 64 percent of the year's absorption, with
downtown Sarasota taking 31 percent and Venice the remaining
County's annual absorption fell 47 percent from the 1999 level.
The vacancy rate slipped 0.6 point during the year. Rents
were up $.47 per sf.
suffered a net loss in occupancy last year. The vacancy rate
moved up 1.4 points while rents dipped $.06 per sf.
County the annual absorption was 17 percent higher than 1999,
while the vacancy rate dropped 3.8 points.
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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.