NEWS, BAD NEWS
Laurel S. McQueen
leasing improves. But it still could take 20 years to fill
all the vacancies.
MANATEE AND SARASOTA, the regions office market emerged
from the crater created last quarter. The total quarterly
absorption is still modest, but looking back over the last
eight quarters since 9/11, third quarters activity ranks
the region a number of smaller leases was reported. Unfortunately,
much of this is intermarket movement as leases expire and
companies move to better deals.
of sublease space in the region grew by 59 percent
not because of an actual increase in the market, but because
the MADDUX BUSINESS REPORT got a better handle on whats
out there. Previously, only large chunks of space were tracked.
Now any sublease space reported is tracked. So, if the full
809,500 sf now reported were added in, the regions vacancy
rate would rise to 19.4 percent.
at another way, it would take nearly 20 years to fill all
the vacant space, based on the current 12-month volume.
Tampa Bay proved the saving grace for the market, accounting
for two-thirds the net absorption. The I-75 Corridor through
Manatee and Sarasota netted 135,500 sf during the quarter.
The newly opened Manatee Memorial Hospital at Lakewood Ranch
was responsible for 54,000 sf, while Park Place on Clark Road
added another 15,500 sf. Manatee now has the regions
lowest vacancy rate while Sarasota has the regions second-greatest
in Hillsborough and Pinellas counties was little more than
a wash. Hillsborough, however, did improve by more than a
quarter-million sf from last periods negative to land
with a positive 32,840 sf, a modest number for Tampa Bays
largest office market.
the end of 2001, downtown Tampa has endured a cumulative net
loss of 397,650 sf 84 percent at Class A buildings.
Asking rents, however, have remained fairly steady with overall
rates up $.12 per sf. Effective rents are down, however, as
concessions are up, with some properties advertising free
rent. This is a growing trend in all the major submarkets.
squeaked out a modest gain of 63,160 sf, though still reporting
a loss in annual volume. Sublease space now being tracked
in this market grew 58 percent. If included, the vacancy rate
would push to 16.7 percent. Meantime, tracked sublease space
along the I-75 Corridor increased by 90 percent, which would
raise the vacancy rate to 31.5 percent.
activity was a yawner. The Clearwater and north submarket
has seen its annual rate in net loss territory for nine consecutive
quarters. Countryside, however, finally has reached a positive
position with annual absorption of 21,740 sf. Downtown St.
Petersburgs vacancy rate dropped two points because
vacant space at First Central Tower had previously been reported
as the owners space, but its sublease. Countywide,
Pinellas sublease space now being tracked rose 55 percent,
which would raise the vacancy rate to 17.4 percent.
saw some positive activity after three quarters of net losses.
But it remains as the only county with an annual volume loss.
Its vacancy rate dropped 1.5 points.
buildings which have been fully leased for two or more quarters
do not appear in the survey charts. All office buildings continue
to be updated in the database each quarter. Previous quarterly
data is revised as new information is received. Survey charts
may include sublease space, which is not included in analysis
numbers. For questions regarding the survey, call the MADDUX
REPORT research department at 727/321-3225 or email MADDUXResearch@AOL.com.