ORLANDO—Tampa’s office market is rising in every direction. The latest noteworthy deal is a 20,800-square-foot office lease with Ideal Image Development Corp., a national aesthetic services company.
Ideal is relocating its regional headquarters to Tampa Commons, a class A office tower located at 1 North Dale Mabry Highway in the Westshore submarket. The firm was previously located at One Urban Center in Tampa. Westshore certainly is a hot market.
JLL vice president Sharon Bragg represented the landlord in the transaction. John Esposito and Andrew Bell of Newmark Grubb Knight Frank represented the tenant.
Ideal will occupy the entire 12th floor of the 13-story property. With centers in the US and Canada, Ideal is headquartered in Tampa and considered a leading provider of aesthetic services.
“As Tampa’s market continues to tighten, Tampa Commons continues to attract high calibre tenants,” says Bragg. “The building’s amenities and central location at competitive leasing rates makes Tampa Commons a smart option for tenants seeking a class A office space in Tampa’s Westshore submarket.”
The 254,808-square-foot office tower is experiencing a strong occupancy at 99% leased. The office building is located within walking distance to several restaurants. Neighboring tenants include Travelers Indemnity Company, Time Customer Service and Wilkes & McHugh, P.A.
With more buildings gaining occupancy, will new development follow? According to Marcus & Millichap’s latest numbers, growing space demand and restrained development will support a 140-basis-point drop in vacancy in 2015 to 13.4 percent. A decline of 160 basis points was posted last year.
Developers will complete 550,000 square feet in the market this year, encompassing competitive space and more than 270,000 square feet of medical offices. In 2014, 158,000 square feet was finished.
“Although demand probably dictates new product, the rates the market is giving now just aren’t at the level or price range that warrant new construction,” Clay Wommack, director for Franklin Street’s Office and Industrial Division, tells GlobeSt.com. “The price of land and construction continue to rise as well, in turn making new construction more challenging.”