Tampa Office Vacancy Almost 6M SF

TAMPA, FL--Randy Smith (top right photo), regional director of research, GVA Advantis, reports on the fourth-quarter Tampa office market:

The forces of the declining economy in 2008 continued to erode Tampa’s office market fundamentals in the fourth quarter.

The broad-based downsizing of corporate payrolls and the completion of several significant new office projects pushed Tampa’s total office vacancy to almost 6 million square feet by year-end.

The market’s direct vacancy rate increased 210 basis points during the final period of 2008, ending at 16.5 percent – a level last reached four years ago. Still, face rents for Tampa office space have remained resilient against the downturn so far, averaging $22.63 per square foot at the close of 2008.

It appears that 2009 will be a challenging year, at best, for the Tampa market and most areas of the country.

Economic activity fell off sharply in the fourth quarter of 2008 and very little improvement is expected until at least the latter part of 2009.

Demand for local office space is expected to remain subdued during the year and rising unemployment will contribute to additional vacancies in the market.

Rents will remain under pressure in 2009 as the Tampa office market struggles to regain its legs. Landlords will continue to focus on tenant retention in order to secure cash flows for their properties.

The incentives offered to tenants will ramp up as landlords work to extend and renew existing leases.

For a complete copy of the report, please contact:

Randy Smith, MBA, Regional Director of Research, Advantis Real Estate Services Company,
3000 Bayport Drive, Suite 100, Tampa, FL 33607. Tel 813.342.4725. Fax 813.372.4004. E-mail rsmith@gvaadvantis.com
http://www.gvaadvantis.com/