TAMPA, FL--Pinellas County’s class A office properties rebounded in the first quarter, posting almost 50,000 square feet of net absorption, according to Randy Smith (top right photo), director of research in the Tampa, FL division of GVA Advantis.However, heavy occupancy losses in the class B sector dragged down the overall market performance in the opening period and the direct vacancy rate increased 40 basis points to 17.4 percent.
Sublease space has been on a slow climb over the past twelve months and just topped two percent of total office inventory. Market rents for Pinellas office space moved higher in the first quarter, averaging $21.61 per square foot, up 13 percent over the same time last year.
The turbulent economy has taken its toll on the local job market which continues to struggle so far in 2008. Through March, the Tampa-St. Petersburg-Clearwater metro area lost 4,000 jobs and the unemployment rate in Pinellas County has risen to 4.8 percent from 4.5 percent at the beginning of the year.
The turbulent economy has taken its toll on the local job market which continues to struggle so far in 2008. Through March, the Tampa-St. Petersburg-Clearwater metro area lost 4,000 jobs and the unemployment rate in Pinellas County has risen to 4.8 percent from 4.5 percent at the beginning of the year.
The downturn in the housing market has had a pronounced effect on the Tampa Bay e
conomy, with financial services and construction industries bearing the brunt of the fallout in employment.
Still, this contraction in the market is expected to ease later this year, setting the stage for a comeback in office demand for 2009. This year, gains in office occupancy will come in small steps, as Pinellas benefits from a diverse economy with a growing base of medium-sized entrepreneurial companies.
For a copy of the Pinellas Area Market Review, please contact:
conomy, with financial services and construction industries bearing the brunt of the fallout in employment.Still, this contraction in the market is expected to ease later this year, setting the stage for a comeback in office demand for 2009. This year, gains in office occupancy will come in small steps, as Pinellas benefits from a diverse economy with a growing base of medium-sized entrepreneurial companies.
For a copy of the Pinellas Area Market Review, please contact:
Randy Smith, Director of Research, Advantis Real Estate Services Company, 3000 Bayport Drive, Suite 100
Tampa, FL 33607. Tel 813.342.4725. Fax 813.372.4004. E-mail rsmith@gvaadvantis.com
www.gvaadvantis.com
Tampa, FL 33607. Tel 813.342.4725. Fax 813.372.4004. E-mail rsmith@gvaadvantis.com
www.gvaadvantis.com
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