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Why Your Neighbors In Your Office Building are Important

What are the different types of office spaces? - Avanta Business Centre

 

The reality is your office neighbors have almost the same impact as the next-store neighbors of your house or apartment. If you are miserable in your office because your office neighbors are too loud, it’s going to be much harder to want to be in your office and get work done. If you are looking for a quiet, peaceful, and professional setting with neighbors who are the same, vice versa. You have to find office neighbors that share the same values as you.

 

Here Are Two Recommendations to Consider When Evaluating an Office Building:

1.Evaluate the Existing Tenants

Take a look at the directory to evaluate what kind of industries of the neighboring Tenants. Are any of the Tenants in the building competing in your industry? Would any of the Tenants be good neighbors to have to refer business back and forth? Check out the parking lot to determine based on the building occupancy, if there is plenty of parking available for the available office space. Some could be over-parking and negatively impact your companies’ experience.

 

2. Are Tenants Considerate in Common Areas

Cleaning after yourself when using the Tenant’s common areas including lounge, conference room and bathroom is a common courtesy and is important to consider when you share common spaces with others. Although majority of office buildings have janitorial services 3-5 times a week, janitorial services typically come in the evening. 

 

A few others include: 

  • Utilizing the smoking areas.
  • Proper hygiene.
  • Having professional behavior is a key component in Tenant common areas. Improper discussions, practical jokes and so on will soon make the workplace unpleasant. 

 

Both of these impact the type of experience your team has in the office building and thus playing a role in their experience at the workplace while your company calls that building home for the next 5+ years.





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Impacts of Long-Term Virtual Work

When people switch to working from home, which momentarily can boost the quantity of work they accomplish each day, work-from-home (WFH) employment cannot provide the real benefits of face-to-face interaction, such as learning and new long-term connections. The benefits of in-person work on productivity are better long-term as opposed to the short-term gains from working more at home for potentially unsustainable periods. In-person work stimulates invention. The one-time benefit from the time saved on commutes will be swiftly outpaced by an even slightly greater growth rate once workers return to their offices.

 

Members of the Team have Less Human Interaction.

Not everyone wants to be “besties” with their colleagues and treat their work for work only; however, according to Business Insider interaction helps in providing a productive and enjoyable environment. It’s also a social setting in which employees get to know one another, have casual chats, bounce ideas off one another, connect as a team, and come to appreciate the business culture. Even when you are no longer obligated to attend the monthly standup meeting physically, you might not know how much you’ll miss those free workplace coffees. 

Low Employee Morale

Building relationships with coworkers is more difficult while working from home. There are fewer chances for chance meetings or social gatherings like lunches, and happy hours. 

Inability to Focus

While some professionals find the home environment conducive to concentration and productivity, others are overwhelmed with distractions: children wanting attention, spouses, and roommates interfering, and street sounds boring into the awareness.

Overworking Dangers 

The possibility of working more hours than necessary exists when you telecommute. Burnout and increased work-related stress are unquestionably consequences of this. This may be prevented by carefully outlining your calendar and allotting certain work and personal responsibilities periods. For some people, having a designated workspace where you can leave when the workday is done is essential.



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Company Culture is Not Built Virtually

Company culture is not built virtually

I believe there will be long-term impacts on company culture, especially for the younger generation moving into the workforce. The newer generations are now becoming the majority in the workplace. Even if it has been some time, can you still recall running into coworkers in the corridor and catching up with them about weekend plans or a significant project you were working on? Do you have any memories of being in the right location at the right moment, providing a person with the knowledge they were lacking, or inviting a colleague to a lunch meeting or event they could benefit from? Like many others, you might not have appreciated the significance of these discussions until you started working from home. Over 50 studies have been conducted this year by Microsoft teams to investigate how the nature of work has evolved since early 2020. This endeavor includes a study of billions of productivity signals such as emails, meetings, chats, and postings across Microsoft and LinkedIn’s user bases. Additionally, a poll of over 30,000 persons who were located in 31 different nations is included. Basically,  this study found that employees feel more connected to their colleagues in the office and completely disconnected when working virtually. 

 

  • Difficulty in Building Genuine Relationships with Colleagues

Collaboration, creative problem-solving, mentorship, and team morale is more challenging when each requires a Microsoft Teams or Zoom invite to do so. According to a study done by Stanford 67% of workers are distracted during virtual meetings. · 47% of people prefer in-person meetings.

 

  • 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. 55% of workers admit to checking their email during virtual meetings according to a study done by Standford. 

 

  • Lack of Motivation When There’s No Comradery

When you are surrounded by people who share the same vision and purpose it is the comradery that keeps each of us motivated and feeling supported when you are having an off day or dealing with a difficult project/situation.

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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.
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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.