Excerpt from the Tampa Tribune:
…..All told, Tampa ranks 46th out of 65 metro areas by highest rate of distressed commercial property, factoring in the size of each market. Las Vegas ranked first, with an estimated 32 percent of its commercial properties in some type of distress, followed by Detroit, at 24 percent.
Most-distressed commercial real estate markets
Percentage of properties in distress
1. Las Vegas 32 percent
2. Detroit 24 percent
3. Miami 20 percent
4. Tertiary West 19 percent
5. Cincinnati 15 percent
46. Tampa 6 percent……
Complete Article from the Tampa Tribune
Comments: Daily, we receive phone calls from individuals looking for commercial real estate in the Tampa Bay area. Usually the prospective tenants will quote articles and facts about the commercial real estate market and then proceed to use these “facts” as evidence as to why they should be entitled to seriously under-valued rent or the right to purchase a property at pennies on the dollar. Adjusting the expectations of some clients can be particularly challenging. The reality of the situation is, however, that as sluggish as the market is in the area, it is really not that bad, particularly when compared to the rest of the US. Yes, vacancies are high. Yes, there are more distressed properties on the market than 2 years ago. Yes, you can find better deals that you could back in 2006. But, Tenants are still moving to the area (albeit at a reduced rate) and deals are still getting done. As of right now, the market is soft in Tampa….but it is not dead.
