Cost of Tampa office space continues to rise
As Tampa continues to recover from the recent recession, many are realizing that the region's business-friendly atmosphere and high quality of life make it the perfect location for their organization. Drawn by Tampa's vibrant culture, numerous tax incentives and availability of labor, business owners are now competing for office space, driving up prices.
The Tampa Bay Business Journal reported on NAIOP Tampa Bay, a group of commercial real estate professionals, and their recent meeting to discuss the changes in the local market. A panel of seven Tampa Bay real estate professionals, each with expertise in different sectors, shared its insight into the commercial real estate market and what may be in store for its future.
Bruce Erhardt, executive director of the land brokerage group Cushman & Wakefield, explained that the area is currently in a boom period, although he warned that the market will always be circular, rising and then falling, such as during the dot-com bust in 2000. However, Erhardt is optimistic that the current upward swing could last until at least 2020.
This unfortunately can make prices rise, which can cause problems for long time tenants. Clay Womack, vice president, CBRE Group, told the source about one of the drawbacks of the boom period.
"The only negative trend we've seen is sticker shock on renewals. Tenants are really having to evaluate, do I take the increase and stay. At the end of the day, 90 percent realize, 'I'll have to take the increase,'" Womack remarked.
But for organizations in the Tampa area, there is another, more cost-effective solution that can actually lower overhead. On Point Executive Center offers local organizations competitive rates on Virtual Office services, which allow them to take their business into the 21st century. No longer tethered to expensive office leases, organizations are free to work remotely, without sacrificing communication or coordination. With more than 30 years combined experience in the Virtual Office and Executive Suite industry, On Point can help your business become more streamlined and competitive, and avoid rapidly inflating prices of commercial space.