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Office Tenants Gaining Upper Hand

TAMPA, FL-Landlords try for retention as vacancy increases and asking rents stabilize.

By Carl Cronan | Updated on January 12, 2009

(Carl Cronan is editor of Real Estate Florida.)

TAMPA, FL-Only a few years ago, local office brokers were telling tenants to lock in their best deals early on renewals and relocations to avoid anticipated rent hikes. Those who waited are now being rewarded for their patience because of the economy’s sudden slide, but for some it is more a question of whether they are still able to sign new leases, let alone seek favorable terms.

Office vacancy in the Tampa Bay market exceeded 18% by the end of 2008, jumping nearly four percentage points over the year and more than two points from the third quarter, according to CB Richard Ellis. Massive layoffs and rightsizing by area companies has led to decreased demand for space, which in turn has led to greater availability of sublease and “shadow” space.

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