Lowest in 10 Years
by Laurel S. McQueen

Business park leasing in the Tampa Bay region finished a volatile year on the upswing with final absorption for the year up 50 percent over 2001’s level. All seven counties had positive, if sometimes modest, absorption for the year. Construction of speculative space reflected the slower economy and leasing woes of the year with just 456,500 sf completed in 2002 and an additional 347,300 sf under construction. By comparison, in 2001 1.61-million sf was completed, with an additional 260,900 sf under construction at year-end.

After spending three quarters in net occupancy loss, a build-to-suit for McKesson Corp. pulled Polk’s absorption up to a positive position. The county’s vacancy rate moved up 3.1 points mainly because 568,600 sf, 40,000 sf of it speculative, was added to the survey during the year.

After three years of construction, 75,000 sf of space was completed at Airport Manufacturing Center in Manatee in December. It is 69 percent occupied. An additional 150,000 sf is due for completion in April. Considering that 301,000 sf was added to the Manatee survey (90,000 sf new spec construction), the county’s vacancy rate dropped 2.7 points for 2002.

Hillsborough County’s 2002 performance, while modest, experienced a significant reversal from its 2001 net occupancy loss. The yearly vacancy rate dropped .6 point including 410,000 sf (80,240 sf new spec space) being added to the survey. In eastern Hillsborough, there was no speculative construction, producing a 1.1 point decline in vacancy rate.

In Pinellas County we inadvertently reported absorption in the third quarter that did not occur. As a result, the county suffered a net occupancy loss during the third quarter instead of the reported gain. The year was nearly a wash, just eking out a positive net absorption. Construction on 71,000 sf of speculative space was completed during the fourth quarter. The county’s 12-month vacancy rate increased by one point. The Gateway market suffered as the region’s only submarket with a net occupancy loss. Gateway’s vacancy rate climbed 3.4 points for 2002.

Fourth quarter net absorption in Sarasota County took a 73- percent dive. But 2002 annual absorption was up 76 percent over 2001. Construction was completed on 130,900 sf of speculative space, divided 24 percent in the Venice market and 76 percent in suburban Sarasota along I-75. The vacancy rate moved up 1.3 points because of the new space. In Pasco, annual absorption was down 15 percent from 2001. Construction was completed on 24,000 sf of spec space at West Pasco Industrial Park in the quarter. But move-outs topped move-ins leaving Pasco in the negative. Vacancy was up .5 point.

Three build-to-suits plus hangar space for airplane storage was completed in Hernando County boosting this county’s annual absorption to the highest it’s been since MADDUX REPORT began surveying there in 1994. Because space here is primarily build-to-suit, the vacancy rate hasn’t been over 1 percent in seven years.

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 sublease 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 REPOPRT Research Department at 727/321-3225 or send email to MADDUXResearch@AOL.com.