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In the first quarter of 2009, the region’s business parks registered losses nearly twice that experienced the previous quarter. And the 12-month volume fell to a net loss for the first time since the recession of 1991. Five out of seven counties report- ed losses while the other two were a wash. Rents have dropped significantly across the region with several large warehouse spaces now available as low as $2.95 per sf.
Hillsborough accounted for nearly half
the region’s quarterly loss. It now has
endured losses in four of the last five quarters
– a position never seen in the 25 years MADDUX BUSINESS
REPORT has surveyed the market. Its vacancy rate climbed 1.5
points this quarter. The last of the county’s spec space under
construction was completed this quarter – all still available.
While over a million sf of new space is ready to start construction,
developers universally say nothing will begin until the
market demands it.
West of I-275, move-outs have topped move-ins for five of
the last seven quarters. This market’s 12-month volume has
been in a loss position through all of 2008 and now into 2009.
East of I-275, the vacancy rate was pushed up by 1.7 points this
period with the addition of more than 320,000 sf of new space.
Pinellas, even with a quarterly loss, still managed to be in
the black for the past 12 months. That’s because of a strong
second quarter in 2008. Renovated space in north Pinellas
(80 percent vacant) and the second of Raytheon’s buildings in
St. Petersburg were added to the survey this quarter, accounting
for the 1.6-point increase in the vacancy rate.
Polk’s first-quarter loss was about one-fourth that of the
previous quarter. The vacancy rate notched up by 0.5 point.
But with two quarters of losses in the equation, its 12-month
activity plunged by three-fourths from year-end 2008. No
new space is under construction; space previously reported as
started has stopped at land preparation with no plans for vertical
construction in the near future.
Sarasota’s quarter was a wash; however, activity reported
this period at Sarasota Business Center in Venice may have
been occupied much earlier since we do not get regular
reports from this property.
In Manatee, the pace of move-outs picked up, pushing the
annual loss to its deepest level in 23 years, a negative 94,125
sf. Representatives here are already anticipating further moveouts
in the coming months. Construction was started on space
in SRQ Technology Park.
Pasco’s vacancy rate, the region’s largest, swelled by 3.0
points as a result of its biggest quarterly loss in two decades.
Annual absorption contracted by half from last period.
No activity was reported in Hernando, but construction
started on a new 26,000 sf build-to-suit.
Never before has Hernando reported the greatest 12-month activity for the
region as it has this quarter with 203,100 sf. It also has the
smallest vacancy rate at 0.8 percent.
A year ago more than 1.5-million sf of space was under
construction across the region, half of it spec. Now, less than
400,000 sf is under construction, about one-third of it spec.
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