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FIRST QUARTER 2024

Commercial Quarterly State of the Market

Sarasota, Manatee & Charlotte Counties The tri-county commercial market posted consistent market fundamentals in the first quarter of 2024. During this quarter, Industrial 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 have remained at or below 4% for seven consecutive quarters. There is currently over one million square feet of retail space in the pipeline. A retail shopping center, with a grocery anchor tenant and out parcels, in Babcock Ranch accounts for 174,000 square feet of the pipeline, and this project is set to deliver in January 2026. Additionally, retail lease rates saw a year-over-year increase of approximately 4% in all three counties. The industrial sector displays the most significant outpacing of new construction versus the demand for the space. Due to the imbalance, the vacancy is currently at 4.2%, which is an eight-year high. Since the leasing activity for larger industrial spaces (50,000 SF+) has slowed in recent quarters, the rental rates have slightly decreased in the last 12 months. Like the retail sector, there are significant projects currently under construction including a 1,000,000-square-foot cold storage facility, which will be owner-occupied and delivered at the end of 2024. Since February 2022, the Federal Reserve began increasing interest rates with eleven consecutive rate increases to date. At the Federal Reserve’s last four meetings, held in the last half of 2023 and March 2024, 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 2024. 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.

SIGNIFICANT TRANSACTIONS

MS&C COMMERCIAL

Location

Sale/Lease

SF/Acreage

Type

8660 South Tamiami Trail, Sarasota

Sale

14,200 SF

Office

1999 Ringling Boulevard, Sarasota

Lease

6,330 SF

Retail

2510 1st Avenue North, St. Petersburg

Sale

5,000 SF

Office

1202 Gary Avenue, Unit 101, Ellenton

Sale

2,888 SF

Industrial

9135 Forum Corporate Parkway, Fort Myers

Sale

3.85 AC

Land

2025 49th Street North, Gulfport

Sale

2,413 SF

Retail

19099 West Villages Parkway, Venice

Sale

1.769 AC

Land

5690 Pan American Blvd, North Port

Sale

3.3 AC

Land

4431 Bee Ridge Road, Sarasota

Sale

4,900 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!