Where Tampa Office Development Is Most Likely

Anne Marie Ayers

TAMPA, FL—If new development does not occur, Tampa will run out of class A office space in less than two years. So says Anne-Marie Ayers , first vice president of CBRE Tampa . We’ve been talking to Ayers about Tampa office market surprises and Tampa market trends in an ongoing exclusive interview series. In this final installment, she makes office development predictions. “ It is most likely that our next major development will occur in the Westshore and central business districts,” Ayers tells GlobeSt.com. That makes sense, given the strong absorption off office space in these two submarkets in 2015. “Existing office buildings will continue to undergo major renovations to keep pace with new competitors,” Ayers predicts. “The landlords that make the necessary upgrades will reap the rewards. Those that don’t want to invest in their properties will watch their buildings become obsolete and their business may suffer.” As Ayers sees it, the biggest barrier to new office development is the gap between achievable rents and rent growth. However, she says, Tampa’s job growth and rising office user market demand will drive the pace of development. “Those tenants that are not willing to pay higher rents for new office space will still want a renovated current building, so renovated buildings should reap the rewards,” says Ayers. “Tenants have a strong desire for locations that offer access to mixed-use amenities, which means that the amenity bases must improve in the non-urban locations.”