Q1-2017 B Erhardt Tampa Bay Area Land Quarterly Report

Erhardt’s Tampa Bay Land Market Overview | Quarterly Report Q1 - 2017

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Rental Rates Average quoted asking rental rates in the Tampa/St Petersburg retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the fourth quarter 2016 at $14.61 per square foot per year. That compares at $14.43 per square foot in the third quarter 2016, and $13.61 per square foot at the end of the first quarter 2016. This represents a 1.2% increase in rental rates in the current quarter, and a 6.84% increase from four quarters ago. Inventory & Construction During the fourth quarter 2016, 20 buildings totaling 146,846 square feet were completed in the Tampa/St Petersburg retail market. Over the past four quarters, a total of 979,244 square feet of retail space has been built in Tampa/St Petersburg. In addition to the current quarter, 14 buildings with 100,334 square feet were completed in third quarter 2016, 27 buildings totaling 332,258 square feet completed in second quarter 2016, and 399,806 square feet in 27 buildings completed in first quarter 2016. There were 735,545 square feet of retail space under construction at the end of the fourth quarter 2016. Total retail inventory in the Tampa/St Petersburg market area amounted to 225,424,973 square feet in 18,937 buildings and 2,252 centers as of the end of the fourth quarter 2016. Shopping Center The Shopping Center market in Tampa/St Petersburg currently consists of 2,198 projects with 88,890,191 square feet of retail space in 3,774 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing 242,120 square feet and delivering 25,167 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 8.1% at the end of the third quarter 2016 to 7.9% this quarter. Over the past four quarters, The Shopping Center vacancy rate has gone from 8.5% at the end of the first quarter 2016, to 8.2% at the end of the second quarter 2016, to 8.1% at the end of the third quarter 2016, and finally to 7.9% at the end of the current quarter.

Rental rates ended the fourth quarter 2016 at $13.31 per square foot, up from the $13.21 they were at the end of third quarter 2016. Rental rates have trended up over the past year, going from $13.02 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 994,752 square feet over the past four quarters. In addition to the positive 242,120 square feet absorbed this quarter, positive 69,484 square feet was absorbed in the third quarter 2016, positive 347,546 square feet was absorbed in the second quarter 2016, and positive 335,602 square feet was absorbed in the first quarter 2016. Power Centers The Power Center average vacancy rate was 6.5% in the fourth quarter 2016. With negative (1,665) square feet of net absorption and no new deliveries, the vacancy rate went from 6.5% at the end of last quarter to 6.5% at the end of the fourth quarter. In the third quarter 2016, Power Centers absorbed negative (159,823) square feet, delivered no new space, and the vacancy rate went from 4.8% to 6.5% over the course of the quarter. Rental started the quarter at $21.89 per square foot and ended the quarter at $24.50 per square foot. A year ago, in fourth quarter 2015, the vacancy rate was 4.5%. Over the past four quarters, Power Centers have absorbed a cumulative (161,136) square feet of space and delivered cumulative 39,373 square feet of space. Vacant sublease space has gone from 4,000 square feet to 6,516 square feet over that time period, and rental rates have gone from $19.05 to $24.98. At the end of the fourth quarter 2016, there was no space under construction in the Tampa/St Petersburg market. The total stock of Power Center space in Tampa/St Petersburg currently sits at 9,840,786 square feet in 27 centers comprised of 163 buildings. No Space was under construction at the end of the fourth quarter 2016.

Construction Activity Markets Ranked by Under Construction Square Footage

Under Construction Inventory

Average Building Size

Market

# Buildings

Total GLA Preleased SF

Preleased % All Existing

U/C 9,699 55,467 19,602 16,556 6,505

Sarasota/Bradenton North Hillsborough

23

223,086 166,400 156,817 82,779 52,044 44,419 10,000

108,419 162,872 135,160 71,279 21,324 33,380

48.6% 97.9% 86.2% 86.1% 41.0% 75.1%

11,990 13,521 11,017 11,835 14,161 11,965 14,760 9,543 11,948

3 8 5 8 6

Pinellas

I-75 Corridor Pasco County

Eastern Outlying Hernando County

7,403

1

0 0

0% 0%

10,000

Central Tampa

0

0

0

Totals

54

735,545

532,434

72.4%

13,621

11