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