Tower Sale Shows Downtown Tampa Commercial Demand Remains Strong Among Investors
Downtown Tampa Commercial Demand Strong
Despite data showing slowing trends in the single family housing market, downtown Tampa remains a strong area of interest among commercial real estate investors. Proving the office sub-market is still generating interest among investors is the recent sale of one of downtown Tampa’s office towers. The 19-story Fifth Third Bank building is a notable figure in Tampa’s skyline and serves as one of the primary commercial hubs in downtown.
Urban Amenities Attract Business
Commercial demand follows a growing trend among businesses and employers who are relocating to the urban core. Increasingly, businesses and professionals are leaving the suburbs in favor of the growing demand for the accessibility of amenity-rich urban cores.
Tampa, for its part, has been making major strides in attempts to jive with this growing trend. Through ongoing revitalization efforts, downtown Tampa has positioned itself as a leading city embracing an urban lifestyle. The area benefits from a high concentration of restaurants and commerce centers in a dense, walkable core. Plus, efforts to revamp the area’s public spaces have put downtown Tampa on the map as a recreation and entertainment destination.
The downtown core is also establishing Tampa as a major tech hub. Tampa is one of the fastest growing cities in the southeast in terms of tech development and the city has been a big advocate for tech innovation.
Office Inventory Meeting Commercial Demand?
Despite investment interest and activity, commercial property owners, landlords and brokers are getting anxious about the lack of devoted office developments coming into downtown. While there are ongoing developments that incorporate commercial aspects such as the various mixed-use projects we’re seeing, there are no new office buildings under construction. This lack of incoming office space, coupled with job and population growth, is resulting in high absorption rates which is pushing up rent.
Fortunately, the rise of coworking and virtual office solutions serves as pressure-relief for the tightening office market. Offering temporary work space solutions, from day offices to hourly meeting rooms, coworking spaces provide businesses and professionals with on-demand access to many functions of a traditional office.