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Hillsborough, the region’s lead market for business parks, went
negative this quarter for the first time in four years – its steepest
falloff since 1991. And Pinellas endured its third consecutive quarter
in which departures exceeded move-ins, something the county
has not experienced in nearly 25 years of surveying by this magazine.
Meantime, Pasco enjoyed its second-best quarter and Polk
reported a respectable amount of activity.
Overall, leasing in the seven-county
region grew by a miniscule 46,700 sf
in the first quarter, although for the 12
months the volume stands at a healthy 2.4-million sf.
For the quarter, Pasco’s net absorption came in at eight times
the previous quarter’s volume, dropping the vacancy rate by 4.7
points. Most active was the rapidly growing Dade City Business
Center, but ComPark 75 and West Pasco Industrial also picked up
new tenants.
Polk’s first-quarter leasing was more than a third above its two year
quarterly average. But the vacancy rate notched up a bit with
the addition of new space in Davenport. The annualized net absorption
soared 58 percent from last period as this quarter’s activity
replaced a net loss from a year ago in the 12-month moving rate.
Hillsborough’s stellar results in 2007 came to a halt this quarter.
A number of locations reported small move-outs. But five parks
reported departures of 40,000 sf or more. Annualized absorption
dropped by more than one-third from last period.
The market west of I-275 was hurt most. Nineteen locations
reported move-outs, while only five saw move-ins. This market has
now endured net losses the last three quarters. It has been two and
a half years since the market east of I-275 recorded a loss, as it did
this quarter. Sixteen business parks reported move-outs while six
reported move-ins. Construction was completed on two distribution
buildings – at Sabal and Fairfield parks – both fully leased. But large
losses were seen at Tampa East and West Hanna Distribution.
Pinellas’ three consecutive losses have driven the annual activity
down by nearly one-third from last period. Worse, if you were to
remove ValPak’s 2007 opening from the 12-month rate, the county
would have suffered a loss of 192,930 sf over the last year.
Sarasota underwent a second straight loss this quarter, dropping
annual absorption by 36 percent. Departures were recorded at six
locations while only one saw a move-in.
Manatee’s activity was flat but the vacancy rate ticked up a bit
with the opening of 63,670 sf at two parks. Nothing is leased yet in
this space. As paltry as this quarter was, the county’s 12-month volume
is still up by 14 percent because the current quarter’s volume
is better than that of a year ago.
No leasing activity was reported in Hernando County, but construction
was started on 89,000 sf of spec space at Airport Industrial
Park.
Across the region 1.55-million sf of space is currently under construction,
28 percent of which is pre-leased. A year ago, 2.87-million
sf was under construction with 40 percent preleased.
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