MS&C Commercial St. Petersburg 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 St. Petersburg State of the Market The St. Petersburg market has three unique submarkets, which we will be reporting on: 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 transactions. Although each area is unique due to its location, all three submarket office sectors experienced vacancy rates below the 10-year average, and the demolition of office space outpaced new construction projects. The Gateway submarket was hit the hardest by office vacancies since the pandemic, but it is slowly gaining momentum toward filling the space. South Pinellas has one of the oldest office inventories and a large proportion of low-end spaces, so the office rental rates do not increase as aggressively as other submarkets. The St. Petersburg retail sector is a very liquid investment market, and the market pricing is approximately $267 per square foot. Retail rental rates, in this area, increased by 3.9% year over year. In St. Petersburg, the multi-family sector’s demand and rent prices have surged over the past year in part due to the price increases in the general housing market. Downtown St. Petersburg has the lowest vacancy rate in the Tampa metropolitan area. The city is focused on improving the walkability of this area and making it a live/work/play environment. Central Pinellas County is very attractive to multifamily tenants because of the easy commute and access to a variety of amenities. Due to the appealing location, this area has seen consistent demand from the regions’ largest rental pool. 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 as this situation evolves. For questions concerning your specific sector or business, please reach out to one of our highly skilled advisors.

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!

SALES BY PROPERTY TYPE $220,000,000 $165,000,000 $110,000,000

$55,000,000 $0

Office

Multi-Family

Retail

Industrial

VOLUME

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

Office

$55,028,428


FIRST QUARTER 2022

COMMERCIAL TRENDS & REPORTS

OFFICE RENTAL RATE TABLE Average Asking Rent (Gross)

Q1 2022

All Submarkets

$24.38

Downtown St. Pete

$31.19

Gateway/Mid-Pinellas

$23.75

South Pinellas

$22.26

INDUSTRIAL

7.1

-125,993

%

Overall vacancy rate

$24.38

YTD net absorption

PSF

Average asking rent (gross)

3.80

PSF **

85,867

Overall vacancy rate

Average asking rent (NNN)

$216 Average sale price

%

$10.00

SF

YTD net absorption

PSF

$89.00

PSF **

Average sale price

** 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.

SF


FIRST QUARTER 2022

COMMERCIAL TRENDS & REPORTS

entory by Type 81.2% 9.9% 8.9%

RETAIL

RENTAL RATE TABLE

8,804,004 SF 4,828,127 SFAverage Asking Rent (NNN) 3,184,364 SF 243,798 SF All Submarkets 7,060,293 SF

Q1 2022

$18.87

Downtown St. Pete

$27.36

Gateway/Mid-Pinellas

$17.95

South Pinellas

$17.37

4.10

111,932

%

Overall vacancy rate

SF

YTD net absorption

$18.87

PSF

Average asking rent (NNN)

$267

PSF **

Average sale price

RETAIL SPACE AVAILABILITY BY TYPE Neighborhood & Community

9.9%

81.2%

Neighborhood & Community

StripStrip CenterCenter

8.9%

Power & Regional Mall

Power & Power & Regional Mall Regional Mall

8.9%

LAND

1

MULTI-FAMILY

The median price per square foot/acre of sold parcels for commercial-, industrial-, and residential-zoned land for the past year for Pinellas County:

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 over the last year, and there is a new record low vacancy rate of 3.9% in the area.

Commercial Land $16.59 Per Land SF/$722,685 Per Acre

Vacancy Rate 3.90%

Industrial Land $5.80 Per Land SF/$252,614 Per Acre Residential Land (In Land) $14.69 Per Land SF/$639,841 Per Acre Residential Land (Water Access or View) $65.92 per Land SF/$2,871,369 Per Acre

YTD Net Absorption 541 units Average Effective Rent Per Unit $1,580


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