TAMPA, FL--The Tampa office market enters the final period of 2008 drained by a weaker national economy which is sapping the strength from most sectors of the market. The direct vacancy rate moved significantly higher in the third period with a full percentage point gain to 14.2 percent.
Sublease space stab
ilized in the third quarter at two percent of Tampa’s office inventory, but is up almost 30 percent from its level this time last year.
ilized in the third quarter at two percent of Tampa’s office inventory, but is up almost 30 percent from its level this time last year. Market rents in Tampa gained slightly over the previous quarter, with an average asking rate of $22.45 per square foot to end the third quarter.
Given the circumstances, the market fundamentals for Tampa’s class A properties have held up relatively well so far this year.
Given the circumstances, the market fundamentals for Tampa’s class A properties have held up relatively well so far this year.
Through the first three quarters of 2008, these properties have managed a modest rise in net occupancy, totaling slightly less than 70,000 square feet of positive absorption.
Market rents have adjusted somewhat given fewer new deals circulating in the market and the growing presence of sublease space, which can offer a competitive option for some tenants.
The average asking rate for class A space ended the third quarter at $24.66 per square, off slightly from what appears to be its pinnacle at $24.85 per square foot earlier this year.
In its tally of year-to-date nati
onal office sales through September, Real Capital Analytics reported a 75 percent decline in 2008 transaction volume versus the same period last year.
In its tally of year-to-date nati
onal office sales through September, Real Capital Analytics reported a 75 percent decline in 2008 transaction volume versus the same period last year. The office investment market in Tampa has followed the same pattern — Tampa’s office volume, which reached approximately $500 million in the first three quarters of 2007, has dropped by 74 percent through the same period this year.
A few local deals which had appeared to be progressing through various phases have been delayed, leaving their timetable and outcome uncertain at this point.
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.
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