Tampa asking rates surge as existing owners benchmark new construction pricing
Tampa asking rates surge as existing owners benchmark new construction pricing.
January 16, 2019
- Increasing office asking rates have been a part of Tampa Bay’s market story over the past five years, but it is only in the last 18 months that we have begun to see the explosive rental rate growth that comes with new product coming online. Not only are projects like MetWest Three bringing up the average with their own historically high rates, (currently asking $44.00 full service) but it has provided a benchmark for existing property owners to re-price their own assets.
- Over the course of 2018, 60 percent of all tracked office properties across the market increased asking rates at least once, with 15 percent of properties seeing multiple increases over the year. On average, owners raised rates by 4.5% with each increase, and these were largely seen in submarkets poised for new construction like Westshore and Downtown Tampa. With a slew of additional developments planned to break ground in 2019, we can expect to continue to see double digit annual rent growth in these already appreciating markets, as the enduring rising tide lifts all, or at least most, boats.
Source: JLL Research