2019-07-10_DTZ戴德梁行_Office_Q2_2019_Tampa_4页_594kb

Tampa Office Market Q2 2019 Summary

Core Content

The Tampa/Hillsborough County office market in Q2 2019 showed mixed performance, with rising rents and strong leasing activity, but also an increase in vacancy rates due to large spaces becoming available. The report provides a detailed breakdown of economic indicators, market trends, construction activity, and key transactions across different submarkets.

Economic Indicators

• Tampa Bay MSA Employment: Increased from 1.35M in Q2 2018 to 1.38M in Q2 2019.
• Tampa (Hillsborough) Unemployment: Declined from 3.2% to 3.0% over the past year.
• U.S. Unemployment: Decreased from 3.9% to 3.6% year-over-year.

Market Overview

• Overall Vacancy Rate: Rose to 12.8% in Q2 2019, a 200 bps increase compared to Q2 2018.
• Overall Rents: Increased by 6.9% YOY to $27.15 psf.
• Class A Rents: Surpassed $30.00 psf for the first time, reaching $31.15 psf in Q2 2019.
• Leasing Activity: Total leasing activity reached 926,110 sf, with 682,150 sf in suburban markets.
• Construction Activity: Approximately 1.4 million sf under construction, the highest since Q2 2008.

Submarket Performance

Key Market Trends

• Vacancy Increase: The overall vacancy rate rose to 12.8%, driven by large spaces becoming available in suburban submarkets.
• Negative Absorption: Net absorption was -250,104 sf for the year-to-date, with the I-75 Corridor and Westshore submarkets seeing significant negative absorption.
• Class A Growth: Class A rents increased by 4.1% to $31.15 psf, with Westshore reaching its highest-ever asking rent for a submarket.
• CBD Occupancy: The CBD submarket saw the most occupancy gains, ending Q2 at 9.1%, with Class A vacancy at 6.2%.

Construction Activity

• Total Under Construction: Approximately 1.4 million sf, the highest since Q2 2008.
• CBD Construction: The CBD had 860,051 sf under construction, the most since the early 1990s.
• Major Projects:
  • Midtown One: A 140,000 sf speculative office building in the Westshore submarket, part of a larger mixed-use project.
  • 1001 Water Street: A 380,000 sf free-standing office building in the Water Street submarket, expected to be completed in mid-2021.
  • Sparkman Wharf: An 180,000 sf office portion completed in mid-2020.
  • MetWest Three: A 250,000 sf building in Westshore, 100% preleased by PwC.

Key Lease Transactions

• 5426 Bay Center Drive (39,609 sf): Reliaquest – New Lease
• 3922 Coconut Palm Drive (33,401 sf): Advantage Sales Marketing – Renewal/Expansion
• 4030 West Boy Scout Boulevard (27,974 sf): Humana – Renewal
• 4904 Eisenhower Boulevard (17,091 sf): M2Gen – Sublease

Key Sales Transactions

• Concourse Center (296,694 sf): Sold by DRA Advisors to The Dilweg Companies for $53,313,000 or $179 psf.
• Westshore Center (216,410 sf): Sold by Westshore Center Investors to America's Capital Partners for $52,050,000 or $241 psf.

Outlook

• Rental Growth: Cushman & Wakefield anticipates rents to rise above current levels, with Class A leading the charge.
• Market Fundamentals: The market showed mixed fundamentals, with strong leasing activity and rising rents, but also a significant increase in vacancy due to large spaces becoming available.

Contact Information

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

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

• Jason McCormick: Analyst
  Tel: +1 813 462 4211
  Email: jason.mccormick@cushwake.com

• Cushman & Wakefield of Florida, LLC
  One Tampa City Center
  Tampa, FL 33602

About Cushman & Wakefield

• A leading global real estate services firm with 51,000 employees in 400 offices and 70 countries.
• 2018 Revenue: $8.2 billion from core services including property management, leasing, and capital markets.
• Website: www.cushmanwakefield.com
• Twitter: @CushWake

Disclaimer

• The information in this report is gathered from multiple sources and is presented without warranty or representations as to its accuracy.