In today’s economy it’s important to know the financial responsibilities you’ll have as you begin your Tampa Bay office space rental search. There are typically three different types of lease structures in commercial real estate. Knowing the characteristics ensure you know what to financially expect and budget for with your monthly office rent.
The three typical types of leases that can be negotiated between a Tenant and a Landlord are Full Service Gross (FSG), Modified Gross (MG) and Triple Net (NNN). In some cities, one type of lease may be more prevalent than the others. In general, full service usually applies to a multiple-story office building, MG single-story office space or warehouse and NNN applies to retail space. Usually, the differences between the three lease types relates to how, and by whom, the “triple net” costs (taxes, insurance and common area maintenance (CAM)) are dealt with.
In Tampa Bay, a particular type of lease structure parallels a different type of space and location. For example, if you are leasing office space in Tampa in a large building on Westshore or Downtown Tampa, nine times out of ten you have a Full Service office lease. Compared to if you are leasing office space in Carrollwood you would come across more Modified Gross or Full Services leases.
For this year we have seen East Tampa as the most financially accessible office space rent at $26/SF with Northwest Tampa coming in at $27/SF. South Tampa rents averaged $37/SF and Westshore’s average rent cost went down from 2023 to just $34/SF. Office rent for Downtown Tampa increased slightly from last year at $41/SF to 2024 at $42/SF.
The type of building can also play a role but there are exceptions. If you relocate your office to a different type of building (from a multi-story office building to a single-story building) the kind of lease structure can vary.
Looking for customized estimate of what office space to rent in Tampa Bay would be for your company? Give Office Space Brokers a call at 813-289-3700.