ORLANDO—Tampa's office market has seen strong recovery. New construction is around the corner, but what new trends could we see in the office market this year?
That's a good question for Anne-Marie Ayers, first vice president of CBRE Tampa. We've been talking with Ayers about her predictions for the Tampa office market in 2016. Part of what she sees are emerging trends.
"As supply dwindles and renovation costs escalate, we'll see longer-term leases of seven plus years turn into the norm," Ayers tells GlobeSt.com. "Tenants are being faced with rising rental rates, so they need longer terms to amortize improvement expenses or they would have to pay out-of-pocket for those costs."
Ayers also makes a pricing prediction. She expects class A office lease rents of over $30 rentable square feet to become more acceptable. That's telling after years of dark office space during the recovery.
"In the central business district, tenants will grow accustomed to parking in remote areas and commuting or shuttling in to the downtown core," Ayers says. "Expanding public transportation alternatives will rise as a priority for government officials, employers and workers. The urbanization trend is set to continue over the coming decades and building ownership cycles will also get shorter."
Want to know more about the urbanization trend? Check out my recent feature in the Real Estate Forum.
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