Highwoods Bay Center I, which will feature structured parking,will compromise two seven-story buildings rising on Bay CenterDrive. It will join Highwoods' existing portfolio in the submarket.All total, the REIT owns or manages 12 office buildings,encompassing 1.7 million sf, in Westshore.

"The Tampa market is posting solid growth as existing companieshave expanded, new firms have moved to the area and market rentshave increased," explains Ed Fritsch, president and CEO ofHighwoods Properties. "The area's employment growth has exceededthe national average for the past five years, averaging 4% in 2005.The Westshore submarket, in particular, is one of the most popularareas for businesses to locate in Tampa and commands the highestrental rates due to its central proximity to the airport andDowntown."

For the first quarter 2006, the class A office vacancy rate forTampa Bay stood at 9% with 644,995 sf absorbed in the quarter,according to Colliers Arnold's office market report for Tampa Bay.The absorption figure included 120,726 sf of newly completed space,it adds. The class A direct average lease rate was $21.04 per sf inthe first quarter, the report adds.