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LEASING RISES
Tenants leased 4 million square feet (msf) during the last four quarters, a 19.1% jump compared to a year ago and 21% above the market’s long-term annual average.
AVAILABILITY FALLS
Following a quarter with little change, Tampa Bay’s overall availability rate decreased by 50 basis points to 14.7% in the quarter, and has fallen by 160 basis points year-on-year. Despite a slight uptick in the Class A rate to 12.6%, tenants seeking larger blocks of quality product have limited options. Conditions are the most challenging they have been since the peak of the last cycle in 2008.
JUMP IN RENT
The overall average asking rent posted a 4.2% quarter-on-quarter increase to $23.77. The average Class A asking rent rose by 2.9% to $28.98 and has spiked by 7.9% compared to mid-year 2017.
SALES DOWN
Office property sales during the last six months (through May 2018) totaled $367 million, a 45% decrease compared to the previous six-month total of $672 million.
“Availability across the region fell to its lowest point since year-end 2008. Long awaited new development activity is gearing up with projects in Downtown Tampa, Westshore and South Tampa. All promise to increase the options that tenants have to consider. "
Cheri M. O'Neil, Senior Vice President