Just like the thrilling ascent of a roller coaster’s steep, uphill climb, Tampa’s commercial real estate market has been climbing higher and higher since 2012, and the ride is not over yet.
We’ve been on a fast track up the roller coaster as the Tampa office market proved a continued increase in asking rents. Class A vacancy rates reached an all-time low since 2006 in Tampa with approx. 6.9%.
- Westshore full-service asking rents across all classes on average in Q4 2017 were approx. $27.50/ sf, with class A buildings in the $31.39/sf ranges compared to Q1 2018 of approx. $27.60/sf with class A buildings in the $31.55/sf range.
- Downtown Tampa (CBD) full-service asking rents across all classes average was approx. $26.75/sf, with class A buildings in the $28.70/sf compared to Q1 2018 of approx. $27.00/sf with a record high for CBD class A buildings in the $30.00/sf range.
- St. Petersburg (CBD) full-service asking rents across all classes average was approx. $26.78/sf, with class A buildings in the $28.67/sf ranges compared to Q1 2018 of approx. $26.70/sf with class A buildings in the $28.50/sf range.
Activity is consistent with leasing activity from 2017, however the majority of movement that was in the suburban areas at that time was due to the relocation of companies which spiked an increase in rents in Westshore and CBD. We all know there will need to be a correction in the market but the question is – when will the roller coaster reach the very top before it drops?
Developers, investors and researchers are predicting it is not likely to be soon based upon continued decreased unemployment down to 4.1% and other economic factors. Do the Q1 market statistics forshadow the Tampa office space market’s future? Research is predicting it will maintain the high rents and/or increase with class A in the $33.00/sf range and above.
Disclosure: Above analytics were captured from multiple sources and are believed to be dependable. Information may be inaccurate or have errors. Office Space Brokers, LLC and affiliates provide the above without guarantee or representation to its accuracy.