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This Office Market Could See New Trends

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?

By Jennifer LeClaire | jenniferleclaire | | Updated on January 27, 2016
nne Marie Ayers Anne Marie Ayers
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  A nne-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. “The longer terms are a tradeoff for tenants so landlords are willing to provide larger tenant improvement allowances and amortize tenant improvements in excess of the allowance so tenants do not 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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