Tampa Office Vacancy Rate at 11.5% as Net Absorption Falls

Class A space alone posted a negative net absorption of 161,583 sf for the 12 months ended Dec. 31. Fourth-quarter absorption was in the positive column, however, with 14,681 sf. Class A occupancy is 86.82%.

Total vacancies in classes A, B and C climbed to 11.5%, the highest since 1996 when the vacancy barometer hit 17.4%. On a six-year average, however, the leasing picture wasn't all that bad.

"With relocations and moveouts considered, the net absorption for the (six-year) period totaled 808,474 sf, reflecting an average net absorption of 134,746 sf per year," RealData research director William R. Hemingway says in the report.

Rents, meanwhile, are increasing at an average rate of 4.03% per year. Average asking class A rent is $20.84, up 0.24% from fourth quarter 2000 and an average annual increase of 3.76% since 1996. In the one million-sf class B submarket, the dominant rental area, asking average rents are $18.06 per sf, up 0.22% over the same 2000 period.

Class B space also saw fewer moveouts than class A in 2001--42,379 sf versus 321,800 sf in class A. Fourth-quarter moveouts in class A total 42,747 sf; none in class B. Class B occupancy is at 94.97%.

Class C, the smallest submarket at 424,283 sf, is 89.58% occupied. This market showed a negative net absorption for the year of 944 sf but logged a positive 4,943 sf in fourth quarter 2001. Average asking rents are $14.26 per sf, no change from the same period last year.

The only major project on the board is the 41-story, class A, 933,310-sf Hillsborough River Tower at Parker Street and the Kennedy Drawbridge. A retail component will add 125,000 sf to the venture. Two parking garages are also planned.

Construction is tentatively scheduled to start by December or first quarter 2003. The project will have a two-year construction track. Typical floor plates will be 22,000 sf.