Commercial real estate in Tampa Bay is showing positive indicators in 2007, according to a new report by Colliers Arnold.

Strong market fundamentals combined with continuing demand has created the climate for a rise in new construction, the report said.

Employment continues to be one of Tampa Bay's strengths, with unemployment at 3.3 percent for February, down slightly from 3.4 percent for February 2006. More than 26,500 jobs were added in Tampa Bay during the past 12 months, the report said.

Lease rates continue to be strong, as well as the absorption rate, both beating national averages. The average direct lease rate for warehouse properties was $5.66 per square foot for the first quarter of 2007, Colliers Arnold said. That rate has climbed over the past nine quarters.

The total amount of industrial and flex space absorbed for the first quarter in Tampa Bay was 382,099 square feet. This includes occupied space in 10 new buildings, which total 498,836 square feet. Of the newly completed space, 34 percent was pre-leased or pre-sold before completion. Thirty-nine new buildings are currently under construction in Tampa Bay, the report said. They will add 4.1 million square feet of space to the area, the highest quarterly total ever, Colliers Arnold said.

Source: http://www.bizjournals.com/tampabay/stories/2007/04/16/daily56.html