MS&C Commercial Tri-County Market Report: Q1 2022

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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 Terry Eastman 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.


FIRST QUARTER 2022

Commercial Quarterly State of the Market

Sarasota, Manatee & Charlotte Counties The commercial real estate market continued the momentum of 2021 into the first quarter of 2022. During this quarter, multi-family and office sales had the most sales volume by dollar amount for all the core commercial sectors in the Tri-County area. The multi-family market continues to be very liquid, which is driving up the rents to record highs and decreasing the capitalization rates. In the first two months of this quarter, Sarasota apartment rental rates surpassed those of Miami-Dade County. The office sector continues to have strong performance in this area. In the first quarter of 2022, office vacancy rates were below the 10-year average and office rental rates increased 7.4% year over year. Our industrial market continues to experience high buyer demand due to the growth of e-commerce. The overall vacancy rate for this quarter is 0.8%, which is a year-over-year decrease of 58%. Industrial land is also experiencing low inventory due to the growth of the industrial sector in the Tri-County area. MS&C Commercial is committed to the goals of our customers and those of the commercial real estate industry. We will continue to monitor market movements in our area. For questions concerning your specific sector or business, please reach out to one of our highly skilled advisors. SIGNIFICANT TRANSACTIONS

MS&C COMMERCIAL

Location

Sale/Lease

SF/Acreage

Type

802 11th Street West, Bradenton

Sale

15,000 SF

Office

120 Nokomis Ave S, Venice

Sale

9,465 SF

Retail

4441 South Tamiami Trail, Sarasota

Sale

7,834 SF

Retail

525 Olympia Ave E, Punta Gorda

Sale

10,000 SF

Retail

11715 31st Terrace East, Palmetto

Sale

2.49 acres

Land

5315 16th Street N, St. Petersburg

Lease

2,016 SF

Retail

2811 Tamiami Trail, Unit L, Port Charlotte

Lease

905 SF

Office

2947 Bee Ridge Road, Sarasota

Lease

1,230 SF

Office

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!

Michael Saunders & Company | Commercial Division | 100 S. Washington Blvd. | Sarasota, FL | 941.957.3730 | msccommercial.com


FIRST QUARTER 2022

COMMERCIAL TRENDS & REPORTS

OFFICE

4.3%

86,407 SF

$26.27 PSF

$180 PSF

Overall vacancy rate

YTD net absorption

Average asking rent (gross)

Average sale price

ASKING RENT, $ PSF (Gross) OVERALLOVERALL ASKING RENT, $PSF (GROSS)

RENTAL RATE TABLE Average Asking Rent (Gross)

Q1 2021

Q1 2022

Year-OverYear %

All Counties

$24.47

$26.27

7.4% E

Sarasota County

$25.16

$26.85

6.7% E

Manatee County

$22.51

$24.89

10.6% E

$27

$25

$22

$20

Charlotte County

$16.05

8.2% E

$17.37

$17

2017

2018

2019

2020

2021

2022

Arrows indicate changes from Q1 2021 2017 $18.64 Overall Vacancy Rate: Expressed as a percentage — it identifies the amount of New/Relet/Sublet space vacant divided by the existing Rentable Building Area. $18.65 Net Absorption: For existing buildings, the measure of$18.68 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. $19.00 Average Asking Rent: Represents the dollar2018 amount the lessor is asking for in order to lease their building/space/land. $19.02 Average Sale Price: The sale price divided by the rentable square feet of the building. $19.24

INDUSTRIAL

$19.57 $20.01 2019 $20.32 $20.47 $20.70 Overall vacancy rate

0.80%

149,443 SF YTD net absorption

$106 PSF

Average asking rent (NNN)

Average sale price

1

RENTAL RATE TABLE Average Asking Rent (NNN)

$10.45 PSF

OVERALL ASKING RENT,ASKING $PSF (NNN) OVERALL RENT, $ PSF (Gross) Q1 2021

Q1 2022

Year-OverYear %

$11.0

$10.0

All Counties

$7.92

32% E

$10.45

$9.0

Sarasota County

$7.91

$11.01

39.2% E

Manatee County

$8.13

$9.64

18.6% E

$8.0

$7.0

Charlotte County

$9.24

16.3% E

$10.75

$6.0

2017

6.09

2017

2018

2019

2020

2021

2022


FIRST QUARTER 2022

COMMERCIAL TRENDS & REPORTS

RETAIL

4.10%

96,421 SF

$19.14 PSF

$262 PSF

Overall vacancy rate

YTD net absorption

Average asking rent (NNN)

Average sale price

RENTAL RATE TABLE Average Asking Rent (NNN)

SPACE AVAILABILITY BY TYPE Q1 2021

Q1 2022

Year-OverYear %

All Counties

$13.99

$19.14

17% E

Sarasota County

$13.44

$19.28

27.3% E

Manatee County

$16.38

$21.31

10.6% E

Charlotte County

$12.89

$16.09

12.7% E

Neighborhood & Community Strip Center

7.6%

82.5%

9.9%

Power & Regional Mall

1 Arrows indicate changes from Q1 2021 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.

LAND

MULTI-FAMILY

The median price per square foot/acre of sold parcels for commercial-, industrial-, and residential-zoned land in the past twelve months is below:

The demand for multi-family housing continues to skyrocket due to the tight housing market, and market conditions. The yearover-year increase in rent growth was 35% in the Tri-County area. New construction projects continue in the area, and over 2,200 units are due to be delivered in the calendar year 2022.

Commercial Land $8.13 Per Land SF/$354,340 Per Acre

Vacancy Rate 3.5%

Industrial Land $4.64 Per Land SF/$202,206 Per Acre

YTD Net Absorption 63 units

Residential Land $1.90 Per Land SF/$82,764 Per Acre

Average Effective Rent Per Unit $1,855

*Median price per square foot/acre available for Manatee and Sarasota Counties only. *Sales include qualified real property transfer codes as defined by the Florida Department of Revenue under sections 193.144(2)(n) and 165.0995(1), F.S.


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