Absorption Down
Most counties still suffering from market slowdown.
by Laurel S. McQueen

FOUR OUT OF SEVEN COUNTIES IN THE TAMPA BAY REGION RECORDED net occupancy losses in the second quarter resulting in a second consecutive net loss for the region as a whole, pulling annual absorption down 26 percent. The region's vacancy rate slipped .4 percentage points.

Speculative construction in the market is screeching to a halt. Across the region just 361,830 sf of spec space is under construction with 39 percent of that space pre-leased. Less than 100,000 sf is on the drawing boards for construction later this year. A year ago 1.22-million sf were under construction, 585,460 sf had already been completed in the first two quar-ters and 378,200 sf were getting ready to start construction in the second half.

Polk County switched positions from last quarter and led the way in net absorption. An expan-sion by Cardinal Industries at Lake-land Interstate Business Park spurred the turn-around. Two large build-to-suits are under construction in the county for delivery at the end of this year and the beginning of 2003, putting the coun-ty back on track for substantial positive net absorption.

Pasco was the only other county with positive net absorp-tion this quarter. Annual absorption climbed 58 percent, while the vacancy rate dropped 1.4 points. Most of the coun-ty's absorption was the result of several leases at West Pasco Industrial Park.

Pinellas County saw the region's biggest net occupancy loss with 89 percent of the total in the Gateway area. The vacancy rate nudged up .4 points, while annual absorption fell into net loss territory. A year ago Pinellas was cooking along with over 685,000 sf of net annual absorption.

Hillsborough County's quarterly net loss was one fourth of the net loss from second quarter a year ago, so annual absorption bounced up 79 percent. Construction was started during the quarter on Northport Business Park VII & VIII ­ 79,527 sf of speculative space, which is 47 percent pre-leased. This is the only new construction start of spec space in the region.

Manatee County's net loss pushed the vacancy rate up .6 point. Major absorption at Palmetto Corporate Complex a year ago dropped out of the twelve-month moving absorption rate pushing the county's annual absorption down 49 percent. Construction seems to have stalled on 200,000 sf at Airport Manufacturing Center. This space has been reported under construction, and 50 percent pre-leased, for 15 quarters.

Sarasota County's net occupancy loss was small, but it impacted the annual rate by a 31 percent drop because posi-tive net absorption from 2nd quarter a year ago dropped out of the moving rate. The county's vacancy rate climbed 2.2 points because 74,000 sf in two empty buildings was added to the survey (King Plastics Building and Wetstone Center).

No activity was recorded in Hernando County, but four build-to-suits are under construction at Hernando Airport Industrial Park for delivery later this year.

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 REPORT research department at 727/321-3225 or send inquiries via e-mail to MadduxResearch@AOL.com. Most counties still suffering from market slowdown.