Commercial space in shorter supply

Jan. 21--SEBRING -- The Heacock Building was constructed in 2008, but the second and third floors, and even some of the first floor, have been unoccupied for seven years.

Now, a lawyer and a stockbroker are moving in, said Chief Operations Officer Darrell Jensen, who went before the Highlands County Commissioners on Tuesday for permission to build a new parking lot with 32 spaces.

"When you look around, there's not a lot of high-end rental space on U.S. 27," Jensen said.

The year-end report from the Highlands County Building Department showed $15.3 million in new commercial buildings went up in 2015. There's still too much available to build more, but commercial space in Highlands County is filling up fast, real estate agents said Wednesday.

"Pretty much, the answer is yes, we have seen an increase in commercial demand," Chip Boring, broker with RE/MAX Realty Plus in Sebring, said. "Most of the areas that we're seeing are being occupied."

"I'm getting more calls from good businesses that need space that I ever have before," said Tim Blackman, who owns three buildings along U.S. 27.

Highlands County boomed in the mid-2000s and overbuilt in the commercial sector, said Pete McDevitt, a broker at Coldwell Banker. People left during the bust, but now population is growing again.

"I feel they have more faith in the economy now," Blackman said. "I think they're looking to the future, and they're not afraid to invest. That's what they're telling me."

That's one reason why rents are starting to increase. "A little bit, not a lot," Boring said.

"Rents are beginning to hold their own," McDevitt said. "Most of the recent leases are financial, professional, medical and government."

Boring sees most of the growth occurring in Sebring. "I'd say, probably north of Sparta Road, north of the mall and Fairmont Cinema Square and Sun 'n Lake Boulevard, and north of the hospital."

One is a pediatric dental clinic from Okeechobee, which is opening a second office. In the past two weeks, Blackman Properties has leased to three businesses, including two new to Highlands County. The new tenants include a salon and a company that helps customers to fill out health forms. Direct, a multi-national auto insurance company, is also moving in. An oxygen supply company is coming soon.

"We're just about full in every building," Blackman said.

Even so, Blackman said, Avon Park still has two shopping centers that are half-full.

"It depends on the rates," Boring said. "And if you take a look at (Lakeshore Mall), they're running about a 50 percent vacancy."

"There are still quite a few office and retail spaces available," McDevitt said.

"The hospital has leased a substantial amount of space within the last six months," Boring said.

"We lease those from other people," said Cathy Albritton, a spokeswoman for Florida Hospital Heartland Medical Center. "We employ 34 physicians and 16 midlevel, meaning PAs and ARNPs," advanced registered nurse practitioners.

Florida Hospital has purchased the practices of several local doctors, Albritton said, and Dr. Hunter Newsom built a new three-story clinic on U.S. 27.

"It will be interesting to see how that plays out," McDevitt said. "There are a lot of medical office buildings on the market, and Dr. Newsom's [old] office, that are going to have to be repurposed."

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