Retail Signals Mixed
by Laurel S. McQueen

The Tampa Bay Region recorded its first net loss in occupancy since second quarter 1991. Across the region 1,209,230 sf was leased ­ a respectable amount by any accounting. Unfortunately, 1,214,420 sf in move-outs were recorded – making the region's net for the quarter essentially a wash. Polk County contributed the largest move-out total spurred by the bankruptcy of United Containers, which left behind 294,000 sf at Florida Central Park in Davenport. The county's vacancy rate climbed 4.5 percentage points. Annual absorption dropped into the net loss column for the first time since second quarter 1995. Over the past five years Polk County had averaged over 425,000 sf in net annual absorption.

On the opposite side of the equation, Manatee County recorded its fourth highest level of net quarterly absorption since MADDUX REPORT started surveying the county in 1986. Annual absorption jumped 47 percent to the county's highest level in 12 years. The vacancy rate dropped 2.5 points. The first space at Lakewood Ranch Commerce Center was completed and occupied during the quarter. This park is one exit up Interstate 275 from the more developed Town Center.

The rest of the market saw much more modest activity. Hillsborough County's net quarterly absorption was down 60 percent, but annual absorption moved back into the plus column after a net loss in occupancy for 2001. Developers and leasing agents are working to hold on to existing tenants and lease the growing cache of vacant space. Only 15,000 sf of space is currently under construction in the county, and the pipeline holds just 109,000 sf of planned speculative space.

The market west of I-275 saw its fifth consecutive quarter of net losses in occupancy. The vacancy rate inched up 0.4 point. East of I-275 446,730 sf of space was leased – but 377,990 sf in move-outs pulled net absorption back to a much more modest level. The sub-market's vacancy rate did slide back 0.3 point, but the rate has been in double-digit territory now for four years. Because a fairly large first quarter 2001 quarterly occupancy loss was dropped from the four quarter moving annual absorption rate, the sub-market's annual absorption climbed 93 percent from the fourth quarter level.

Pinellas County's meager net leasing was enough to pull its moving annual absorption rate back into the plus category. The county's vacancy rate dropped half a point. Construction was started during the quarter on 50,000 sf of speculative space at Fortune 2000 on Bryan Dairy Road. This is the only new spec space to be started in the region this quarter.

The opening of the new Fruitville Business Park with 63,000 sf of flex space available nudged Sarasota County's vacancy rate up a half point. Annual absorption was up 37 percent from fourth quarter. Pasco County again saw very little activity. New space was added at West Pasco Industrial Park, but the net effect of newly built space and move-outs was a net loss in occupancy.

Hangar space was completed and leased at the Hernando County Airport Industrial Park. The National Guard began construction on additional hangar space. A 20,000 sf build-to-suit for Omni Circuits is also under construction. And two other current park tenants are wading through the permitting process to expand their spaces by a total of 37,000 sf.

Quarterly data is revised as new information is obtained. Data on County Business Park Space Guides may not add up to numbers shown on Business Park Market chart as sub-lease space and space coming available in the next few months are shown in the guides, but not included in analysis data. For more detailed information on the survey call the MADDUX Research Department at 727/321-3225 or send inquiries via e-mail to MADDUXResearch@AOL.com.