office market report · 780,012 881,671 547,844 13.5% 12.2% 12.1% 0.0% 2.5% 5.0% 7.5% 10.0% 12.5%...

2015 Q4 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved

OFFICE MARKET REPORT

Tampa

4th Quarter 2015


2

Table of Contents/Methodology of Tracked Set 2

Office Market Map 3

Tampa Office Overview 4

Overview by Submarket/ Building Type 5

Vacancy & Lease Rates 6-7

Available Space 8

Notable Transactions 9

Leasing Activity 10

Vacancy & Absorption 11

New Construction 13

Office Advisory Board Members 14

Xceligent Tampa Team 15

The Tampa tracked set consists of an inventory of buildings considered to be competitive within the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for each market area.

Xceligent is a leading provider of verified commercial real estate information which assists real estate

professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,

buy and develop commercial properties.

Table of Contents/

Methodology of Tracked Set

Inventory Includes office buildings which are less than 75% owner occupied and single tenant and multi-tenant which

are greater than or equal to 15,000 SF.

Total Available SF All of the available leasable space within a building, whether it is occupied or vacant, for direct lease or

sublease space. Space can be available but not vacant, for example, if the landlord, or his agent, is

marketing space that will be coming available at a future date because a tenant is planning to move.

Total Vacant SF The total of all of the vacant square footage within a building, including both direct and sublease space.

Direct Vacant SF The total of the vacant square footage in a building that is being marketed by an agent representing the

landlord.

Sublease SF Space that is offered for lease by a current tenant, or his agent, within a property. Whether the tenant is

paying rent or not, the space is considered vacant only if it is unoccupied.

Net Absorption The net change in occupancy from quarter to quarter, expressed in square feet.


3

Office Market Map


4

Overview

Tampa Office Overview

Tenants activity remains brisk in the Tampa Bay market, but many have been very cautious when signing new deals, resulting in a substantial

increase in time closing new leases.

While absorption was positive and vacancy decreased during the fourth quarter, the market-wide new and expansion leasing activity total

dropped significantly (down 37.9%), closing the quarter with just 547,844 SF of activity.

Of the major office submarkets (with 3.0+ million square feet) in the Tampa Bay market, the Tampa CBD reflected the lowest Total Vacancy

with just 9.4%.

The St. Petersburg CBD submarket upstaged the Tampa CBD submarket commanding the highest asking rental rates in the market, averaging

$27,10 Per Square Foot.

807,962780,012

881,671

547,844

13.5%12.1%

12.2% 12.1%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

500,000550,000600,000650,000700,000750,000800,000850,000900,000950,000

1,000,000

Q1-2015 Q2-2015 Q3-2015 Q4-2015

Vac

ancy

Rat

e (%

)

Leas

ing

Act

ivit

y (S

F)

Total Vacancy & New/Expansion Leasing ActivityQ1-2015 - Q4-2015


5

Overview by Submarket/ Building Type


6

Vacancy & Lease Rates


7

$15.00$13.50

$12.00

$32.50 $32.00

$19.00

$25.46

$19.68

$16.77

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

Class A Class B Class C

Ask

ing

Leas

e R

ate

(FS

G)

Asking Lease Rate Range by Class (FSG)

Vacancy & Lease Rates


8

Available Space

0

5

10

15

20

25

30

35

40

45

100K+ 50-100K 25-50K

2

8

43

4

9

25

0 0 0

Largest Blocks of Available Space

Hillsborough Pinellas Polk


9

Notable Transactions


10

Leasing Activity


11

Vacancy & Absorption

10.3%

14.9%

7.1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

A B C

Vac

ancy

Rat

e (

%)

Vacancy Rate by Class

17,650

135,424

-73,059

-120,000

-70,000

-20,000

30,000

80,000

130,000

180,000

A B CN

et

Ab

sorp

tio

n (

SF)

Net Absorption by Class

13.5%

12.1% 12.2% 12.1%

4%

6%

8%

10%

12%

14%

16%

2015 Q1 2015 Q2 2015 Q3 2015 Q4

Vac

ancy

Rat

e (

%)

Vacancy Rate by Quarter

513,400

265,562

81,941 80,015

0

100,000

200,000

300,000

400,000

500,000

600,000

2015 Q1 2015 Q2 2015 Q3 2015 Q4

Ne

t A

bso

rpti

on

(SF

)

Net Absorption by Quarter


12

11.7%

7.9%

2.8%

10.0%

15.6%

8.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

A B C

Vac

ancy

Rat

e (

%)

Vacancy Rate by Class

CBD Suburban

Vacancy & Absorption

(10,371) (15,781) (4,113)

593,245

151,205

(68,946)

(200,000)

(100,000)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

A B C

Ne

t A

bso

rpti

on

(SF

)

Net Absorption by Class

CBD Suburban


13

New Construction

17,344 17,344

213,644196,300

0

50,000

100,000

150,000

200,000

250,000

2015 Q1 2015 Q2 2015 Q3 2015 Q4

Square Footage Under Construction by Quarter


14

Office Advisory Board Members


15

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we

have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to

independently confirm its accuracy. For more information, please contact :

Xceligent Tampa Team

Brian Reece Regional VP of Analytics |

Eastern Region (919) 829-9627 [email protected]

Danny Rice Regional VP of Sales (407) 562-8094 [email protected]

Ben Dikman Director of Client Services (813) 760-7904 [email protected]

Molly O'Brien Director of Client Services (941) 685-5197 [email protected]

Dennis Rickheerem Director of Client Services (813) 526-6868 [email protected]

office market report · 780,012 881,671 547,844 13.5% 12.2% 12.1% 0.0% 2.5% 5.0% 7.5% 10.0% 12.5%...

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