Steady Activity, Head Winds Ahead
The first quarter of 2020 will forever be marked as one of the most dynamic quarters in history for the office market in Tampa Bay. As the 2020 year began, activity throughout (sales, leasing, construction) remained positive following three consecutive quarters of positive net absorption in 2019. Lease rates continued to climb quarter over quarter and leasing transaction volume remained above normal. Interest rates were near all-time lows, providing cost-effective financing helping to bolster and carry on the 10-year record growth of development and investment activity experienced throughout the market. Unemployment in the region, the lowest in recent history and well below the national average, was championed by many in the local market.