Chelsea Drinkard No Comments

Relationships Are Built In Person

I believe there will be long-term impacts on company culture both now and long term. The newer generations are now becoming the majority in the workplace. Ultimately people will lose out on promotion opportunities, and networking opportunities and businesses will see a loss of productivity returning back to the office.

Three Main Areas:

 

  1. Lack of Motivation When There’s No Camaraderie

When you are surrounded by people who share the same vision and purpose it is the camaraderie that keeps each of us motivated and feeling supported when you are having an off day or dealing with a difficult project/situation. When one is placed in the wrong situation at the wrong moment, it may be simple to lose motivation rapidly. It increases the likelihood of not obtaining the anticipated business goals. External inspiration may come from many different places. Working in an office with coworkers who share a vision or purpose, or getting advice from a senior employee, are two excellent examples. The atmosphere is different when working from home.  An employee’s life might become tough due to a lack of motivation, which can also have a negative impact on production. Although self-motivation might be effective in some situations, it is not always sufficient to keep going. According to Forbes “ job satisfaction and job motivation have also fallen—job satisfaction from 57 percent to 32 percent and job motivation from 56 percent to 36 percent.”

 

  1. Frequent Interruptions and Unsupervised Performance

Self-regulation and focus can be difficult for most without having the accountability of your team around you like in an office.  Having children, a roommate, or a partner at home could lead to more breaks than usual. Employees are expected to monitor their own performance at work as part of their duty. Self-control, focus, and diligence are skills not everyone has to self-manage and effectively time manage. If the breaks and work are not tracked, employees could become distracted which lead to longer breaks and less work time. Studies from The New York Times show “that the average worker is interrupted somewhere between 4 to 12 times every hour. That’s one interruption every 15 minutes, in the best-case scenario.”

 

  1. Lack of Relationship with Colleagues

Collaboration, creative problem-solving, mentorship, and team morale are more challenging when each requires a Microsoft Teams or Zoom invite to do so.

When asked why people continue to work for their company, respondents frequently say their colleagues.  According to the Pew Research center “60% of people say they feel less connected to their co-workers now”. People we collaborate with play a significant role in our network. We gain so much from our colleagues’ knowledge and insight, as well as our boss’s seasoning and sense of humor. While it is possible to maintain relationships online, they are often not as deep or genuine. Your network is most certainly diminishing as well. There are individuals you haven’t seen in a long time because you didn’t know them well enough to send them a text. While you may meet someone digitally, it’s not the same as interacting with them in person. You’re passing up an opportunity to meet for coffee and make a genuine connection.

Of course, working in an office isn’t perfect. However, neither is working from home. Choosing your workspace and working style with the best interests of your team and your business in mind is always the goal.

Chelsea Drinkard No Comments

Innovation Comes Through In-Person Collaboration

 

Innovation is crucial to a company’s survival in today’s fiercely competitive and ever-evolving market. It gives you an advantage in a world where marketplaces and growing startups result in making profit much more challenging. Collaboration, creativity, execution, and value generation are all required for innovation, not just in any form. Research from The Great Business Schools states “on average, an in-person meeting will generate about 13.36 ideas, whereas a virtual meeting will only generate around 10.43?”  These four skills are exemplified during in-person breakout sessions, where team members are actively engaged in the creation and demonstration of each component. Ideas are discussed and strategies could be replicated to deliver powerful outcomes.

 

Collaboration involves more than just teamwork and opening up the floor to the entire group. Collaboration is strategically facilitated and denotes the capacity for collaborative thought and action on challenging tasks. The procedures needed to alter our economy cannot be modeled on the traditional approach to strategic planning. Instead, strategic “doing” provides a structure for getting things done. Open innovation means thinking in groups.  According to the Washington Post “Research shows face-to-face requests are 34 times more effective than those sent by email, and that a physical handshake promotes cooperation and influences negotiation outcomes for the better.”

 

 Four Ideas, we ask ourselves:

  • What can we accomplish as a team? Listen and find out. 
  • Learn and adapt—How will we do it in tandem? 
  • What should we do as a group to focus and align? 
  • What will we do together using link and leverage?

 

Research published today in Nature found that “video calls, as opposed to in-person meetings, reduce creative collaboration and the generation of novel ideas. The results indicate that while the mental cogs keep running more or less smoothly when working remotely, group innovation might be hindered”. In order to create and solve a shared problem or chase a shared opportunity, individuals must come together and contribute their different expertise, skills, experience, and resources. 



Chelsea Drinkard No Comments

2nd Quarter 2022 Tampa Bay Office Market Report and 3Q Forecast

low angle photography of gray tower crane

Important Highlights:

Tampa Bay:

  • Tampa’s office vacancy rates are roughly 11.82% for all types of buildings. 
  • The unemployment rate in Tampa Bay has decreased to 2.5% in March of 2022, compared to the end of the 1st Quarter 2022 of 3.50%, Tampa Bay is below the national average of 3.50%
  • Tampa Bay is the third-fastest-growing metropolitan region in the US for entrepreneurs.

Office Market:

  • Office vacancy rates in Tampa are approx.11.82% between all office building class types and Class A buildings 2.15%
  • Tampa’s overall rent has increased by 5.00% this year to 37.8% compared to 2021 which was 32.8%
  • Tampas business-friendly environment, companies from out of state will continue to develop and migrate to Tampa Bay

Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent-All Classes Overall Asking Rent Class A
Westshore $27.70 Sq. Ft.  $37.01Sq. Ft.
Downtown Tampa $19.05 Sq. Ft. $35.57 Sq. Ft.
Northwest Tampa $21.62 Sq. Ft. $26.24 Sq. Ft.
South Tampa $28.89 Sq. Ft. N/A
I-75 Corridor $24.31 Sq. Ft. $27.70Sq. Ft.
Downtown St. Petersburg $24.98 Sq. Ft. $35.95 Sq. Ft.

Construction Highlights: 

  • Construction costs continue to rise due to inflation. 
  • Tenants should be prepared to sign a longer lease 7+ years to absorb construction costs and pay out of pocket. 

2022 3rd Quarter Forecast:

  • With new buildings likely to be finished by the end of the year, total vacancy is predicted to rise as more available space enters the market. 
  • Flex schedules, which combine working from home and in the office, will continue to be tested. When faced with such short constraints, companies that have postponed their relocation and growth choices may find themselves with fewer options and less leverage when bargaining. 
  • Our business-friendly environment, companies from out of state will continue to develop and migrate to Tampa Bay

 

What does this mean for Tenants?

  • Despite landlords being more lenient with lease economics, vacancy rates are not comparable to other significant markets in the United States. Landlords in Tampa Bay are not as driven to fill vacancies as they are in other parts of the country. 
  • Take advantage of market conditions. 
  • Take a look at your existing working situation. Is your staff content with their jobs?

 

What does this mean for Landlords?

  • Changing the asking rent to obtain a competitive advantage over landlords who are obligated to maintain their face rents 
  • More flexible lease periods and concessions, such as a rent decrease, should be made available. 
  • Start advertising open space six months ahead of time.
Chelsea Drinkard No Comments

1st Quarter 2022 Tampa Bay Office Market Report and Q2 Forecast

gray building

Important Highlights:

Tampa Bay:

  • Office vacancy rates in Tampa are around 13.4% for all over class buildings 
  • The unemployment rate in Tampa Bay has decreased to 3.50% in January 2022, compared to the end of the 4th Quarter 2021, which was approx. 4.8%. Compared to the national average which is 3.6%
  • Tampa Bay is third in the nation among the fastest-growing metropolitan areas for entrepreneurs

Office Market:

  • As everyone is still recovering from the pandemic, more companies are continuing to make decisions of going back to office full time, testing flex working schedules and making their office space decisions of relocating, expanding or consolidating their office if their lease is ending in 2022.
  • Despite the fact that there was a substantial amount of sublease space on the market, absorption in Q4 2021  was positive, this was mostly due to the smaller block sublease space being leased by Tenants with short lead times and/or new companies moving into the Tampa market.
  • The most significant activity was for office spaces Downtown Tampa and secondly in Westshore for 1,000 SF-5,000 SF spaces. Companies have delayed their decisions with relocating their offices as they continue to maneuver the changing of their office environment, leaving short time frames before leases end. Landlords who have move-in ready spaces experienced a competitive advantage to capture Tenants who had quick timelines for identifying a new office before their current lease ends.

 

Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent-All Classes Overall Asking Rent Class A
Westshore $34.15 Sq. Ft.  $37.99 Sq. Ft.
Downtown Tampa $36.31 Sq. Ft. $37.98 Sq. Ft.
Northwest Tampa $24.12 Sq. Ft. $26.96 Sq. Ft.
South Tampa $27.48 Sq. Ft. N/A
I-75 Corridor $25.26 Sq. Ft. $28.06 Sq. Ft.
Downtown St. Petersburg $30.89 Sq. Ft. $31.76 Sq. Ft.

 

Construction Highlights: 

  • In Hillsborough County, there is new construction at 1001 Water Street in the Central Business District (CBD), Midtown Two in Westshore, and an office building in the University of South Florida Research Park in the Northwest submarket.  These are expected to be delivered by the end of the year. About 900,000 SF of new construction coming to the market by 2022.

2022 2nd Quarter Forecast:

  • As new construction underway is projected to be completed by the end of the year, total vacancy is expected to climb with the increase of available space coming to market. 
  • Flex schedules will continue to be experimented with a combination of working from home and in the office. Companies who have delayed their relocation and expansion decisions, may experience limited available options and lose leverage when negotiating when facing such short timeframes. 
  • Companies from out of state will continue to expand and relocate to Tampa Bay because of our business-friendly atmosphere and Tampa Bay was voted the number one sports city in 2021. Click here to read more about why so many businesses are moving to Tampa.

    What does this mean for Tenants?

  • Vacancy rates do not comparable to other key markets in the US, despite Landlords being more liberal with lease economics. Landlords in Tampa Bay are not motivated in the same way that they are in other parts of the country to replace vacancies. 
  • Tenants can leverage market circumstances to their advantage.
  • companies need to examine their current work environment and engage in employee feedback. Feedback will bring clarity to their developing office space culture and the role it plays in the overall health of their company. 

 

What does this mean for Landlords?

  • Demand for new leases increased by 8.0 percent in the first quarter of 2022. More out-of-state tenants are still expanding in the market and migrating to Tampa Bay. 
  • Adjusting the asking rent to gain a competitive edge against Landlords who must keep their face prices.
  • Provide more flexible lease terms and discounts, such as a rent reduction. 
  • Start promoting available space 6 months in advance.
Chelsea Drinkard No Comments

What To Do When Facing Difficulty Forecasting Your Office Space Needs:

Finding a home for your team is important because, in both business and real estate, location is everything. In addition to selecting a suitable location, it is critical to select the proper building for your business. You could locate a fantastic small space for rent on a busy street, but what if the structure itself isn’t suitable for your company or its clients who visit? That’s why there are 5 important steps to consider before finding your perfect office space:

 

Find A Tenant Representative

Choosing the right Tenant Representative is one of the most critical decisions you’ll make when it comes time to leasing. A competent agent will assist you in navigating the leasing process to increase efficiency, leverage their market knowledge for your benefit, and ensure you are equally represented, just like the Landlord is represented by their Listing Agent. As the market ebbs and flows, there can be different nuances and market trends only a commercial agent, who is in the space day in and day out, is aware of. 

 

Budget

First understanding what your budget is will determine what Submarket in Tampa you can evaluate. Our highest price per square foot markets in Tampa are located in Westshore and Downtown Tampa. Knowing your budget will save time from considering office space. Understanding the three different types of lease structures is very important so you can understand what is included in the monthly rents you are reviewing. Read more about the three different types of leases here.

 

Location

Budget can determine location since each submarket’s rental rates are different. Downtown Tampa and Westshore rents are drastically different than Carrollwood or Wesley Chapel. Location can also be determined by where your employees are located and if clients are coming to your office.

A few questions to consider:

  • Where are the majority of employees commuting from? Where are you focusing on for hiring?
  • Do you want to be close to major highways for ease of access for employees and clients? 
  • What is the culture of your office? For example, if the majority of your employees live in Downtown Tampa and part of the culture is walking or biking to the office and taking advantage of the Tampa Riverwalk, restaurants and bars moving or keeping your office in this location is part of your company culture. Being in a location where employees desire to be or already live can bring an overall sense of satisfaction.

 

What Kind of Layout Do do You Need For Your Team To Thrive?

Was your office previously all remote and scaling folks back into the office? Determining if you will continue a flex office schedule can minimize the amount of space you need. A “flex office schedule” means you have folks coming into the office and on different days and evenings designing your office space where there are “hot seats” where different people are using the same workstations for offices. 

  • Do key people need offices vs workstations?
  • Are our individual flex rooms needed for Zooms calls or phone calls?
  • Are our smaller meeting spaces required for team break-out meetings?
  • Do you want to create spaces for your team to naturally collaborate?