The numbers are out, and the Tampa Bay office market started the year strong. Ever tightening vacancy and climbing asking rates could make 2018 the year we see development in downtown and the suburbs alike!

1. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2018
Tampa Bay
Office Insight
As a new year begins, it appears Tampa Bay is positioned to see a shift in how
it is defined as an office market. The disparity between high class office
demand and the availability of space has had historical implications on both
the ability for rental rates to grow and the options firms have when looking to
relocate or expand. Now, some of that can be alleviated as MetWest Three
breaks ground in Westshore, bringing 90,000 square feet of available space to
market, and both Strategic Property Partners and Feldman Equities make
progress on their ambitious developments in downtown Tampa.
The recipe is there, as existing building owners are already seeing historically
high rents of $33.00 - $34.00 gross Downtown and $36.00-$37.00 gross in
Westshore, with the latest building fetching a 10 percent premium and
breaking $40.00 in asking rent. On top of that, the first quarter of 2018 saw the
highest net absorption in the last seven quarters, with large users such as
EmCare, Surgery Partners, HDR Engineering, ER Squibb & Sons, and
Windhaven Managers moving into their new spaces in Gateway and
Westshore, and contributing to the nearly 250,000 s.f. of absorption the region
saw to start the year.
Outlook
As the culmination of population, job, and office demand growth comes to a
head in Tampa, 2018 could be the year where we see dirt moving on office
projects, especially in Downtown Tampa and Westshore. Increasing asking
rates and strong absorption are validating the proposals currently in the
pipeline, at a time where Tampa continues to shine as a great place to do
business in the southeast. Regardless of whether or not development springs
forward this year, we will continue to see increasing asking rates across the
region, especially in class A product, and falling concessions as leverage
remains in the hands of the Landlords.
Fundamentals Forecast
YTD net absorption 246,735 s.f. ▲
Under construction 416,554 s.f. ▲
Total vacancy 11.4% ▼
Average asking rent (gross) $25.28 p.s.f. ▲
Concessions Falling ▼
0
500,000
1,000,000
2015 2016 2017 Q1 2018
Supply and demand (s.f.) Net absorption
Deliveries
2018 is poised to be the year Tampa Bay’s pipeline
flows rather than trickles
14.6% 13.4% 12.2% 11.4%
2015 2016 2017 Q1 2018
Total vacancy
$0.00
$10.00
$20.00
$30.00
$40.00
2015 2016 2017 Q1 2018
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Kyle Koller | kyle.koller@am.jll.com
• The market continues to tighten as vacancy rates remain on the decline
– at a faster pace in class B product, but with class A vacancy currently
nearly half that of class B – at 8.3%.
• The groundbreaking of Westshore’s newest office building has broken
the $40.00 gross asking rate ceiling for the region.
• As developers continue to advance their proposals for downtown and
the suburbs, 2018 could see the start of multiple new office projects.

2. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q1 2018
Tampa Bay
Office Statistics
For more information, contact: Kyle Koller | kyle.koller@am.jll.com
Class
Inventory
(s.f.)
YTD total net
absorption (s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy
(%)
Total
vacancy
(%)
Average
asking rent
($ p.s.f.)
YTD
Completions
(s.f.)
Under
Development
(s.f.)
Gateway/Bayside Totals 3,653,043 187,199 5.1% 12.1% 12.3% $22.30 0 0
I-75/I-4 Corridor Totals 6,332,171 -65,659 -1.0% 12.6% 12.7% $20.50 0 0
Northwest Totals 2,663,377 9,273 0.3% 9.6% 9.7% $20.94 0 148,800
Pinellas Outlying Totals 2,234,021 -28,856 -1.3% 26.9% 26.9% $18.44 0 0
St. Pete CBD Totals 2,168,064 3,483 0.2% 7.6% 7.7% $27.68 0 0
Tampa CBD Totals 6,024,782 56,002 0.9% 10.2% 10.5% $28.19 0 0
Westshore Totals 11,818,161 115,392 1.0% 8.2% 9.0% $30.37 0 267,754
Tampa Bay Totals 34,893,619 276,834 0.8% 11.0% 11.4% $25.28 0 416,554
Gateway/Bayside A 2,469,633 70,972 2.9% 5.5% 5.8% $23.87 0 0
I-75/I-4 Corridor A 3,280,175 -64,600 -2.0% 9.2% 9.3% $25.69 0 0
Northwest A 1,012,125 -2,243 -0.2% 2.1% 2.1% $26.85 0 148,800
Pinellas Outlying A 1,037,202 -7,010 -0.7% 20.3% 20.3% $21.06 0 0
St. Pete CBD A 1,633,077 -380 0.0% 6.8% 7.0% $28.82 0 0
Tampa CBD A 4,572,871 52,189 1.1% 10.7% 10.9% $29.50 0 0
Westshore A 7,409,363 75,169 1.0% 6.1% 6.7% $34.16 0 267,754
Tampa Bay A 21,414,446 124,097 0.6% 8.0% 8.3% $29.34 0 416,554
Gateway/Bayside B 1,183,410 116,227 9.8% 25.8% 25.8% $20.05 0 0
I-75/I-4 Corridor B 3,051,996 -1,059 0.0% 16.4% 16.4% $18.44 0 0
Northwest B 1,651,252 11,516 0.7% 14.2% 14.4% $20.34 0 0
Pinellas Outlying B 1,196,819 -21,846 -1.8% 32.7% 32.7% $16.96 0 0
St. Pete CBD B 534,987 3,863 0.7% 9.8% 9.8% $22.85 0 0
Tampa CBD B 1,451,911 3,813 0.3% 8.9% 9.1% $22.80 0 0
Westshore B 4,408,798 40,223 0.9% 11.7% 13.0% $25.54 0 0
Tampa Bay B 13,479,173 152,737 1.1% 15.8% 16.3% $20.99 0 0