Tampa Office Vacancy Expected to Rise for Second Consecutive Year

TAMPA, FL— Office vacancy in Tampa fell 500 basis points from 2003 to 2006 but is now expected to rise for a second successive year, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Recent improvements in market fundamentals have been attributable to vigorous demand for Class A space in areas such as the Westshore and North Tampa submarkets.

Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Tampa moves down six places this year to No. 19.

“Investors may want to consider the historically reliable performance of properties and view the current dip in prices as an opportunity to explore potential purchases,” says Steven M. Ekovich, (top right photo) regional manager of Marcus & Millichap’s Tampa office.

Following are some of the most significant aspects of the Tampa Office Research Report:

· Employers are expected to expand payrolls 1.1 percent with the addition of 15,300 positions.
· Developers will deliver 800,000 square feet of for-lease office space.
· Vacancy is forecast to end the year at 12.7 percent.
· Asking rents are expected to climb 4.2 percent this year to $22.76 per square foot, while effective rents rise 4 percent to $19.65 per square foot.
· Areas along Interstate 4 and Interstate 75 in East Tampa are poised for population growth, as well as corresponding rise in office-using employment and office demand.

In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit www.MarcusMillichap.com.

CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/