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Whew, thank goodness for the fourth quarter. What could have been a real soft year for the region’s business parks turned respect- able at the last minute. Both Polk and Hillsborough counties able experienced their second best quarters since this magazine began surveying this sector two decades ago, 625,500 sf and 755,875 sf respectively. As a result, the region’s quarterly volume closed at over 1.2 million sf, a mark reached only three other times in the past decade.
For the year, the region experienced
a net volume of 2.6 million sf, over half
of which was produced by Hillsborough. Easily the county’s – and
region’s – strongest market is that east of I-275, which accounted
for 87.5 percent of Hillsborough’s annual volume. It had its best
quarterly volume since 1999. Almost a half million sf of new space
was completed in east Hillsborough in the fourth quarter, hitting
the market just 43 percent vacant.
 Polk’s fourth quarter activity of 625,500 sf totaled more than
its six previous quarters combined. About 45 percent of that was
due to a single lease – hhgregg Appliances and Electronics at Park
27 Distribution Center north of Davenport. Overall, the county’s
volume for the year was down 25 percent while its vacancy rate
climbed 7.2 points since the end of 2006.
Pinellas suffered its second consecutive quarterly loss. Even so,
the county’s annual volume was still up by 10 percent over 2006.
That positive note was primarily due to one corporate move – Val-
Pak’s opening in the second quarter.
Sarasota is experiencing a market correction – its volume for all
of 2007 is down 78 percent from 2006. That’s largely due to a net
loss this quarter plus flat leasing last quarter coupled with a significant
volume of activity the fourth quarter of 2006 dropping out of
the 12-month moving average.
Manatee’s annual volume was down by more than a third from
2006. It had a net loss for the fourth quarter. Whitfield Industrial
and Port Manatee Commerce Center were added to the survey.
Combined they added 330,000 sf – all vacant. As a result the
county’s vacancy rate climbed 4.2 points from a year ago. 
Activity in Pasco ground to a virtual halt in 2007, after a soaring
2006. Volume for the year was off 98 percent and the vacancy rate
is up by 13 points. This sharp reduction probably is due more to a
lack of diverse inventory than to a lack of demand. However, new
space is entering the market. Construction is complete on 108,000
sf of spec space at ComPark 75 and 28,000 sf at East Pasco Commerce
Center.
Two build-to-suits were completed in Hernando County, for total
absorption of 35,000 sf this quarter and year. Two more (31,200
sf) are in the permitting process. Road work is about half complete
at the Airport Industrial Park to open new lots for development.
Across the region, construction was completed on 2.7-million
sf of spec space during 2007. The pipeline continues with 1.5-
million sf currently under construction and 776,000 planned for
2008.
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