Land Prices May Be Scraping the Surface

Hillsborough County's government paid $1 million for 57 acres on the east side of Interstate 75 near the University of South Florida campus for future planning purposes, most notably development of a bioscience research and development park. The county bought the land from GMAC Financial Services, which owned it for nearly three years. KB Homes had previously planned a 150-home subdivision on the property.

Low pricing was a big motivator for the county government to move on the purchase, says Nancy Surak, broker associate with Tampa-based Eshenbaugh Land Co. who negotiated the deal. She believes now is the best time for counties and municipalities to purchase key properties, whether for development or conservation purposes, because they are considered solid credit buyers.

"We may bounce along the bottom for a while" as far as pricing goes, Surak tells GlobeSt.com. "We are starting to see some positive signs."

The 57-acre site along Morris Bridge Road sold for $17,544 per acre, or 40 cents per square foot, which Surak says is unusually low. Other lots in Hillsborough County are being offered for as little as $3 per square foot, including corner sites as high-traffic intersections.

Mark Cooney, executive director with GVA Advantis in Tampa, is marketing an eight-acre site along US 301, just north of the Seminole Hard Rock Casino and Florida State Fairgrounds, for $695,000. The price has been reduced three times over the past four months, from $2.6 million, because the family that owns the tract is motivated to sell.

"People see the timing for moving land now," Cooney tells GlobeSt.com. He says the land, which borders an industrial site along Sligh Avenue, is suitable for a range of uses, from a corner convenience store to mixed-use development including hotel and retail.