Tri County Q3 Report

Page 1


Commercial Quarterly

Q3 2024 | State of the Market

Sarasota, Manatee & Charlotte Counties

The tri-county commercial market posted consistent market fundamentals through the third quarter of 2024. During this quarter, Industrial and MultiFamily sales had the most sales volume by dollar amount for all the core commercial sectors in the area.

Throughout 2024, industrial sales activity has been significantly increasing and was particularly active this past quarter due to a large bankruptcy sale in Manatee County. However, the disparity between supply and demand continues to affect the industrial market, and this trend will most likely continue throughout 2024. Numerous new buildings in the region currently have high vacancy rates, while 1 million square feet of industrial space is currently under construction.

This quarter, the fundamentals of the office sector in the Tri-County area are strengthening. While the year-over-year comparison for the first half of 2024 showed an increase in vacancy rates, this quarter has seen a 2.5% decrease from Q3 2023. Furthermore, office asking rents and average sale prices per square foot have also increased significantly.

Since February 2022, the Federal Reserve began increasing interest rates with eleven consecutive rate increases. At the Federal Reserve’s last meeting, September 18, 2024, the committee lowered the interest rate by 50 basis points. It is unclear how the decrease will influence investors and trading in Commercial Real Estate in our area. However, MS&C Commercial will continue to track the market and trends throughout 2024 and into 2025. MS&C Commercial is committed to the goals of our clients and those of the commercial real estate industry.

For questions concerning your specific sector or business, please reach out to one of our highly skilled advisors.

Scan the QR code to explore our listings. Serving the greater area from Tampa to Naples and beyond!

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!

OVERALL ASKING RENT, $PSF (GROSS)

Arrows indicate changes from Q3 2023

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.

OVERALL ASKING RENT, $PSF (NNN)

RENTAL RATE TABLE

Arrows indicate changes from Q3 2023

** Starting in Q2 2024, we are no longer reporting on land market statistics

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.

MULTI-FAMILY

The demand for Multi-Family housing has equalized due to the large amount of new construction in the area. The current vacancy rate is at a ten-year high. The new construction pipeline for Charlotte County is minimal, while approximately 5,000 units are under construction in Manatee and Sarasota Counties. Unlike other submarkets in the Tri County Area, the Downtown Sarasota submarket experience an increase in the average effective rent/unit. It rose approximately 2% year over year.

Our wide reach and deep knowledge in all areas of commercial real estate, as well as meaningful relationships across the U.S., lead to success in every space.

For all your commercial real estate needs — Think MS&C Commercial.

SALES | LEASING | TENANT REPRESENTATION

Commercial Team

Christina Gustafson, Division Administrator

Spencer Brannen

Lee DeLieto, Jr., P.A., Broker-Associate

Lee DeLieto, Sr., MBA, Broker-Associate

Jennifer Dobreff

Terry Eastman, Broker-Associate

Kim Eger

Melinda Garrett

Susan Goldstein, MBA, CCIM

Roberta Kolton Cera

Will Martin

Eric Massey, Broker-Associate

Daniel J. Page, CCIM

Larry Schaper, CCIM, Broker-Associate

Tammy Shaw, Broker-Associate

Alexander Stele

G. River West

Elizabeth Figlesthaler

Bradenton Office

4400 Manatee Avenue West, Bradenton, FL 34209

Phone: 941.748.6300 | Fax: 941.749.5001

Downtown Sarasota | Headquarters

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

PROPERTY MANAGEMENT

Commercial Property Management

1605 Main Street, Suite 500, Sarasota, FL 34236

Phone: 941.208.3965 Fax: 941.951.6667

David has over 20 years of commercial real estate experience, including managing teams of 50+ professionals as a Managing Broker. He has led projects in land development, site acquisition, and property management. Notable roles

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

Punta Gorda Office

101 Taylor Street, Punta Gorda, FL 33950

Phone: 941.639.0000 | Fax: 941.639.0101

Property Management Team

Bob Smith, Director of Commercial Property Management

Diane Conte, Administration Manager

Tony Fus, In-House Facility Technician

include National Director of Real Estate for Terra Realty, Site Acquisition Manager for Retail Site Experts, Director of Land Services at Mainstreet Realty, and VP of Real Estate Development at Baldridge Real Estate, overseeing major retail and senior care facility development.

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.