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Relocation inquiries off so far in '06

Fewer companies are asking about moving or expanding in Hillsborough, although Pinellas is experiencing an upswing.

By JAMES THORNER
Published June 27, 2006

In a sign that the economy could be losing some its forward thrust, half as many corporations are scouting locations this year in Hillsborough County as last year.

Through the end of May, the Greater Tampa Chamber of Commerce's Committee of 100 had collected leads from 30 companies inquiring about relocating to or expanding in the area.

At the same point last year, the chamber was working 60 such "site selection" requests. The chamber closed deals on 18 of those 2005 inquiries, crediting those companies with 3,266 new jobs.

Bob Abberger, chairman of the Committee of 100, the chamber's business recruiting arm, suggested this year's comparatively tepid performance portends less business confidence. Abberger's an executive at Trammell Crow development company in Tampa.

"Inquiries are down 50 percent from the prior year, and it's the same statewide," Abberger said. "It's a clear slowdown in economic growth."

If Abberger's assessment is correct, Pinellas County would seem to be bucking the trend. At the halfway point of 2006, Pinellas is ahead of last year's corporate recruiting pace.

"We're already at 60 percent of what we did last year in terms of leads coming in," said Suzanne Christman, senior manager of the county's business development team.

Nevertheless, GVA Advantis, a full-service real estate firm in Tampa, reported a 60 percent dip in office leasing in Pinellas for the first three months of this year. Office sales were off 43 percent in the first quarter.

Randy Smith, Advantis' director of research, considered the numbers an aberration since rents were still rising and markets such as downtown St. Petersburg had nearly run out of top-notch office space.

"Just a slow quarter. Nothing more than that. I don't think there's anything to indicate anything permanent. We've already seen activity pick up (in the) second quarter," Smith said.

Enterprise Florida, the state's economic development agency, tracked successful business relocations and retentions, but not total inquiries. Enterprise counted 237 new projects in 2005-06, a slight drop from the 277 projects the previous year.

Despite Hillsborough's waning corporate inquiries, the county has nailed down several high-profile deals so far this year. PriceWaterhouseCoopers and MetLife will move into expanded quarters to house an expected 500 additional employees.

A near-consensus of economists expects tamer economic growth for the rest of the year. The alleged cause is slower home sales and higher interest rates. The national economy grew nearly 5 percent in the first quarter. Florida performed even better with 6.8 percent growth.

Abberger said sluggish corporate recruitment wouldn't mean Florida has lost its edge. The rest of the country is probably feeling the same pinch, and Florida maintains its advantages relative to other states, he said.

--James Thorner can be reached at (813) 226-3313 or thorner@sptimes.com

CORPORATIONS ON THE MOVE

Corporate relocations or expansion inquiries with the Greater Tampa Chamber of Commerce's Committee of 100:

2004 year to date 50

2005 year to date 60

2006 year to date 30

PROJECTS CLOSED IN HILLSBOROUGH

2004: 11 with 1,584 jobs and $49-million in capital investment

2005: 18 with 3,266 jobs and $84-million in capital investment

2006 first five months: Five with 853 jobs and $32-million in capital investment

[Last modified June 27, 2006, 06:17:37]