Pinellas County Expects 2005 Growth After Weak Office Showing

"Leasing activity has been lukewarm for much of 2004, with corporate downsizings and relocations, but there have been some bright spots," Advantis research director Randy Smith tells GlobeSt.com. Sublease space, for example, has "descended to nominal levels, just 1.1% of inventory."

Additionally, the St. Petersburg Downtown district and the North Pinellas submarkets "have exceeded the norm in 2004 with direct vacancies remaining in single digits and positive-year-to-date absorption," Smith says.

In 2005, the Pinellas office market will get "more impact from the improving economy as companies begin ramping up business investment and adding workers to meet increased demand," the researcher says. "Pinellas has a solid base of high-tech, medical and financial service companies which are projected to thrive" in 2005.

Smith says a recent survey by the Pinellas County Economic Development Commission indicates continued optimism for business prospects and employment in 2005. "Of the 10,000 companies polled, 16% indicated that they are considering adding locations and 31% expected to increase fulltime employment," Smith says. Revenue projections "were upbeat, with 56% expecting their 2005 numbers to improve."

A new encouraging note for Pinellas County is the green light that Tampa developer Grady Pridgen has received from local agencies in the Gateway area. Pridgen plans to build the residential component there of a 2.6-million-sf, 122-acre mixed-used development which could generate 30,000 new jobs when completed. "Melding residential, office, industrial, restaurant, hotel and retail into a single, live-work-play community, Pridgen is promoting this concept on a grand scale," Smith tells GlobeSt.com.

The six main office markets in Pinellas County are Clearwater, St. Petersburg, Dunedin, Pinellas Park, Largo and Palm Harbor.