Tampa Office Vacancy Rises to 17.2 Percent

TAMPA, FL--Randy Smith, regional director of research, GVA Advantis, Tampa, reports the dip in Tampa’s office market continued during the opening period of 2009 with its sixth straight quarter of negative net absorption.

Tepid leasing activity combined with a bump in new supply pushed Tampa’s direct vacancy rate 90 basis points higher in the first quarter to close at 17.2 percent.

Sublease space within Tampa’s office inventory remained just below the two-percent threshold, but will be difficult to contain as businesses continue to “right-size” in step with the slowing national economy.

Face rent retreated only slightly in the first quarter, averaging $22.56 per square foot for Tampa’s available space.

In the current economic environment, credit-worthy tenants are prized by landlords and they have tremendous clout in lease negotiations.

A number of tenants in this category have seized the opportunity to upgrade into fresh office space and heightened migration from class B to class A buildings has been evident in the Tampa market.

In its recent past, Tampa has enjoyed a vigorous job market with annual growth averaging 4.3 percent in 2004 and 3.5 percent in 2005. While it will be difficult to achieve those levels in the near term, Tampa is well positioned for long-term growth. Improvement will be evident later this year and will set the stage for a stabilized market going into 2010.

For a complete copy of the news release and first-quarter office market 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
www.gvaadvantis.com