THIRD QUARTER 2023
Commercial Quarterly State of the Market
Sarasota, Manatee & Charlotte Counties The tri-county commercial market posted consistent market fundamentals through the third quarter of 2023. During this quarter, Retail and Multi-Family sales had the most sales volume by dollar amount for all the core commercial sectors in the area. The Retail sector is very active in Sarasota, Manatee, and Charlotte counties. The retail vacancy rates are at historic lows. There is currently 570,000 square feet of retail space under construction, and the demand has remained strong in this sector, considering that only 20% of the under-construction square footage is available for lease. Additionally, retail lease rates saw a year-over-year increase in all three counties. The vacancy rate of industrial space continues to rise due to the outpacing of new construction versus the demand. However, the industrial sector posted a strong third quarter with over $75,000,000 in sales, and asking rents rose in all three counties. The office sector’s vacancy rate increased year over year due to significant tenant move-outs. For example, Emerson Automation Solutions vacated 20,000 square feet of office space in the Bradenton Financial Building. Even with the slight vacancy rate increase, this office market has one of the lowest vacancy rates in all of Florida. Since February 2022, the Federal Reserve began increasing interest rates with eleven consecutive rate increases to date. At the Federal Reserve’s last two meetings, held on June 14, 2023, and September 20, 2023, the committee left the current interest rates unchanged. It is unclear how the increase will influence investors and trading in Commercial Real Estate in our area. However, MS&C Commercial will continue to track the market and trends as interest rates are expected to climb throughout 2023 and into 2024. MS&C Commercial is committed to the goals of our clients 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
1081 Main Street & 30-40 Osprey, Sarasota
Sale
14,186 SF
Office
5325 & 5327 Gulf Drive, Holmes Beach
Sale
9,178 SF
Retail
5103 N Toledo Blade Blvd, North Port
Sale
19.19 Acres
Land
6143 Clark Center Ave, Sarasota
Sale
12,960 SF
Industrial
1802 Main Street, Sarasota
Sale
8,600 SF
Land
6300 34th St N, Pinellas Park
Sale
2,439 SF
Retail
6219 15th Street E, Bradenton
Sale
9,200 SF
Industrial
28805 US-19, Clearwater
Lease
1,480 SF
Retail
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 | 1605 Main Street, Suite 500 | Sarasota, FL | 941.957.3730 | msccommercial.com
SECOND QUARTER 2023
OFFICE
COMMERCIAL TRENDS & REPORTS
4.0%
98,719 SF
$27.70 PSF
$233.27 PSF
Overall vacancy rate
YTD net absorption
Average asking rent (gross)
Average sale price
RENTAL RATE TABLE
OVERALL ASKING RENT, $PSF (GROSS)
Average Asking Rent (Gross)
Q3 2022
All Counties
$25.67
Q3 2023 $27.70
Year-OverYear % 7.91% E
OVERALL ASKING RENT, $PSF (GROSS) $29.00 $27.00 $25.00
Sarasota County
$26.65
$28.35
6.38% E
$23.00 $21.00
Manatee County
$24.12
$27.17
12.65% E
$19.00 $17.00
Charlotte County
$18.16
$16.67
8.20% G
2017
2018
2019
2020
2021
2022
2023
Arrows indicate changes from Q3 2022 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.
INDUSTRIAL
4.1%
331.034 SF
$12.25 PSF
$142.10 PSF
Overall vacancy rate
YTD net absorption
Average asking rent (NNN)
Average sale price
RENTAL RATE TABLE
OVERALL ASKING RENT, $PSF (GROSS)
Average Asking Rent (NNN)
Q3 2022
Q3 2023
Year-OverYear %
All Counties
$11.38
$12.25
7.6% E
OVERALL ASKING RENT, $PSF (GROSS) $13.00 $12.00 $11.00 $10.00
Sarasota County
$12.65
$14.27
12.8% E
$9.00 $8.00 $7.00
Manatee County
$11.11
$11.32
1.9% E
$6.00 $5.00 $4.00
Charlotte County
$11.06
$12.22
10.5% E
2017
2018
2019
2020
2021
2022
2023
THIRD QUARTER 2023
RETAIL
COMMERCIAL TRENDS & REPORTS
3.44%
11,978 SF
$20.72 PSF
$236.56 PSF
Overall vacancy rate
YTD net absorption
Average asking rent (NNN)
Average sale price
RENTAL RATE TABLE
SPACE AVAILABILITY BY TYPE RETAIL SPACE AVAILABILITY BY TYPE
Average Asking Rent (NNN)
Q3 2022
Q3 2023
Year-OverYear %
All Counties
$20.51
$20.72
1.0% E
Sarasota County
$20.80
$21.02
1.1% E
Neighborhood &
Neighborhood Community & Community
10.8% 8.1%
Strip Center
Manatee County
$21.75
$22.11
1.7% E
Charlotte County
$17.17
$17.97
4.7% E
Strip Center
Power Power & & Regional Regional MallMall
81.0%
Arrows indicate changes from Q3 2022 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 12 months is below:
Commercial Land $12.83 per land SF/$5,558,837 per acre
The demand for multi-family housing has equalized due to the large amount of new construction in the area. The vacancy rate is at a five-year high, and with 5,700 units currently in the pipeline, this trend is expected to continue. The market asking rent is down 3.4% compared to the 3rd Quarter of 2022. Based on recent sales in the area, the market price is approximately $246,000/unit.
Industrial Land $6.50 per land SF/ $283,159 per acre
Vacancy Rate 15.3%
Residential Land $1.95 per land SF/ $84,942 per acre
YTD Net Absorption 1,458
*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. Data obtained from CoStar, MFCRE, Manatee County Property Appraiser, Sarasota County Property Appraiser.
Average Effective Rent Per Unit $1,820
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 Christina Gustafson, Division Administrator Andrew Bakker Spencer Brannen Erik Carlson Lee DeLieto, Jr., P.A., Broker-Associate Lee DeLieto, Sr., MBA Jennifer Dobreff Terry Eastman Kim Eger Melinda Garrett Amber Gasson Susan Goldstein, MBA, CCIM Beh Graham Daniela Kaskey Roberta Kolton Cera Will Martin Eric Massey, Broker-Associate Kevin McQuaid Daniel J. Page, CCIM Jeffrey Roberts Larry Schaper, CCIM Tammy Shaw, Broker-Associate Alexander Stele
Bradenton Office
Punta Gorda Office
Downtown Sarasota Office
Commercial Property Management
4400 Manatee Avenue West, Bradenton, FL 34209 Phone: 941.748.6300 | Fax: 941.749.5001
1605 Main Street, 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
101 Taylor Street, Punta Gorda, FL 33950 Phone: 941.639.0000 | Fax: 941.639.0101
1605 Main Street, Suite 500, 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
Palmer Ranch Office
8660 S. Tamiami Trail, Sarasota, FL 34238 Phone: 941.966.800 | Fax: 941.918.9392
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.