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Women’s History Month Client Spot Light Part One

“In honor of Women’s History Month, I asked six clients who are women owned businesses to answer two questions about their success in business and one piece of advice and encouragement they would offer to other professional women. Each of these six women come from different industries and in most cases are trailblazers and trendsetters. Here are three of the women I highlighted. I highly recommend you read the advice and encouragement of the other three women too by clicking here.

I am so thankful for the opportunity to have worked with each of these women in identifying the right commercial real estate solution in Tampa Bay. I believe business is more than a transaction and I love working with companies who have an aligned mission. I can confidently say each of these women practice what they are sharing. Check out their website to learn more about their companies. If you have the opportunity to work with any of these women below, you could not be in better hands. Here’s to Tampa Bay, our business women leading the charge, shattering glass ceiling, making room at the table, spear heading initiatives and driving the heartbeat of our economy!” – Chelsea Drinkard

 

Arlene DiBenigno

Managing Partner Conversa & President & CEO of Women’s Conference of Florida

About Arlene:

Arlene has been a trusted adviser on political campaigns, policy development, grassroots outreach and ballot initiatives for more than two decades. She has conducted public outreach for three separate Florida governors and their administrations and has influenced presidential, gubernatorial, and congressional campaigns within Florida, Michigan, Puerto Rico, Texas, and Washington, D.C.

In early 2014, Arlene and her business partner, Kelsey Lehtomaa Frouge, founded Conversa, a full-service communications firm with a concentration in crisis communications, public relations, web and graphic design, digital marketing, community engagement and special events. Conversa has worked with numerous national, statewide and local clients including the Bill & Melinda Gates Foundation and HART.

Arlene has consistently witnessed women at a standstill and wary of their own ability to make a difference. As a result, Women’s Conference of Florida was formed.

Best piece of advice for women in business:

“Throughout the years I have met so many women who have come to me for advice and one of the things I hear most often is how unhappy they are with their jobs because they aren’t getting what they think they deserve.  This of course leads me to, ‘Well, did you ask?’ I would say about 95% of the time I am met with a look of surprise and resounding, ‘I can’t do that!’ If you can’t advocate for what you want then who is going to do it for you? 

Which leads me to the best piece of advice I can offer women in business, be confident, not confrontational, in asking for what you want and deserve. Whether it’s a pay raise, opportunity to lead a project or a promotion. Do your research, including the value add you bring to the table and ASK. In every industry women bring different perspectives which are extremely valuable to their companies/organizations and walking in your self-value with confidence, not arrogance or fear, is extremely powerful.

Key ingredient to your company’s growth:

The key ingredient to Conversa’s growth is ensuring that the person I chose as my business partner shared my same values, business mission and was steadfast in her principles. There will be many days when the outcome wasn’t what you expected or tough decisions need to be made regarding client projects, business investments or hiring/firing of employees and if you don’t share the same philosophy the damage can be irreparable.  Similar to a marriage, tough conversations need to be had on the front end; ‘what is the makeup of the clients we want to represent? Financially what can we say yes/no to? What type of employees do we want representing our company? Are we willing to walk away from clients/projects that cease to align with our values?’ Growth is the result of good decisions and good decisions are the result of strong communication so communicate often and honestly.”

 

Lindsey Smith

Founder and Director of All That Dance

About Lindsey:

Lindsey Smith began dancing at three and specialized in acrobatics and tumbling at the age of eight.  She studied at All American Dance Factory in Tampa, FL under the direction of Terri Howell for eleven years.   Lindsey taught at All American Dance Factory for ten years and learned the ins and outs of running a dance studio.

Lindsey started All That Dance when she was living in Boynton Beach, FL.  Five years later, Lindsey and her family moved back to the Tampa area. In 2014, Lindsey opened their first Tampa dance studio. This is the fifth year of All That Dance in Tampa and has grown the studio to three dance rooms and over four hundred students.

Best piece of advice for women in business:

“I would say that my one advice to women in business is to love what you do and be your best at it.  I feel proud and accomplished everyday knowing that I get to provide for my family doing what I love and also what I was trained to do.  I am proud of my college degrees but I am so happy that I can go to work each day doing something that comes natural to me and that brings a smile to my face.”

Key ingredient to your company’s growth:

“I believe that ATD has been successful because I have a positive attitude and gain satisfaction from the studio.  Every day I am reminded that I am making a positive influence in children and parent’s lives by providing them a service such as dance.  It is such an amazing feeling watching the dancers perform and gain confidence as performers.”

 

Margarita De Le Rosa

CEO of Well-Being Community Center

About Margarita:

Margarita was born in Havana, Cuba and moved to the United States in 2004.  In 2016, Margarita received a Masters in Mental Health. Margarita is very proud to say that besides her career and entrepreneurial journey, she is a wife and mother of her beautiful three-year-old daughter.

Well-Being Community Center is committed to carrying out an effective and efficient management of Health Services and striving to be a leader in the medical field. Well-Being focuses on emerging health priorities, collaborating with Federal agencies and partners. Our daily focus is educating the public, providing support and innovative health programs geared specifically to the community needs.

Best piece of advice for women in business:

“I believe that being mission focused, helping people and giving others the opportunity to do the same. We’ve experienced rapid growth in our Miami office and is reflected by our client’s satisfaction and heath improvement. We are grateful for the community impact we’ve made in Miami and look forward to reflecting the same if not more, here in Tampa for years to come.”

Key ingredient to your company’s growth:

“I believe having all the necessary tools to provide a high-quality service to clients. For us, focusing on achieving our clients’ wellbeing goals is at the forefront. Having a multidisciplinary structure, with well trained personnel in the medical field with maximum respect and professionalism through our devoted and committed staff has been a key to our success.”

 

 

 

Chelsea Drinkard No Comments

The Most Common Types of Commercial Real Estate Leases: Full Service, Modified Gross and Triple Net

In commercial real estate, there are typically three different types of leases structures. Knowing the characteristics ensure you know what to financially expect and budget for with your monthly office rent. In Tampa Bay, a particular type of lease structure parallels with a different type of space and location.

Two main items to consider, location and type of buildings.

For example, if you are leasing office space in the Tampa in a large building in 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.

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.

What is the Difference between Full Service (FS), Modified Gross (MG) and Triple Net (NNN) Leases?

In commercial leases there are three typical types of leases that can be negotiated between a tenant and a landlord: “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.

Full Service:

In an FS lease, the triple net costs and any additional costs such as utilities and janitorial, but excluding the costs of phone/data, are bundled into the base rent. FSG leases provide the tenant with the highest level of certainty regarding their complete occupancy cost; however, the downside is that the annual escalator will increase the base rate of the lease regardless of any real fluctuations in the operating expenses.

Modified Gross:

An MG lease typically includes all the triple net costs but excludes utilities and/or janitorial service. An MG lease has similar advantages/disadvantages to a FSG lease; i.e. taxes, insurance and CAM are typically bundled into the base lease rate. A unique disadvantage is that the tenant will have two additional variable costs to consider: utilities and janitorial. It is important to note that a modified gross lease can be “modified” to include or exclude any individual expense within the base rate “bundle.”

Triple Net:

In an NNN lease, the tenant is responsible for their pro-rated share of the “triple net costs”: taxes, insurance and CAM; in addition, the tenant is also responsible for utilities and janitorial. The primary advantage to an NNN lease is transparency; all of the building’s operating costs are available for the tenant’s review. The primary disadvantage is that the triple net costs are not guaranteed in the Lease and are subject to increase or decrease, increasing is much more typical.

 

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The #1 Most Under Utilized Employee Retention Tool

We sit down with CEOs when discussing their office space requirements and growth of their companies. One of the most common frustrations we hear is, “It’s difficult to find the right talent.” The local Tampa Bay economy has been flourishing the past few years and continues to do so.

High demand for good people puts the employees in the driver seat when job searching in the market. In fact, Hillsborough County’s average annual wage of $54,278 is the highest among all Florida counties, according to Enterprise Florida’s State of Florida 2018 Average Annual County Wage Data Report. Pair that with the lower cost of living in Tampa and it makes for a very attractive place to want to work.

But how do you stay competitive when there are other companies fighting for and marketing to your employees?

By thinking beyond the space-and-place mindset.

It is one thing to actually land amazing, qualified people for your office, but it is another all together to keep those employees on the payroll, at their own choosing, well past their first work-anniversary.

One-third. That is the estimated amount of a lifetime that an average person will spend at work. When you factor in commutes to and from the office, it quickly adds up just how much of an employee’s day is actually work-related.

A survey by Fidelity reveals millennials, which make up the largest population of our current workforce, will happily take lower pay for a healthier work life, research shows. Do you still think it’s enough just to hire the best and brightest for your company?

Not if you want to keep said employees.

Having a culture where they feel heard, to be innovative and work for a purpose and greater cause then just a paycheck. You need the right environment to be a conduit of this type of culture. Spend time before you sign a property agreement identifying the aspects of your company’s culture that need to be reflected in the office space.

  • Do you need an open floor plan? Or more formal, designated offices?
  • Do you need a large kitchen? Or a small break room?
  • Do you need a trendy, sleek exterior? Or a more traditional design and style?

By determining exactly what type of environment will best suit your employees before you lease office space positions you further along the road towards the happy land of employee retention far beyond the yellow brick road.

Chelsea Drinkard No Comments

Second and Third Quarter Office Space Market Indicators and Construction Updates

  • Unemployment rate in Tampa/Hillsborough County fell by 20 basis points (bps) over the past twelve months to 3.4%
  • Tampa Bay’s economy accelerated over the past year, adding 22,140 jobs for an annual growth rate of 2.0%.
  • Overall office vacancy rate in Tampa/Hillsborough County closed out the first half of 2019 at 12.8%, a 200 bps increase when compared to this time last year.
  • Tampa Bay leads the nation with one of the lowest cost of living

Second Quarter

Important Highlights

  • Class A rent increased approx. 2% a square foot, pushing the average rent across the market over $30.00 a square foot.

Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent All Classes Overall Asking Rent Class A
Westshore $33.11/sq. ft. $32.98/sq. ft.
Downtown Tampa $29.15/sq. ft. $32.67/sq. ft.
Northwest Tampa $22.25/sq. ft. $24.72/sq. ft.
South Tampa $29.60/sq. ft. N/A
i-75 Corridor $22.53/sq. ft. $25.18/sq. ft.
Southwest $19.28/sq. ft. $24.00/sq. ft.
Downtown St. Petersburg $27.23/sq. ft. $30.25/sq. ft.

Third Quarter:

Important Highlights:

  • 3rd quarter market rent increased by 3.4% per square foot full service rent
  • Central Business District and Westshore submarkets rose 3.1% to $32.77 and 10.7% to $35.99 per square foot
  • The CBD submarket has the most occupancy gains, which ended the third quarter at 10.1%
  • Westshore rent rose to its highest level ever rent price for submarket
  • 1.6 million square feet was leased within suburban markets holding the majority of the transactions
  • Westshore and some of the Suburban markets experienced large space back on the market with large Tenants such a Laser Spine and Coca-Cola moving out.

 Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent All Classes Overall Asking Rent Class A
Downtown Tampa $29.93/sq. ft. $32.77/sq. ft.
Westshore $31.03/sq. ft. $35.99/sq. ft.
South Tampa $31.00/sq. ft. N/A
i-75 Corridor $23.50/sq. ft. $24.56/sq. ft.
Southwest $19.20 N/A
Northwest Tampa $22.95/sq. ft. $25.14/sq. ft.
Downtown St. Petersburg $27.47/sq.ft. $30.30/sq. ft

Construction Highlights: More Cranes in the Skyline

The second quarter marked the most significant office construction in over a decade with approximately 1.4 million square feet under construction, marking the most office construction the market experienced since the second quarter of 2008.

  • The Central Business District (CBD) led with 825,000 sf under construction, the highest level since the early 1990’s.
  • Heights Union construction is underway with pre-leasing activity with a 75,000-sf lease to Axogen in the first building and a 50,000-sf lease by WeWork in the second building. Both buildings will be completed by mid-2020.
  • The 150,000 sf office portion of the mixed-used development Sparkman Wharf is slated for completion in mid-2020.
  • 1001 Water Street was underway, a 380,000-sf free-standing office building located in multi-billion dollar mixed-used project. It was the second office building under construction in the project, slated for mid-2021 completion.
  • Midtown One, an office building in a larger mixed-use project broke ground in the second quarter.
  • Phase One, slated to be completed before the 2021 Super Bowl in Tampa, will comprise retail, including a Whole Foods, a hotel, multi-family apartments, parking garages, and a 152,000-sf speculative office building.
  • Renaissance VII, a 115,000-sf build-to-suit for Wellcare in the Northwest submarket was completed

2019 4th Quarter Forecast:

The shortage of available space combined with business growth is expected to continue to drive vacancy down in the Class A and B space. Companies outside of Tampa Bay and around Florida and the country will continue to target Tampa Bay for as they identify cities to expand into because of Tampa Bay’s opportunity for small to large growing companies. Tenants may continue to leave Class A+ buildings as they experience sticker shock and into B buildings and other Sub-urban markets.

What does this mean for Tenants?

  • Construction costs on 10,000 square feet and less often see an overage in cost.
  • Parking in downtown Tampa still remains an issue with limited spots and cost is high.
  • Landlord usually offers an average of one half month of free rent each year of the lease term.
  • Usually, a five year lease receives an allowance for Tentant approved allowances, but does not cover the cost of the full build out. Most tenants pay to fund the rest of the cost, though owners will increase their contribution based on length of term and credit of tenant.
  • Limited options of under 5,000 square feet of sublease office space. If you think a short term lease is required as you building, options such as Industrious provide great flexible alternatives as you grow
  • Now is the time to have a Tenant Representative Broker advocating on your behalf. The market is dynamic, availability 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 possible.

What does this mean for Landlords?

  • Remaining in the driver seat as demand remains strong
  • Influx of companies outside of Tampa Bay will continue interest leasing space. Ensure proper financials and company information is scrutinized before signing a lease.
  • Due to economic growth, be cognizant of new residential, mortgage or lending companies with limited track record as they are usually impacted by market influx, ensuring low debt to income ratios when reviewing financials
  • Updating interior and exterior finishes for Class B and C buildings is wise to attract and remain competitive for Tenants who are considering leaving Class A+ space due to rent hikes

 

 

 

Chelsea Drinkard No Comments

Take A Closer Look at the Tampa Bay Office Space Market

“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