Q4-2018 B Erhardt Tampa Bay Area Land

Quarterly Report Q4 - 2018

TAMPA BAY RETAIL MARKET OVERVIEW Q3-2018 Tampa / St. Petersburg Retail Market Report, CoStar Group, Inc.

The Tampa/St Petersburg retail market did not experience much change in market conditions in the third quarter 2018. The vacancy rate went from 4.3% in the previous quarter to 4.4% in the current quarter. Net absorption was positive 40,103 square feet, and vacant sublease space increased by 1,388 square feet. Quoted rental rates increased from second quarter 2018 levels, ending at $15.81 per square foot per year. A total of 21 retail buildings with 338,663 square feet of retail space were delivered to the market in the quarter, with 1,242,224 square feet still under construction at the end of the quarter. NET ABSORPTION Retail net absorption was basically flat in Tampa/St Petersburg third quarter 2018, with positive 40,103 square feet absorbed in the quarter. In second quarter 2018, net absorption was positive 426,947 square feet, while in first quarter 2018, absorption came in at positive 296,268 square feet. In fourth quarter 2017, positive 1,333,058 square feet was absorbed in the market. Tenants moving out of large blocks of space in 2018 include: Q Auto moving out of 46,632 square feet at 1207 E Brandon Blvd; Harvey’s Supermarket moving out of 45,600 square feet at 2525 E Hillsborough Ave; and Toys R Us moving out of 24,006 square feet at 12601-12895 Citrus Plaza Dr. Tenants moving into large blocks of space in 2018 include: Floor & Decor moving into 75,683 square feet at 2004 - 2020 34th St N; T.J. Maxx moving into 57,941 square feet at 9409 US Highway 19; and Dick’s Sporting Goods moving into 50,000 square feet at 6901 22nd Ave N. VACANCY Tampa/St Petersburg’s retail vacancy rate increased in the third quarter 2018, ending the quarter at 4.4%. Over the past four quarters, the market has seen an overall increase in the vacancy rate, with the rate going from 4.2% at the end of the fourth quarter 2017 and first quarter 2018, to 4.3% at the end of the second quarter 2018, to 4.4% in the current quarter. The amount of vacant sublease space in the Tampa/St Petersburg market has trended up over the past four quarters. At the end of the fourth quarter 2017, there was 184,123 square feet of vacant sublease space. Currently, there is 213,401 square feet vacant in the market. 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 third quarter 2018 at $15.81 per square foot per year. That compares to $15.27 per square foot in the second quarter 2018, and $14.86 per square foot at the end of the fourth quarter 2017. This represents a 3.5% increase in rental rates in the current quarter, and a 6.01% increase from four quarters ago.

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