“Florida continues to see strong, broad-based gains with employment up solidly. The Tampa Bay area remains one of the nation’s fastest growing major metropolitan areas.” Alexis Muellner, Tampa Bay Business Journal
First quarter of 2019 is now completed, what does that mean for the rest of the year? How you start the year sets the pace and can determine the rest of the year. What is the pulse of the Tampa Bay office is market and what do we see for the near future?
We hit a new record high in Quarter 1.
- 159 people are moving to Tampa Bay every day
- Continued economic growth by adding 26,200 jobs creating an annual growth rate of 1.9%.
- Class A rents increased to by approx. 2.2%. The most substantial impact was due to 6.4% increase of Westshore and Downtown Tampa
- Record highs for Class A office space in Westshore
- Hillsborough County vacancy slightly increased compared to Q1 2018
- Declining vacancies and dynamic Tenant demand is driving the higher rents and confidence from Landlords in Tampa Bay
Cranes in the Sky Signaling Strong Market Growth. There Tampa office market hit a new record the first quarter in 2019 office construction in over 10 years with 730,000 just behind 2008 when over 890,000 sf was under construction.
- Significant projects in Tampa that broke grand.
- Heights Union in Tampa Heights on two 150,000 sf buildings. The first building is estimated to be completed in early 2020.
- Water Street project has been moving along with their 180,000 sf office portion at Sparkman Wharf.
- MidTown Tampa, just North of Westshore with mixed office building, retail, apartments and hotel. The initial phase is estimated to be completed before the Super Bowl in 2021.
Let’s Talk Rent Numbers.
Average asking rent for Class A full service office space in Tampa Bay:
- Westshore: $33.59/sq. ft.
- Downtown Tampa: $32.50/sq. ft.
- Northwest Tampa: $24.35/sq. ft.
- Downtown St. Petersburg: $30.25/sq. ft.
2019 Forecast:
The market is estimated to continued rent growth in 2019. Landlords remaining in the driver’s seat as supply continues to remain limited and Tenant demand is increasing.
What does this mean for Tenants?
- Increase your estimated lead time when evaluating your office relocation
- Continued vacancies decreasing while the Tenant demand remains steady, Landlords have the upper hand to increase rents through 2019.
- Now is the time to have a Tenant Broker advocating on your behalf. The market is dynamic, availability of space is quickly shifting and having a Broker who has their finger on the market pulse and long standing relationships with Brokers will get you the best terms as possible