Greetings!
2020 has been a roller coaster. Little by little, parts of the economy have been starting to move toward recovery.
After stalling for a few months, deal activity has returned delivering year-over-year increases in market transaction volume and price per square foot.
The upward trend, especially for medical office owners, presents new opportunities for owners and investors alike. The question many commercial property owners are facing now is, "Should I sell or hold?"
To help you answer that question, you'll find in this final 2020 issue:
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A downloadable version of our monthly sales comps datasheet--the Tampa Office Sales Comps & Report to see how much your property could potentially sell for
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Third-quarter MOB snapshot
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Commercial property pricing changes
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Downloadable Q3 MOB report
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Relevant market news & trends that could potentially impact your office property's market value
If you know anyone who is considering selling or leasing office space, please tell them about me. I specialize in selling and leasing Tampa professional and medical office properties.
In the meantime, Happy Holidays and a very happy new year!
John
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As a Certified Office Specialist at SVN, I help professional and medical office owners successfully sell and lease their properties.
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Contact me to find out how much your property could sell or lease for. |
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Tampa Office Sales Comps Report |
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Wondering how much your property could sell for?
Metrics for October once again show continuous improvement across the board.
Transaction volume for OCT 2020 was $67,805,000, boasting a huge +653% YOY increase from OCT 2019.
Get all the details to see how this year's sales comps and activity could impact your property value.
Download your copy of my latest Tampa Office Sales Comps Report below.
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Medical & Professional Office Suites For Lease in Tampa, FL |
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CRE Sales Price Changes in the COVID Era |
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Every market disruption has its unique mark. COVID has impacted the commercial real estate sector unlike any other interruption, with some asset types being hit harder than others. |
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Given patterns of distress in the marketplace, the over or under performance of various property sectors in 2020 is likely to persist into 2021.
Economic analysts talk about the shape of recessions using letters to describe the patterns that a chart of GDP levels will follow into and out of a recession.
These analogies usually only involve the letters V, U, L, J, and W. (Early in this recession I used a cursive V slide in a number of my
talks, though I ran into trouble when
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it became clear that a number of the younger folks in our industry are not so familiar with cursive.)
Recently, economists have added a K-shaped recovery to this partial alphabet: personal income and job growth is on a favorable path for knowledge sector workers operating from the comfort of their homes, while workers in lower-skilled positions are suffering.
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Health Systems Make Strategic Moves in
Second Full COVID-19-Impacted Quarter
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Health systems lead third-quarter activity as cap rates show modest compression during a quarter that saw lower transaction volume.
While some asset classes are experiencing difficulty, MOBs are seeing continued interest and growth.
Download your copy of the H2C INDUSTRY INSIGHTS | Medical Office Building Quarterly Update below.
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Is it time to sell and cash-out to invest in higher-yielding asset classes? Some investors seem to think so. |
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Many property types have taken a hit over the last few months in pricing and transaction volume.
While transaction volume has certainly been impacted, medical office building (MOB) pricing continues to hold steady. Price per square foot for the asset has actually trended upward.
This points to the continued interest in MOBs, especially from private and institutional investors.
As the healthcare space continues to
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grow, investors are looking for new growth opportunities and potential "safe havens".
Meanwhile, some MOB investors see this as the perfect time to sell and cash-out for potentially higher yields in other asset classes.
An option for owner/users who want to take advantage of the moment--sale-leasebacks.
Check out the trends and price per square foot year-over-year increase for MOBs which have been on the rise since Q3 2019.
Source: H2C Industry Insights
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Institutional Investors Show Increased Interest in Suburban Office Assets
The possibility of higher levered returns is driving investor interest in Class-A suburban office assets.
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A demographic shift from urban to suburban life was already occurring prior to the COVID-19 pandemic, as millennials in their late 20s and early 30s were beginning to start families and move to the suburbs.
As a result, employer and investor interest in suburban office assets was rising.
The pandemic, however, has accelerated that trend, according to San Francisco-based Al Pontius, senior vice president, real estate investment services, at brokerage firm Marcus & Millichap.
Office leasing continued to decline nationally in the third quarter, with renewals dominating leasing activity, according to Bruce Miller, a senior managing director in the capital markets group of real estate services firm JLL.
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He notes that suburban submarkets saw declines in leasing that were identical to office buildings in CBDs in the first and second quarters of the year, with new leasing activity in each quarter declining by 50 percent.
In the third quarter, however, CBDs saw an 18 percent quarter-over-quarter decline in leasing activity, while leasing in suburban submarkets fell by a more modest 4 percent. Continue Reading...
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Unemployment Tracker | Tampa-St.Pete-Clearwater MSA |
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Employment and unemployment are important factors shaping the professional office landscape. Staying up to date on growing & declining employment trends, can help you read the market and predict the best buying and selling situations. |
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The Tampa-St. Petersburg-Clearwater area unemployment rate continues to decrease month-over-month, to 5.6% in OCT, from 5.7% in SEPT.
In the Tampa area, there was :
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YOY growth in Financial Activities & Manufacturing
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Month-over-month increases in several office-based sectors.
Florida wide:
- Statewide unemployment rate was 6.5% in OCT 2020
Click the link below to download the Tampa Unemployment Tracker
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Office Landlords Face Steep Climb in Reducing Operational Costs
Office users are reassessing the office space, and office owners will have to pivot quickly to survive.
(via GlobeSt) The future of office has been a question mark since the start of the pandemic, and many expect that the asset class would have a new look post-pandemic.
Now, as tenants reevaluate how they will use space and integrate remote workers in the long term, that vision is becoming a reality, whether landlords like it or not. Reducing operational costs will be their immediate answer. Continue Reading...
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As Tampa developers prepare to deliver 1M square feet of office space, new JLL report says workers are banking on hybrid arrangements post-pandemic
(via BizJournals) Seventy-two percent of employees want to continue working from home after the pandemic has passed — and that will have a meaningful effect in the Tampa Bay area, where 1 million square feet of office space is set to open in 2021. Continue Reading...(Paywall)
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FDOT awards $67.3M for TECO Line Streetcar expansion and modernization project in Tampa |
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The Florida Department of Transportation funding is the largest to be awarded to a Tampa Bay transit project. |
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The TECO Line Streetcar system in Tampa will receive $67.3 million to financially support the long-anticipated project to extend the service line into Tampa Heights neighbourhood and upgrade the fleet.
The Florida Department of Transportation funding, which was granted through the New Starts transit funding program, is the largest to be awarded to a Tampa Bay transit project.
The current street car route runs along a 2.7-mile path from Ybor City to the Channel district. Continue Reading...(Paywall
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By 2040, Tampa will have 100,000 who live within walking distance of the streetcar system. |
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I help professional and medical office owners successfully sell and lease their properties. Contact me to find out how much your property could sell or lease for. |
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SVN | Coastal Commercial Advisors
Please note that all SVN® businesses are
independently owned and operated.
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