LEASING STAYS ON STEADY TRACK
Leasing activity remained stable over the quarter, increasing from 870,000 sf last quarter to just over 1.0 msf (million square feet). Tenants leased 3.6 million square feet (msf) during 2018-12.8% higher than a year ago and 20.7% above the market’s long-term annual average.
Tampa Bay’s overall availability rate (14.0%) declined by 30 basis points, remaining below 15% for the third quarter in a row. The Class A overall availability fell slightly, dipping by 10 basis points to 11.5%.
RENT PUSHES HIGHER
Overall rent rose by 1.8% during the quarter, and by 8.3% compared to year-end 2017, closing 2018 with an average of $24.24. Class A average rent was $29.59, rising by 2.6% compared to last quarter and 6.9% year-on-year.
Office property sales during the first eleven months of 2018 totaled $718 million, a decrease of 15% compared to the same period in 2017.
“Deal volume remained remarkably consistent across the region throughout 2018. Sales activity slowed due to the high number of buildings that have already traded. With the bulk of new development still more than a year away from delivering, some tenants continue to encounter tight market conditions.”Cheri M. O'Neil, Senior Vice President