It’s always sunny in the Sunshine State--at least that’s the current outlook for businesses relocating to Florida. According to U.S. Census figures, the state of Florida experienced the second-largest rate of population growth during the pandemic, adding nearly 250,000 new residents. The factors behind this surge include the favorable year-round weather, low taxes, a pro-business climate, and a laid-back lifestyle no longer reserved for just retirees. Subsequently, many corporate residents have followed suit, relocating their headquarters and operations to the Sunshine State.
Leasing the right commercial real estate space can be a tricky proposition for newcomers. Companies, like many consumers, now expect instant gratification such as on-demand food delivery or same-day grocery delivery. A commercial real estate transaction is more complicated than a consumer product purchase, but the disconnect between when a tenant wants to occupy space compared to the industry average is significant. Nearly 80% of companies searching for space in the Tampa/Sarasota area want to lease space within the next one-to-three months. This statistic is based on company profiles created with TenantBase, an online commercial real estate marketplace where companies enter their preferences, search for available space, and connect with local brokers.
Tenantbase was designed to provide companies with proactive search capabilities, providing the results and personalized service necessary to find and lease the perfect space. Historically, this process has taken six-to-12 months to execute a lease, but the TenantBase platform allows parties to close deals in less than half the time--approximately 45-60 days. Given the changing nature of office space utilization, it’s offering an accurate snapshot of precisely what companies are looking for in a commercial lease. According to data from the platform, there is a wide variety of desired leasing terms. TenantBase reveals that 32% of companies are requesting one to two-year lease terms, 25% desire two to three-year terms, 27% want three to five-years, and only 15% are seeking more than a five-year term.
For companies needing office space, it’s a great time to lease as the market is showing signs of recovery. During the pandemic, the greater Tampa office market experienced a downturn similar to many other desirable cities. However, buoyed by new commercial developments including Water Street Tampa, Midtown Tampa, Heights Union, and SkyCenter One, the market has begun a noticeable upswing. Combined with other available commercial inventory, it amounts to more than a million square feet of space.
The exciting news for tenants is that the commercial real estate industry is beginning to adopt and embrace the same on-demand, technology-enabled, marketplace models that have transformed other industries, which can make leasing the perfect space much faster and easier.