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Tampa Bay’s retail market continues to suffer. All five counties surveyed recorded significant losses the last six-month period. Leasing rates continue to fall. Ten more anchor boxes were vacated. And, at rates least five Publix supermarkets closed though they remain under lease. The amount of empty big box space in the region (including Publix’s) swelled by one-fourth from last period to 2.0-million sf.
Whew!
We’re trying to find some good news, folks. If there is a bright
side it would be this: four empty boxes
got new tenants. And, if you’re a healthy
retailer needing space ... take your pick!
Pasco remains the only county with a positive volume the last 12
months, but only slightly. Anchor space was leased at two centers.
But it wasn’t enough – three departing anchors forced a market loss.
The county’s vacancy rate climbed another 2.1 points, remaining the
region’s highest.
Hillsborough recorded losses in three of four sub-markets. Two
anchor tenants closed in the northeast, one in the northwest. Anchor
space was leased to Aldi at University Plaza in the northeast and
to buybuy BABY
at Lake Brandon Village. The county’s 12-month volume improved to a lesser negative. The south/east sub-market has
now squeaked out two periods of slight growth. (As we said, we’re
trying to look for the positive.) Yet over the last two years, Hillsborough
has lost 559,750 sf in retail occupancy.
Pinellas’ losses were concentrated primarily in small store closings.
The vacated Publix space at the Market Place across from Tyrone
Mall was leased to LA Fitness, helping south county slide into the plus side. However, four Publix boxes closed in south and mid-county
as the company continues to consolidate its purchase of the Albertson’s
portfolio. These boxes remain under Publix’s control so they
are not included in the leasing activity. Rents dropped an average of
$0.63 per sf; mid-county had the largest at $1.10 per sf.
Sarasota’s loss this period was about half that reported six months
ago. Thus, its annual loss improved. Two anchor boxes closed this
period while the 4 Sale (Car) Museum opened in Englewood.
In Manatee, one anchor tenant shut down this period hurting the
county’s activity. This, combined with six smaller moveouts, pushed the
vacancy rate up 1.3 points. Rents dropped an average of $0.26 per sf.
The figures for big box space are reflected in our analysis (except
for the Publix sites still under lease). However, we break big boxes
out separately (see chart below) because of the trend revealed, below
including Publix sites. A year ago, the region’s vacant big box space
totaled 1.14-million sf vs. 2.0-million today.
The chart below indicates the total square footage of vacant big
box space in each county and the number of boxes represented. Big
boxes are spaces with 30,000 sf or more. Sections of five of these
boxes have been re-leased to smaller tenants.
Vacant Big Box Space in Shopping Centers |
| Hillsborough |
571,230 sf |
|
Pinellas |
462,700 sf |
| Manatee |
162,520 sf |
|
Sarasota |
379,150 sf |
| Pasco |
420,550 sf |
|
REGION |
1,996,150 sf |
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