Leasing and sales activity continued its slow pace during the second quarter 2008. While the commercial real estate market “treads water,” the economy is continuing to soften, according to a Colliers Arnold report.

The unemployment rate for the Sarasota area increased to 5.8 percent in May. This compared with 3.5 percent in May 2007.

Bradenton/Sarasota MSA shows a loss of 11,000 jobs from May 2007 to May 2008.

The Sarasota/Manatee County area showed an overall office vacancy rate of 9.4 percent for the second quarter 2008. This compares to the first quarter rate of 8.7 percent.

Class A office vacancy for the Sarasota area was 17 percent, a significant rise from the

First-quarter rate of 13.7 percent. Office total absorption for the second quarter showed negative-107,218, which clearly demonstrated the slow down in demand.

Building owners continue to offer incentives to try to get lease deals done. Brokers have

reported as much as 12 months free rent being offered by a building owner in Lakewood Ranch.

No new office building projects were completed in the second quarter, but five buildings are currently under construction that total 96,130 square feet.

The overall direct average lease rate remained steady from the first quarter at $22.17 per square foot. The Class A average direct rate was $24.22. This represents a sharp decrease in Class A asking rates from the first-quarter average of $26.32.

Colliers Arnold is a member firm of Colliers International, a worldwide affiliation of 293 independently owned and operated offices throughout 61 countries.

This report and other research materials can be found at www.colliersarnold.com.

Questions should be directed to Karen Temmen, Market Research Director (727) 442-7184 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it