Roberds' Empty Spaces

by Laurel S. McQueen

Move-outs surpassed move-ins across the region as 2000 began, leading to a net occupancy loss of 55,100 sf. Annual absorption fell 57 percent from six months ago. It is a trend that may be expected to continue in the near term, as the Roberds Inc. furniture store chain closes its stores under a Chapter 11 bankruptcy pullout. That will dump nearly a half-million sf of space in eight sub-markets across the region.

Manatee County was the region's star for the six months surveyed. Publix Market Square at Lakewood Ranch Town Center opened 97 percent leased, leading the way to net absorption just 13 percent below the outstanding level reported in November. Weighted average rents climbed $.31 per sf. Community centers recorded a slight net loss in occupancy. The gain at neighborhood centers was 97,510 sf, while the county's six strip centers surveyed recorded gains totaling 27,720 sf.

Pinellas was the only other county to see a net gain in occupancy. This period's gain combined with the six-month gain reported in November to bring annual absorption back to the plus side. Weighted average rents moved up $.22 per sf.

North Pinellas has the region's lowest vacancy rate. Leasing at neighborhood centers totaled 51,050 sf. Community and strip centers saw negligible activity. South Pinellas saw moderate activity this half-year. All four property types saw slight occupancy increases. Weighted average rents nudged up $.16 per sf. Annual absorption slipped 16 percent.

Mid Pinellas was in line with the remaining submarkets in the region, recording a net loss in occupancy. This submarket has recorded losses in eight of the last ten reports - thirteen quarters. It has, by far, the region's highest vacancy rate. Nevertheless, weighted average rents were up $.34 per sf.

Hillsborough recorded net occupancy losses in three out of four submarkets, pushing the vacancy rate up nearly a full percentage point. Community centers took the hit, with net losses totaling 170,340 sf. Activity was negligible across the other three product types. Leasing activity should turn around next period as nearly one million sf of space is due to open by year's end, at least 84 percent leased.

Southeast Hillsborough took the biggest hit with large losses reported at Plant City Plaza and Clayton Plaza in Brandon. The vacancy rate climbed almost two full points. Two developments comprising 285,000 sf will open in this market over the summer, at least 75 percent pre-leased.

A large loss at Britton Plaza drove the southwest submarket deep into the loss column, driving the vacancy rate up four full points. The northeast submarket is the only Hillsborough market still showing a positive annual absorption rate, while the northwest submarket recorded the county's only positive net absorption for the six-month period.

Pasco County's net loss resulted from a large loss at Southgate. Neighborhood centers actually saw net absorption of 44,410 sf. Weighted average rents moved up $.14 per sf.

Leasing activity at community and neighborhood centers negated each other in Sarasota with move-outs at the second topping move-ins at the former by just 135 sf.

Across the region a number of anchor spaces are empty, but remain under lease. This space is not reflected in the counties' regular vacancy rates. The figures in parentheses below indicate what each county's vacancy rate would be if this vacant anchor space was accounted for.

Hillsborough 50,900 (7.8%)
Manatee 68,800 (7.7%)
Pinellas 88,220 (8.8%)
Sarasota none
Pasco 6,000 (8.7%)

Shopping centers that have been fully leased for two or more periods do not appear in the survey charts. All shopping centers continue to be updated in the database each half-year. For a complete survey call Maddux Report's Research Department at 727/321-3225.