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

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Please give Bob Smith at MSC Commercial Property Management a call today at 941.208.3965. You will be glad you did!

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 and Orlando market.

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.

The tri-county area commercial market posted strong fundamentals through the first half of 2019 for all property types. Looking back at the quarter, one of the largest

commercial sales in the market involved a downtown Sarasota multi-family property. Bluerock Real Estate acquired The Desota, a 10-story luxury apartment building built in 2017, for $80.3 million. The building consists of 180 residences plus 15,350 square feet of ground-floor commercial space, which was designed to appeal to downtown Sarasota’s discerning and affluent residents. Another notable transaction during the quarter was the sale of Bradenton Financial Center in Downtown Bradenton for $14.95 million. The 116,839 SF office building was 90% occupied at the time of sale with a reported cap rate of 7.75%. As we move into the second half of 2019, the continued expansion of the area driven by the steady population growth will see an influx of new hotels, retail stores and condominiums materialize. Read more for the latest in the region’s commercial real estate market.

State of the MarketSCOTT CIETEKDirector, Commercial Division

Manatee, Sarasota & Charlotte Counties

SIGNIFICANT TRANSACTIONS MS&C Commercial | Q2 2019Location Sale/Lease Sq Ft or Acreage Type1912 E 44th Ave, Unit 1, Bradenton Lease 6,600 Sq Ft Industrial6009 Business Blvd, Sarasota Sale 11,364 Sq Ft Office378 St. Armands Circle, Sarasota Lease 1,805 Sq Ft Retail7357 Merchant Ct, Lakewood Ranch Sale 8,351 Sq Ft Office3145 Lakewood Ranch Blvd, #102, Lakewood Ranch Lease 26,225 Sq Ft Industrial5045 Fruitville Rd, Unit 123, Sarasota Lease 1,875 Sq Ft Retail 607 5th St, Miami Beach Lease 2,200 Sq Ft Retail101 Riverfront Blvd, Bradenton Lease 4,955 Sq Ft Office2811 Tamiami Trail, Unit S, Port Charlotte Lease 960 Sq Ft Retail

COMMERCIALquarterly2nd Quarter 2019

Commercial Trends & Reports

8.4% EUP

OVERALL VACANCY RATE

550 SF DOWNG

YTD NET ABSORPTION

$20.82 PSF EUP

AVERAGE ASKING RENT (GROSS)

3.1% EUP

OVERALL VACANCY RATE

62,887 SF DOWNG

YTD NET ABSORPTION

$7.90 PSF EUP

AVERAGE ASKING RENT (NNN)

Industrial

Arrows indicate change from Q2 2018.

Arrows indicate change from Q2 2018.

Overall Vacancy Rate2014 7.6%

7.2%6.3%6.4%

2015 6.0%5.4%5.4%4.8%

2016 4.5%4.1%3.5%3.0%

2017 2.8%2.4%2.4%2.5%

2018 2.4%2.7%2.2%

2%2019 3.0%

3%

OVERALL VACANCY RATE

0%

2%

4%

6%

8%

10%

2014 2015 2016 2017 2018 2019

5-Year Average = 4.1%

1

Overall Vacancy Rate Q2 18 Q2 19 Year-Over-

Year %

All Asset Types 2.7% 3.1% 0.4% E

Warehouse/Distribution 2.4% 3.1% 0.7% E

Manufacturing 1.6% 0.4% 1.2% G

Flex 4.7% 5.5% 0.8% E

All Office Classes2014 $17.74

$17.93$17.73$18.00

2015 $18.42$18.41$18.35$19.03

2016 $19.04

OVERALL ASKING RENT, $ PSF (Gross)

$17

$18

$19

$20

$21

2014 2015 2016 2017 2018 2019

1

Average Asking Rent (Gross) Q2 18 Q2 19 Year-Over-

Year %

All Classes $19.55 $20.82 6.5% E

Class A $24.38 $27.29 11.9% E

Class B $19.63 $20.37 3.8% E

Class C $17.51 $18.29 4.5% E

RENTAL RATE TABLE OVERALL ASKING RENT, $PSF (GROSS)

VACANCY RATE TABLE OVERALL VACANCY RATE

Office

Land

Economy

Multi-FamilyThe median price per square foot/acre of sold parcels for Commercial, Industrial, and Residential zoned land from the past four quarters are below:

COMMERCIAL LAND$5.06 Per Land SF / $220,429 Per Acre

INDUSTRIAL LAND$2.89 Per Land SF / $126,000 Per Acre

RESIDENTIAL LAND$3.73 Per Land SF / $162,546 Per Acre

The tri-county area remains in the midst of a supply boom. Over 6,000 units have been delivered over the past five years. 2,000+ units are currently under construction.

OCCUPANCY RATE93.0%

YTD NET ABSORPTION1,028 Units

AVERAGE EFFECTIVE RENT PER UNIT$1,260

5.6% EUP

OVERALL VACANCY RATE

61,073 SF DOWNG

YTD NET ABSORPTION

$14.63 PSF EUP

AVERAGE ASKING RENT (NNN)

Retail

Arrows indicate change from Q2 2018.

Inventory by TypeNeighborhood & Community 77.1%Strip Center 14.4%Power & Regional Mall 8.5%Lifestyle 0.0%

Neighborhood & Community 18,804,004 SFStrip Center 4,828,127 SFPower & Regional Mall 3,184,364 SFLifestyle 243,798 SF

27,060,293 SF

Neighborhood & CommunityStrip CenterPower & Regional MallLifestyle

1

Inventory by TypeNeighborhood & Community 77.1%Strip Center 14.4%Power & Regional Mall 8.5%Lifestyle 0.0%

Neighborhood & Community 18,804,004 SFStrip Center 4,828,127 SFPower & Regional Mall 3,184,364 SFLifestyle 243,798 SF

27,060,293 SF

Neighborhood & CommunityStrip CenterPower & Regional MallLifestyle

1

Average Asking Rent (NNN) Q2 18 Q2 19 Year-Over-

Year %

All Counties $13.55 $14.63 8.0% E

Sarasota County $14.59 $14.06 3.6% G

Manatee County $12.26 $16.09 31.2% E

Charlotte County $13.57 $13.87 2.2% E

RENTAL RATE TABLE SPACE AVAILABILITY BY TYPE

Economic Indicators Q2 18 Q2 19

Tri-County Total Nonfarm Employment 357,700 362,900

Tri-County Unemployment Rate 3.3% 3.0%

Florida Unemployment Rate 3.4% 3.1%

U.S. Unemployment Rate 3.6% 3.4%

The labor force in the tri-county area continued to grow by adding 5,200 jobs over the year.

COMMERCIAL TEAMMichael Saunders, CEO & Founder,

Michael Saunders & CompanyScott Cietek, DirectorBenjamin BakkerMichael CurtinDennis DahmLee De Lieto, Sr., MBALee De Lieto, Jr., P.A., Broker-AssociateSusan Goldstein, MBA, CCIMBen GrahamDaniela KaskeyRoberta Kolton CeraSteven LarkinGary MarshallWill MartinEric Massey, Broker-AssociateCharlie Meeks

Robert MoffattMolly O’BrienDaniel J. Page, CCIMErin ReidHoward SadwinLarry Schaper, CCIMPeggy WellmanEllen Spencer, Administrative AssistantGareth Watson, Senior Research Analyst

BRADENTON OFFICE4400 Manatee Avenue West O Bradenton, FL 34209Phone: 941.748.6300 O Fax: 941.749.5001

DOWNTOWN SARASOTA OFFICE100 S. Washington Blvd. O Sarasota, FL 34236Phone: 941.957.3730 O Fax: 941.552.5216

ENGLEWOOD OFFICE1200 S. McCall Road O Englewood, FL 34223Phone: 941.473.7750 O Fax: 941.473.7751

LAKEWOOD RANCH OFFICE8325 Lakewood Ranch Blvd. O Bradenton, FL 34202Phone: 941.907.9595 O Fax: 941.907.8802

ORLANDO121 S. Orange Ave., Suite 1500 O Orlando, FL 32801Phone: 407.377.6830

PALMER RANCH OFFICE8660 S. Tamiami Trai O Sarasota, FL 34238Phone: 941.966.8000 O Fax: 941.918.9392

PUNTA GORDA OFFICE101 Taylor Street O Punta Gorda, FL 33950Phone: 941.639.0000 O Fax: 941.639.0101

COMMERCIAL PROPERTY MANAGEMENT1801 Main Street O Sarasota, FL 34236Phone: 941.208.3965 O Fax: 941.951.6667Bob Smith, Director of Commercial Property ManagementDiane Conte, Administration ManagerTony Fus, In-House Facility Technician

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