A review of commercial property sales in the Sarasota and Manatee county region in the 12-month period between July 2008 and July 2009 offers a stunning snapshot of just how far the real estate market here has plunged. The top five commercial deals in the two counties totaled $46.6 million, less than half the $111.7 million total for the same period in 2007-08 and only about one-fourth of the $183.6 million total for 2006-07.  

“Commercial real estate is in the dumpster in the entire state,” says Sarasota broker Tom Coler of Buyer’s Broker of Southwest Florida. “From Naples to Sarasota, it is dire. And no way [are we] near the bottom—way too much freaking inventory, and more coming online daily.” Conditions in Bradenton and Sarasota are “sad,” Coler adds, “and Venice-Osprey is beyond sad.”

A search through the records in the Sarasota and Manatee county property appraisers’ offices reveals that four of the top five deals involved Publix Super Markets, the Lakeland-based grocery chain. Three of the supermarkets were among the 49 Florida stores that Publix acquired last year from Albertsons for an estimated $500 million. Publix spokeswoman Shannon Patten says Publix is a “stable company, around since 1930, and this 49-store purchase gave us the opportunity to grow and also be in areas where we weren’t before.”

Coler doesn’t expect commercial real estate to rebound any time soon. “There has to be a strong economic recovery before any commercial will improve,” he says. “I do not see it for many moons. The current commercial vacancy rate is very high and going higher. We have many years of inventory currently, many millions of square feet of empty commercial space.”

It’s a dark picture, but some closed deals did brighten the year.

Sarasota's Top 10 Deals

1.  
Sale Price: $14 million
Address: 525 Bay Isles Parkway, Longboat Key
Closing Date: Sept. 2, 2008
Seller: Dead River Properties Inc.
Buyer: Avenue of the Flowers Acquisition Company (Publix Super Markets Inc.)
Previous Sale: $5 million
on June 1, 1983
Publix has operated an exceptionally well-stocked supermarket for many years at this location, serving an upscale clientele that includes snowbird visitors spending the winter on Longboat Key. Publix acquired the property (422,532 square feet of land and 101,351 square feet in building space) from Dead River Properties, a Maine corporation. The purchase did not include Town Plaza II, a second shopping center behind Town Plaza I. The company is now reviewing plans for what to do with Town Plaza I, where eight of the 16 storefront spaces are empty and available for lease. Despite what appears to be a 50-percent vacancy, Publix spokesperson Shannon Patten describes the purchase as “a great investment.” Furthermore, she says,
“It doesn’t hurt when we are our own landlord.”

2.  
Sale Price: $10 million
Address: 985 U.S. 41 Bypass S., Venice
Closing Date: March 27, 2009
Seller:  Suncoast Imports
Buyer: C & B Motors
Previous Sale:  $1,586,500 on Oct. 28, 2005
C & B Motors, a Toyota dealership owned by Compton Cramer Jr. and Richard Bond, purchased its neighbor, a Honda dealership across the street from their Toyota business. C & B paid $10 million for the Honda dealership’s real estate property, which included 103,487 square feet of land with a 33,449-square-foot building. C & B acquired the dealership business, including inventory and furniture, in a separate transaction for an undisclosed amount of money.

3.
Sale Price: $7,840,700
Address: 4840 S. Tamiami Trail, Sarasota
Closing Date: Sept. 8, 2008
Seller: ABS Fla Investor LLC
Buyer: Publix Super Markets Inc.
Previous Sale: $5.98 million on June 1, 2006
Located in the Landings Shopping Center, this supermarket was built in 1988 and occupies a 72,245-square-foot building on 254,425 square feet of land. Now open and operating as a Publix, this is another of the 49 Albertsons stores that Publix bought last year.