Tampa Bay Commercial Real Estate Enjoys Upswing In Property Sales

The Tampa Bay commercial real estate market got its report card for 2010's second quarter, and the news looks good—especially if you are a small or start-up business looking for retail space.

In a second-quarter issue of CB Richard Ellis' (CBRE) MarketView, the research company reported that Tampa Bay retail, industrial and office commercial property sales and leasing had improved dramatically over the previous quarter.

On the retail front, CBRE reports that there is more and more activity between smaller retailers and lenders for spaces under 5,000-square-feet. Add that to the softer lease rate where landlords are more willing to negotiate, and the Tampa Bay area looks pretty attractive to someone looking to start a new business.

The office space market stabilized in the second quarter, with more leases being signed by businesses, and less businesses vacating their leases. This positive movement in turn brought cap rates in line, making the vacant spaces that remain more attractive to investors. Some bigger deals in this realm include Wells Fargo Insurance Services moving into more than 48,000 square feet at The Pointe, and the completion of construction on Park Centre at Telecon Park, which adds 88,000 square feet of Class A office space to Northeast Tampa.

And the industrial market enjoyed some positive momentum in the second quarter. Helping to stabilize the market were deals involving Beltram Edge Tool Supply, Ferguson Enterprises, Seaworld Park, Metro Air Services, WESCO Distribution, Viatek, Commodity Resources and Aero Simulation on the Tampa side, and Plasma-Therm in Pinellas.

"The number one factor for businesses considering relocation or expansion is the business costs they will experience in a new location," says Chris Steinocher, the Tampa Bay Partnership's COO-SVP of marketing & business development. "These studies clearly show that business costs are a competitive advantage for the Tampa Bay region."

Writer: Missy Kavanaugh
Source: Chris Steinocher, Tampa Bay Partnership