Concessions Push Tampa Office Market

TAMPA, FL-The Tampa Bay office market comprised of the city, Clearwater and St. Petersburg has whittled its subleased space volume in the third quarter to 800,078 sf with more than 41,000 sf absorbed during the previous period, according to a new Colliers Arnold report.

“Concessions, consisting of free rent, reduced rent or extra tenant improvements continue to drive the market,” says Colliers Arnold analyst Jeremy Kral. The Tampa Bay market has positive office space absorption of 64,870 sf year-to-date.

While rents have dropped, “the Tampa Bay office market still remains a bargain compared to the national average for class A office space,” Kral maintains. He cites the national average as $32.40 per sf for Downtown space versus $20 per sf in the metro region. National suburban space stands at an average $23.30 per sf. Tampa Bay’s suburban rents have increased slightly to an average $19.11 per sf.