Maddux Report - Tampa Bay's Business, Finance and Development Magazine

Regaining Lost Ground
by Laurel S. McQueen

Tampa Bay’s retail leasing market made a strong move into 2003. Net absorption for the last six months was more than double the prior period – Hillsborough, Pinellas and Pasco counties expanded by more than 300,000 sf while Sarasota and Manatee contracted by nearly 150,000 sf.

Hillsborough’s six-month absorption rebounded significantly from the previous stagnant period. The northwest and southeast submarkets recorded significant expansion with a new center completed in each sector. The northwest has the region’s lowest vacancy rate. In the southeast submarket, Kane’s Furniture leased the empty Scotties box.

Among Hillsborough’s 37 community centers, the vacancy rate dropped 1.1-percentage point with a net absorption of 87,000 sf. Weighted average rent climbed to $13.96. At the county’s 83 neighborhood centers, net absorption was 94,340 sf. Weighted average rent moved up a half dollar to $12.56. Strip/specialty centers collectively had a slight loss in occupancy, and at 9.8 percent, this sector has the county’s highest vacancy rate. Only one of the county’s five regional malls reported this period.

The picture in Pinellas is opposite to the six months reported in November. The north and mid-county submarkets went from net losses to positive net absorption. Meanwhile, south county went from positive leasing to negative. Although Pinellas’ leasing for the period was positive, its annual absorption actually dropped 37 percent. Pinellas’ 31 community centers absorbed 15,670 sf over the six-month period. The vacancy rate moved up slightly to 8.7 percent because of the addition to the survey of Tarpon Springs Mall, which is half vacant. Weighted average rent is $15.09. Among the county’s 64 neighborhood centers, the period’s absorption was 19,620 sf, resulting in a vacancy rate of 7.2 percent. Weighted average rent is $10.96. Five of the county’s seven regional malls reported a combined net absorption of 60,875 sf and a vacancy rate of 4.8 percent. The 27 strip centers in the survey collectively lost 1,610 sf. Meanwhile, specialty centers lost 17,420 sf, boosting the vacancy rate to 14.2 percent.

Pasco improved its position slightly with a lot of activity reported. There were move-ins at 13 centers coupled with move-outs at seven centers. Pasco continues to have the region’s only double-digit vacancy rate. Its 13 community centers absorbed 54,637 sf over the period, dropping the vacancy rate 2.9 points to 11.7 percent. However, the 33 neighborhood centers lost 31,649 sf, pushing the vacancy rate up to 12.1 percent. Sarasota underwent a big decline in net absorption from the previous six-month period, from 60,810 sf to 10,370 sf. Annual absorption, however, was down only six percent.

Sarasota’s 18 community centers lost 37,550 sf, but the vacancy rate is a low 4.9 percent. Weighted average rent is $15.00. Meantime, the county’s 25 neighborhood centers gained 82,598 sf, dropping the vacancy rate to 8.5 percent. Weighted average rent is $13.29. The county’s ten strip/specialty centers lost 36,560 sf, pushing the vacancy rate up to 17 percent.

Manatee had a net occupancy loss, with annual absorption declining 40 percent. Its ten community centers have a very low 2.4-percent vacancy rate while experiencing negligible leasing activity this period. Manatee’s 25 neighborhood centers lost 13,466 sf, pushing the vacancy rate up to 12.4 percent.

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