T H I R D Q UA RT ER 2021
Commercial Quarterly St. Petersburg State of the Market The St. Petersburg market has three unique submarkets: Downtown St. Petersburg, Gateway/Mid-Pinellas, and the South Pinellas area. In reviewing this past quarter, the largest commercial sales in the market were in retail, and multi-family. The office sector for each submarket is unique to the specific area. In Downtown St. Petersburg, the office vacancy rate saw a record low this quarter at 4.5%. There has been little to no effect from the COVID-19 pandemic on the office market in the area. In the Gateway/Mid-Pinellas submarket, the pandemic has affected the office sector; there is currently a 9.7% vacancy rate. This area has high quality office spaces, and most of the offices are owner occupied by large employers. The South Pinellas submarket has one of the tightest office vacancy rates due to virtually no new construction. The St. Petersburg retail sector is a very liquid investment market, and the market pricing is approximately $215 per square foot. Retailers may continue to see changes in the upcoming quarters because it is unclear how the success of e-commerce will affect brick and mortar retailers. The Multi-Family sector set new records in this quarter in both the average asking rent and annual rent growth rates. The demand for multi-family housing units continues to rise, and the rent prices are lifting as well. For the past 5 years in Downtown St. Petersburg, new construction projects for multi-Family housing have been continuing, and their inventory has grown by approximately 25%. This is a sharp contrast to the South Pinellas area which has only added two multi-family complexes in the last decade. MSC Commercial is committed to the goals of our clients and those of the commercial real estate industry. We will continue to monitor market movements as this situation evolves. For questions concerning your specific sector or business, please reach out to one of our highly skilled advisors. SALES BY PROPERTY TYPE
Manage your property with absolute confidence. Our expert resources give you and your property the advantage With leasing and management services provided by MS&C Commercial Property Management, you are assured a seamless process focusing heavily on tenant retention and aggressive marketing of vacant space. We utilize a variety of resources to retain your current tenants, fill vacant space and keep your properties operating in the black. • Comprehensive sales and leasing program • Active property feed to the most prominent search engines • Experienced agents negotiating your sale or lease • Monthly prospect and marketing reports Please give Bob Smith at MSC Commercial Property Management a call today at 941.208.3965. You will be glad you did!
$1,100,000,000 $825,000,000 $550,000,000 $275,000,000 $0
Office
Multi-Family Retail VOLUME
Industrial
Michael Saunders & Company | Commercial Division | 100 S. Washington Blvd. | Sarasota, FL | 941.957.3730 | msccommercial.com VOLUME
Office
$152,000,000
T H I R D Q UA RT ER 2021
CO M M ER CI A L T R EN DS & R EP O RT S
OFFICE RENTAL RATE TABLE Average Asking Rent (Gross)
Q3 2021
All Submarkets
$24.11
Downtown St. Pete
$30.46
Gateway/Mid-Pinellas
$23.80
South Pinellas
$22.61
INDUSTRIAL
7.00
68,156
%
Overall vacancy rate
YTD net absorption
$24.11
PSF
Average asking rent (gross)
3.30
$188
PSF **
Average sale price
56,908
%
Overall vacancy rate
$8.77
SF
YTD net absorption
PSF
Average asking rent (NNN)
$43
PSF **
Average sale price
SF
T H I R D Q UA RT ER 2021
CO M M ER CI A L T R EN DS & R EP O RT S
RETAIL 23425 8425 RENTAL 3?4@5
RATE TABLE
Average Asking Rent (NNN)
Q3 2021
All Submarkets
$18.22
Downtown St. Pete
$29.90
Gateway/Mid-Pinellas
$18.31
South Pinellas
$18.22
4.20
249,964
%
Overall vacancy rate
SF
YTD net absorption
$18.22
PSF
Average asking rent (NNN)
$256
PSF **
Average sale price
SPACE AVAILABILITY BY TYPE
7.8%
81.8%
10.4%
Neighborhood & Community Neighborhood & Community
Strip Center Strip Center
Power & Regional Mall
Power & Regional Mall
MULTI-FAMILY For the past five years, the St. Petersburg multi-family market was the heaviest supply section of the Tampa Bay area. However, demand has increased through the last 3 quarters, and there is a new record low vacancy rate of 3.8% in the area.
96.2 329 %
Occupancy rate
UNITS
YTD net absorption
$1,521 Average-effective rent per unit
** No further submarket breakdown for the Industrial Asking Rent/SF Overall Vacancy Rate: Expressed as a percentage — it identifies the amount of New/Relet/Sublet space vacant divided by the existing Rentable Building Area. Net Absorption: For existing buildings, the measure of total square feet occupied (indicated as a Move-In) less the total space vacated (indicated as a Move-Out) over a given period of time. Average Asking Rent: Represents the dollar amount the lessor is asking for in order to lease their building/space/land. Average Sale Price: The sale price divided by the rentable square feet of the building.
Our wide reach and deep knowledge in all areas of commercial real estate, as well as meaningful relationships across the US, lead to success in every space. For all your commercial real estate needs — Think MS&C Commercial.
SALES | LEASING | PROPERTY MANAGEMENT | TENANT REPRESENTATION Commercial Team
Scott Cietek, Director Andrew Bakker Benjamin Bakker Richard Burns Erik Carlson Dennis Dahm Lee DeLieto, Sr., MBA Lee DeLieto, Jr., P.A., Broker-Associate Darrin Desmarais Melinda Garrett Amber Gasson Susan Goldstein, MBA, CCIM Ben Graham Daniela Kaskey Roberta Kolton Cera Will Martin Eric Massey, Broker-Associate Kevin McQuaid Robert Moffat Kendra Moody Daniel J. Page, CCIM Jim Sauter Larry Schaper, CCIM Tammy Shaw, Broker-Associate Peggy Wellman
Christina Gustafson, Administrative Assistant Katie Kohler, Real Estate Valuation Analyst
Bradenton Office
4400 Manatee Avenue West, Bradenton, FL 34209 Phone: 941.748.6300 | Fax: 941.749.5001
Downtown Sarasota Office
100 S. Washington Blvd., Sarasota, FL 34236 Phone: 941.957.3730 | Fax: 941.552.5216
Englewood Office
1200 S. McCall Road, Englewood, FL 34223 Phone: 941.473.7750 | Fax: 941.473.7751
Palmer Ranch Office
8660 S. Tamiami Trail, Sarasota, FL 34238 Phone: 941.966.800 | Fax: 941.918.9392
Punta Gorda Office
101 Taylor Street, Punta Gorda, FL 33950 Phone: 941.639.0000 | Fax: 941.639.0101
Commercial Property Management 1801 Main Street, Sarasota, FL 34236 Phone: 941.208.3965 Fax: 941.951.6667 Bob Smith, Director of Commercial Property Management Diane Conte, Administration Manager Tony Fus, In-House Facility Technician
Lakewood Ranch Office
8325 Lakewood Ranch Blvd., Bradenton, FL 34202 Phone: 941.907.9595 | Fax: 941.907.8802
Scott Cietek
Director, Commercial Division Scott Cietek oversees the day-to-day activities of his dedicated team of agents and staff, whose expertise in all classes of commercial properties and property management spans the Gulf Coast region.
Scott has over 30 years of experience in commercial and residential lending, real estate and economic and community development. A native of upstate New York, his experience includes running a mortgage division for Source One Mortgage/ Citigroup and serving as VP of Economic Development for Schenectady Metroplex Development Authority.