First Loss in 51/2 Years
IN TAMPA BAY'S OFFICE MARKET CONTINUED TO SLOW through the
third quarter, resulting in the first regional net loss in
occupancy in five-and-a-half years. Only two of the region's
six counties saw positive net absorption for the quarter.
Hillsborough's third-quarter absorption was down 81 percent
from second quarter, while the vacancy rate dipped 0.8 of
a percentage point. Annual absorption, on the other hand,
moved up 20 percent as a very small third quarter 2000 absorption
dropped out of the four-quarter moving rate. The county's
Class A space netted 90,470 sf of quarterly absorption nearly
three times last quarter's total, but annual Class A absorption
dipped 9 percent.
Tampa experienced a fairly flat quarter with just 46,700 sf
of move-ins at seven buildings. This was tempered by 24,125
sf of move-outs at three buildings. Not included in the totals,
however, was a full floor of sublease space at SunTrust Financial
Center that was re-leased. The vacancy rate moved up 1.5 points
with the addition of the Kress Square development to the survey.
The Class A vacancy rate was at 9 percent; the Class B & C
rate climbed 8.1 points to 29.4 percent.
net quarterly absorption was nearly non-existent. And the
submarket's annual leasing dropped to a net occupancy loss
as a large level of absorption from last fall dropped out
of the moving rate. The vacancy rate moved back into double
digits, up 0.6 point.
Corridor continued as the top leasing market. Large blocks
of space were taken at Hidden River Center III and at Regency
Corporate Park. The vacancy rate moved up 1.3 points because
of the addition to the survey of the now vacant Washington
Mutual Financial building at Hidden River.
County continued the downward slide of last quarter. The vacancy
rate moved up 1.3 points while annual absorption declined
13 percent. The Class A vacancy rate climbed 2.3 points. Annual
Class A absorption was 278,830 sf.
submarket took the worst hit this quarter with a loss of 42,000
sf at Arbor Shoreline. This space has been empty for some
time, but the lease just ran out in July. As a result, the
vacancy rate climbed 4.5 points.
experienced its fourth consecutive quarterly loss in occupancy,
reaching a 10.5 percent vacancy rate. Downtown Clearwater
moved up to a 17.3 percent vacancy situation, while the Dunedin,
Palm Harbor, Tarpon Springs market vacancy rate moved up to
County's annual absorption dropped 91 percent as a high level
of absorption from third quarter 2000 was replaced by a net
loss in occupancy this quarter in the moving rate. The downtown
Sarasota market is 8.1 percent vacant, up 1.4 points. Suburban
Sarasota slipped up to 18.4 percent vacant, while the Venice
market was unchanged at 23.4 percent vacant.
was reported in Manatee County during the third quarter. Just
one 3,200-sf lease was reported in Pasco County. Polk County
reported activity at only four locations.
the region as a whole it would now take six years to fill
up all the vacant space at the current annual pace of leasing.
Add the space under construction (and not preleased) and the
lease-up time moves up to 6.3 years.
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.