2019-07-10_DTZ戴德梁行_Office_Q3_2018_Tampa_2页_369kb

Tampa Office Market Q3 2018 Summary

Core Content

The Tampa Bay office market experienced robust growth in Q3 2018, marked by increased employment, declining unemployment, and strong leasing activity. The overall market fundamentals were positive, with improving vacancy rates and rising rents, especially in Class A properties. New construction projects and pre-leasing activities further reinforced market confidence and future absorption potential.

Key Economic Indicators

• Tampa Bay MSA Employment: Increased by 2.3% year-over-year, reaching 1.35 million as of August 2018.
• Tampa (Hillsborough) Unemployment: Declined by 50 basis points to 3.5%.
• U.S. Unemployment: Decreased to 3.9% from 4.4%, indicating a broader economic improvement.

The Financial Activities sector led the job growth in the Tampa Bay region, adding 7.7% more jobs annually.

Market Overview

Vacancy Rates

• Overall Vacancy Rate: Dropped to 10.9%, the lowest since 2006.
• Class A Vacancy Rate: Decreased to 8.7%, with the CBD seeing a significant drop to 8.0%.
• Submarkets:
  • CBD: 11.2% vacancy rate.
  • Westshore: 11.8% vacancy rate.
  • Northwest: 9.8% vacancy rate.
  • I-75 Corridor: 10.5% vacancy rate.
  • Southwest: 7.9% vacancy rate.
  • Hyde Park: 3.1% vacancy rate.
  • Ybor City: 6.5% vacancy rate.

Net Absorption

• Overall Net Absorption: 278,374 sf for the year-to-date (YTD).
• Class A Net Absorption: 199,946 sf YTD, with a slight decline in Q3 (-51,744 sf).
• Submarkets:
  • CBD: 121,896 sf YTD.
  • Westshore: 25,995 sf YTD.
  • Northwest: 52,433 sf YTD.
  • I-75 Corridor: 111,057 sf YTD.
  • Southwest: -1,138 sf YTD.
  • Hyde Park: 3,157 sf YTD.
  • Ybor City: 6,695 sf YTD.

Leasing Activity

• Total YTD Leasing Activity: 1,780,301 sf.
• Submarkets:
  • CBD: 249,542 sf.
  • Westshore: 976,011 sf.
  • Northwest: 154,109 sf.
  • I-75 Corridor: 274,105 sf.
  • Southwest: 23,614 sf.
  • Hyde Park: 18,626 sf.
  • Ybor City: 84,294 sf.

Average Asking Rent

• Overall Average Asking Rent: Increased to $26.21 psf, up 5.4% YoY.
• Class A Average Asking Rent: Rose to $30.29 psf, the highest in the market's history.
• Submarkets:
  • CBD: $28.07 psf.
  • Westshore: $28.23 psf.
  • Northwest: $22.44 psf.
  • I-75 Corridor: $22.85 psf.
  • Southwest: $20.79 psf.
  • Hyde Park: $35.65 psf.
  • Ybor City: $24.00 psf.

Key Lease Transactions Q3 2018

Key Sales Transactions Q3 2018

New Construction Activity

• Sparkman Wharf: A mixed-use project with 180,000 sf of office space, expected to start construction in Q4 2018 and be delivered by mid-2020.
• Heights Union: A 150,051 sf proposed building in Ybor City, with 75,000 sf pre-leased to AxoGen, also expected to begin construction in Q4 2018.

Outlook

Cushman & Wakefield anticipates continued upward trends in office rents, particularly in Class A properties, which are expected to drive new construction financing. The market sentiment remains strong, supported by low vacancy rates and robust tenant demand.

Contact Information

• Chris Owen
  Director, Florida Research
  Tel: +1 407 541 4417
  Email: chris.owen@cushwake.com

• Michelle McMurray
  Analyst
  Tel: +1 813 204 5373
  Email: michelle.mcmurray@cushwake.com

About Cushman & Wakefield

Cushman & Wakefield is a global real estate services firm with a presence in 70 countries and 400 offices. It has 48,000 employees and reported $6.9 billion in revenue in 2017. The firm provides a wide range of services including property management, leasing, capital markets, and valuation.