The buildings are expected to be vacant by 2005. Dunedin would prefer to see a corporation buy them, instead of a large retailer like Wal-Mart.
By MEGAN SCOTT
Published August 8, 2004
DUNEDIN - The sellers say the price can't be beat.
The 200,000-square-foot campus features open floor plans, a data center and cafeteria. It's in a state with no income tax and a county that doesn't have much open space left.
All for $9.3-million.
So why no takers?
"We're not on U.S. 19," said Patrick Berman, of realty company Cushman and Wakefield. "It's more of a neighborhood location. Because we have 17 acres in a residential setting, it makes it more challenging."
The soon-to-be vacant Nielsen Media Research Campus on Patricia Avenue has been on the market since last year. And while the property has attracted some potential buyers, there hasn't been anything definite.
Nielsen began moving more than 1,600 employees from Dunedin to a new location in Oldsmar last fall. The three buildings that make up the campus will be vacant by spring 2005.
"We're hoping that before they actually move out, we will have a deal in place to move this thing forward," said Berman.
The city of Dunedin has a large stake in what replaces Nielsen.
In October, the city formed the Patricia Avenue Redevelopment Task Force to assist Cushman and Wakefield. It also joined the Tampa Bay Partnership, a regional organization that works to market the area on a national and international level.
"Are we doing everything we can? I think we are," said Bob Ironsmith, economic development director. "We've been seeing new residential and a lot of retail activity. Office and industrial has lagged behind. These things cycle. I think the wheel is swinging back."
Dunedin officials would prefer to see a corporation purchase the Nielsen campus, which has been a source of civic pride for more than 30 years. City leaders do not want a Wal-Mart or an apartment complex there because they would not create the number of jobs that a company would.
"We have a ton of businesses that are growing that have started here and are just booming," said Commissioner Dave Eggers. "That's the market we want to make sure we tap into. And make sure they are fully aware of this opportunity."
Pinellas County Economic Development is also helping market the property. The department has focused its search on out-of-state companies who may want to relocate to the county. The decline in the unemployment rate and the growth of companies across the nation should help with those efforts, said Stacey Swank, business development manager.
"The attraction would be the positive business climate in Dunedin, in Pinellas County and in Florida," Swank said. "When you look at the cost of living and the quality of living, it's tough to beat being in Dunedin."
But location is not enough to create a demand for office space, said Geoffrey Booth, a managing director with Urban Land Institute in Washington.
The nation has suffered extensive job loss over the past few years, he said, which means companies do not need as much space to accommodate employees.
"Office space is generated by new jobs that are being created," Booth said. "Take the dot-com boom. When the dot-com boom turned into a dot-com bomb, you sustained a 20 percent drop in office space."
Dunedin may be better off replacing Nielsen with a retail, office and residential complex, said Berman. Mixed-use developments are a growing trend.
"In the end, it's probably going to be some type of hybrid," he said. "It is the wave of the future because everyone likes it. It cuts down on the impact of new development. We have to try to condense things and make things self-sufficient, where you have work, play and live all in the same community."
Ironsmith said he is open to the idea. Dunedin would even be willing to sell off the campus in pieces. But he wants to make sure office space is one of the largest components because the salaries would boost Dunedin's economy.
"If you had a (mixed-use) complex that was sizable, and it had nice, interesting character, I think we would be open to that," Ironsmith said. "But you've got to have a substantial office component. It really has to be a balanced, mixed use. You wouldn't want to have 60 percent residential, 20 percent office and 20 percent retail."
Ironsmith hopes to present an update on the parcel to commissioners within the next month. Dunedin has the final say on who purchases the property.
In the meantime, everyone is working to get the word out.
"We are making progress," Berman said. "We do have some good prospects. The city is open minded. They are willing to work with us on reasonable developments that are going to enhance the neighborhood."
