Out with the Old, in with the New
by Laurel S. McQueen

WERE IT NOT FOR THE REOPENING of Clearwater Mall as a ‘big box’ center, the region’s retail market this past six months would have been a wash at best. As it stands, the region’s net gain is 425,690 sf. Clearly, Tampa Bay’s retail is in transition. In addition to Clear-water Mall, five new shopping centers came online throughout the region while three full centers and two partial ones were demolished. Those are making way for two Lowe’s, a Super Wal-Mart and two freestanding pharmacies. Meantime, two K-Marts and a Wal-Mart were closed.

In Pinellas, 31 community centers experienced a net loss of 26,890 sf for the six months. Their average vacancy rate inched up to 9.2 percent; weighted average rent is $15.18. Among Pinellas’ 67 neighborhood centers the activity was a healthy 118,630 sf, dropping the vacancy rate to 6.6 percent; rent is $11.28. The 26 strip centers in the survey recorded a collective loss of 5,720 sf.

Hillsborough slipped into a loss position with only the northeast sector reporting a gain, thanks to the Tampa Flea Market that took down an empty Save ‘N Pac box. Among Hillsborough’s 35 community centers the occupancy fell 95,500 sf while weighted average rent moved up to $14.15. On the other hand, the county’s 82 neighborhood centers gained another 44,580 sf; rent at $12.62 hardly changed.

Overall, Pasco had a pretty good six months. Construction was completed on two new shopping centers in the Wesley Chapel area. The vacancy rate dropped back into single digits after a year and a half. Pasco’s 14 community centers experienced a 4.6-point boost in their vacancy rate to 16.3 percent. However, the 36 neighborhood centers fared much better, recording a net gain of 111,660 sf. Their vacancy rate dropped 2 points to 10.1 percent.

In Sarasota, Venetian Plaza was removed from the survey because it will be demolished to make way for a new Lowe’s. Sarasota’s 17 community centers recorded a net loss of 23,450 sf for the six months, but the vacancy rate remained a low 4.5 percent; weighted average rent is $14.96. The county’s 25 neighborhood centers squeaked by with a gain of 1,130 sf, leaving the vacancy rate unchanged at 8.5 percent; rent is $13.50. Manatee is a third county with a net loss for the six-month period, causing the annual volume to be negative as well. The ten community centers recorded a net loss of 125,580 sf, driving that vacancy rate up to 8.3 percent. The county’s 25 neighborhood centers saw net absorption of 41,510 sf, dropping the vacancy rate to 10.7 percent.

Across the region a number of anchor spaces are empty but remain under lease. This space is not reflected in the counties’ regular vacancy rates. The figures in parentheses below indicate what each county’s vacancy rate would be if this vacant anchor space were accounted for: Hillsborough 55,750 sf (5.0%) Pinellas 131,600 sf (7.5%) Manatee 17,100 sf (8.4%) Sarasota 76,700 sf (7.0%) Pasco 13,170 sf (9.9%)

Shopping centers that have been fully leased for two or more periods do not appear in the survey charts. All shopping centers continue to be updated in the database each half-year. For a complete survey call MADDUX BUSINESS REPORT Research Department at 727/321- 3225 or e-mail at MADDUXResearch@AOL.com.