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AS THE ECONOMY CONTINUES TO FALTER, retail leasing across
the bay area follows suit. On its face, the region’s six-month activity Athe appears robust with a net gain of 502,000 sf. However, were it not for four centers – two in Pasco and one each in Pinellas and Hills- borough – the volume would be a negative 239,000 sf. Across the region, 23 centers that were fully leased now have vacancy signs.
In Pasco, the Shops at Wiregrass opened in Wesley Chapel adding
646,000 sf of space to the site where J.C. Penney opened two
years ago. Two new anchors here are Dillard’s and Macy’s plus 50
or so smaller shops. On the other side of Pasco the first phases of
Trinity Town Center opened with over 77,000 sf leased. The county
would otherwise have experienced a
net loss of 58,300 sf; it continues to
have the region’s highest vacancy rate.
Cypress Creek Town Center, the 1-million sf big box mall at I-
75 and SR 56, is still shown as under construction and is actively
being marketed, although construction remains suspended while a
resolution of permitting problems is pursued. Pasco’s average rents
climbed by $0.62 per sf from six months ago.
In Pinellas, the last phase of Park Street Center opened in
south county, adding 64,370 sf of leased space. In mid-Pinellas,
at Barclay Square, a WalMart Neighborhood Market has signed
for previously vacant anchor space and will open in April 2009.
Without these two, Pinellas would have experienced a net loss of
nearly 49,000 sf. Meanwhile, local space at Shoppes at Royale in
St. Petersburg is now open and its 85,000-sf Publix will open next
spring. The county’s average rent climbed another $0.43 per sf
from six months ago while average CAM charges (common area
maintenance) dropped by $0.46 per sf.
Hillsborough squeaked out a small gain for the period, but the
annual volume dropped solidly into loss territory. Publix gave a
boost by leasing the vacant anchor box at Valrico Square in the
southeast submarket. The other three submarkets all lost ground.
Meanwhile, average rents moved up another $0.53 per sf while
average CAM costs moved up $0.18 per sf. Hillsborough’s 42
community centers collectively lost 21,300 sf while its 97 neighborhood
centers added 51,670 sf.
Manatee nearly doubled the loss experienced the previous six
months, so over the last year the county has slipped by more than
100,000 sf. The slide was fairly evenly dispersed between community
and neighborhood centers. This period, rents finally reflected
the losses by ticking downward, albeit only by $0.04 per sf. Average
CAM charges continued to climb, by $0.27 per sf.
The story is nearly identical in Sarasota County – twice as much
space vacated this period versus last. Community centers are suffering
more than neighborhood centers. Yet the county’s rents
notched up $0.09 per sf; CAM charges were up $0.26 per sf.
The number of empty big boxes in the market remained the
same, but Hillsborough saw one less while Pinellas saw one more.
This space is reflected in the analysis above, but we break it out
separately because it shows a major trend. The chart below indicates
the total big box space in each county and the number of
spaces represented. Big boxes are defined as spaces of 30,000
sf or more. Parts of seven of these boxes have been re-leased to
smaller tenants.
| Hillsborough |
147,600 (5) |
|
Pinellas |
205,900 (6) |
| Manatee |
56,600 (2) |
|
Sarasota |
69,000 (2) |
| Pasco |
125,750 (3) |
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