Star Quality Leasing

by Laurel S. McQueen

Leasing activity in Pinellas County continued pushing ahead in what is turning out to be a stellar year. Third quarter absorption was nearly equal to 2nd quarter, which was 377,020 sf. The annual rate, up 18 percent from last quarter (2nd quarter was 748,260 sf), is nearly double the annual rate of one year ago. Construction was completed on 328,000 sf of speculative space at three locations. Three quarters of this new space is in the Oldsmar area at the top of Tampa Bay. Seventy percent of the new space is leased.

Correction

In the September Maddux Report, incorrect absorption figures were published in the chart which appears at the bottom of the page. The correct figures are listed in italics in the accompanying analysis.

In the mid-county area 105,000 sf was leased to nine tenants at Interlaken Commerce Center; the two largest were Automated Packaging Inc. and Worktools International Inc., each occupying 20,000 sf. In the Pinellas Gateway, leasing dropped back 60 percent from 2nd quarter's 247,440 sf. But annual rate nearly tripled (2nd quarter was 40,830 sf) because a net occupancy loss from third quarter 1998 dropped out of the moving rate.

Hillsborough County's net quarterly absorption was down 35 percent (2nd quarter was 337,980 sf). But the annual rate was up 28 percent (2nd quarter was 1,273,750 sf) as, again, a net occupancy loss from third quarter 1998 dropped out of the moving rate. In the sub-market west of I-275, net quarterly absorption was up 46 percent from 2nd quarter's 50,455 sf. The annual rate more than doubled (2nd quarter was 180,550 sf). The new Sweetwater Business Center, under construction on Anderson Road, was added to the survey. National Distribution Centers leased 75,000 sf at Hanna Distribution Center.

East of I-275, net quarterly absorption dropped 49 percent from 287,525 sf 2nd quarter. Annual absorption varied from 2nd quarter's 1,093,200 sf by just 4 percent. A 220,000 sf facility for Premier Beverage was completed at Oak Creek. The Bonacker Building was leased to the Helena Cramital Company and NextLink took down 47,000 sf at Hampton Oaks.

Manatee County had a flat quarter compared to 45,500 sf leased 2nd quarter. The annual rate dropped 10 percent from 532,600 sf.

Sarasota's net quarterly absorption was the highest in two years, up from 21,250 sf 2nd quarter. The annual rate moved up 38 percent (2nd quarter was 94,790 sf). Construction was completed on four build-to-suits at Lakewood Ranch Corporate Park for 91,000 sf. And 34,000 sf of spec space was completed at Tower Commerce Park, where construction was started on an additional 99,000 sf of spec space.

Pasco County's net quarterly absorption was down 38 percent from 21,000 sf absorbed 2nd quarter. The annual rate nevertheless was up 16 percent from 101,200 sf. Development of a new park was announced for nine acres on Louis Avenue between U.S. Highway 19 and Alternate U.S. 19, just north of the Pinellas/Pasco county line.

Hernando County saw net quarterly absorption of 35,500 sf compared to a net loss of 1,500 sf 2nd quarter. The annual rate more than doubled from 2nd quarter's 39,900 sf. Three new parks on county property at the airport were added to the survey.

Polk County may have had a flat quarter, but it was certainly better than 2nd quarter's net occupancy loss of 105,260 sf. The annual rate fell 56 percent from 126,000 sf. The Ruthvens started construction on 170,200 sf of spec space.
For the region as a whole, 2nd quarter net absorption was 695,990 sf, while the annual rate was 2,916,500 sf.
For more detailed information on the survey, or for a corrected Tampa Bay Business Park Market chart from 2nd quarter, call the Maddux Report's Research Department at 727/321-3225.