Westshore Development News

FloridaFuture · June 25th, 2007, 09:42 PM

Westshore space race
State's largest office market is tight and in high demand.
Tampa Bay Business Journal - June 22, 2007by Carl CronanReal estate editor

Kathleen Cabble
Highwoods Bay Center, Westshore’s newest office building, opens in July.

TAMPA -- A Tampa Bay Business Journal analysis shows as much as 3 million square feet of premium office space on the drawing boards for the Westshore business district, dubbed Florida's largest office market.

Standing to gain at least 25 percent more space above its current capacity of 11 million square feet over the next few years, with a likewise hike in rental rates, the activity is setting off a building race among developers.

It's good news for developers that Westshore's vacancy rates are well within single-digit range -- roughly 7 percent overall and 5 percent for premium or Class A space -- which brokers view as a hopeful sign. Asking rents for the nicest offices are averaging $28 a square foot and rising.

"There is no indication that it doesn't make sense to build, based on the market fundamentals," said Jim Paladino, senior director with Cushman & Wakefield of Florida Inc. in Tampa. "The question is whether everybody is going to come to the party."

There is caution that putting too much space on the market at the same time could create an office glut, even with Westshore's extra-large capacity.

First in a line yet to be formed
Westshore's newest building, the waterfront Highwoods Bay Center just off Kennedy Boulevard, is slated to open next month and will instantly add at least 200,000 square feet of speculative space.

Real estate observers believe demand for Westshore will sustain top-priced rents even as new space opens up. Some predict that only half or even a third of what's planned will ever be built, as with downtown's condominium market.

"Ultimately, you don't ever know because something could happen with the economy," said Kyle Burd, regional VP with Eola Capital in Tampa. The Orlando-based developer plans to build a low-rise office building along West Gray Street near Interstate 275 that could grow to at least 120,000 square feet in the next two years, depending on demand.

Much larger office projects are on the horizon in Westshore, including up to 750,000 square feet replacing the former MetLife Inc. administrative center along Boy Scout Boulevard. The first 10-story office building there is scheduled to open in the next two years, and two more will be built as the market dictates.

MetWest International will join MetLife's 11-story One MetroCenter, which opened in 1988. Observers say the new development could enhance One MetroCenter, which is now 94 percent occupied and already commands some of Westshore's most expensive office rent at $31 a square foot.

The difference in rental rates between the building and its new neighbors should be somewhat minimal, said Hank Brenner, president of Taylor & Mathis of Florida LLC, which handles leasing and management at One MetroCenter.

International Plaza buildout
Across the boulevard from MetLife's site, Crescent Resources LLC plans to break ground soon on Corporate Center Four at International Plaza, an eight-story structure containing 247,000 square feet to be completed next fall.

Crescent -- which opened International Plaza's first three office buildings in 1999, 2001 and 2004, totaling nearly 1 million square feet -- plans to follow its newest building with a pair of 10-story, 300,000-square-foot buildings on the other side of Lois Avenue, at a site called Cornerstone Plaza.

Brand new office space in Westshore is expected to rent for as much as $35 a square foot once it's finished, well above the Bay area's $23 average.

While that might seem lucrative, developers are less willing to forge ahead with new office projects than during Westshore's previous building boom in the late 1980s, when costs for land and building materials were cheaper and profit yields were greater.

"It's a lot of risk to take for an OK return," Burd said. "If you build a new building now, you're going to have an arguably better property" than the aging inventory now dominating the Westshore office market.

Wishful thinking
Some mixed-use projects with office segments, such as Avion Park near Tampa International Airport, have taken nearly two years to get under way, while others are taking far longer, namely Tampa Bay 1 along Interstate 275.

On the other hand, the market may surprise everyone. Crescent's buildings were filled shortly after opening, and Highwoods Bay Center's second seven-story twin building should start construction as soon as the first achieves sufficient occupancy.

While Brenner, who saw Westshore developed first hand with Florida Real Estate Advisors (now part of GVA Advantis), said it isn't likely all the proposed space will actually be built, single-digit vacancy rates and rents approaching record levels make timing favorable for new space. Projects completed sooner rather than later have the best shot at catching prospective tenants, he said.

http://tampabay.bizjournals.com/tamp...744000^1480222

HARTride 2012 · June 25th, 2007, 09:48 PM

WOW. I like how WestShore is growing. There is so much office buildings that they make my head spin...well kind of. The only thing I don't like is the old Austin Center complex. I think that complex should be vacated and torn down within the next fifteen years. It just doesn't fit in with WestShore's modern vibe.

FloridaFuture · June 25th, 2007, 09:57 PM

It's only a matter of time before all of these office projects in Westshore begin spilling over in to Downtown and any land left in Rocky Point. Especially with Westshore prices already $5 per sq. foot over the metro average.

Anyway, any vertical growth for Westshore is good, its just a shame a lot of it is only psuedo urban.

randommichael · June 25th, 2007, 10:25 PM

I don't mind Westshore growth, but I'd really prefer downtown office towers of 40+ stories.

TamBay · June 25th, 2007, 10:47 PM

I, too, would prefer more business in downtown Tampa, but image what the Tampa skyline "could" look like in fifty years when Westshore grows east and merges with projects around UT, which will spread west down Kennedy. Obviously, the tallest buildings will be downtown, but the far-view panoramic from Downtown to Westshore and Rocky Point will be quite impressive.

randommichael · June 26th, 2007, 03:10 AM

In 50 years I imagine I'll be in an old people's home not really caring much about skylines...but hey, you just never know.

jonknee · June 26th, 2007, 03:19 AM

Maybe your nursing home will have a skyline view? You never know

.

tonyff67 · June 26th, 2007, 03:00 PM

Am I the only one shocked, with the success of Westshore, that more residential isn't proposed? It seems logical. Urban living has picked up steam, westshore is a beautiful area, and I think something like 100K people work there. I thought for sure mixed use proposals would have started popping up. I know there is one or two, but nothing like I thought there would be.

HARTride 2012 · June 26th, 2007, 03:10 PM

Quote:

Originally Posted by tonyff67

Am I the only one shocked, with the success of Westshore, that more residential isn't proposed? It seems logical. Urban living has picked up steam, westshore is a beautiful area, and I think something like 100K people work there. I thought for sure mixed use proposals would have started popping up. I know there is one or two, but nothing like I thought there would be.

I agree. With the housing market the way it is of course, I don't think it is a good idea to start building condo towers like crazy around WestShore. However, smaller, mixed-use developments are probably more feasible for the area. I am surprised there haven't been any such developments being built recently.

FloridaFuture · June 26th, 2007, 08:27 PM

The new Metlife proposal features a couple hundred residential units. Then there is Tampa Bay 1......

Jasonhouse · June 27th, 2007, 06:38 AM

There are plenty of residential projects proposed for the Westshore area, which while not including thousands of units, will still easily represent a major influx of professional residents when the units are built... As we already know though, the market is shit, and redevelopment projects are moving towards commercial and hotel components in Westshore, because that's where the money is right now.

HARTride 2012 · June 27th, 2007, 03:31 PM

^

I see. Hopefully there will be no drama in WestShore like Trump Tower...or near empty condos like in Sarasota (and other places in the bay area).

Jasonhouse · June 27th, 2007, 03:40 PM

^Not possible. Except perhaps on Rocky Point, where hundreds of pricey luxury condo units are proposed in several highrise projects.

HARTride 2012 · June 27th, 2007, 06:04 PM

Quote:

Originally Posted by Jasonhouse

^Not possible. Except perhaps on Rocky Point, where hundreds of pricey luxury condo units are proposed in several highrise projects.

Including that Ritz Carlton?

Jasonhouse · June 27th, 2007, 06:08 PM

^Right... Odds are, one or more of the projects proposed out there will die on the vine.

randommichael · June 27th, 2007, 07:46 PM

What's going on with the Westin there? The land is clear, but last time I drove by there was no action on site.

FloridaFuture · June 27th, 2007, 10:52 PM

^Over in that project's thread Kentski said that several weeks ago he saw a small crew on site and saw construction equipment on site.

I have also seen some minor work on that project's site.

Jahi98 · June 28th, 2007, 08:18 PM

I would think a new market-rate or mixed-income rental project in the 10-story range would lease up quite well in Westshore. But, it seems developers are reluctant to doing rental projects, and high-rise rental is not very common in this metro area.

At any rate, it's good to see new office construction going on. At least it presents the image of a growing local economy.

pimpis · June 29th, 2007, 04:08 AM

I live on rocky point, so I get to keep track daily of whats going on. They did bring out a crew out to the Westin site last week and the big core drilling machine. But there has been no movement for the past couple of days again.

HARTride 2012 · July 3rd, 2007, 04:12 PM

Tampa's Westhore business district booming
Tuesday, July 3, 2007
Bay News 9

Tampa's Westshore business district is experiencing a building boom.

With more than 11 million square feet of office space occupied, the area is planning to add another three million square feet of space to keep up with demand.

"There are a lot of companies that want to come into the tampa market and set up operations and hire local folks,'' said Carl Cronan with the Tampa Bay Business Journal. "You've still got plenty of people moving into Florida. And specifically into the Tampa market."

Cronan said plans also are in the works for new retail and restaurant construction across from the Tampa International Airport.

http://www.baynews9.com/content/36/2007/7/3/266749.html?title=Tampa's+Westhore+business+district+booming Click this link and then the video link to view the video report.

June 25th, 2007, 09:42 PM	#1
FloridaFuture Former Mod Join Date: Jun 2005 Location: Tampa/Gainesville Posts: 5,234 Likes (Received): 0	Westshore Development News Westshore space race State's largest office market is tight and in high demand. Tampa Bay Business Journal - June 22, 2007by Carl CronanReal estate editor Kathleen Cabble Highwoods Bay Center, Westshore’s newest office building, opens in July. TAMPA -- A Tampa Bay Business Journal analysis shows as much as 3 million square feet of premium office space on the drawing boards for the Westshore business district, dubbed Florida's largest office market. Standing to gain at least 25 percent more space above its current capacity of 11 million square feet over the next few years, with a likewise hike in rental rates, the activity is setting off a building race among developers. It's good news for developers that Westshore's vacancy rates are well within single-digit range -- roughly 7 percent overall and 5 percent for premium or Class A space -- which brokers view as a hopeful sign. Asking rents for the nicest offices are averaging $28 a square foot and rising. "There is no indication that it doesn't make sense to build, based on the market fundamentals," said Jim Paladino, senior director with Cushman & Wakefield of Florida Inc. in Tampa. "The question is whether everybody is going to come to the party." There is caution that putting too much space on the market at the same time could create an office glut, even with Westshore's extra-large capacity. First in a line yet to be formed Westshore's newest building, the waterfront Highwoods Bay Center just off Kennedy Boulevard, is slated to open next month and will instantly add at least 200,000 square feet of speculative space. Real estate observers believe demand for Westshore will sustain top-priced rents even as new space opens up. Some predict that only half or even a third of what's planned will ever be built, as with downtown's condominium market. "Ultimately, you don't ever know because something could happen with the economy," said Kyle Burd, regional VP with Eola Capital in Tampa. The Orlando-based developer plans to build a low-rise office building along West Gray Street near Interstate 275 that could grow to at least 120,000 square feet in the next two years, depending on demand. Much larger office projects are on the horizon in Westshore, including up to 750,000 square feet replacing the former MetLife Inc. administrative center along Boy Scout Boulevard. The first 10-story office building there is scheduled to open in the next two years, and two more will be built as the market dictates. MetWest International will join MetLife's 11-story One MetroCenter, which opened in 1988. Observers say the new development could enhance One MetroCenter, which is now 94 percent occupied and already commands some of Westshore's most expensive office rent at $31 a square foot. The difference in rental rates between the building and its new neighbors should be somewhat minimal, said Hank Brenner, president of Taylor & Mathis of Florida LLC, which handles leasing and management at One MetroCenter. International Plaza buildout Across the boulevard from MetLife's site, Crescent Resources LLC plans to break ground soon on Corporate Center Four at International Plaza, an eight-story structure containing 247,000 square feet to be completed next fall. Crescent -- which opened International Plaza's first three office buildings in 1999, 2001 and 2004, totaling nearly 1 million square feet -- plans to follow its newest building with a pair of 10-story, 300,000-square-foot buildings on the other side of Lois Avenue, at a site called Cornerstone Plaza. Brand new office space in Westshore is expected to rent for as much as $35 a square foot once it's finished, well above the Bay area's $23 average. While that might seem lucrative, developers are less willing to forge ahead with new office projects than during Westshore's previous building boom in the late 1980s, when costs for land and building materials were cheaper and profit yields were greater. "It's a lot of risk to take for an OK return," Burd said. "If you build a new building now, you're going to have an arguably better property" than the aging inventory now dominating the Westshore office market. Wishful thinking Some mixed-use projects with office segments, such as Avion Park near Tampa International Airport, have taken nearly two years to get under way, while others are taking far longer, namely Tampa Bay 1 along Interstate 275. On the other hand, the market may surprise everyone. Crescent's buildings were filled shortly after opening, and Highwoods Bay Center's second seven-story twin building should start construction as soon as the first achieves sufficient occupancy. While Brenner, who saw Westshore developed first hand with Florida Real Estate Advisors (now part of GVA Advantis), said it isn't likely all the proposed space will actually be built, single-digit vacancy rates and rents approaching record levels make timing favorable for new space. Projects completed sooner rather than later have the best shot at catching prospective tenants, he said. http://tampabay.bizjournals.com/tamp...744000^1480222

June 28th, 2007, 08:18 PM	#18
Jahi98 Registered User Join Date: Oct 2003 Location: St. Petersburg, FL Posts: 807 Likes (Received): 0	I would think a new market-rate or mixed-income rental project in the 10-story range would lease up quite well in Westshore. But, it seems developers are reluctant to doing rental projects, and high-rise rental is not very common in this metro area. At any rate, it's good to see new office construction going on. At least it presents the image of a growing local economy. __________________ I bleed Orange and Green! The Urban Advisor

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

June 25th, 2007, 09:48 PM	#2
HARTride 2012 Let's go... Join Date: Apr 2007 Location: Tampa, FL Posts: 10,103 Likes (Received): 24	WOW. I like how WestShore is growing. There is so much office buildings that they make my head spin...well kind of. The only thing I don't like is the old Austin Center complex. I think that complex should be vacated and torn down within the next fifteen years. It just doesn't fit in with WestShore's modern vibe.

June 25th, 2007, 09:57 PM	#3
FloridaFuture Former Mod Join Date: Jun 2005 Location: Tampa/Gainesville Posts: 5,234 Likes (Received): 0	It's only a matter of time before all of these office projects in Westshore begin spilling over in to Downtown and any land left in Rocky Point. Especially with Westshore prices already $5 per sq. foot over the metro average. Anyway, any vertical growth for Westshore is good, its just a shame a lot of it is only psuedo urban.

June 25th, 2007, 10:25 PM	#4
randommichael Registered User Join Date: May 2005 Posts: 1,414 Likes (Received): 0	I don't mind Westshore growth, but I'd really prefer downtown office towers of 40+ stories.

June 25th, 2007, 10:47 PM	#5
TamBay Registered User Join Date: Mar 2005 Posts: 115 Likes (Received): 0	I, too, would prefer more business in downtown Tampa, but image what the Tampa skyline "could" look like in fifty years when Westshore grows east and merges with projects around UT, which will spread west down Kennedy. Obviously, the tallest buildings will be downtown, but the far-view panoramic from Downtown to Westshore and Rocky Point will be quite impressive.

June 26th, 2007, 03:10 AM	#6
randommichael Registered User Join Date: May 2005 Posts: 1,414 Likes (Received): 0	In 50 years I imagine I'll be in an old people's home not really caring much about skylines...but hey, you just never know.

June 26th, 2007, 03:19 AM	#7
jonknee Downtown resident Join Date: Dec 2005 Location: Tampa Posts: 2,285 Likes (Received): 0	Maybe your nursing home will have a skyline view? You never know .

June 26th, 2007, 03:00 PM	#8
tonyff67 Join Date: Nov 2002 Location: tampa Posts: 269 Likes (Received): 0	Am I the only one shocked, with the success of Westshore, that more residential isn't proposed? It seems logical. Urban living has picked up steam, westshore is a beautiful area, and I think something like 100K people work there. I thought for sure mixed use proposals would have started popping up. I know there is one or two, but nothing like I thought there would be.

June 26th, 2007, 08:27 PM	#10
FloridaFuture Former Mod Join Date: Jun 2005 Location: Tampa/Gainesville Posts: 5,234 Likes (Received): 0	The new Metlife proposal features a couple hundred residential units. Then there is Tampa Bay 1......

June 27th, 2007, 06:38 AM	#11
Jasonhouse Registered User Join Date: Jul 2002 Posts: 12,272 Likes (Received): 8	There are plenty of residential projects proposed for the Westshore area, which while not including thousands of units, will still easily represent a major influx of professional residents when the units are built... As we already know though, the market is shit, and redevelopment projects are moving towards commercial and hotel components in Westshore, because that's where the money is right now.

June 27th, 2007, 03:31 PM	#12
HARTride 2012 Let's go... Join Date: Apr 2007 Location: Tampa, FL Posts: 10,103 Likes (Received): 24	^ I see. Hopefully there will be no drama in WestShore like Trump Tower...or near empty condos like in Sarasota (and other places in the bay area).

June 27th, 2007, 03:40 PM	#13
Jasonhouse Registered User Join Date: Jul 2002 Posts: 12,272 Likes (Received): 8	^Not possible. Except perhaps on Rocky Point, where hundreds of pricey luxury condo units are proposed in several highrise projects.

June 27th, 2007, 06:08 PM	#15
Jasonhouse Registered User Join Date: Jul 2002 Posts: 12,272 Likes (Received): 8	^Right... Odds are, one or more of the projects proposed out there will die on the vine.

June 27th, 2007, 07:46 PM	#16
randommichael Registered User Join Date: May 2005 Posts: 1,414 Likes (Received): 0	What's going on with the Westin there? The land is clear, but last time I drove by there was no action on site.

June 27th, 2007, 10:52 PM	#17
FloridaFuture Former Mod Join Date: Jun 2005 Location: Tampa/Gainesville Posts: 5,234 Likes (Received): 0	^Over in that project's thread Kentski said that several weeks ago he saw a small crew on site and saw construction equipment on site. I have also seen some minor work on that project's site.

June 29th, 2007, 04:08 AM	#19
pimpis Registered User Join Date: Jun 2007 Posts: 21 Likes (Received): 0	I live on rocky point, so I get to keep track daily of whats going on. They did bring out a crew out to the Westin site last week and the big core drilling machine. But there has been no movement for the past couple of days again.

July 3rd, 2007, 04:12 PM	#20
HARTride 2012 Let's go... Join Date: Apr 2007 Location: Tampa, FL Posts: 10,103 Likes (Received): 24	Tampa's Westhore business district booming Tuesday, July 3, 2007 Bay News 9 Tampa's Westshore business district is experiencing a building boom. With more than 11 million square feet of office space occupied, the area is planning to add another three million square feet of space to keep up with demand. "There are a lot of companies that want to come into the tampa market and set up operations and hire local folks,'' said Carl Cronan with the Tampa Bay Business Journal. "You've still got plenty of people moving into Florida. And specifically into the Tampa market." Cronan said plans also are in the works for new retail and restaurant construction across from the Tampa International Airport. http://www.baynews9.com/content/36/2007/7/3/266749.html?title=Tampa's+Westhore+business+district+booming Click this link and then the video link to view the video report.