Tampa Bay Q2 Market Overview
The Tampa Bay office market maintained a strong and steady momentum
through the end of the second quarter of 2017. Overall, the majority of the
Tampa Bay area’s submarkets continued to see rental rates increase amid a
healthy economy. These conditions have prompted businesses to grow and
expand, resulting in a dwindling supply of quality office space.
Tampa Bay’s regional economy continued to improve with several business sectors adding jobs, especially within the technology industry. Over the past several years, the Tampa Bay region added more than 16,000 tech workers between 2011 and 2016, representing a 55.3% increase of the total tech workforce at the end of 2016. Additionally, Tampa ranked as one of the best big cities to live in, coming in at #14, ahead of Miami, which came in at #54. Overall, Florida is among the leading states in surges of economic growth at 4% for all of 2015, ahead of the U.S. average of 2.4%.**
Tampa International Airport continued to implement their master plan for the
3,300-acre airport. The first phase is underway, which will address immediate
issues such as decongestion of the curbsides, roadways and main terminal.
This includes a 2.6 million-square-foot rental car center near the entrance
to the airport, an expansion of the airport’s main terminal and a 1.4-mile
automated people mover. As of July 1, 2017, 33 of 69 new storefronts have
opened. The three-phase expansion will allow the airport to accommodate
more than 35 million passengers per year, nearly double the amount served
today. The project has provided 9,000+ jobs with over 4.2 million hours
worked as of November 2014. Phase I will complete in early 2018.
Investor demand for well-located office assets remained strong despite a
slowdown in the total number of buildings trading. Rising interest rates have
had little effect on capitalization rates in the market; however, investors have
shifted their real estate investment strategies to be slightly more risk averse.
About The St. Petersburg Skyline Report
My goal is to provide you with real estate knowledge that allows you to stay relevant in the St. Petersburg office market without having to take time away from your business. So I created an easy, one-page report exploring the movers and shakers of St. Petersburg’s office market.
The quarterly St. Petersburg Skyline Report includes:
- Market trends and statistics
- Floor by floor analysis of St. Petersburg’s top office buildings
- Vacancy rates and full-service lease rates
I am excited that you have chosen Colliers International’s Tampa Bay Tenant Rep as your guide to Commercial Real Estate in St. Petersburg.
Have questions about the St. Petersburg Skyline Report or need help finding a commercial office for your business? Contact Melanie today at Melanie.Jackson@colliers.com or by phone (727) 442-7184.