The state of the market in the Tampa Bay Area
A resurgence of market activity began in early third quarter, with a 56% increase in sales volume since the start of the third quarter, proving to show a much stronger picture for the state of the commercial real estate market in the Tampa Bay area, in contrast to the pause seen during the height of the pandemic in the second quarter of 2020.
Sales volume for the same time period in 2019, reported $7.3 billion, showing a 44% decrease in sales overall. The sales prices since the start of the third quarter are also showing more stability at minus-1.7% sale, vs. asking price, in comparison to overall minus-7% in 2020 and minus-9.2% in 2019.
Cap rates in 2020, overall, have shown a soft rise with the majority of rates trading in the 5% to 8% range and a median rate of 6.7% in comparison to 7.4% in 2019. Last year showed stronger investments in the lower cap rate range with 10% trading below a 5% cap rate.
The area most affected by the pandemic has been office investment. The last six, consecutive, years have had more than $1.2 billion in sales volume, but early 2020 began with $1.25 million in trades and nearly $100 million by the second quarter. The office sector is finishing stronger with $442 million in office sales through October, as office vacancy rates in the market hold at 8.1% .♦
Melissa Rutland is owner and broker of the Rutland Florida Gulf Group. Her practice is through-out the gulf coast region of Florida. Rutland serves on the YMCA of Greater St Petersburg Board, was in Leadership Tampa Bay Class of 2017 and was on the St Pete Yacht Club board for six years and was on the executive committee for four years.