GlobeSt.com UPDATE: Tampa Office Market at 15% Vacancy with Tenants in the Driver's Seat

TAMPA, FL-Tampa’s 35.2 million-sf office market is at 15% vacancy but the worst may be over soon, according to a new analysis by Grubb & Ellis Co. Rents and occupancies will start stabilizing this year and then head into a normal growth pattern in 2003, the report projects.

With one million sf of sublease product available, property owners are offering concessions and competing fiercely for creditworthy tenants but aren’t typing up leases for lengthy terms at current bargain rates.

“These market conditions will continue to give tenants an advantage in negotiating lease terms throughout 2002,” Jeffrey S. Sweeney, G&E’s executive vice president/managing director, tells GlobeSt.com.