TAMPA, March 3, 2008 — Despite lingering softness in the Tampa housing market, retailers continue to take on additional space and net absorption will remain positive in 2008, according to the 2008 National Retail Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Demand in some areas of the market is robust, and these submarkets are expected to post above-average results in the near-term.
Also included in the report is the firm’s annual National Retail Index (NRI), a snapshot analysis that ranks 43 retail markets based on a series of 12-month forward-looking supply and demand indicators. Tampa moves down seven places this year to No. 30.
“Shopping centers and strips in high-visibility locations along major thoroughfares, such as U.S. Route 19 in Pinellas and Pasco counties, will command buyers’ interest,” says Steven M. Ekovich, regional manager of Marcus & Millichap’s Tampa office.
Following are some of the most significant aspects of the Tampa Retail Research Report:
Employers are expected to expand payrolls 1.1 percent in 2008 with the addition of 15,300 positions.
Completions will total 3.3 million square feet of retail stock this year.
Vacancy is forecast to end the year at 7.8 percent.
Asking rents are projected to rise 3 percent to $16.15 per square foot, and effective rents will increase 2.7 percent to $14.58 per square foot.
Developers will focus on sites along the Interstate 4 corridor in East Tampa and in southern portions of Hillsborough County.
In the 2008 NRI, San Francisco moved up seven places to take over the top spot, surpassing last year’s leader, New York City, which slipped to No. 4. San Diego moved up three places to the No. 2 spot. Seattle inched up two places to No. 3. San Jose climbed five places to No. 5.
For a copy of Marcus & Millichap’s National Retail Report and the complete NRI rankings, visit www.MarcusMillichap.com.
With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.