Retail Rides a Seesaw
by Laurel S. McQueen
Just as Pinellas County retail leasing found its way out of
the doldrums during the six-month period surveyed for this analysis,
Hillsborough and Sarasota counties were dropping into them. Manatee
County continued an already strong year, while Pasco County tread
a modest path.
Pinellas emerged from three consecutive quarters of net occupancy
losses to report a solid half-year. Annual absorption, however,
remains on the net occupancy loss side, because the previous two
quarters' losses were higher than this period's rebound. North
Pinellas' annual absorption moved up 74 percent, while south Pinellas'
rate moved up 81 percent. The mid-county market is suffering an
annual occupancy loss, mostly because of anchor closings at Clearwater
Mall earlier in the year.
Construction was completed this period at Gateway Mall, now re-named
Gateway Market Center, which is at 350,000 sf and home to Target,
Publix, Eckerd's, Office Depot and an Uptons - which will soon
close as the chain shuts down. Construction was started recently
on BayWalk in downtown St. Petersburg (South sub-market). The
132,000 sf retail/entertainment complex is due for completion
in the fall of 2000.
The combination of new space being completed and a mall anchor
closing almost left Hillsborough with a wash for the period's
net absorption. Without the impact of the Citrus Park Center,
which opened during the spring, Hillsborough's annual rate dropped
52 percent to 219,870 sf. Community centers across the county
recorded 180,490 sf of net absorption, while neighborhood centers
saw net leasing of 29,850 sf.
The northwest sub-market had the period's greatest activity.
Dillard's Department Store at Tampa Bay Center closed, while Phase
I of the Plaza at Citrus Park was completed. Phase II will open
in the spring.
Construction was started on Centro Ybor in the southeast sub-market.
This 210,000 sf retail and entertainment complex is scheduled
for completion in the spring of 2000. The southwest sub-market
has the region's highest weighted average rent. The southeast
sub-market had this period's highest rent increase.
South of the bay, the opening of the new Market Place West on
53rd Avenue, and the completion of an expansion to DeSoto Center
helped boost Manatee's net absorption. The county's annual absorption
climbed 80 percent, while the vacancy rate dropped 0.7 percentage
point.
Sarasota County's net occupancy loss for the period pushed the
annual absorption level down 31 percent. The vacancy rate dropped
half a percentage point. Two neighborhood centers in the southern
part of the county were added to the survey, increasing surveyed
space by 180,000 sf. Pasco's annual absorption dropped 61 percent
as a high quarterly absorption from third quarter 1998 dropped
out of the moving rate. Towne Center was removed from the survey
because it is to be demolished and replaced with a Wal-Mart Superstore.
Pasco has the region's lowest weighted average rent. An empty
Walgreens space at Holiday Square was leased to Dollar General.
