A booming business and professional services sector is driving historically low vacancy rates in Tampa Bay, according to Cushman & Wakefield’s 2017 fourth quarter office market report. The sector grew 2.5 percent year over year, adding 5,900 of the MSA’s 30,600 total new jobs. All office-using employment sectors saw job gains in 2017, leading to the overall vacancy rate in Tampa falling to 10.6 percent. This is the first time the vacancy rate has fallen below 11 percent in six quarters. Class A office space vacancy fell to 7.9 percent, the lowest level for such space since 2006.
Among the new large lease transactions in the final quarter of 2017 were AAA (150,000 sf in the I-75 Corridor) and Amgen (124,715 sf in Tampa’s Westshore submarket).
Cushman & Wakefield predicts that rents will continue to climb, potentially hitting the $33 – $35 psf range, and subsequently make financing for new construction more viable.
To download the complete Cushman & Wakefield Office Q4 2017 Marketbeat, please click here.