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A glimmer of hope appeared in the third quarter across the region’s business parks. Four counties reported gains while losses elsewhere shrank conspicuously. Hillsborough County experienced its first positive quarter in five; Pinellas and Polk, their first in four quarters. While move-ins throughout the region totaled a solid 1.45-million sf, move-outs unfortunately equaled
1.16-million sf.
Hillsborough netted just under 100,000 sf of positive activity
this period. Its vacancy rate, however, is the county’s highest
in 16 years. West of I-275, losses completely wiped out last
quarter’s gains.
The market east of I-275 noted several
large occupancies of distribution space, the
largest at Madison Business Center. But just
three miles away a 222,000-sf building opened at Oak Creek
Commerce Park as Premier Beverage moved to its new distribution/
headquarters facility on Madison Avenue. In all, 14 moveins
totaled over 740,000 sf, while the sum of move-outs was
530,200 sf at 13 locations. Added to the survey were a new
150,000-sf facility in Plant City and a vacant manufacturing
plant on Falkenburg Road.
Pinellas recorded losses at 19 locations, which fortunately
were more than offset by the completion of the 166,000-sf Job
Corps training space at St. Petersburg’s Dome Industrial Park.
Significant space was also absorbed in mid-county at Star Center.
Leasing rates at several Pinellas locations were cut to the
bone as landlords look for cash flow.
Of the seven counties surveyed, Hernando continues to report
the highest 12-month volume. It saw significant absorption this
period with the completion of Regent Oaks at Airport Industrial
Park. The 90,500-sf facility is two-thirds leased. In a primarily
build-to-suit market any addition to the stock of vacant space
affects the vacancy rate, which in this case rose by 0.9 point.
Polk also moved to the plus side this period. But the gain was
less than a third that of the same quarter a year ago, so the
12-month loss sank by 36 percent. Gains were reported at six
locations; losses at eight.
In Manatee, a large lease was signed at Palmetto Corporate
Complex. But losses at Parkland Center in Bradenton wiped out
that gain. The vacancy rate climbed a half point.
Sarasota has been quiet now for four quarters – two small
losses, two small gains. The last quarter with significant activity
was a year ago; with that dropping out of the annualized rate,
the volume fell slightly into loss territory.
In Pasco, no activity was recorded this quarter.
Construction has completely dried up across the region. Less
than 100,000 sf is currently under construction. A third of that
is build-to-suit space in Hernando. Two small spec buildings
are going up in Polk.
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