Retail Leasing Brisk

Retail leasing improved over the first quarter for much of the Tampa Bay region. Pinellas, Hillsborough and Pasco Counties reported substantial net quarterly absorption, while Sarasota reported a smaller loss in net occupancy. As the market tightens, rental rates are edging up, with 13 percent of the region's centers reporting a slight increase in average asking rates. Net quarterly absorption in Pinellas County more than doubled to 124,550 sf, dropping vacancy to 6.6 percent. Average rental rates range from $11 to $13 per sf at community centers, $9 to $10 at neighborhood centers, and $9 to $11 at strip/specialty centers.

The south Pinellas market saw 76,850 sf of absorption. Annual absorption here moved up 86 percent to 195,400 sf while the vacancy rate is 6.8 percent. A new food court at Tyrone Square Mall was completed. Waccamaw signed a lease at Seminole Mall. In the north sub-market net quarterly absorption was 47,700 sf, nudging the vacancy rate down to 6.5 percent. Annual absorption here dropped 26 percent to 177,200 sf. Klostermann Kommons was sold to Dovatron Manufacturing as light industrial space; it was removed from the survey. The empty Food Lion at Palm Harbor Place was leased to Neilsen Media Research.

Hillsborough County's net quarterly absorption was 114,420 sf - nearly three times last quarter's total. Vacancy slipped to 7.5 percent, while annual absorption dropped to 330,050 sf. Average rental rates range from $9 to $12.50 per sf at community centers, $9.50 to 11.50 at neighborhood centers and $8.50 to $13 at strip/specialty centers. Southeast Hillsborough reported the strongest leasing activity with a net of 41,900 sf, dropping vacancy to 6 percent. Annual leasing totals 130,670 sf. Construction was completed on Jumbo Sports and Chick-Fil-A at Lake Brandon Village.

Pasco County had the region's highest net quarterly absorption of 129,100 sf. Vacancy dropped to 9.3 percent. Annual absorption climbed to the highest level in the three years the Maddux Report has reported on the county at 153,300 sf. Construction was completed on the Publix at River Crossings Shopping Center, which opened fully leased. Embassy Crossing and Bayonet Square also reported strong leasing. Average rental rates range from $7 to $11 per sf.

Manatee County had net leasing of 14,800 sf, dropping vacancy to 8.2 percent. On an annual basis the county climbed out of the net loss range. Over the last year the county has netted just 4,040 sf. Average rental rates range from $8 to $12 per sf. Sarasota County saw a net occupancy loss for the quarter of 16,790 sf, dropping annual absorption to a net loss of 44,500 sf. Net occupancy losses have been reported three straight quarters. Vacancy rose slightly to 5.7 percent. Average rental rates range from $11.50 to $15 per sf - highest in the region.

The region's 101 community centers saw net quarterly absorption of 140,040 sf; net absorption at 214 neighborhood centers was 128,590 sf; at 19 regional malls net absorption totaled 61,460 sf, while the 59 strip/specialty centers reported a net occupancy loss of 1,630 sf.

Across the region a number of anchor spaces are empty but under lease. This space is not reflected in the counties' regular vacancy rates. The figures in parentheses below show what vacancy rates would be if this space were accounted for.

• Hillsborough 84,630 s.f. (7.9%)
• Sarasota 41,000 s.f. (6.3%)
• Pinellas 121,080 s.f. (7.3%)
• Pasco 34,070 s.f. (9.8%)
• Manatee 23,800 s.f. (8.6%)