Office Space
The office space market continued to tighten through the first half of 2017. Vacancy fell to 5.8 percent, which is the lowest office vacancy rate in the past nine years.Dixie Power completed its two new buildings, totaling 29,000 square feet. And ground has been broken on a new 57,000 square-foot medical office building at Riverfront Medical Center.
The prolonged recovery and shrinking vacancy has caused a lack of viable spaces on the market for sale or lease. This is true particularly in the Class A sector.
Industrial
The industrial market continues to show strength with few available properties on the market for sale or lease. Vacancy bumped up to 2.6 percent in the first half of 2017 due in large part to one vacancy (a 150,000 square-foot property that hit the market over 6 months ago and has yet to be filled). Without that vacancy, the market would have less than 1 percent vacancy.There is a major spec construction project underway in Ft. Pierce. There is a 80,000 square-foot prelease to a national tenant. This is the largest new construction industrial lease completed in Washington County since 2008.
A 71,000 square-foot multi-tenant spec building is also under construction on the site and is expected to be completed and available for occupancy in January 2018.
Retail
Vacancy held at 2.9% from year-end 2016.New buildings completed in 2017 include: Smith’s Marketplace, The second Tagg-N-Go location on River Road, Nielson RV Dealership, Starbucks on Telegraph and Green Springs Drive, and Tropical Smoothie on Sunset Blvd.
There are several retail projects currently under construction totaling 58,000 square feet. Numerous restaurants, financial institutions and neighborhood service companies are negotiating for space around these new centers.
Starbuck’s and Kneaders, newest locations are beginning construction at Dinosaur Crossing. Mountain America broke ground on the corner in front of Lin’s in Washington Fields.
The hotel industry is perhaps the most active segment of the market with several projects under construction including: the Hyatt Place Lite next to the Dixie Center, the Hampton Inn near Sun River and the Staybridge Suites, and Springhill Suites at Green Springs are pushing for 2017 start dates.
There has been a surge in retail/commercial land sales this year, especially along Interstate 15. Snapshot Link
