Ryan Kratz, president of Colliers International Tampa Bay, Central Florida ad Southwest Florida

MIAMI—The Tampa Bay area may not be seeing much new office construction, but that doesn't mean the office demand isn't strong or growing. In fact, tenant needs are evolving in this hot office market.

GlobeSt.com spoke to Ryan Kratz, president of Colliers of International Florida, to get his take on this office trend and how landlords are adapting in part two of this exclusive interview. You can still read part one: Four Good Reasons We're Not Seeing More Office Construction.

GlobeSt.com: Can you elaborate on how companies' changing office needs are affecting the market?

Kratz: Office tenants continue to search for the optimal way to use office space. But the overall theme has been to find a way to use less space for more employees.

Many office users are still promoting open, collaborative spaces over private, enclosed offices to maximize the use in their existing spaces. Some employers have also adopted a more flexible work environment by allowing employees to work remotely, which creates less need for office space.

In both situations, however, results are not always matching expectations, as productivity has sometimes suffered. Some tenants who promoted an open floor plan are now backtracking and building out some private spaces again, while others are reconsidering their level of employee flexibility.

GlobeSt.com: What are successful landlords and property managers doing to adapt to these changing needs?

Kratz: In the last five to seven years, many landlords have undertaken what's referred to as the “Great Refresh” in office buildings. For example, many class A and B office buildings have undertaken significant capital expenditures in lobbies, common areas, tenant amenities, elevators, and exterior appearance/signage. The goal of these investments has been to create a more valuable, attractive and modern office environment to attract high-quality tenants.

Today's employees value the office environment more than ever, and tenants are making their physical space a priority to promote employee retention and recruiting. In general, their strategy is working. Buildings with these improvements are typically outperforming in terms of occupancy and rental rates, compared with buildings perceived as “dated” or “tired.”

(Check out the Cuba-like neighborhood that's winning with office investors. And find out why this former CREC star is rising fast in office investments.)

GlobeSt.com: Can you elaborate on how companies' changing office needs are affecting the market?

Kratz: Office tenants continue to search for the optimal way to use office space. But the overall theme has been to find a way to use less space for more employees.

GlobeSt.com: What are successful landlords and property managers doing to adapt to these changing needs?

(Check out the Cuba-like neighborhood that's winning with office investors. And find out why this former CREC star is rising fast in office investments.)

Instant Insights /

How Office Landlords Are Adapting to Changing Tenant Needs

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