Clearwater Region Commercial Real Estate

Market Overview

The positive momentum of the 2005 commercial real estate market has carried over into 2006. Due to the strong local and national economy, the Tampa Bay industrial and flex market has continued to be active in both sales and leasing.

Tampa Bay numbers from the first quarter 2006 show the continued strength of the industrial market. The overall vacancy rate is 5.5% - a considerable decrease since the 6.4% reported for the fourth quarter 2005.

The total square feet (s.f.) absorbed was 2,603,908. This included 958,500 s.f. of newly completed space. Of this new space, only 18.8% is still available for lease or sale – a good sign of a healthy commercial real estate market.

In the Tampa Bay area industrial construction has increased again this quarter with 21 buildings going up which total 1,945,630 s.f. Only 47.3% of the total inventory under construction is still available for lease or sale and the average asking lease rate is $6.07 per square foot (p.s.f.) Average direct flex and warehouse rates have significantly increased this quarter. Flex rates rose from $9.26 to $9.58 p.s.f. Warehouse rates rose from $4.71 to $4.85 p.s.f.

Florida currently represents 48% of the total U.S. trade with Central America, a $16 billion value. 80% of this free trade business is without any tariffs with the remaining tariffs in a gradual phase out program.

These numbers demonstrate benefits of international trade now and for future growth considerations. The rise in imports from China has resulted in an increase in the demand for warehouse space in Tampa Bay and nationwide.

Top technology location in Florida

Forbes magazine recently named the Tampa Bay area the top location in the state for technology related jobs.

Pinellas County leads Florida’s 21-County High Tech Corridor. High tech companies many times occupy “flex” space as they don’t always need Class A office finish and often need air conditioned light manufacturing space. Since Pinellas County is Florida’s second smallest county, the ratio of high tech companies is a dramatic 4.4 high tech companies per square mile.

Since 1995 a portion of Pinellas County has been designated as a State of Florida Enterprise Zone. The expiration of that designation was recently extended until 12/31/15. The benefits are primarily to gain incentives for business tax credits or tax refunds for developing and expanding businesses within these boundaries or for donations to approved community development projects within the enterprise zone boundaries.

The department of Economic Development can help businesses apply for these important economic benefits.

Source: Colliers FLEX Report