TAMPA BAY OFFICE MARKET OVERVIEW
The Tampa Bay commercial real estate market is one of the hottest in the country and, despite pandemic-related pressures, the office sector is no exception. While there are still challenges and changes ahead, Tampa continues to attract people and companies from all over the country, which las led to significant increase in office market activity over the last year.
TAMPA BAY OFFICE MARKET TRENDS TO WATCH
Overall, Tampa Bay’s office market is performing well, and we expect that to continue throughout 2022. In the coming months, our experts will be watching the following trends that have trends that emerged post-pandemic:
Flight to higher quality buildings. Many of our Franklin Street brokers agree that there is a clear “flight to quality” taking place within the Class A space. Tenants are seeking out newer and more amenitized spaces within mixed-use developments that facilitate a work, play, live ecosystem.
Many of the new office spaces in CBDs are located above ground-floor retail space or are combined with multifamily. Water Street in downtown Tampa and the Midtown Tampa project on North Dale Mabry Highway are both great examples of how this trend is evolving the demand for office space.
Relocate vs. Renovate. Class B and C spaces have their own unique challenges ahead of them. In effort to attract and retain talent, employers in lower quality properties are faced with a decision: relocate or renovate. Depending on the company, nature of the work, and how many of its employees are still working remotely, it may be more cost effective to move into a shared office space location. This allows the company to downsize its leasable space and still provide its employees a hybrid work environment.
View or download Franklin Street’s Q4-21 Tampa Bay Office Market Report below: