Leasing Rate Slips
by: Laurel S. McQueen

Across the region, business park leasing in 2000 was down just 7 percent compared to 1999. Pinellas, Sarasota, Pasco and Polk counties all recorded more net absorption in 2000 than they did in 1999. Hillsborough, Manatee and Hernando were down.

Remarkably, in 2000 Pinellas saw net absorption of just 990 sf more than Hillsborough. For Pinellas, this was a 13 percent increase over the previous year. Over the course of the year, Pinellas's vacancy rate dropped 3.5 percentage points. A total of 669,600 sf of speculative space was completed in Pinellas last year, while an additional 375,600 sf of spec space remains under construction moving into 2001. During the 4th quarter, 90,000 sf was completed at Starkey Lakes Corporate Center, while construction was started on a new park in mid-county: Mears Enterprise Center.

In Hillsborough County, absorption dipped by 18 percent from the 1999 level. The vacancy rate dropped 2.2 points during the year. More than 1.2 million sf of spec space was completed in the county during 2000. Things are slowing down, however. At year's end only 443,640 sf remained under construction, and only 116,000 sf of planned new space has been announced.

The submarket west of I-275 received 37 percent of the county's new spec space. Absorption for the year dropped 39 percent from the year before, while the vacancy rate moved up 0.9 point. During the 4th quarter, 36,000 sf of spec space was completed at Executive Industrial Park.

The eastern sector of the county had an unusual 4th quarter with move-ins of 262,580 sf topping move-outs by just 2,700 sf. Absorption for the year was off only 3 percent from the 1999 level. And the vacancy rate dropped 3.3 percentage points, even with the completion of nearly 775,000 sf of new speculative space. During the 4th quarter, construction was completed on 258,000 sf of spec space at Oak Creek, all of which is currently available. Also during the quarter, 134,200 sf of spec space was completed at the new First Park at Brandon, space that is also still available.

Sarasota County's recorded absorption last year was 35 percent higher than in 1999. This was all attributable to the completion of a build-to-suit for VICO at Sarasota International Trade Center. The county's vacancy rate dropped 0.2 point during the year. Sarasota is primarily a build-to-suit market, so the vacancy rate has remained consistently below 3 percent for the last six years.

Manatee County's year was not so fruitful. Absorption for the year 2000 was a scant 5 percent of the 1999 level. During the 4th quarter construction was completed on an 18,000 sf build-to-suit at Saunders Road Industrial and on 35,000 sf of speculative space at the new Tallevast Commerce Center. The county's vacancy rate rose 1.1 points during the year.

Pasco County's annual absorption was up 97 percent from the 1999 level because of a build-to-suit at Wesley Chapel. The vacancy rate dipped 0.5 point during the year. No activity was reported for the 4th quarter.

Polk County's 2000 net absorption was about two-and-a-half times greater than the 1999 level. Even with the addition of 267,500 sf of spec space, the vacancy rate dipped 0.9 point during the year. As in Pasco, no activity was reported in Hernando during the 4th quarter. Annual absorption was down a scant one percent from 1999's level.

Across the region 2.3 million sf of speculative space was completed during the year. An additional 1.3 million sf remained under construction at year end, with 753,800 sf of announced spec space still in the pipeline.

Quarterly data is revised as new information is obtained. 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.