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Why Tampa Lacks New Office Space


Tampa’s office market has seen little to no new development in recent years despite low vacancy rates, rising rents and healthy job growth.

Several interconnected factors contribute to this:

– Rental rates for existing Class A office space are about 20% lower than what developers require to justify new construction.

– Office users’ uncertainty over space needs makes them hesitant to pre-lease space in an undeveloped building.

– Lenders have tightened underwriting requirements for developers to secure financing for new office properties.

– New technology, condensed office spaces, and more flexible work environments allow tenants to improve the utility of their current spaces.

Ryan Kratz, Colliers International Florida

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